Horizon Contract

AGREEMENT

Between

HORIZON BEVERAGE COMPANY, INC.

And

LOCAL 8D, UFCW, AFL-CIO

October 1, 2018 to September 30, 2023

 

---

 

AGREEMENT

            THIS AGREEMENT entered into on the ______ day of January, 2019, by and between Local 8D, UFCW affiliated with the AFL-CIO, hereinafter referred to as the “Union” and Horizon Beverage Company, Inc., 45 Commerce Way, Norton, Massachusetts, its successors and assigns, hereinafter referred to as the “Company.”

 

WITNESSETH

WHEREAS, it is agreed between the parties hereto to be of mutual advantage to settle by this Agreement the terms, compensation and conditions of employment of salespersons working out of the Company’s 45 Commerce Way, Norton office; to promote and improve relationships between and among the Company, its salespersons, and the Union, and to promote the economic interests of the Company and its salespersons and now and therefore, in consideration of the mutual covenants and agreements hereinafter contained it is agreed as follows.

 

ARTICLE 1. - UNION RECOGNITION

• The Employer does hereby recognize the Union as the sole labor organization representing the Employer’s salespersons at its 45 Commerce Way, Norton office in the Commonwealth of Massachusetts and recognizes and agrees to treat and negotiate with the union as the sole and exclusive collective bargaining agency for and on behalf of all salespersons excluding office clerical employees, drivers, warehousemen, professional employees, supervisors and guards as defined in the Act. This collective bargaining agreement will apply to any new divisions created at the Norton location.  It will not apply to the Company’s Western Massachusetts operation or to any acquired company.
• Upon the employment or separation from employment of any salesperson, the Company will, within ten (10) days, notify the Union in writing of the name and date of employment or separation from employment of such salesperson. Provided, however, the Company shall not be responsible for any financial cost incurred by the Union as a result of the Company’s failure to comply with the provisions of this notification requirement.

 

ARTICLE 2. - UNION SECURITY

(a)        Union membership shall be required of all salespersons as a condition of continued employment effective on and after the thirty-first (31^st) day following the beginning of their employment or the execution date of this Agreement, whichever is the later.  For purposes of this Paragraph, Union membership shall not be denied or terminated for any salespersons for reasons other than his failure to tender the periodic dues and initiation fees uniformly required by the Union as a condition of acquiring or retaining membership.  The Union agrees to indemnify and save the Company harmless against any and all claims which may arise out of or come into being by reasons of any action taken or not being taken by the Company for the purpose of complying with this Paragraph.

(b)       The Company agrees that, whenever additional salespersons are required, or when a current employee leaves the Company’s employ and his/her route becomes available, it will request from the Union a list of competent members and the Union agrees to furnish such a list promptly at the Company’s request.  The Company, at its option, may select a person from such a list or may engage a salesperson in the open market.  In no event shall this Paragraph be used to discriminate against or in favor of any individual on account of his membership or non-membership in the Union.

(c)        Prior to hiring any salesperson who has left the employ of any other firm in the industry, the Company may check with the Union as to the honesty of such salesperson.

 

ARTICLE 3. - TRIAL PERIOD, DISCHARGE

(a)        All new salespersons employed by the Company subsequent to the signing of this Agreement shall be given a thirteen (13) month trial period, as hereinafter set forth.  During such trial period the Company may arbitrarily and without the necessity of assigning any cause, discharge any such salesperson but shall give the Union prompt notice of the discharge.

(b)       Any salesperson now employed, or any salesperson employed subsequent to the signing of this Agreement who shall have been retained by the Company beyond the said trial period, may not be discharged by the Company except for just cause.

(c)        The Company shall not discharge any salesperson employed beyond the trial period without just cause.  In the event the Company desires to discharge a salesperson, the reasons for such discharge must be given in writing to the Union, at least one week prior to the proposed date of discharge, except in the case of dishonesty when notice will be given to the Union within twenty-four (24) hours of the discharge.  In the event that the Company and the Union do not agree, in writing, within one week that justifiable cause exists for the discharge or dismissal of any such salesperson, the matter shall be submitted to arbitration as hereinafter stated within ten (10) days from the date of the discharge.

