Negotiation Committee         

 

                           Danny Dossett

                           Jimmy Grimes        

                           Benny Neal

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FACILITY CLOSING AGREEMENT

 

 

 

BETWEEN

 

 

 

 

 

 

                                                                                   
 

 

 

 

 

 

 

 

 

 

DOTHAN FACILITY

 

 

AND THE

 

 

INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS

AFL-CIO

LOCAL LODGE NO.  1632

 

 

 

 

 

 

 

 

 

 

 

 

Dothan, Alabama

 

 

 

 

 

 

 

 

 

THIS AGREEMENT made and entered into this 10th day of April, 2012, by and between

PEMCO World Air Services, Inc., (herein referred to as the “Company” and the International

Association of Machinists and Aerospace Workers and its Local Lodge 1632 (herein referred to

as the “Union”) on behalf of itself and on behalf of the Dothan, Alabama, facility employees

which it represents.

 

WHEREAS, the Company has notified the Union of its contemplated decision to permanently

cease operation of its Dothan, Alabama, facility on or about May 5, 2012 located at 100 Pemco

Drive, Dothan, Alabama which property is leased from the Dothan – Houston County Regional

Airport Authority; and

 

WHEREAS, the Company and the Union are parties to a Collective Bargaining Agreement

effective August 10, 2008 covering wages, hours of work, insurance, and other conditions of

employment; and

 

WHEREAS, the Company and the Union have bargained in good faith with regard to the effects

 of said decision on bargaining unit employees, the benefits to be granted bargaining unit

 employees in connection with the closing of its Dothan, Alabama, facility and in conformance

with the requirements of the National Labor Relations Act (NLRA), as amended, and Board

decisional law concerning those matters which are subject to mandatory bargaining;

 

NOW, THEREFORE, the Parties hereto expressly agree concerning the termination of the

PEMCO Dothan facility as follows:

 

 

  1. The Company and the Union are Parties to a Collective Bargaining Agreement (CBA)

  2.  dated August 10, 2008, covering certain employees of the Company at its Dothan,

  3. Alabama facility.  Except as changed or modified by this Agreement, the CBA shall

  4. remain in full force and effect until the complete cessation of operations by the Company

  5. at its Dothan, Alabama facility and the termination of all bargaining unit employees.  In the

  6. event of any conflicts between the CBA and this Agreement, the terms of this Agreement

  7. shall control.

 

  1. To be eligible for the retention/stay bonus and benefits provided this Agreement, each

  2. individual employee must work until the termination date assigned to him/her by the

  3. Company, the closing date or date otherwise agreed to by the Company and the Union. 

 

  1. The Parties agree to the importance of working cooperatively.  To that end, the Company

  2. recognizes the obligation to be sensitive to the needs of affected employees.

 

  1. Each bargaining unit employee shall be provided an “employment history letter” for use

  2. in seeking future employment; the employment history letter will follow the format of the

  3. model letter attached as Exhibit A.

 

  1. The Company shall not contest the unemployment compensation eligibility of employees

  2. whose employment is terminated as a result of the facility closing, but instead will

  3. cooperate with the State of Alabama unemployment compensation representative to

  4. facilitate the receipt of unemployment compensation and any and all other local, state

  5. and/or federal benefits.

 

  1. Any dispute over the interpretation or application of this Agreement will be handled

  2. under the grievance/arbitration procedure provided in the CBA or through appropriate

  3. judicial remedies.

 

  1. In the event the Company does not shut down its Dothan, Alabama facility and terminate

  2. all bargaining unit employees, the current CBA dated August 10, 2008 through August 9,

  3. 2013, shall remain in force and effectand this agreement will be voided.

 

 

 

  1. In the event that Pemco World Air Services re-opens the Dothan facility, the Union shall

  2. be recognized by the employer as the exclusive representative of the bargaining unit and

  3. the current CBA dated August 10, 2008 shall remain in full force and effect, until a new

  4. CBA can be negotiated and ratified.  

 

  1. Pay and Benefits – With final payments checks to employees for the categories listed

  2. below, the Company will provide a paystub showing the total cumulative amount paid to

  3. the employee and the amount withheld for that payment category for calendar year 2012

  4. for the employee’s accounting and tax purposes.  This is in addition to the W-2 form that

  5. the Company is required to provide to each employee after the end of 2012.

