LABOR AGREEMENT

Between

PACKAGING CORPORATION OF AMERICA

Mill

Valdosta, Georgia

and

United Steel, Paper and Forestry,

Rubber, Manufacturing, Energy, Allied

Industrial and Service Workers International Union, AFL-CIO-CLC

Local Union 646

and

International Brotherhood of Electrical Workers, AFL-CIO Local Union 1947

September 16, 2017 – September 15, 2023

TABLE OF CONTENTS

SECTION                                                                                      PAGE

1. 1. General Purpose of Agreement...................................... 1

   2. Recognition ..................................................................... 3

   3. Representation ............................................................... 3

   4. Union Security ................................................................ 4

   5. Contractual Relationship ................................................ 5

   6. Determination and Application of Seniority Rights ......... 5

   7. Adjustment of Grievances or Complaints ..................... 14

   8. Continuous Operation................................................... 17

   9. Wages........................................................................... 18  

   10. Work Regulations and Practices .................................. 19

   ITEM

   1. Definitions ........................................................ 19

   2. Hours for Workers............................................ 20

   3. Pay Rules and Practices ................................. 22

   4. Reporting Time ................................................ 24

   5. Call In Time...................................................... 24

   6. Machine Clothing and Wire Time .................... 25

   7. Shift Differential ............................................... 26

   8. Vacation with Pay to Hourly Employees.......... 26

   9. Holidays ........................................................... 30

   10. Funeral Leave .................................................. 32

   11. Leaves of Absence .......................................... 33

   12. Workers’ Compensation —
       Supplemental Pay............................................ 33

   13. Jury Duty.......................................................... 34 i

1. Discipline of Mill Employees and
   Record of Same............................................... 34

2. Causes for Discharge ...................................... 36

3. Fire Service...................................................... 37

4. Bulletin Boards................................................. 37

5. Safety ............................................................... 37

6. Safety Shoes ................................................... 37

7. Absentees and Medical Examinations ............ 38

8. Lockers ............................................................ 38

9. Safety Regulations .......................................... 38

1. Summary of Benefits .................................................... 41

2. Contract Protection/Successorship .............................. 42

3. Integration of the Master Agreement ............................ 43

4. Change or Modification of Agreement .......................... 43

5. Termination of Agreement ............................................ 44

6. Miscellaneous ............................................................... 44

7. Severance Pay ............................................................. 44

ADDENDUM .............................................................................. 45

APPENDIX “A” Wage Rate Classification Schedule .... 55 APPENDIX “B” Side Agreements ................................. 66 APPENDIX “C” PCA Mills Alternative

Pension Plan ....................................... 77 Labor Agreement Index ............................................................. 81 Shift Calendars .......................................................................... 85

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LABOR AGREEMENT

BY AND BETWEEN PACKAGING CORPORATION OF AMERICA, VALDOSTA MILL, VALDOSTA, GEORGIA, AND UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS INTERNATIONAL UNION AND THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS. THIS AGREEMENT WILL TERMINATE ON SEPTEMBER 15, 2023.

SECTION I. GENERAL PURPOSE OF AGREEMENT

A. The general purpose of this agreement is in the mutual interest of the employer and employee to provide for the operation of the Mill under methods which will further to the fullest extent possible the safety and welfare of its employees, economy of operations, quality and quantity of output, cleanliness of plant and protection of property.

B. There shall be no discrimination against any employee because of race, color, sex, age, religion or national origin in the administration and application of this Agreement. Whenever any reference is made to gender, it is understood to apply to either sex.

C. The Company and the Union will continue to comply with all laws preventing employment discrimination against qualified handicapped individuals, disabled veterans and veterans of the Vietnam era.

D. Assignment Flexibility

The objective of Assignment Flexibility is to maximize the efficiency and productivity of mill operations. By being more efficient and competitive, the security of all employees is enhanced. The elements of Assignment Flexibility are listed below and supersede any rule, commitment, understanding, practice, agreement, grievance answers, or arbitration award that may have restricted work Assignment.

Flexibility:

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1. Employees may be utilized to perform duties in other lines of progression, or other departments as operating conditions warrant. However, it is understood that production employees above entry level positions will not be assigned to other lines of progression or departments if their job is in normal operation. Normally, flexibility assignments across departments will be made from the lower level jobs first. If a reassigned employee’s job returns to normal operation, such employee will be returned to his job as soon as practical.

2. Maintenance employees will assist production employees and production employees will assist maintenance employees throughout the mill. E & I Mechanics and GM Mechanics will assist each other in work assignments in order to achieve maximum efficiency for mill operations.

3. Production employees will be expected to perform minor maintenance work requiring limited or minor maintenance skills within their abilities, with or without the assistance of maintenance employees; and maintenance employees will perform minor tasks in production which are within their abilities, with or without the assistance of production employees.

4. Employees may use any tool or item of equipment unless restricted by the Company; safety being the only limiting factor.

5. It is not the intent to make trained mechanics out of production employees, but rather to have production employees fully utilize their own capabilities and concentrate the skills of maintenance where they are most needed and vice versa.

6. When it is necessary to fill a temporary vacancy, operating conditions will be considered and every effort will be made to fill the vacancy without incurring overtime. If overtime is required to fill a temporary vacancy it will be filled as outlined in Section VI, Determination of Seniority Rights.

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Permanent employees on the payroll at the time of ratification will not be laid off as a direct result of the implementation of Assignment Flexibility during the term of this Agreement. Excluded are any reductions in force made necessary for any other reasons not related to Assignment Flexibility.

7. In the application of the above, it is understood that the employee must be able to perform the work safely.

E. It is recognized by this agreement to be the duty of the Company, the Union, and the employee to cooperate fully, individually and collectively for the advancement of said conditions.

SECTION II. RECOGNITION

Packaging Corporation of America, Valdosta, Georgia, recognizes the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, and the International Brotherhood of Electrical Workers as the bargaining agent representing its production and maintenance employees, through their local unions (it is understood and agreed by all of the parties hereto that each of the unions signatory hereto shall have bargaining rights for, and exclusive representation of, those job classifications listed under its specific union name in Appendix “A” hereof) USW Local 646, and Electrical Workers’ Local No. 1947 of Valdosta, Georgia, for the purpose of collective bargaining on behalf only of its Mill manufacturing Kraft pulp board and paper near Clyattville, Georgia.

SECTION III. REPRESENTATION

Employees of Packaging Corporation of America Mill, Valdosta, Georgia, who come under this agreement are entitled to representation by the appropriate signatory union shall include all employees of the Valdosta Mill except supervisory employees, watchmen, clerical employees (including timekeepers and maintenance dispatcher), nurses, chemists and assistants, office porters, salaried draftsmen and cooperative students who do not take the place of regular

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employees on jobs in the bargaining unit.

If a student takes the place of a man who is to hold a specific job which is subject to Union Representation, then he shall be subject to representation by the Union just as though he were not a “Student.”

Under normal operating and/or normal shutdown conditions, the Company agrees that no salaried employee will be used as a replacement on a job normally assigned to an hourly employee.

It is agreed by all parties hereto that the representation rights of each of the Unions signatory hereto is limited to those job classifications specifically listed under the union’s name in Appendix “A” hereof. This representation shall be applied to all matters pertaining to this agreement.

It is understood that the Company will not be requested to act upon any question which may arise between the Unions concerning employee representation of bargaining unit employees and that any such dispute will be settled by the Unions without interference with mill operations.

SECTION IV. UNION SECURITY

The Company and the Union agree to the establishment of a voluntary- revocable membership dues and initiation fees deduction plan.

The bargaining agent shall indemnify the Company against all claims made against the Company by reason of its compliance with this Section.

The Company will provide a uniform dues form for the use of the Unions and these are available in the Industrial Relations Department.

In the event the Union Shop shall become legal in the State of Georgia, it shall thereafter be a condition of employment that all employees covered by this Contract who are members of the Union in good standing on the effective date or the execution date of this Contract, whichever is later, become and shall remain members in good standing in the Union. It shall also be

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a condition of employment that all employees covered by this contract and on or after its effective date or the execution date, whichever is later, shall, on the 60th calendar date following the beginning of such employment, become and remain members in good standing in the Union. The foregoing shall be applied in accordance with the provisions of Section 8 (a) (3) of the Labor Management Relation Act of 1947, as amended.

This Contract is in all respects subject to state and federal law and whenever any of the provisions of this Contract are in conflict with either, conflicting provisions shall be accordingly superseded and nullified.