(d)       The Union recognizes the right of the Company to manage its business including, but not limited to, the location of places of business, the establishment of reasonable rules for the conduct of its employees, the right to hire, layoff, discipline or discharge employees for just cause and the right to require reasonable standards of performance provided that the Company shall not exercise any of the rights provided herein so as to violate this Agreement.  If any such rules and regulations are issued in writing, a copy shall be sent to the Union.  If the Union believes that any such rules and regulations are unreasonable on their face or application or are otherwise in violation of this Agreement, the Union shall have the right to submit such dispute to arbitration pursuant to the terms and conditions of Article 21.

 

ARTICLE 4. - COMMISSIONS, DRAWING ACCOUNT

(a)        The Company’s salespersons shall be paid upon sales as distinguished from upon collections, as follows:

For salespersons hired before January 11, 2008:

3.5% commission on all on premise wines

3.5% commission on all on premise spirits

3.7% commission on all off premise wines except as set forth in Article 4(c)

3.5% commission on all off premise spirits except as set forth in Article 4(c)

For salespersons hired after January 11, 2008 and, with regard to salespersons hired prior thereto, on any new, “added value” accounts and except for limited account commission rates which remain unchanged:

3.5% commission on all on premise wines

3.0% commission on all on premise spirits

3.2% commission on all off premise wines except as set forth in Article 4(c)

3.0% commission on all off premise spirits except as set forth in Article 4(c)

Any KPIs for the Patriot Division shall be in addition to the rates set forth in the Article.

 

For all salespersons:

2.25% commission on beer (except for accounts set forth in Article 4(c) which remain at 2%).

1% of the invoice for sales to military installations and close-outs

2.5% commission for Wegman’s accounts

2.5% commission on private label wines, which are defined as:

1. wines created and brought in for one particular account or chain;
2. no selling responsibility, quotas, RYGs; and
3. wine cannot be sold outside of the dedicated account/chain.

As of January 1, 2011, the commission percentages for certain low margin items will be those set forth in Addendum A hereto.

            The Company shall furnish weekly to each salesperson duplicate copies of all invoices of all sales made or credits to such a salesperson which indicate the proper credits to such salesperson.  The Company may satisfy this obligation by providing electronic access to such documents rather than paper copies.  The Company agrees that it will not discharge, discipline, reassign accounts, brands or product lines except for legitimate business reasons and not for the purpose of paying a lower rate of commission.

(b)       [Reserved]

(c)        National/Regional Club Store, Grocery Store and Drug Store Retailers, Military and Transportation Accounts Reclassification Agreement.

1. No-touch accounts. These are accounts where:

1. 1. Salesperson does not enter store.
   2. Salesperson is unable to sell in new products.
   3. Salesperson does not manage ATB.
   4. The Company is not providing merchandising support. However, the Company may provide such support on an ad hoc basis only if the account so requests.
   5. Trader Joe’s and Costco are the only current no-touch stores. All transportation accounts are no-touch.
2. Commission rates will be as follows:

(i)    Current No-Touch/No-Show:  Remain at current rate (either 1% or 2.5%) until that salesperson leaves the company/account, then goes to 0%.

(ii)   New No-Touch/No-Show Accounts:

1. 1% commission if created via purchase of an existing licensee, until that salesperson leaves the company/account, then goes to 0%.
2. 0% if created via a new license.

1. 2. Limited Accounts. These are accounts where:

1. Selling activity is handled by the National Accounts Team.
2. Salesperson primarily performs merchandising/order-taking role.
3. The stores in this category are: BJs,  KH&H, Roche Bros., Star/Shaws, S&S, Walgreens, Whole Foods, RWJ/Pyramid, Walmart, Hannafords, Golub/Price Chopper.
4. Wegman’s will remain at 2.5%.
5. Commission rates will be as follows:

(i)    Current Limited Accounts.  Will remain at current rates until that salesperson leaves the company/account, then:

2. 5% if given to a redlined salesperson (hired before 10/1/13).
3. 2% if given to a redlined salesperson and RAM is needed.
4. 6% if given to a new salesperson (hired after 10/1/13).

(ii)   New Limited Accounts (including conversions from traditional):

2. 5% if given to a redlined salesperson (hired before 10/1/13).
3. 2% if given to a redlined salesperson and RAM is needed.
4. 6% if given to a new salesperson (hired after 10/1/13).