 

  1. Payments Upon Separation.  The Company agrees to pay the following to each

  2. bargaining unit employee in separate checks within ten (10) days from the date of

  3. their separation from the Company:

 

  1. Any final pay for all hours worked up to and including the last day of the

  2. employee’s employment at the appropriate rate, less legally required deductions.

  3.  

  4. Any accrued but unused vacation and prorated vacation pay for the employment

  5. credit accumulated since his/her last entitlement date, less legally required deductions.

  6.  

  7. Any earned but not used sick/personal leave less legally required deductions.

 

  1. Retention/Stay Bonus.  The Company will pay a Retention/Stay Bonus to current

  2. active employees who remain employed through May 5, 2012 or a later date as

  3. required by the Company in order to complete the work or date otherwise agreed to

  4. by the Company and the Union.  The Retention/Stay Bonus shall be equal to three (3)

  5. weeks pay at 40 hours, subject to tax withholding and all other legally required

  6. deductions.  If employees retire, voluntarily quit or are terminated for cause, they

  7. cease to be eligible for the Retention/Stay Bonus. 

 

  1. Medical Insurance Coverage.  The employee’s medical coverage shall be extended

  2. until the end of the month in which the employee is terminated.  Thereafter, so long

  3. as the Company maintains a health plan, employees may elect continuation coverage

  4. pursuant to the Consolidated Omnibus Budget Reconciliation Act (COBRA) to the

  5.  extent as required by applicable law.

 

 

 

  1. Sickness and Accident Benefits.  Any employee receiving Sickness and Accident

  2. Benefits at the time his/her seniority would have placed him/her in lay-off status shall

  3. continue to receive such benefit as defined under the CBA. 

 

  1. Workers Compensation Benefits.  Any employee receiving Workers Compensation

  2. Benefits at the time his/her seniority would have placed him/her in lay-off status shall

  3. continue to receive such benefit until he/she is released to work or has reached

  4. maximum medical improvement up to a maximum of twenty-six (26) weeks. 

 

  1. Dental Insurance Coverage.  The employee’s dental coverage shall be extended

  2. until the end of the month in which the employee is terminated. 

 

 

 

  1. Pension.  At the time the Dothan facility closes, the Company and other plan

  2. fiduciaries will administer the pension plan and process retirement distributions as in

  3. the past and in accordance with the terms of the pension plan and applicable law. 

 

  1. Severability.  The Parties agree that this Agreement comprises the entire Agreement on

  2. the subject of the cessation of operations at the PEMCO World Air Services, Inc.,

  3. Dothan, Alabama facility and supersedes the CBA to the extent it is inconsistent with this

  4. Agreement.  Should any provision of this Agreement be finally held by state or federal

  5. authority to be in conflict with any state or federal law or regulation, such provision shall

  6. become inoperative.  All other provisions shall continue in full force and effect.  The

  7. Parties further agree to bargain in good faith for the limited purpose of negotiating a

  8. lawful alternative.

 

  1. This Agreement constitutes the complete agreement between the Parties on the subject of

  2. the cessation of operations at the PEMCO World Air Services, Inc., Dothan, Alabama

  3. facility and the termination of all bargaining unit employees.  This Agreement may be

  4. amended or replaced only by a written memorandum signed by the authorized

  5. representatives of the Parties to this document in which it is declared that such writing is

  6.  an amendment to or replacement of this Agreement.

 

 

 

 

  1. This Agreement and the Company’s obligations hereunder, are subject to any necessary

  2. approval of the United States Bankruptcy Court for the District of Delaware presiding

  3. over the Company’s Chapter 11 case.

 

 

 

 

 

 

 

EXHIBIT A

 

 

PEMCO LETTER HEAD

 

 

TO WHOM IT MAY CONCERN:

 

_______________________________ (name) was employed as a/an ______________________ ___________________________________ (position) with PEMCO World Air Services, Inc., from _________________ (date) until ________________________ (date).  At that time he was permanently laid off as a result of a total plant closing.

 

PEMCO World Air Services, Inc.

By: _________________________________ (name)

       _________________________________ (position)

Date: ________________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                             

 

August 8, 2008

 

Brother and Sisters:

 

The committee has meet all day today to finalize the Company “Last Best and Final Offer” to present

to the membership tomorrow. It has been a long day and the committee would like to thank each and

every one of you for the support that you have shown through out this negotiations.