SECTION V. CONTRACTUAL RELATIONSHIP

The Secretary of the Local Union shall always keep the Company Industrial Relations Department informed as to the officers, respective stewards and committees and, if there are any changes, give notification promptly of such changes.

The Unions agree not to intimidate or coerce other employees to join the Union. Management agrees not to discourage union membership or interfere in any way with the exercise by employees of their legitimate rights to join and be active in the Unions.

SECTION VI. DETERMINATION AND APPLICATION OF SENIORITY RIGHTS

A. DEFINITION OF SENIORITY UNITS

For the purpose of this Agreement, there shall be three (3) types of seniority: job seniority, departmental seniority and Mill seniority.

1. Job seniority is an employee’s length of service on a job in a specific line of progression. All jobs on the same level within a line of progression shall be considered as one job for purposes of promotion.

It is understood, however, that the Company has the right to rotate men on various jobs carrying the same rate in the line of progression if, in the Management’s opinion,

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experience on more than one job is desirable for promotion to the next higher rate.

2. Departmental seniority is an employee’s length of service in a specific line of progression.

3. Mill seniority is defined as length of service in the Valdosta, Georgia, Mill.

B. ACCUMULATION OF SENIORITY

New employees shall have no seniority rights during a probationary period of sixty (60) days’ work following date of employment. After the accumulation of sixty days of work in the Mechanical, Electrical and Instrument Departments within a 180 day period, a probationary employee shall be made a permanent employee with sixty days of seniority.

C. APPLICATION OF SENIORITY

The principles of seniority shall govern in promotions, layoffs, demotions, filling vacancies, transfers and rehiring, provided the employee has the necessary qualifications. It is recognized that ability to perform in accordance with the job requirements shall include the ability to cooperate and work in harmony with fellow employees. Seniority shall govern in accordance with the following rules:

APPLICATION OF SENIORITY ON LAYOFFS

Mill Shutdowns
1. Day Workers (Maintenance, E & I, Technical

Department, etc.)

a. Job Seniority shall prevail through the first day of the recognized shutdown period. (Through the first day of the recognized shutdown period regular employees may be used on their regular job classification to the extent needed.)

b. After the first day of the recognized shutdown period, if job seniority for the work available is equal for

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two or more employees, then departmental seniority shall prevail for the remaining duration of the shutdown, in ac- cord with department lines of progression.

2. Shift Workers, All Departments

a. After the first three (3) days of the recognized shut down period, if job seniority for the work available is equal for two or more employees, then departmental seniority shall prevail for the remaining duration of the shutdown, in accord with department lines of progression.

b. Job seniority within recognized lines of progressions may, at the discretion of management, be used for job assignment prior to three (3) days in cases where mill shut downs are expected to last more than three (3) days. If job seniority is equal for the work available, then depart- mental seniority shall prevail.

c. For the first three (3) days of a recognized shutdown, employees, if assigned to work outside their normal line of progression, will receive their regular rate of pay. After three (3) days of a recognized shutdown period, the Company agrees that, if qualified employees are assigned outside their line of progression, they will be selected as equitably as practical, on a job seniority basis, from the various departments and will receive their normal job pay rate. The Company also retains the right to determine the number of employees assigned to work from any department.

Example: Employee set up temporarily from Back Tender to Refiner Tender, during this period the mill is shut down for two (2) days and the employee is assigned to work with Maintenance, during this assignment he will be paid his set up rate.

3. Paper Mill and Shipping Departments

Job seniority shall prevail for the first three (3) days of the recognized shutdown period. The senior employee in each classification shall be scheduled to work, if work of any nature is to be performed over which he normally has

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control during operation.

1. Utilities Department

   Through the third day of the recognized shutdown period, if work is to be performed in any classification, the employee normally scheduled to work that shift will be scheduled to work on his regular job.

2. All Other Departments (including Pulp Mill, Maintenance, Electrical and Instrument and Technical Departments Shift Workers).

   Job seniority shall prevail for the first three (3) days of the recognized shutdown period. (Through the third day of the recognized shutdown period, regular employees may be used on their regular job classification to the extent needed.)

3. All Departments

   During a recognized shutdown, employees shall not exercise their seniority in the event overtime is involved on the first or last day of the shutdown period.

   Recognized shutdown period shall be deemed to begin at 7:00 a.m. on the day following the announced time of shutdown. Employees exercising their seniority rights to displace persons on lower rated jobs shall receive the regular rate for such jobs.

   It is understood that employees must have the necessary qualifications to meet the job requirements at such time as seniority rights are exercised.

   In accordance with the provisions of the Agreement, senior production employees who are assigned to work under the terms of the Agreement during a shutdown may not be scheduled to work more than forty (40) hours in that week.

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1. Reduction in Forces for Reasons other than Mill Shutdowns

   Employees shall be demoted in various departments in reverse order of seniority, first by job seniority, second by departmental seniority and third by mill seniority within recognized lines of progression. Mill seniority may be exercised to displace an employee working in a bottom job classification who has less mill seniority provided the employee has the necessary qualifications at the time or can become qualified during a period up to 30 days. This section does not apply to temporary layoffs as prescribed in Section VI, C1 thru 6.

2. Mill Start Ups

   On Mill start-ups, the regular departmental crews, including maintenance and electrical shift workers, who would be normally scheduled to work at such time as the Mill starts, shall be called in accord with departmental need.

3. Recall After Layoff

   1. Temporary Work

      An effort will be made to contact laid off employees for temporary work, according to their seniority rights. Their regular recall rights shall not be jeopardized by their refusal to accept temporary work.

   2. Regular Work

      Regular employees who are on a layoff status shall be recalled in accordance with their departmental seniority when work is available on a regular full-time basis.

   3. General Provisions

      The last employee laid off shall be the first recalled, except as hereinafter noted, providing

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that he notified the Company’s Industrial Relations Department each alternate calendar month of his current address and his continued interest in returning to work. This notification may be made in person or may be made by registered letter (return receipt requested) and must be postmarked between the first and fifteenth day of the month.

Recall notice will be made to the employee either in person, by telephone or by registered letter (return receipt requested) sent to his last known address. With the exception of recall for temporary work, the notified employee will be given three (3) days after receipt of such notice to notify the Industrial Relations Department that he desires to return to work and seven (7) days after receipt of such notice to actually report to work, unless this period is extended with the express permission of the supervisor in charge of the department in which the vacancy is involved.

The failure of such employee to comply with any of the conditions within the time limit specified shall void all re- instatement rights. In case of failure of registered letter to reach the employee at the last given address and is returned to the Company, this shall be taken as proof that employee has failed to keep the Company posted of his address and, naturally, forfeits his rights for reinstatement. During the first ninety (90) days of layoff, an employee’s seniority shall continue to increase, but this increase stops from that date until he returns to work.

10. Filling Vacancies

A. If overtime is required to fill a temporary vacancy, it will be filled as follows:

1. Ask employee on duty to double.

2. Call off employee in the same

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classification.

1. Call oncoming employee in the same classification to work or to split the shift.

2. Call remaining employee in the same classification.

3. Ask employee on duty in the classification above to double or to split the shift.

4. Ask employee on duty in the classification below to double or to split the shift, if qualified.

5. Fill in accordance with good management practice.

6. Double again.

B. General

Seniority shall operate according to lines of progression agreed upon between the local Unions and Mill Management. Such lines of progression shall be subject to change only by mutual agreement of the two parties.

In the consideration of seniority for promotions, first preference shall be given job seniority. Where job seniority is equal, departmental seniority shall prevail. If job and departmental seniority are both equal, then Mill seniority shall determine the promotion. In filling subsequent vacancies in lines of progression, the senior qualified employee shall be promoted. Should a question arise as to whether or not the senior employee is qualified, and it cannot be resolved in agreement between the Union and Management, the Senior employee will be given a trial period up to thirty (30) days on the job in question.

If, during the trial period, it is found that the 11

employee is not performing satisfactorily, he will be returned to his former job and become junior to the man that by-passes him; the job will then be filled by the next senior qualified man.

C. Refusal of Promotions

When an employee refuses a temporary or permanent promotion in line of progression without a reasonable excuse in writing, he shall become junior to the next three senior men in the line of progression in consideration for future promotions to a higher job in the line of progression refused and junior to all men who set around him and perform the job for one (1) scheduled work week.

If the next three (3) senior men also refuse the promotion, all of those refusing will become junior to the man who accepts the promotion. The appropriate local union shall be furnished with a copy of all written excuses or refusals for promotions.