3. Traditional National/Regional Club Store, Grocery Store and Drug Store retailers, accounts. These are where:

1. There is normal selling, ATB, salesperson merchandising activity.
2. Full commission, even if RAM is in the account.

4. No touch and limited touch accounts are restricted to National/Regional Club Store, Grocery Store and Drug Store retailers, and transportation accounts. A Company/Union committee will be formed to review the proper placement of any accounts that enter the market after the effective date of the agreement or that either party believes should be converted to a different category (i.e., from no-touch/no show to limited or full, from limited to full or to no-touch/no-show, or from full to limited or to no-touch/no-show).  Any dispute may be submitted to arbitration.

5. If a traditional account converts to a limited account, then the Company may reassign the account to another salesperson if requested by the customer. In that case, the Company will try to make up with new accounts.
6. The rates set forth in Article 4(c) shall control over other rates specified elsewhere in the contract (i.e., private label wine, Patriot).

(d)       The Company’s salespersons shall be entitled to receive the following compensation for their services so long as they continue in the employ of the Company:

1. All commissions earned shall be determined not later than Friday following the close of the week’s business, and commission earning statements shall be furnished the salespersons at that time.  If a salesperson earned less than $90,000 in the previous calendar year and earns commissions during the week that do not exceed Six Hundred Dollars ($600.00) then the salesperson shall be entitled to and shall receive no less than Six Hundred Dollars ($600.00) gross as a minimum drawing account.  If a salesperson earned more than $90,000 in the previous calendar year and earns commissions during the week that do not exceed Nine Hundred Dollars ($900.00) then the salesperson shall be entitled to and shall receive no less than Nine Hundred Dollars ($900.00) gross as a minimum drawing account.  In the event that the commission earned during the week shall be less than the Six Hundred Dollar ($600.00) or Nine Hundred Dollar ($900.00) gross minimum drawing account, as set forth above, then the difference shall be charged against so much of the commissions earned during the following weeks as shall exceed the minimum drawing.  In other words, in no event shall any salesperson receive less than the Six Hundred Dollar ($600.00) or Nine Hundred Dollar ($900.00) gross dollar minimum drawing account herein specified.  Deficiencies in earnings of commissions as against this drawing may be made up out of the future commission earnings which may be in excess of the minimum weekly drawing agrees to be paid to the salesperson, provided, however, that the maximum deficit shall be One Thousand Eight Hundred Dollars ($1,800.00) and in said case there shall be  discussion between the Union and the Company relative to whether there shall be a reduction of the weekly drawing to reduce the deficit below One Thousand Eight Hundred Dollars ($1,800.00) or a termination of the weekly drawings for a period of time.  Gross minimum drawing accounts shall be cash or check to the salesperson less Union dues subject to check-off.  This provision may be reopened if the Company suffers a financial loss as a result of these draws.
2. There shall be no deduction from the drawing account as hereinabove set forth for the following holidays, which it is hereby agreed shall be given to the salespersons: New Year’s Day, Martin Luther King’s Birthday, Washington’s Birthday, Patriot’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Thanksgiving Day, Day after Thanksgiving, Christmas Day, Sundays and Good Friday.  When Good Friday falls on a Friday other than the first or last Friday of the month then it will be a full paid holiday, although employees may choose to observe Yom Kippur instead.  If Good Friday falls on the first or last Friday of the month, then salespersons at 11:00A.M. shall be permitted to leave work for the rest of the day to attend Church Services.  Washington’s Birthday, Patriot’s Day and Columbus Day will be observed on the prior Friday and the following Monday will be a regular work day unless the Company closed for Washington birthday week.
3. Salespersons shall be allowed four personal days each contract year. Salespersons with one year’s service or more shall have one additional personal day each contract year and salespersons with ten years’ service or more shall have a second, additional personal day each contract year.  The combined number of salespersons taking vacation and personal days on any given day cannot exceed 30% of the total number of salespersons in the applicable sales division, except on Fridays when a sales meeting is being held, in which case the combined number of salespersons taking vacations and personal days cannot exceed 25% of the total in the applicable sales division.  Salespersons who are on FMLA leave, or who need to take time off due to an emergency, shall not be counted against the above percentages.  Unused days may not be redeemed for compensation at the end of the year.  However, Salespersons may roll over up to three (3) personal days to the following year but cannot have more than 7, 8 or 9 personal days in any one year, depending upon the salesperson’s annual allotment of personal days as described above.

(e)        House Accounts - Commissions

            The Company shall not open, maintain or sell through any house accounts.  In the event the Company shall make or affect any sales through any of its officers, members of the firm or by any other means than through a salesperson, full commission upon such sales shall be paid to the salesperson in whose territory the customer to whom such sale was made shall be located.