 

Tomorrow when you sign in you will be handed a summery of the changes that has been made in the

 contract. They will be explained and questions will be answered and then a vote will be taken to accept

or reject the contract.


 

Your committee would like to see every member at this very important meeting.


 

Thank you for your continued trust and support.


 


 

Solidarity of Union Membership ensures a better contract.


 

Fraternally,


Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

 

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August 7, 2008

 

Brother and Sisters:

 

The Company gave the Union their “Last, Best and Final” offer this afternoon at 5:20 p.m. Your

committee will work tomorrow getting everything ready for Saturday’s meeting. The meeting will

be at Wallace Community College at 2:00 p.m. and the doors will open at 1:00 p.m.


 

Please bring your contract book with you at the meeting so you may follow along as the changes

are explained. You will also be given a summary of all the changes that includes everything that

was changed or modified to the contract.

 

Your committee would like to see every member at this very important meeting.

 

Thank you for your continued trust and support.


 

Solidarity of Union Membership ensures a better

contract.


 

Fraternally,


 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

 

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August 6, 2008


Brother and Sisters:

 

The committee had a productive day today. We tentatively agreed to several articles in the contract.

 A tentative agreement means that the article that was agreed to is pulled off the table and not

discussed any further.

The key economic issue that is still open at this time is wages, pension and insurance. We hope to

have a completed package by the end of tomorrow to present to you on Saturday, August 9, 2008.


 

Thank you for your continued trust and support.


 

Solidarity of Union Membership ensures a better contract.


 

Fraternally,


 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

 

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August 3, 2008

 

Brother and Sisters:

 

The committee would like to take this opportunity to thank you for the support you showed

today in the special meeting. There was a great turn out and we appreciate the support you have

shown during this time when we needed to show our solidarity.


 

Negotiations will continue Wednesday, August 6, 10:00 a.m. We will keep you updated as negotiations

continue.


 

Thank you for your continued trust and support.


 

Solidarity of Union Membership ensures a better contract.

   
 

Fraternally,

 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

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August 1, 2008

 

Brother and Sisters:

 

The Union and the Company met this morning at 8:00 a.m. and it was a long day and again with very

little progress.


We hope everyone has seen the notice that a special meeting is set up for this Sunday August 3, at

Dale County High school at 2:00 p.m.

 

We ask for your continued trust and support.


Solidarity of Union Membership ensures a better contract.


 

Fraternally,

 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

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July 31, 2008

 

Brother and Sisters:


 

The Union and the Company met this morning at 8:00 a.m. and worked throughout the day with

very little progress. This is the time when everyone needs to hang tough and keep solidarity in the

 forefront.

 

We hope everyone has seen the notice of a special meeting scheduled for this Sunday, 2:00 p.m.,

August 3, 2008, Dale County High School, Midland City, AL.


We ask for your continued trust and support.


 

 

Solidarity of Union Membership ensures a better

 contract.


 

Fraternally,

 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

 

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SPECIAL MEETING


 

Pre-Strike Sanction Vote


 

This is only a preliminary vote required by the Grand

Lodge. Another strike vote would have to be taken if

a contract offer is rejected at a later date.

 

Where: Dale County High School

 

When: Sunday August 3, 2008

 

Time: Doors will open at 12:00; the meeting will start

 at 2:00 P.M.

 

An update on the negotiation will be given to all

members in this meeting.


 

It is very important that all members attend this

meeting!!!!

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July 30, 2008

Brother and Sisters:

 

Your negotiating committee started this morning at 8:00 a.m. discussing all open issues. The

Company and the Union met a couple of times today but did not make any progress. We will meet

again tomorrow July 31, at 8:00 a.m.


We ask for your continued trust and support.


 

Solidarity of Union Membership ensures a better

contract.


 

Fraternally,

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

-----------------------------------------------------------------------------------------------------------------------------------

 

                                                          

 

July 29, 2008

 

Brother and Sisters:

 

Your negotiating committee met this morning at 8:00 a.m. to discuss open issues and get

prepared for the 1:00 p.m. meeting with the Company.


The Company came in at 1:00 p.m. this afternoon and presented a revised economic proposal for

your committee to look at and respond. We broke off at 2:05 p.m. to prepare a counter to the

Company’s proposal for the Union. The Union and the Company reconvened at 5:40 p.m. and the

Union presented a counter to the Company’s proposal and explained. We broke off negotiations for

the day at 6:00 p.m. and will reconvene with the Company at 11:00 a.m. July 30, 2008. The

committee will be meeting tomorrow morning to review and discuss alternatives. The

negotiations are not progressing as quickly as we had hoped.