Any E&I Mechanic or General Mechanic temporarily set-up to a job not in the line of progression must accept a temporary or permanent set-up in the line of progression to maintain his seniority. If set-up in the line of progression is refused, the E&I Mechanic or General Mechanic will lose seniority as spelled out in the above two paragraphs. Any other hourly employee temporarily set up to a job not in the line of progression must accept a temporary or permanent setup in the line of progression to maintain his seniority. However, this will not apply for temporary setups of less than six (6) months cumulative time during a calendar year. If a setup is refused after the six (6) months’ time period, the employee will lose seniority as spelled out in the above two paragraphs. It is understood that a bargaining unit employee will not be set-up outside the bargaining unit if such set-up would

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force another employee to work his off days.

1. Job Vacancies and Qualifications

   Notice of permanent vacancies in entry level jobs (bottom job classification) in all lines of progression and in single jobs not in a line of progression shall be posted for seven calendar days on the Personnel Department bulletin board with the further understanding that copy of the notice will be given to each of the local unions. Employees who wish to bid such job openings can do so by completing the appropriate bid form in the Personnel Office during the bid posting period. Employees who are selected as successful bidders may not bid on other jobs for the next nine (9) month period commencing on the date of starting on the new job.

   In implementing this Agreement, the Company shall take into consideration ability to do the job in question.

   All employees covered by this agreement shall not be deemed unqualified for the job opening if their qualifications are as high as the minimally qualified employee currently on the job.

   If any employee is found not to be qualified for a job after being transferred or promoted to that job and has had a reasonable opportunity of up to 30 days to train or if he or she voluntarily chooses to do so within 30 work days after the transfer, the employee shall return to the employee’s former job without loss of any seniority.

2. Loss of Seniority

   Employees’ seniority shall be broken if: (1) they are discharged; (2) they voluntarily quit; (3) they fail to report for work when notified after a layoff; (4) they are not recalled within a period equal to employee’s length of employment with the

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F.

Company up to three (3) years.

Miscellaneous

It is understood and agreed that no step in the line of progression, the training in which is necessary to the next step, will be completely blocked by men who are unable or unwilling to progress further. Should such a situation appear to be developing, Management and the Union involved will discuss remedial measures.

Employees who are promoted to a position with the Company, over which the union has no jurisdiction, cannot return to a lower job of their own volition after six (6) months. If, after a trial period not to exceed six (6) months, Management decides he is not qualified, he will be set back to this former position.

Should the capacity of the Mill or a department of the Mill be increased, it is understood Management may hire experienced help if present employees are not qualified.

ADJUSTMENT OF GRIEVANCES OR COMPLAINTS

SECTION VII.

Whenever any grievances or complaints arise between the Company and employees of the respective bargaining unit concerning the interpretation or application of the Labor Agreement, a diligent effort should be made to settle them as soon as possible after they become known.

Settlement of such grievances or complaints shall be made in the following order and manner:

Step 1. Within five (5) working days after cause for grievance becomes known to the aggrieved party, he shall present the grievance to the supervisor with whom the grievance originated, who shall make a verbal reply within two (2) working days. The aggrieved employee may, at his option, be accompanied by a

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Union Steward.

Step 2. If the supervisor’s reply does not settle the grievance, upon request, a meeting shall be arranged between the Union, the Department Head, and the Industrial Relations Director or his representative. The Department Head will meet with the Union within five (5) working days after grievance is presented to him, and will give a reply within three (3) working days after the meeting.

Step 3. If the answer of the Department Head is not accepted, the International President of the appropriate union or his designated representative may, within ten (10) working days, request a meeting with the Mill Manager or his designated representative at a mutually agreeable time and place for the purpose of discussing the complaint. Every effort will be made to hold the meeting within fifteen (15) days of the date of the request. The Mill Manager or his representative shall make his reply within ten (10) working days after the meeting.

ATTENDANCE AT MEETINGS

Attendance at any meetings held under this section after the first step shall be limited to five (5) on each side, including the Union Secretary, but this number may be increased by mutual consent.

When a grievance arises that both the Company and Union agree will affect all local unions, the local originating the grievance will be limited to a committee of four men beginning at Step 2 and other locals may send one representative each as observers. Responsibility for notifying other locals of time and place of meeting under this paragraph shall be the responsibility of the local originating the grievance.

GRIEVANCES IN WRITING:

Grievances not settled in Step 1 must be presented in writing in all following steps and will state:

A. B. C.

The date presented at each step. The name of the aggrieved.

A description of the grievance, date of occurrence and the settlement desired.

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The Company representative at Steps 2 and 3 will give the Company’s reply in writing.

TIME LIMITS:

If the grievance is not resolved in any step, it shall be carried to the next step within seven (7) calendar days after the Company’s answer has been received by an appropriate Union representative unless changed by mutual consent in Steps 1 through 3. If the Company’s response is not made within time limits specified, it shall automatically be referred to the next step. All requests for time extensions and all approvals must be in writing.

ARBITRATION:

Either party may refer to Arbitration any grievance involving this Agreement that has not been settled in Step 3 of the grievance procedure within fifteen (15) days following receipt of the answer to that Step.

The party wishing to arbitrate will notify the other party in writing of such desire and state the issue or issues to be arbitrated.

The matter will then be referred to Arbitration in accordance to the following procedure: The Company representative and the representative of the International Union shall select the impartial Arbitrator. These representatives may mutually agree upon an Arbitrator, but if they are unable to do so they will request from the Federal Mediation and Conciliation Service a panel of seven (7) Arbitrator names within fifteen (15) calendar days. From the names submitted by the Federal Mediation and Conciliation Service, the two representatives shall select the impartial Arbitrator within fifteen (15) days. The Union and the Company shall each have the option of rejecting any three (3) names on said list, and the last remaining name shall be that of the impartial Arbitrator.

After the Arbitrator has been chosen by the foregoing procedure, he shall meet and hear evidence of both sides and render a decision within fifteen (15) days. Such decision shall be final and binding on the parties to the Agreement. The Arbitrator shall have no power to add or subtract from or modify terms of this

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Agreement. The fees and expenses of the Arbitrator shall be borne by the losing party. In the event of a split decision, the fees and expenses of the Arbitrator shall be borne equally by the parties. The cost of the transcript, if any, shall be borne by the party that requested it. For the other party to receive a copy of the transcript, the cost of the transcript shall be borne equally by the parties.

It is agreed and understood where it is found that employees shall have been unjustly laid off or discharged, they shall be paid for all loss of time and shall suffer no seniority impairment.

SECTION VIII. CONTINUOUS OPERATION

It is agreed that there shall be no authorized strikes, walkouts, lock outs, slowdowns, or any other similar interruption of work during the period of this agreement or any extension thereof.

The International Unions signatory to this agreement and their locals agree that none of them will, during the term of this agreement or any extension thereof, authorize any strike, walkouts, slow down or other similar interruption of work, nor will they aid or abet any such strike, walkout, slow down or other similar interruption of work.

In the event of any strike, walkout, lock out, slow down or other similar interruption of work during the period of this agreement or any extension thereof, the above International Unions and their affiliated local unions will take immediate action to secure the return of the employees to work and eliminate said strikes, walkouts, lock outs, slowdowns or other similar interruption of work. The signatory International Unions, their locals and officers further will evidence their responsibility for continuous operation of the Company’s plant by giving every assistance in manning the vacated jobs should any of the above enumerated interruptions of work occur.

Further, the employer may impose disciplinary measures against any employee involved in such unauthorized acts without recourse by the signatory International Unions or their locals.

It being understood and agreed that any strike, walkout, slow 17

down or any other similar interruption of work not authorized by the Unions in accordance with their respective International Constitution, By-Laws, Standing Rules and General Laws, and not aided, encouraged and abetted by the Union shall be deemed for all purposes an unauthorized strike, walkout or slow down for which there shall be no financial liability on the part of any of the signatory International Unions and/or their locals or officers thereof so long as sincere and vigorous action is being taken by the above mentioned unions or officers thereof to terminate such unauthorized action by employees.

SECTION IX. WAGES

A copy of the negotiated and effective hourly wage rate schedules are attached, covering the period September 16, 2017, through September 15, 2023. The wage schedule in effect on September 16, 2017, shall remain in effect throughout the life of the Agreement unless changed by mutual consent of the parties at a meeting duly called on thirty (30) days’ notice by either of the parties’ signatory to the other party.

When major changes are made in a plant which create new jobs or substantially change the duties of existing jobs, the Management will carefully evaluate the situation and inform the Union concerned of the new rate or rates without delay. The unions have the full right and privilege of negotiating with the Management concerning such rates.