            However, the Company may decide to establish a voluntary tele sell program under which certain accounts may be voluntarily relinquished by a salesperson and serviced via non-union personnel.  No commission shall be paid to a salesperson for sales made hereunder.  The nature and operation of such a division shall be a matter of Company discretion; provided, however, under no circumstances shall a salesperson be required to give up any accounts hereunder, as such program may only be voluntary in nature.

(f)        Illness

            It is further agreed and understood that in the event of extended illness which prevents a salesperson from calling on his accounts, the Company will assign his key accounts to other salespersons who are in a position to service them, and they will call on them.  The Company will solicit the remaining accounts.  Commissions on all sales made during the first ninety (90) days shall accrue to the salesperson whose accounts are being so handled provided that the salesperson shall be guaranteed Six or Nine Hundred Dollars ($600.00 or $900.00) a week, as applicable per Article 4(d).  After ninety (90) days the salesperson will be covered by the long term illness plan as specified in Article 11(d).  The Company may then assign accounts temporarily among its sales force, hire a temporary salesperson (with no seniority) or utilize supervisors to service the accounts and shall pay commissions to the salesperson servicing the accounts until the disabled salesperson returns to active employment.  After six (6) months of absence due to disability, the Company may assign his/her accounts or territory to another salesperson(s) on a permanent basis.  In the event that the disabled salesperson thereafter returns to work, reasonable efforts will be made to establish a territory for him and he shall be given preference in employment before any new salesperson is hired.  In the event that the disabled salesperson returns to work within nine (9) months of his/her initial leave, the Company will guarantee his/her salary at no less than 80% of the average of the salesperson’s last three years’ earnings.

(g)       Salespersons assigned to temporarily service or otherwise cover any accounts, excluding accounts of employees on short term sick leave, shall be paid full commissions for the service of an account, if:

1. No one else is receiving commissions on the account.
2. Management has given the salesperson written authorization to call on the account.
3. Salesperson is performing all of the sales duties, not simply picking up checks.

(h)       The Company agrees to make available to the Union Representative the gross earnings of each salesperson as soon after the close of the year as possible.

(i)        It is agreed that with respect to a new item, the Company may request the Union to agree to a lower rate of commission to meet competitive conditions.

(j)        Upon mutual agreement between the Company and Union, a “pooling” or similar commission structure may be established for any account, or group of accounts, in order to ensure an equitable distribution of commission money, and ensure that the account(s) is serviced properly.

 

ARTICLE 5. - VACATIONS

            Each salesperson shall be entitled to two (2) weeks’ vacation after one (1) year of employment and three (3) weeks’ vacation after five (5) years of employment.

Commission on all sales to his accounts during the vacation period shall be credited to the salesperson on vacation

            A vacation schedule shall be posted by the Company and salespersons shall select their vacation in order of their seniority.  Vacation periods shall be scheduled by mutual consent of the Company and the employee.

 

ARTICLE 6.

            It shall be the Company’s policy not to induce, and to discourage all persons in its employ from inducing any salesperson to give up, surrender or return any part of his compensation.  Any attempt on the part of the Company to induce any salesperson by any means whatsoever to return any part of his /her compensation shall constitute a breach of this agreement.  There shall be no alteration, modification, or waiver of any provision of this contract by virtue of any individual agreements between such salesperson and the company and any such arrangement shall constitute a breach of this agreement.  Notwithstanding the foregoing, the Company may pay lower commission rates for accounts than otherwise specified herein but only if agreed to in writing by the Union, Salesperson and Company.

 

ARTICLE 7. - TERRITORIES

(a)        So long as the territory and/or accounts in question are adequately serviced, any territory and/or accounts heretofore assigned to a particular salesperson, and any territory and/or new, added-value accounts hereafter assigned which new assignment shall continue for a period of six (6) months, shall be deemed to be the exclusive territory or accounts of such salesperson during the term of this Agreement and any renewal or renewals thereof, and he shall not be required to surrender same, nor shall he be transferred to any other territory or accounts without his consent except for just cause.  In the event of any dispute arising under the provisions of this Paragraph, it is agreed, between the parties that they shall meet with a view towards adjusting the same.  If the dispute is not resolved at this meeting the issue shall be promptly submitted to arbitration. However, under no circumstances shall the assignment of new accounts/territory be a matter for arbitration and the Company shall have the right to determine who is best qualified to cover the territory in question.

