Atch_4c_-_CBA_Memorandum_1_(Fringe_Benefit_Rate).pdf

Memorandum #1: Fringe Benefit Rate

(A) The Company Fringe Benefit Rate is defined as the minimum employer contributions toward providing benefits in accordance with the following articles, appendixes, and company policies. Personal Protective Equipment, uniforms, safety shoes, and any other physical item are excluded from the fringe benefit rate calculation.

Fringe Component

Reference Severe Weather Leave Article 13

Holidays

Article 14 Vacation Article 15

Military Duty Pay Article 16 Bereavement

Article 16 Jury/Witness Pay

Article 16

Blood Donation Paid Time Article 16

Sick/Personal Leave

Article 17 Group Benefits Article 24

Pension Plan

Article 26 Group Benefits Appendix B

Pension Plan Appendix C

Employee Recognition

GEM policy 4.2.12

(B) The Fringe Benefit Rate is the total cost of benefits including time off accruals divided by total hours worked up to forty hours per work week for all CBA employees on this contract. The denominator of this calculation excludes any costs in the numerator. All overtime is excluded from this calculation.

Contract Period of Performance Containing

October 1, 2015 October 1, 2016

Company Fringe Benefit Rate

$21.53 $22.81

(C) The above Fringe Benefit Rate data is estimated only. If the Company's average cost per hour is less than the amount listed above in a contract year, the Company will pay the difference in equal amounts, less applicable taxes, to all CBA employees with no outstanding disciplinary actions on this contract that recorded at least 80 hours in the pay period prior to the date of the payout. The Company will notify the Union of the annual results of the fringe benefits cost and pay the amount no later than the first pay period after April 1 of the following year.

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JodiBen nett Aerospace Coordinator International Association of Machinists and Aerospace Workers

Craig QVeal Program Director Sheppard Support Division