If the rates proposed by Management are not satisfactory, and satisfactory rates cannot be agreed upon, the rates proposed by Management will be instituted, but may be subject to further negotiations at the next contract negotiation in a separate discussion from other adjustment requests. If any changes in such rates are then agreed on, they shall be made retroactive to the date of the job changes which occasioned the rate adjustment. However, it is understood that Management will not consider retroactivity on the above situation unless the local union concerned notifies Management within sixty (60) days after the change in job duties becomes effective.

When an agreement cannot be reached, the Union may, at its option, process the matter to arbitration for the sole purpose of rate determination.

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Insurance and Pension: The Valdosta Mill insurance and pension plans shall remain in effect during the term of this agreement. Booklets describing these plans will be issued to all employees.

Gainsharing: The Valdosta Mill Gainsharing plan shall remain in effect during the term of this agreement. Pamphlets describing the plan will be distributed to all employees.

SECTION X. WORK REGULATIONS AND PRACTICES

It is understood and agreed that all regulations and instructions of the Company, work regulations and practices and safety rules which do not conflict with the State and Federal laws are a part of this agreement, and may be changed by mutual consent.

ITEM I. DEFINITIONS

For the purposes of interpreting this agreement, the following definitions of words and terms are made:

EMERGENCY WORK: Emergency work is work that can be neither anticipated nor postponed, such as unforeseen breakdown which will cause loss in production or endanger life or property. An emergency concerning wire change exists when something happens that necessitates our changing a wire when we haven’t planned it.

TOUR WORKER: A Tour Worker is an employee engaged in continuous process operation, the services of whose occupation are required for more than one (1) shift a day.

DAY WORKERS: A Day Worker is an employee not engaged in continuous process operation, the services of whose occupation are not required for more than one (1) shift a day.

TEMPORARY TOUR WORKERS AND TEMPORARY DAY WORKERS: A Tour Worker may temporarily become a Day Worker, or vice versa, when either is employed for a period of time under conditions stipulated herein as determining the status of each. In this event, the rules and regulations prescribed will be applied on the basis of the employee’s actual status with respect to his temporary occupation.

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PERMANENT EMPLOYEES: By Permanent Employees are meant all eligible employees except those on the extra board.

SHIFT: The term “shift” means the designated period of employment of any employee and may be used with reference to both Tour Worker and Day Worker without altering the status of either class of workers as defined herein.

ITEM II. HOURS FOR WORKERS

The starting time of any shift as it applies to any employee or a group as a whole may at any time be changed by the Company, in the interest of good Management or depending upon operating conditions resulting from legislating of maximum hours, conditions of market, etc.

Under the present operation, scheduled Tour Workers are organized into three shifts and work eight (8) consecutive hours upon each shift as follows:

Tour A ..................................................... 7:00 a.m. to 3:00 p.m. Tour B ................................................... 3:00 p.m. to 1:00 p.m. Tour C ....................................................11:00 p.m. to 7:00 a.m.

“When changes require it, we will endeavor to post shift schedules as early as practical.”

The word “day” means a twenty-four (24) hour period beginning at 7:00 a.m. The word “week” means a period of seven (7) calendar days, beginning at 7:00 a.m. Sunday.

Whenever practical, the Company will endeavor to so arrange the work of day workers so that they will work five (5) consecutive days of eight (8) consecutive hours, lunch period excepted, from 7:00 a.m. to 3:30 p.m.

The schedule for day workers shall be Monday through Friday, 7:00 a.m. to 3:30 p.m. lunch period excepted and any change in their schedule will be posted by 2:30 p.m. Friday for the following week. In the event such notice is not posted by 2:30 p.m. Friday, the employee will receive time and one-half for the hours worked on the first day of his revised schedule. The first eight (8) hours on the revised schedule will be added in determining when

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weekly overtime payment is due.

Employees shall not punch their time cards more than fifteen (15) minutes before their tour of duty begins. Each worker will be in his place ready to begin work at his designated starting time.

It is the duty of each worker to report for his designated shift unless he has received permission from his supervisor for a leave of absence.

Whenever possible, time off from work should be arranged for with your supervisor prior to the end of your regular shift, and reported to First Aid before leaving the mill. At least two (2) hours’ notice, previous of the beginning of the period in which a worker intends to resume duty shall be given to the First Aid Department and at least ten (10) hours’ notice if he has been absent for more than one day. Tour Workers who have been absent one continuous week or more shall, if at all possible, give advance notice prior to Friday noon, of intent to return to work the following week. Employees who fail to report in compliance with the above requirement may not be permitted to work in the next 24 hour period.

At the end of a shift, no tour worker shall leave his place to wash up and dress until his mate has changed his clothes and reported to take on the responsibility of the position. If a tour worker does not report for his regular shift, his mate shall notify the Asst. Superintendent or Superintendent. The tour worker shall in any case, remain at his post until a relief is secured and if necessary, he shall work an extra shift. When, as a result of a shift swap, it is foreseen an employee may work twenty-four (24) hours straight due to the absence of his relief, he will relinquish his right to double and will work only the time necessary until a relief is secured.

Tour Workers may, with the consent of the Supervisor over them, exchange shifts for not more than a single pay period, if doing so does not increase hours for which weekly overtime is payable. In case of such authorized exchanges, overtime for over eight (8) hours shall not be payable. Under these same conditions, shift swapping due to Union business shall always be granted to officers and committeemen of the Unions, providing it is agreeable with the other workers and it does not

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affect efficiency of operations.

When a man reports for work, he is to be ready to work and should be wearing the clothes in which he intends to work. Any man who consistently comes in late or is late in starting to work will suffer a reprimand and, if such lateness continues, he shall be subject to the same penalties as for violation of any other Company rule.

It is also agreed that any man who consistently leaves his job to wash, change his clothes or prepare to go home before his actual quitting time, whether he be a day worker or tour worker, will be subject to the same penalties.

If any employee, who, because of abnormal work schedule, would be prevented from voting during a bona fide state or national election, desires to vote, his supervisor will, upon notification, secure a replacement. The employee will be paid only for the hours actually worked. In the case of a shift worker, he will not be expected to return to the Mill.

ITEM III. PAY RULES AND PRACTICES

Employees who are temporarily advanced to a higher position shall, if employed in that position for two (2) hours or more, be paid the higher rate for work performed during the entire shift.

Temporary set-ups made at the beginning of the work week will not be subject to reduction because of the Mill going down, if the man concerned continues doing the same work or continues having the same authority during the shutdown the balance of the work week.

An employee temporarily employed on a lower rated job for the convenience of the Company shall receive his regular classified rate.

Overtime: Time and one-half will be paid for all overtime in excess of eight (8) hours within a twenty-four (24) hour period beginning at the start of a designated shift, except as provided in Item II, paragraph 8, regarding Tour Workers, or for any hours worked consecutively in excess of eight (8), or for any hours worked in excess of forty (40) within one week, but overtime will

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not be paid two different ways on the same hours usually known as pyramiding overtime penalties.

All overtime shall be classed as emergency work and not subject to loss of time to keep within the established work week regulations.

No man will be allowed to work more than sixteen (16) hours except in extreme emergencies, but, in no event shall he be required to lose his designated shift to conform with this paragraph.

Any employee required to work in excess of sixteen (16) hours in a twenty-four (24) hour period, beginning with the starting time of a designated shift, shall be paid at an overtime rate for all hours worked, beginning with the first hour, until he has had a rest period of eight (8) consecutive hours. For the purpose of determining an excess of sixteen (16) hours under this provision, meal time shall be included, but the meal time taken in the first eight (8) hours of an assigned shift shall not be considered as time worked and the employee will not be paid for this first meal period. Time spent in attending training conferences, safety meetings and/or meetings outside the normal work hours, will be excluded from the provisions of this sixteen (16) hour clause. It is understood that those granted a shift swap forfeit their rights to the provisions of the sixteen (16) hour clause.

When an employee has worked long hours, which, under the terms of this agreement, would result in the payment of premium time for his regular shift the following day, he will not be rescheduled for the purpose of avoiding the payment of premium time. He may be temporarily rescheduled, however, to permit a rest period of several hours (less than eight (8) hours) under which circumstances he would work the rescheduled shift at the premium rate. When an employee has been so rescheduled, he may be returned to his regular shift the following day without penalty to the Company for having worked more than eight (8) hours in a twenty-four (24) hour period, provided he has been given an intervening rest period of eight (8) hours.