 (b)      The Company may remove one or more accounts from a salesperson (outside of normal trades, “just cause” removal, removals resulting from previously agreed upon assignment of a new account, or any other removal), subject to the restrictions of this section.  Such account removal is referred to herein as a “re-balancing”.

• Within any rolling 18-month period a salesperson may have his/her territory rebalanced only once under this section.
• No more than 10% of the salesperson’s commission dollars (calculated over the most recently completed 12 months) may be removed during a rebalancing.
• No removed account can account for 5% or more of a salesperson’s total commissions earned over the most recently completed 12 months.
• All rebalancing decisions will be made at the President level.
• Any rebalancing hereunder shall be evidenced by documentation signed by management and the salesperson identifying the account movement as a rebalancing.
• The salesperson must receive back account(s) representing commission dollars equal to at least 90% of the commissions generated over the most recently completed 12 months by the account(s) being removed.
• The highest commission rates (subject to and as set forth in Article 4)of any account which is being removed from a salesperson hereunder shall be the commission rates of all of the incoming accounts hereunder. If that rate is a limited account rate (currently, 2.5%, 2% or 1.6%), and the account(s) coming back are not limited, then the incoming rates shall be at the highest rates such salesperson is eligible for under Article 4(a) (depending on seniority).  However, any incoming limited account shall only receive the applicable limited rate set forth in Article 4(c)2.e.(ii), which are currently 2.5%, 2% or 1.6%.

The Company and Union shall meet regularly to review the application of this section.

Examples of proper commission rate calculations under this section are set forth in Addendum B hereto.

(c)        If an account has been inactive for one (1) year or more (a pocket license), and later reopens, the Company shall then have the right to assign such account to any salesperson in its employ.

 

ARTICLE 8. - CHECK OFF

            The Company agrees, upon receipt of voluntary authorization from salespersons, to deduct from the earnings of such salespersons the initiation fee, assessment and regular monthly dues, providing it does not conflict with any State or Federal Law, and to remit all such monies to the Union.

 

ARTICLE 9. - LAYOFFS, SENIORITY

            In the event of a reduction in work force, layoffs will be by seniority by selling company.  Employees who are on layoff shall, for a period of 12 months from the date of layoff, have the first right of refusal for any subsequent job opening in his/her division (i.e, Premium, Coastal, etc.).

            The accounts of said laid off salespersons shall be distributed among other salespersons in accordance with Article 7(a).  In the event the laid off salesperson is recalled or an additional salesperson is hired, the accounts so distributed will be reassigned to the recalled or newly employed salesperson.  It is agreed and understood that the Shop Stewards/Executive Board members, who shall be selected by the Union to represent both the Union and salespersons working for the Company, shall have top seniority over and above all other salespersons working for the Company.

 

ARTICLE 10. - SALES MEETINGS

            It is agreed that the Company shall not have sales meetings on Saturdays unless such a meeting is called by a supplier to the Company.

            It is agreed, should it become necessary for a salesperson to attend meetings outside the territory covered by the Company, that expenses incurred due to attendance at these meetings shall be paid by the Company.  It is further agreed that if it should become necessary for a salesperson to attend meetings outside his/her normal work schedule and territory, parking expenses incurred due to attendance at these meetings shall be paid by the Company, if the Company does not provide group transportation to the meetings.

 

ARTICLE 11. - INSURANCE

(a)        It is agreed that the Company will continue the current group insurance plan and PCS prescription card.  The Company may, upon thirty (30) days’ notice to the Union, provide comparable benefits through another carrier or self-insurance.

(b)       It is further agreed that all salespersons and their eligible dependents shall be covered by the current dental plan.

(c)        Each salesperson in the employ of the Company shall have a $100,000.00 death benefit  up to the age of 62 and a $50,000.00 death benefit thereafter.

(d)       It is agreed that the salespersons shall be covered by a group long term disability policy, which will provide after a ninety (90) day elimination period, 60% of earnings to a maximum of $60,000.00 per year; up to age seventy (70) for sickness and accident; inclusion of family offset and Workman’s Compensation; 50% benefits after age sixty-five (65).  The Company may, upon thirty (30) days’ notice to the Union, provide comparable benefits through another carrier or self-insurance.