We ask for your continued trust and support.


 

Solidarity of Union Membership ensures a better contract.


 

Fraternally,


Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

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July 28, 2008

Brother and Sisters:

 

The Union and the Company met today, July 28, 2008 at 10:00. a. m. and conducted in-depth

 discussions on the Apprenticeship Program with the Company’s appointed committee.


The Company’s negotiators arrived at 3:00 p.m. this afternoon and each party presented an update

on the state of the ongoing negotiations. Negotiations concluded for the day at 4:45 p.m. and

the Company suggested we resume again at 1:00 p.m. tomorrow, 29 July 2008.


Your committee will meet in the morning, 29 July 2008 at 8:00 a.m. to discuss any open issues.


 

We ask for your continued trust and support.


 

Solidarity of Union Membership ensures a better

contract.


 

Fraternally,

 

Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

--------------------------------------------------------------------------------------------------------------------------

 

                                                          

 

July 1, 2008

Brother and Sisters:


 

The Union and the Company met today July 1, 2008, at 11:00 a. m. No progress was made.

 The Union is very frustrated with the Company’s position concerning economic issues in the last

several meetings.

For example: Concerning pensions, the Company is proposing no increase in the first year, $2.00

increase the second year and $1.00 in the third year and no increase in the forth year on a

 proposed four year agreement.


The Union has proposed the IAM National Pension fund that provides a benefit of $46.98 with a one

dollar per hour contribution. The Union proposed a $.20 cents increase the second year and an

additional $.20 cents the third year which would provide you a $62.08 benefit per month per

year of service the third year. The Company appears adamantly opposed to the IAM Pension even

though it would provide you better benefits with approximately the same cost or less to the Company.

 

In addition, concerning overtime the Company is proposing no double time for Sunday unless

you work forty regular hours during the normal work week.


Concerning insurance, the Company is proposing to more than double your premium payment

each month upon ratification for family coverage plus significant premium increases each year

there after. There is also significant increases for single and employee plus 1 premiums.

 

Your committee is holding firm to the economic issues that your surveys indicated were your

priorities.

We ask for your continued trust and support.


 

Solidarity of Union Membership ensures a

better contract.


 

Fraternally,


The Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

-----------------------------------------------------------------------------------------------------------------------------------

 

                                                          

 

 

June 30, 2008,


Brother and Sisters,

 

The Union and the Company met today June 30, 2008, at 09:00 a. m. We continued our

discussions concerning wages, health insurance and Pension. No agreement was reached on

these issues.


 

Your Committee is committed to staying strong.



 

Solidarity of Union Membership ensures

a better contract.


 

Fraternally,

 

The Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

------------------------------------------------------------------------------------------------------------------------------

 

                                                            

 

 

June 12, 2008,

Brother and Sisters,


 

The Union and the Company met today June 12, 2008, at 09:00 a. m. We continued our

discussions concerning wages, health insurance and Pension. No agreement was reached on

these issues. We have completed this round of negotiation until a later date and we have

tentative dates set for continuing negotiation on June 23 & 27 & 30 and 1 -2 July, 2008.



 

Solidarity of Union Membership ensures a

better contract.


 

Fraternally,


The Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

---------------------------------------------------------------------------------------------------------------------------

 

                                                             

 

June 11, 2008,


Brother and Sisters,


The Union and the Company met today June 11, 2008, at 09:00 a. m. We had several discussions

concerning wages, health insurance and Pension. No agreement was reached on these issues. We

will continue negotiations tomorrow morning.

 

Solidarity of Union Membership ensures a

better contract.


 

Fraternally,

 

The Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

------------------------------------------------------------------------------------------------------------------------------

                                                             

                                                

June 10, 2008,

 

Brother and Sisters,

 

The Union and the Company met June 10, 2008, at 11:00 a. m. to continue negotiation.

We exchanged two economic proposals and at the end of the day no progress was made.


 

Negotiations will reconvene tomorrow morning.


 

Solidarity of Union Membership ensures a

 better contract.


 

Fraternally,


 

The Negotiating Committee

Local Lodge No. 1632

Napier Field, Alabama

------------------------------------------------------------------------------------------------------------------------------



 

 

 

 

 

 

 

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