When a Day Worker, temporarily employed as a Tour Worker, or a Tour Worker, temporarily employed as a Day Worker, is returned to his regular shift, he shall be paid overtime, at the rate

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of time and one-half for all hours worked in excess of eight (8) hours in a twenty-four (24) hour period, unless he has been given at least eight (8) hours off.

Employees held over at the end of their shift shall receive no less than 1 hour’s work or appropriate pay except in cases of tardiness.

ITEM IV. REPORTING TIME

Employees reporting for work at their scheduled designated starting time shall be entitled to no less than two (2) hours’ pay at the regular hourly rate for the shift. However, no allowance will be paid in case of storms, floods, accidents and other causes beyond the control of the Company, or if the employee is notified by messenger or telephone at his place of residence as listed on the personnel records at least two (2) hours prior to the beginning of his regular starting time or by notice posted on the Time Office Bulletin Board at least sixteen (16) hours before the start of such shift.

Employees reporting for and actually starting work shall receive not less than four (4) hours work or pay at the regular hourly rate for the shift.

If an employee is sent home after working part of a shift and is ordered to report later in the day, he will be covered by the provisions of report time and shall receive no less than time and one-half for all hours worked on the second report.

ITEM V. CALL-IN-TIME

Call-in-time does not apply to any employee already within the limits of the Mill yard. Neither does this regulation apply to any planned, anticipated or predetermined work, such as shutdowns, start-ups, repairs and installations.

In no case will this regulation apply to any employee who is held over at the end of his designated shift.

To comply with provisions of our established work week, no hours for which call-in-time is payable will be used in determining when an employee’s hours have reached this limit.

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If an employee is notified after having left the plant premises, to return to work at a time other than his regular reporting time, he shall be allowed a minimum of four (4) hours straight time or time and one- half the actual hours worked, whichever is greater. The call-in-time provision shall not apply during a scheduled Mill shutdown or start-up, unless an emergency occurs.

If the hours worked during such a call, in addition to the hours worked by him during the balance of his work day, exceed eight (8) hours in aggregate total for the work day, he shall be paid according to either the call-in-time regulation or the overtime regulations, whichever will net him the most compensation.

For the purposes of clarification, when a man has punched out he shall be considered out of the limits of the Mill yard and, therefore, entitled to call time if called back into the Mill to do emergency work.

ITEM VI. MACHINE CLOTHING AND WIRE TIME

A. Machine Clothing Time: Any Tour or Day Worker called on duty or held over at a time other than designated starting time to change machine clothing will be paid at the regular rate for the actual time worked during this period of call, but in no event shall less than four (4) hours straight time be paid for any one call. The employee so affected shall do any other work required to be done during the machine clothing change and incidental to the starting up of the machine subsequent to the clothing change.

B. Machine Wire and/or Fabric and/or Chemi-Washer Fabric Time: Any Tour Worker called on duty or held over at a time other than designated starting time to actually change machine wires will be paid at the regular rate for the actual time worked during this period of call, but, in no event, shall less than six (6) hours straight time be paid for any one call. The employee so affected shall also do any other work required to be done during the machine wire change, including the stringing of a new wire and other work incidental to the starting up of the machine subsequent to the wire change.

Employees called in or held over during paper machine wire change and who work on the paper machine proper, from the

25

fan pump through the winder inclusive, will be paid under the machine wire time clause.

All Electrical, Maintenance and Instrument men who are held over and come under the provisions of the machine wire time clause, will be paid a minimum of four (4) hours. If Electrical, Maintenance and Instrument men are called out and come under the provisions of the wire change clause, they shall receive a minimum of six (6) hours wire time pay. The above paragraphs under Item VI shall not apply to wire changes made during a scheduled shutdown of twenty-four (24) hours or more duration. Meal Time Clause shall not apply to machine wire time pay provisions. “However, employees who are held beyond five (5) hours on the wire change, upon request will be allowed time off to obtain a meal without loss of pay.”

ITEM VII. SHIFT DIFFERENTIAL

A shift differential of twenty-five (25) cents per hour on the 3:00 p.m.- 11:00 p.m. shift and fifty (50) cents per hour on the 11:00 p.m. - 7:00 a.m. shift (shift differential will be increased to 0-30- 50 effective 9-16-2004 and 0-30-55 effective 9-16-2005) will be paid employees:

A. Who are working during these shifts on jobs on a rotating shift basis and

B. To employees working on jobs whose regularly scheduled hours fall completely between the hours of 3:00 p.m. and 7:00 a.m.

If 50 percent of the scheduled hours worked by an employee fall between the hours of 3:00 p.m. and 7:00 a.m., he will be eligible for the appropriate shift differential.

ITEM VIII. VACATION WITH PAY TO HOURLY EMPLOYEES

A. All hourly paid employees who have completed at least 1040 hours of work in the previous year, shall be granted a vacation with vacation pay, each twelve (12) months in accordance with whichever of the following is applicable to him:

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B. ELIGIBILITY:

1. One (1) week of vacation after one (1) year, but less than three (3) years of continuous employment in the Company’s service.

2. Two (2) weeks of vacation after three (3) years, but less than eight (8) years of continuous employment in the Company’s service.

3. Three (3) weeks of vacation after eight (8) years, but less than twelve (12) years of continuous employment in the Company’s service.

4. Four (4) weeks of vacation after twelve (12) years, but less than twenty (20) years of continuous employment in the Company’s service.

5. Five (5) weeks of vacation after twenty (20) years, but less than twenty-five (25) years of continuous employment in the Company’s service.

6. Six (6) weeks of vacation after twenty-five (25) years of continuous employment in the Company’s service.

Any employee who did not complete at least 1040 hours of work in the previous year due to sickness, injury, or layoff of employment, shall be given his earned vacation and the proper percentage of his earnings. Doctor’s certificate must be produced to substantiate claim.

C. CONTINUOUS EMPLOYMENT:

1. Continuous employment is broken by voluntary resignation, discharge for cause or any other voluntary separation.

2. Periods of disability because of sickness or accident, temporary layoffs because of curtailment of operation, or military service and other causes of separation beyond the control of the employee shall not break continuous employment.

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D. VACATION PAY:

1. The amount of vacation pay for the vacation period for each one (1) year employee shall be two percent (2%) of such employee’s total earnings during the previous year.

2. The amount of vacation pay for the vacation period for each three (3) year employee shall be four percent (4%) of such employee’s total earnings during the previous year.

3. The amount of vacation pay for the vacation period for each eight (8) year employee shall be six percent (6%) of such employee’s total earnings during the previous year.

4. The amount of vacation pay for the vacation period of each twelve (12) year employee shall be eight percent (8%) of such employee’s total earnings during the previous year.

5. The amount of vacation pay for the vacation period for each twenty (20) year employee shall be ten percent (10%) of such employee’s total earnings during the previous year.

6. The amount of vacation pay for the vacation period for each twenty-five (25) year employee shall be twelve percent (12%) of such employee’s total earnings during the previous year.

7. Should an employee leave the employ of the Company for any cause, if eligible for a vacation, the employee shall receive his vacation pay at the time of leaving the employment of the Company.

8. When an employee dies, his beneficiary will be paid his pro rata share of his earned vacation.

9. Should an employee with as much as three (3) years of service leave the employ of the Company he will be paid vacation pay provided he has worked at least 1040 hours from his last anniversary date. His vacation pay will be calculated on the proper percentage of his last W-2 form.

10. For the purpose of computing vacation pay, the 28

Company agrees to use the prescribed percentage of the employee’s total earnings during the previous year as shown on the W-2 form. Money paid to an employee that is not covered in this agreement and fringes paid as result of the agreement that are deductible income tax items, will be subtracted before figuring vacation pay.

E. VACATION PERIOD:

1. The vacation period shall consist of seven (7) consecutive days for one (1) year employees, fourteen (14) days for three (3) year employees, twenty-one (21) days for eight (8) year employees, twenty-eight (28) days for twelve (12) year employees, thirty-five (35) days for twenty (20) year employees, and forty-two (42) days for twenty- five (25) year employees. Employees eligible for 1, 2, 3, 4, 5, and 6 weeks’ vacation shall take their vacation in periods of no less than seven (7) consecutive days, al- though two (2) or more vacation weeks taken consecutively may be scheduled.

2. The vacation period due in any one year must be taken during that year. Vacation periods are not accumulative and are not transferable.

3. When an employee has been absent for a full calendar week due to his own illness or accident, or due to illness, accident or death in his immediate family, he may charge such time off against his vacation allowance and receive vacation pay thereof. Vacations are granted by the Company to provide rest and relaxation for employees and not for employees to work for others for compensation during vacation periods. Vacations to be allowed must be actually taken. The Company does not give vacation pay in lieu of vacations.