(e)        It is agreed that employees will pay 25% of the premium each year for the benefits enumerated in section (a) and (b) except that employees covered by the non-HMO plans will pay 15% of the premium each year.  It is agreed that the Company will pay the premiums for the benefits enumerated in sections (c) and (d) of this Article 11, subject to the terms of the plan(s) then in effect, applicable law, and the terms set forth in this Article 11.  Employees otherwise eligible for the benefits enumerated in section (a) and who opt not to receive such health insurance from the Company shall receive the following payments for each month that they are not participants in the Company’s health plan:

(i)    $300.00 per month if the employee would have been eligible for single coverage;

(ii)   $450.00 per month if the employee would have been eligible for single +1 coverage; or

(iii)  $850.00 per month if the employee would have been eligible for family coverage.

(f)        A salesperson who has fifteen (15) or more years of service with the Company, retires between the ages of 60 and 65 and elects to continue receiving medical coverage under COBRA, shall receive $500.00 a month toward that coverage, from the Company, for a period of eighteen (18) months or until s/he is offered comparable coverage through new employment, if prior to 18 months.  Service with Boston Beverage and Colonial Liquors shall count as service with the Company.

(g)       A retired employee shall be permitted to continue medical coverage for his/her spouse and dependent children, at his/her own expense, in accordance with applicable state and federal laws.

 

ARTICLE 12. - PENSION AND RETIREMENT FUND

            The Company will make monthly contributions as set forth below for each employee covered by this Agreement to the Trustees of the Local 8 Retirement Fund for the purpose of enabling said Trustees to provide pension benefits at the Trustees shall determine in accordance with the Fund’s policies and procedures and the Agreement and Declaration of Trust establishing said Fund.

Period: October 1, 2018 through September 30, 2019
Monthly Contribution: $450.00

Period: October 1, 2019 through September 30, 2020
Monthly Contribution: $460.00

Period: October 1, 2020 through September 30, 2021
Monthly Contribution: $470.00

Period: October 1, 2021 through September 30, 2022
Monthly Contribution: $475.00

Period: October 1, 2022 through September 30, 2023
Monthly Contribution: $475.00

 

ARTICLE 13. - CONTINUATION OF BENEFITS

            It is agreed that in the event of extended illness, the Company will continue to contribute and pay for the benefits provided in Article 11(a), (b), and (c) for employees and their dependents for the first six months of disability and contributions to the Trustees of the Local 8 Pension and Retirement Fund for the first six (6) months of disability.  The employee may continue all of the benefits (except pension) after the six (6) month period at his or her cost under COBRA.  If the Company has hired a temporary salesperson (with no seniority) to service the accounts of the disabled salesperson, the Company shall not be required to provide the above benefits for the temporary salesperson while paying the cost of same for the disabled employee.  If the terms of any foregoing plans described above do not permit the Company contributions described above the Company shall pay the employee an amount equal to the contributions it would have made on his behalf in lieu of such Company Contributions.

 

ARTICLE 14. - PAID DEBTS

            If any receivables that are 210 days or older have been placed in bankruptcy at the end of the Company’s fiscal year (November 30^th) the commission generated will be charged against the salesperson.  In the event the indebtedness is later paid, the salesperson will receive the commission at the rate in effect when the merchandise was delivered.  If partial settlement is recovered the salesperson will be paid upon the amount recovered.

 

ARTICLE 15. - MILITARY LEAVE

            In the event, pursuant to the Laws of the United States Government, any salesperson shall be requisitioned, conscripted, drafted or enlists into the Military, Naval, Marine, Coast Guard or other service of the United States for the purpose of training or otherwise, any salesperson who shall be drafted, conscripted or requisitioned to fill some position in a war industry or agricultural work, shall be given a leave of absence for such period of service without prejudice to his seniority rights.  At the termination of his service, he shall be re-employed within ninety (90) days from the time of his discharge from the government service, given his territory and accounts or their equivalent to the fullest extent practical that he had at the time he left for service and shall be paid fully in accordance with the provisions of his Contract or the Contract in effect at the time of his resumption of service with the Company, provided that said salesperson shall be physically and mentally qualified and possessed of a Certification of Honorable Service.  The operation of this clause shall not deny the Company the right, if necessary, to lay off employees with the least amount of seniority.

 

ARTICLE 15A. - FAMILY AND MEDICAL LEAVE

1. Employees who meet the statutory eligibility requirement will be entitled to the benefits of the Family and Medical Leave Act (FMLA).
2. Each eligible employee is entitled to take up to 12 weeks of FMLA leave per calendar year.
3. Eligible employees shall be entitled to FMLA leave for the following purposes: a) Birth of a child or to care for a newborn; b) Placement of a child under the age of 18 for adoption or foster care; c) Care for employee’s spouse, domestic partner, child or parent with a serious health condition; d) Absences due to a serious health condition that makes the employee unable to perform the functions of his or her job, as defined in the Act.
4. Any leave taken under the other provisions of this Agreement, under circumstances which would qualify for leave under the FMLA, will be counted toward the twelve weeks of the leave available under the FMLA provided notice to this effect has been given to the employee prior to or during such leave.
5. An employee’s available and applicable paid leave (e.g. vacation, salary continuation, in the case of an employee’s own incapacity) may be substituted for unpaid FMLA leave at the discretion of the employee.
6. Any violation of the FMLA shall be subject to the grievance and arbitration provisions of this Agreement.
7. Eligible employees shall be entitled to take up to twenty-four (24) hours of unpaid leave per calendar year under the Small Necessities Leave Act for the following purposes: to participate in school activities directly related to the educational advancement of the employee’s son or daughter, such as parent/teacher conferences or school placement interviews; to accompany a son or daughter to routine medical or dental appointments; to accompany an elderly relative to routine medical and dental appointments or for other professional services related to the elder’s care. Any disputes about coverage shall be subject to the grievance and arbitration provisions of this Agreement.  An employee’s available and applicable paid leave may be applied to unpaid leave taken under this paragraph at the option of the employee.

 

ARTICLE 16. - NO STRIKE CLAUSE

            It is understood and agreed that during the term of this Agreement or any extension or renewal hereof, there shall be no strike, lockouts, stoppages, slowdowns or walkouts.  Refusal by either the Company or the Union to adhere to any matter that is referred to arbitration by either party, or any decision rendered by the Board that is not adhered to by either party then the no strike provision in this Article will not be applicable.

 

ARTICLE 17. - SUCCESSOR CLAUSE

            This agreement shall inure to the benefit of and shall be binding upon the heirs, executors, administration, successors and assigns of the parties hereto.

 

ARTICLE 18. - EMPLOYEE RIGHT

            It shall not be a violation of this Agreement of cause for discipline for any employee to refuse to enter upon the premises of any employer (including the Company, party to this Agreement) if the employees of such employer are engaged in a strike ratified or approved by a representative of such employees whom such employer is required to recognize under the Act.

 

ARTICLE 19. - BUSINESS EXPENSE

            The Company shall, on receipt of vouchers, identify any payment or part of any payment which constitutes reimbursement of salespersons’ ordinary and necessary business expenses and, to the extent permitted by the Internal Revenue Code and Treasury regulations and rulings issued thereunder, shall not deduct or withhold any Federal income or employment taxes with respect to such payment or such part of any payment.

 

ARTICLE 20. - SALES CONTEST

            Whenever there is a Sales Contest, each employee shall be given a copy of the contest rules.

 

ARTICLE 21. - ARBITRATION

            Any dispute arising during the terms of this Agreement concerning the interpretation or application of any provision hereof, which cannot be adjusted by the parties hereto may be submitted by the Company or the Union (and by no other party) to arbitration.

            The Company and the union shall select a disinterested party whose decision, after hearing the case, shall be final and binding on both the Company and the Union.  Should the Company and the Union be unable to agree on a party, the arbitration shall be conducted under the rules of and by the American Arbitration Association.

            The Arbitrator shall have no power to add to or subtract from or modify any of the terms of this Agreement or any Agreement supplemental thereto.

            All fees and expenses of the Arbitrator shall be shared equally by the Company and the Union.

            It is agreed that all grievances must be filed and processed with reasonable promptness.

 

ARTICLE 22. - AGREEMENT TERMINATION

(a)        This Agreement constitutes the sole and entire existing Agreement between the parties hereto, and supersedes all prior understandings, commitments, methods and rates of compensation except as defined in this Agreement.  In addition, however, the following fringe benefits and company practices and policies shall be continued during the term of this Agreement:

1. jury duty;
2. death in the immediate family;
3. leaves of absence;
4. legitimate breakage;
5. cell phones with 700 free minutes per month;
6. digital cameras or camera phones; and
7. casual wear for summer (ties only), defined as the period between Memorial Day and Labor Day.

(b)       It is understood that the Company has all the customary and usual functions of management including but not restricted to the right to direct, plan and control business operations, to hire, to suspend and discharge for just cause, to lay-off for economic or other legitimate reasons, to promulgate reasonable rules and regulations provided that such rights shall not be exercised so as to violate this Agreement.