4. The Company reserves the right to schedule the vacation period for each employee as well as to generally administer the vacation plan in accordance with the above provisions.

5. The anniversary of an employee’s employment shall be the eligibility date for a vacation with pay, whether it is the first or any other anniversary. Employees must give at least ten (10) days’ notice in advance if they wish to obtain vacation

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pay at time of vacation. Employees will be given ten (10) days’ notice if their vacation schedule is changed by the Company except when unforeseen circumstances arise which necessitate postponing the vacation, it will be the responsibility of the employee to advise the Company when vacations are due.

ITEM IX. HOLIDAYS

A. Thirteen (13) days during the year are hereby designated as holidays, namely:

NEW YEAR’S DAY................................24 hours starting 7 a.m. PRESIDENT’S DAY...............................24 hours starting 7 a.m. GOOD FRIDAY......................................24 hours starting 7 a.m. MEMORIAL DAY............................. 24 hours starting 7 a.m. JULY 4TH..............................................24 hours starting 7 a.m. LABOR DAY..........................................24 hours starting 7 a.m. COLUMBUS DAY (10-12).....................24 hours starting 7 a.m. THANKSGIVING....................................24 hours starting 7 a.m. DAY AFTER THANKSGIVING............24 hours starting 7 a.m. CHRISTMAS EVE............................24 hours starting 7 a.m. CHRISTMAS DAY............................24 hours starting 7 a.m. DECEMBER 26TH...........................24 hours starting 7 a.m. DECEMBER 27TH...........................24 hours starting 7 a.m.

After an employee has been with the Company for a period of ninety (90) days or more, he shall be entitled to receive holiday pay at the rate of eight (8) times his regular hourly base rate or his set-up rate if set up on the holiday.

B. If an employee is scheduled to work on any such holidays and fails to work without justifiable cause, he shall not receive holiday pay.

C. If an employee is not scheduled to work on one of the above holidays, he will not be entitled to holiday pay for any such holiday if he fails to work his regular eight (8) hour day, without

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justifiable cause, on the last scheduled work day preceding and the first scheduled work day following any such holiday.

Further, in the event that either of the enumerated holidays fall during an employee’s vacation period, he shall in order to prevent the creation of inequity, receive pay for the holiday which falls during the vacation period in addition to his regular vacation pay.

D. It is understood and agreed that an employee shall be considered absent for justifiable cause if he is:

1. Away on vacation.

2. So sick that he is unable to report for work and is able to prove such sickness.

3. Or if the sickness of some member of his family makes his attendance impossible and he is able to prove such sickness.

4. If he has been advised by his superior that his services are not required, or,

5. Is otherwise absent because of direct action by the Company for other than disciplinary reasons.

6. If a holiday occurs during a period when an employee, who otherwise is eligible for holiday pay, is laid off, he will receive pay for such holiday when he returns to work, provided the entire duration of his layoff has not exceeded ninety (90) days. Payment of holiday pay under this provision shall be limited to one holiday except for people laid off during a mill shut down.

E. It is further understood that he is absent without justifiable cause if he is absent:

1. On a leave of absence initiated by himself, or,

2. He merely fails to report because he does not care to work, or,

3. If he is absent for other personal reasons of his 31

own.

F. Christmas Eve, Christmas Day and December 26th are to be unrestricted holidays. If an employee is scheduled to work on one of these days, he shall receive, in addition to the eight (8) hours straight time for hours not worked, double time for all hours worked.

It is agreed that New Year’s Day and Labor Day are to be used as operating days, repair days or holidays, without work, entirely at the option of the Company. Maintenance personnel will not normally be scheduled to work July 4th, Thanksgiving or the day after Thanksgiving unless an emergency arose that would require their presence at work. If an employee is scheduled to work on one of these holidays, he shall receive, in addition to eight (8) hours straight time for hours not worked, time and one- half for all hours worked.

All hours worked on the holidays set forth in the above list shall be included in calculating the forty (40) hours weekly work period. Hours not worked on a holiday but paid for shall be counted as time worked for the purpose of computing weekly overtime. This is not applicable to employees who normally are not scheduled to work on the day on which the holiday falls.

G. If Columbus Day (October 12) occurs on a Tuesday, Wednesday or Thursday, all Mill day workers will observe the holiday on October 12 or on a Monday or Friday as determined by the Company.

ITEM X. FUNERAL LEAVE

When a death occurs in an employee’s immediate family, he will be reimbursed for wages lost for three (3) consecutive days during the funeral period provided same are regularly scheduled work days. For the computation of the three (3) days missed, the two days before the funeral, the day of the funeral and one day after the funeral are the only days to be considered, and the day of the funeral must be included as one of the three consecutive days.

The pay for each scheduled work day lost shall be eight (8) times his regular rate, and the employee will be responsible for

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initiating the request for funeral leave pay. The immediate family shall include father, mother, wife, husband, sister, brother, son, daughter, step-son, step-daughter, step-mother, step-father, mother-in-law, father-in-law, and grandparents of the employee. Regularly scheduled hours of up to eight (8) per day will be counted as time worked for the purpose of computing weekly overtime.

ITEM XI. LEAVES OF ABSENCE

If a leave of absence for any period over two (2) weeks but less than six (6) months is granted to any eligible employee, the leave will be put in writing, signed by the proper Company official, and a copy thereof sent to the Secretary of the Union Local to which the employee belongs, or is eligible to belong. In the event a leave of absence is requested for more than six months, such extension of leave shall be granted by mutual consent of the Company and the Union Local involved. Military service is, of course, excepted.

Employees who are members of military reserve units, required to attend annual encampments or cruises will be granted a leave of absence without pay for a period not to exceed two (2) weeks. Arrangements for such leaves must be made with the employee’s supervisor at least fifteen (15) days prior to the start of said leave. At the employee’s option, military leave can be taken as all or part of vacation.

Maternity leave requests will be administered in accordance with corporate policy.

ITEM XII. WORKERS’ COMPENSATION — SUPPLEMENTAL PAY

An employee who, as a result of an on-the-job injury, has been wholly incapacitated and prevented from performing the duties of his occupation (as determined by the physician handling the case) for at least one (1) week and who has qualified for benefits under the Georgia Workers’ Compensation Law, will be entitled to compensatory pay for that week in an amount equal to pay that he would be entitled to receive as group insurance weekly benefits for a non-occupational accident.

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Such compensatory pay shall continue only for that time prior to the release from the physician or the termination of benefits outlined under the Group Insurance Plan in force. All payments under this agreement are on the basis of the calendar week.

ITEM XIII. JURY DUTY

When a regular employee is required to be present for jury duty, the Company will reimburse him for loss in regular scheduled wages up to a maximum of fifty-six (56) hours pay during the course of the contract year. The Company will also allow up to an additional fifty- six (56) hours pay during the course of the contract year for Grand Jury service only. Regularly scheduled hours, of up to eight (8) per day will be counted as time worked for the purpose of computing weekly overtime. Such reimbursement will be the difference between the pay received for Jury Duty and his pay for regularly scheduled hours of work. The employee will furnish evidence of the time spent on jury service.

If the regular employee returns to the mill for the balance of his shift from Jury Duty, he will be utilized for training, clean up or within the scope of good management practice in his department.

ITEM XIV. DISCIPLINE OF MILL EMPLOYEES AND RECORD OF SAME

There shall be three (3) separate penalties applied when it is necessary to inflict discipline on any of the employees of the Company, namely:

A. A written reprimand by the Assistant Superintendent or Department Supervisor is to be applied in the case of minor offenses, when the Supervisor is satisfied by the offending employee that the offense will not be repeated. The reprimand will be issued within five (5) working days after the necessity for the reprimand becomes known to his supervisor. Copies of such reprimands to be sent to the Local Union and Industrial Relations Department.

B. Suspension from work (without pay) for periods varying from one to fifteen (15) days, according to the gravity of the

34

offense and the previous record of the employee concerned; to be applied in cases of a first serious offense or continued or repeated minor offenses when, in the judgment of the supervisor, proper conduct and discipline on the part of such employee can be secured without resorting to the penalty of dismissal.

C. Extreme penalty or dismissal from service to be applied in all cases of flagrant or willful violations of the rules of the Company, or for continued unbecoming conduct which reflects adversely on his coworkers, or upon the Company, where a thorough investigation proves the employee concerned to be guilty and the Superintendent is convinced dismissal is the only method by which discipline can be maintained. The extreme penalty shall also be applied in the case of an employee who persists in continued and repeated minor violations of the Company’s rules as shown by the discipline record of such employee. Persons may be discharged for inability to satisfactorily perform work assigned.

APPLICATION OF DISCIPLINE: Each Department Supervisor and Assistant Superintendent shall have authority to temporarily remove from service any employee under their supervision, who violated the rules of the Company, or for continued unbecoming conduct which reflects adversely on his co-workers or upon the Company, while such workman is on duty or on the Company’s premises.

Whenever Department Supervisors or Assistant Superintendents exercise such authority he shall furnish the Department Superintendent and Industrial Relations Department a report, stating his reasons, including such recommendations as he considers the circumstances warrant. The suspended employee has the full right to appeal to the Department Superintendent.

In case the employee does appeal to the Department Superintendent, he may present himself with any person or persons he desires to represent him, at the Mill office, at any agreed time, in order that the cause of his suspension may be investigated and properly disposed of so far as the discipline to be administered is concerned.

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The Department Superintendent shall decide on the discipline to be inflicted after he has made a full investigation of all the circumstances connected with each case. When a statement against an employee is to be entered into the discipline record of an employee, the Company will furnish the employee with a copy of same, and require him to sign that he received same.

After an employee has gone one year or more without having a disciplinary statement entered into his record, the reprimand will be automatically removed from all records.

ITEM XV. CAUSES FOR DISCHARGE:

1. Reporting for, or being on duty under the influence of liquor.

2. Smoking upon the Company’s premises in violation of insurance regulations.

3. Destruction or removal of the Company’s property.

4. Deliberate failure to comply with the Company’ rules, including safety rules.

5. Giving or taking of a bribe of any nature as an inducement to obtaining work, or retaining a position.

6. Disobedience and/or insubordination.

7. Neglect of duty.

8. Disorderly Conduct.

9. Dishonesty.

10. Deliberate sleeping on duty.

11. Sabotage.

12. Absence from work for a period of two (2) or more successive days without proper notification or reasonable excuse.

13. Failure to maintain established performance of standards.

14. Making loans to fellow employees for profit.

15. The possession, transfer and sale or use of illegal drugs and narcotics while on duty.

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1. Gambling on Mill property.

2. Any worker intentionally changing or defacing a time card.

3. Repeated failure to report for duty without bona fide reasons after having been warned of repeated absenteeism.

ITEM XVI. FIRE SERVICE

In case of fire, all employees must assist in preventing destruction of the Company’s property. Fire apparatus must not be removed from its place or used except in case of fire, or by order of the Mill Manager or Superintendent. The above does not apply to those fire extinguishers which are kept in the tool room for use by mechanics when welding or burning.

ITEM XVII. BULLETIN BOARDS

The Company shall provide bulletin boards throughout the mill which may be used by the Unions for posting official notices.

ITEM XVIII. SAFETY

The Company has in operation a general and local Safety Organization for the prevention of industrial accidents and improvements of Mill Safety and Sanitation, with provisions for a Supervisor of Safety and Workers’ Safety Committee at the Mill.

Safety Rules and supplements issued thereto from time to time, which are not in conflict with the agreement, are hereby established; it being understood that all laws now in force or subsequent enactments by Federal, State and Municipal authorities shall supplement, and in case of conflict, take precedence.

The general and local management and the employees are expected to cooperate fully in the making known and remedying of dangerous or unsanitary conditions and practices.

ITEM XIX. SAFETY SHOES
The wearing of safety shoes is required in all departments of the

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4. Do not work on electrically operated equipment unless you are sure the current is off at the breaker, switch tagged and locked out in accordance with lock out, tag-out, try out procedure, and signed by an electrician or other authorized party.

5. Employees are not to blow compressed air on anyone as it may enter his body and cause fatal injury.

6. Safeguards must not be removed except by order of Supervisor or Superintendent in which case they must be immediately replaced. This regulation applies also to sewer covers, trap doors, etc.

7. Good housekeeping is essential to safety. Keep aisles and passageways clear, keep your work place neat and clean; be orderly.

8. Employees are forbidden to pass under suspended materials or apparatus at all times.

9. Suitable clothing must be worn at all times. Clothing not in use shall be kept in locker provided for that purpose.

10. Employees are forbidden to pass under, over or between freight cars, or sit on tracks.

11. All employees are forbidden to work on the chlorine system and equipment except under supervision of person in charge. All work on the chlorine system shall be done during daylight hours unless there is an emergency situation.

12. All valves must be locked and tagged as specified in the lock- out, tag-out, try-out procedure when employees are working on equipment affected. Tags must be signed by an employee performing work.

13. Except under the supervision of the supervisor in charge will air hose be used to clear caustic lines, valves, tanks or equipment. Under no circumstances will air be used to clear a sulphuric acid line.

14. All employees are to observe the current Lockout, Tagout, Try out procedure as maintained in the departments.

15. Always wear safety goggles when pouring melted type 39

metal or babbitt, chipping metal or concrete, welding, operating shaper, metal circular saws, routers and emery wheels. Do not grind on the sides of emery wheels. Stop emery wheels and other machinery when through working on same.

16. Safety goggles must be worn when working around chemical recovery units and causticising equipment.

17. Do not start a job or the operating of a machine unless you are familiar with the dangers connected with it.

1. Horseplay is prohibited.

2. No one is permitted to remove a foreign body from an

employee’s eye or other part of the body except those designated by the First Aid Department.

20. When injured, regardless of how minor it may be, report at once to the First Aid Department for treatment.

21. No work shall be done on electrical lines when they are energized over 220 volts unless two electricians are on the job. Safety equipment to be used under such conditions and at such times will be furnished by the Company.

22. No employee is permitted to use a knife of any kind for cutting between rolls while the paper is in motion at the winder.

23. Manlifts are for carrying personnel only. They shall not be used to transport tools or supplies.

24. Although the Company has outlined these Safety Rules for you, it is impossible to cover every item. If a rule on any particular danger has been left out, that shall be no excuse for carelessness or for disregard of common sense in the performance of your work.

Violations of Safety Regulations are subject to the same penalties as violations of other rules.

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SECTION XI. SUMMARY OF BENEFITS

01/01/17 LIFE/AD&D* $59,000

A&S** See below**

* Effective January 1, 2018, the formula for the life insurance benefit shall be one (1 1⁄2) times an employee’s annual base salary (base hourly rate x 2080 hours). Where the new benefit is less than the current benefit, the current benefit will be red circled until the future wage increases make the new benefit equal to or better than the current benefit.

** Effective July 1, 2017, the formula for the STD benefit will be 50% of weekly base pay (1x annual base pay [base hourly rate x 2080 hours] divided by 52 weeks) for 52 weeks. Where the new benefit is less than current benefit, the current benefit will be red circled until the future wage increases make the new benefit equal to or better than the current benefit.

Maximum length of benefit: 52 weeks.

PENSION* $52.00 01/01/17 $57.00 01/01/18

* For Grandfathered Employees as defined by the 2013 Master Agreement between PCA and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and The International Brotherhood of Electrical Workers and its Local 1947 (the “2013 Master Agreement”).

Effective January 1, 2014, the defined benefit pension plan will be closed for all New Hires and Non-Grandfathered Employees as defined by the 2013 Master Agreement. In addition, effective January 1, 2014, New Hires and Non-Grandfathered Employees will be entitled to the company match and automatic company contributions (2.5% to 6.5% based on age and service) to the 401(k) plan as defined by the 2013 Master Agreement.

41

* See 2013 Master Agreement and attached PCA Mills Alternative Pension Plan for details.

SECTION XII. CONTRACT PROTECTION / SUCCESSORSHIP

1. The Company agrees to continue to honor its Contract Protection/ Successorship obligations from the 2008 Global Agreement between the Parties that appears below in Paragraphs 2, 3 and 4. To insure any successor Company complies fully with this Contract Protection/Successorship obligation, the Company agrees that should any location or part of any location be sold, leased, transferred or assigned prior to the expiration date of the Location Agreement (a “Transaction”) the Contract Protection/Successorship provisions in this Part IV, A. shall be actually inserted in the Location Agreement prior to the Transaction being finalized. If a location or part thereof is not subject to a transaction described above prior to the expiration date of the Local Agreement, then this Part. IV. A. shall be actually inserted into the Renewal Agreement even if the parties do not reach agreement on other changes to the Renewal Agreement in local bargaining.