(c)        This Agreement shall be effective October 1, 2018 and shall remain in full effect until September 30, 2023.  It will automatically renew itself for one year periods unless either party gives written notice to the other at least sixty (60) days prior to September 30, 2023 or any subsequent September 30.

 

ARTICLE 23. - MEMORANDUM ITEMS

The following items have previously been agreed to between the Company and the Union in separate memoranda.  For convenience, they are being consolidated below:

• In the event there are legislative changes affecting the sale of alcoholic beverages, e., no price postings, no restriction on numbers of stored owned, etc., either party may reopen the Agreement to discuss the impact of such changes and whether amendments to the Agreement are warranted.
• The parties understand that the continued participation of non-employee dependents in the group insurance plan as provided in Article 11(g) may not be permitted by the carrier. In such case, the Company shall be relieved of any obligation or liability.
• [Reserved]
• [Reserved]
• The Company agrees to contemporaneously furnish the Union with copies of any documents provided to employees that they are required to sign regarding their compensation or terms and conditions of employment.
• If Massachusetts declares a state of emergency, salespersons living or working in areas covered by the state of emergency are not required to call on accounts or drive to Norton.
• The Company agrees to indemnify salespersons up to their previous year’s commission dollars on Constellation products in an account if that account becomes a Patriot account.  Indemnification shall be paid quarterly and shall be offset by any additional earnings from accounts given to make up the loss.  Indemnification shall last for one year following the conversion to a Patriot account.
• Salespeople will be responsible for the cost associated with replacing any broken, lost, stolen or missing equipment issued to them including but not limited to computers, surfaces, cell phones, and access badges. Any insurance proceeds received by the Company from the technology providers shall be applied against the amount owed.  Salespeople shall not be responsible for the first instance of loss relating to each particular item.  The salesperson shall bear no financial responsibility for a natural equipment failure of any item, nor shall such an event count as a “first instance” as contemplated by the previous sentence.

IN WITNESS WHEREOF the parties have set their hand this ____ day of January, 2019.

FOR THE COMPANY

HORIZON BEVERAGE COMPANY, INC.

By:_________________________________

Michael Epstein

 

LOCAL 8D, UFCW

FOR THE UNION

By:_________________________________

William Vine

 

ADDENDUM A

1.75  Ron Virgin White Rum     2.0%

LT     Ron Virgin White Rum     2.0%

1.75   Ron Virgin Heavy Rum     2.0%

LT   Ron Virgin Heavy Rum     2.0%

1.75   Nuyens Vodka     2.0%

LT   Nuyens French Brandy     2.0%

750    Nuyens Wisniowka     2.0%

1.75   Gold Crown Vodka    2.5%

LT   Gold Crown Vodka     2.5%

375   Gold Crown Vodka     2.5%

LT    Gold Crown Blend     2.5%

LT    NY Brand L.I. Iced Tea     2.5%

1.75   Kapali Coffee Liqueur     2.5%

1.75   Poland Springs Vodka     2.5%

LT    Poland Springs Vodka     2.5%

1.75    Poland Springs Light Vodka     2.5%

1.75    Poland Springs Gin     2.5%

LT    Poland Springs Gin     2.5%

1.75    Poland Springs Blend     2.5%

LT    Poland Springs Blend      2.5%

 

ADDENDUM B

• Amy gives up a 3% and 3.5% account. There are two accounts coming back, both are at 3%.  Amy gets these accounts at 3.5%.

• Barry gives up two 3% accounts. There are two accounts coming back, one at 3.5% and one at 3%.  Barry gets these accounts at 3%.

• Claire gives up a Walmart which is currently at 2.5%. She is getting back an independent liquor store currently at 3%.  Claire was hired before January 11, 2008.  Claire gets this account at 3.5%

• David gives up a Walmart which is currently at 2.5%. He is getting back an independent liquor store currently at 3.5%.  David was hired after January 11, 2008.  David gets this account at 3%.

• Ellen gives up a 3% account. She is getting back a Walmart currently at 3%.  Ellen was hired before October 1, 2013.  Ellen gets this account at 2.5% or 2% (depending on RAM).
• Frank gives up a 3% account. He is getting back a Walmart currently at 2.5%.  Frank was hired after October 1, 2013.  Frank gets this account at 1.6%.