2. The Company agrees that if any facility covered by the collective bargaining agreement of which this successorship language is a part is sold, leased, transferred or assigned, the Company shall inform the purchaser, lessee, transferee or assignee, of the exact terms of this successorship language and this Global Agreement as a whole and shall make the sale, transfer or assignment conditional upon the purchaser, lessee, transferee or assignee, assuming all the obligations of this Global Agreement until the expiration date or the Renewal Agreement expiration date, whichever is longer and treating the affected employees of the Bargaining Unit in accordance with the terms of this Global Agreement.

3. Provided all contractual agreements are honored regarding seniority, including provisions for lay off and recall (it being understood that the applicable purchase agreement shall require the purchaser to make its hiring decisions with respect to Bargaining Unit positions according to the contractual rules that would apply as though such hiring were a decision to recall or layoff Bargaining Unit employees), it is understood that:

42

1. the purchaser will not be required to have the same number of employees in the applicable bargaining unit as the Company does at the time of the transaction, and

2. that the applicable purchase agreement may permit the purchaser to make changes in the benefits programs required by this agreement provided the benefits in all events continue to be substantially equivalent in the aggregate to those provided under this agreement.

4. It is agreed that the Company’s obligations under this successorship language will be satisfied if the applicable purchase and sale agreement: (i) contains the terms required by the above paragraphs; and (ii) either (x) makes the Union a third party beneficiary to those terms; or (y) is supplemented by a contemporaneous agreement between the Union and the purchaser effectuating those terms.

SECTION XIII. INTEGRATION OF THE MASTER AGREEMENT

The terms of the 2017 Master Agreement between PCA and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (the “2017 Master Agreement”) are incorporated by reference into this Local Labor Agreement.

SECTION XIV. CHANGE OR MODIFICATION OF AGREEMENT

This Agreement shall be in effect September 16, 2017, and shall remain in effect until September 15, 2023, and from year to year thereafter, as amended, unless terminated in accordance with the provisions of Section XIV below.

This Agreement shall be considered as the Valdosta Mill’s “First Renewal Agreement” for purposes of the 2017 Master Agreement. The Parties shall meet prior to September 15, 2020 to bargain mutually agreeable changes to the Agreement. Any such changes shall be incorporated into a “Second Renewal Agreement” effective September 16, 2020 through September

43

15, 2023.

SECTION XV. TERMINATION OF AGREEMENT

A. At least sixty (60) days prior to September 16, 2023, either party may serve notice upon the other party that it seeks to modify the Second Renewal Agreement. Following notification of intent to modify the parties shall meet at mutually agreeable times and at a mutually agreeable place and shall bargain in good faith over modification of the Agreement and other terms and conditions of employment.

The Second Renewal Agreement shall continue in full force and effect so long as negotiations for the making of a new contract shall continue. Should negotiations fail to result in an Agreement, then either party may give written notice to the other of intent to terminate this Agreement in not less than ten (10) working days. During this period, attempts to reach a new Agreement shall continue. If the parties fail to resolve their differences before the specific time of termination, all obligations under this Agreement are automatically canceled, unless extended by the parties.

B. If the parties have failed to resolve their differences before the specified time has elapsed, all obligations under this Agreement are automatically canceled.

SECTION XVI. MISCELLANEOUS

The Company reserves the right to contract out maintenance work without any restrictions or penalty. When Maintenance work is contracted out the Company will notify the Union in writing. Maintenance employees will not be laid off when contractors are in the Mill performing maintenance work. (This clause applies to the General Maintenance, E & I and Service Crew.)

SECTION XVII. SEVERANCE PAY

A. An employee whose employment is terminated because of the permanent closing of the Valdosta Mill shall be entitled to severance pay of forty (40) hours straight time pay to the employee’s base hourly wage rate for each year of service in

44

excess of one (1) year.

B. Severance pay will begin as soon as the employee is terminated from the payroll and be paid on a weekly basis, if he or she remains until plant closing or is released by management. If the employee is rehired by Packaging Corporation of America before having been paid the full amount, severance pay will stop as soon as he or she is placed on the active payroll. Employment with companies other than Packaging Corporation of America will not affect severance pay as long as the employee remains until the plant closing or until he or she is released by management.

C. Severance pay as provided in the above paragraphs will be in addition to any other company benefits to which the employee may be entitled. However, if an employee retires, he or she shall not receive both severance pay and retirement benefits.

ADDENDUM

1. A laborer will advance to General Utility Hand after twelve (12) months experience in the mill services department.
The entry level for the department will be Laborer classification and after twelve (12) months will move up to General Utility Hand.

The General Utility Hand will be promoted to Utility Hand based on needs that are determined by the company. The Laborer classification may or may not be filled, depending on the needs of the department.

It is further agreed that there will be at least one permanent employee in the General Utility Hand or Laborer classification at all times and that there will be no more than one employee in the General Utility classification at any one time. Employees above the General Utility classification will not be demoted to fill a vacancy in the General Utility or Laborer classification.

2. The Company has agreed to continue the practice of paying a minimum of four (4) hours straight time for cleaning out precipitators.

3. When a man is hired to replace a man who is absent due 45

to illness, accident or on a leave of absence, he shall be considered temporary and the union will be notified of his temporary status. He will acquire no seniority while on the temporary job.

4. Management will make provisions to obtain food for eligible held- over employees in accordance with the letter from Tom Putnam dated August 31, 1998.

5. House cranes are regarded as a Mill tool and will be operated by a qualified individual from the Mill to perform the necessary work. Qualified contractors may be utilized to operate the crane to perform the necessary work, with the exception of #1 Paper Machine house cranes, Machine Shop crane and Roll Grinding Room crane. (Contractors may continue to utilize these cranes as a platform or scaffold.)

6. It was agreed that, when a man on call-out punches in, he will be paid to the nearest half-hour.

7. Employees who work beyond their assigned hours at management’s request will be paid to the nearest half-hour.

8. The subject of tardiness was discussed and the Company pointed out the employee on the shift has the right to refuse to relinquish a double if his relief is late for work.

9. In the event a death occurs in an employee’s immediate family, he will be responsible for initiating the request for funeral leave pay.

10. The Company will assume the cost of repairing or replacing employee’s safety glasses when the glasses are damaged or broken on the job.

11. Oiling is established as a separate line of progression and for Oilers five (5) rates are listed. Oilers will progress up to the top Day rate in three (3) month intervals.

12. All General Maintenance Mechanics, E & I Maintenance Men and Leadmen assigned to work with the above classifications shall receive five (5) cents per hour for the maintenance of their tool kits. This tool allowance increases to ten (10) cents per hour effective September 16, 2004.

13. Employees whose work necessitates them ascending the 46

water tower to the platform level or above, will receive time and one-half their regular rate for all hours spent thereon. Time and one-half also shall be paid to those employees required to work from a crane basket, swinging stage or bosun’s chair suspended 35 feet or more above a solid platform or temporary scaffolds suspended or erected in the digesters and in the blow tank. This will include employees working above the house crane rails in the two machine rooms. This will also include employees working inside a boiler while suspended from a crane bucket, swinging stage, bosun’s chair or pick 35 feet or more above a solid platform. This will include the Oiler and Mill Service Dept.

14. The Company will continue to furnish gloves and other personal protective equipment as required for employees to safely perform their assigned work.

15. When the tractor is used as a payloader and a man is set up to perform this job, he will be paid the combination operator rate in the same manner as others when set up to a higher rated job as outlined under Paragraph A, Item III, Pay Rules and Practices.

16. It is understood the Mill Tester will have no specific duties. If the Tall Oil Operator is out for any reason then the Mill Tester will cover the Tall Oil Operator’s job. The Mill Tester job will not be filled unless a permanent vacancy occurs.

17. The Shift Clerk will assist in the Tool Room when needed and the Day Clerk will assist the Receiving Clerk when needed. The Receiving Clerk will be flexible.

18. The Company intends that employees be assigned jobs within their normal job classifications. This applies to E & I Men and General Maintenance Mechanics.

19. The Shift Clerks in the Storeroom will progress to the top rate in three (3) month intervals.

20. It is understood that students are exempt from either a temporary or regular employee category and acquire no seniority status.

21. When it is necessary for an employee to return to the doctor for treatment of an “on-the-job” injury during his regular work hours, he will be paid for the time lost from work. Such

47

arrangements will be made with the Safety Director in each instance.

22. Before hiring from the outside, it is agreed that job openings within the mill will be filled in accordance with qualifications and seniority from employees who bid on posted job openings for transfer from another department in the mill and who are qualified at the time the job opening occurs. Management retains the right to determine the best qualified applicant.

23. At present, the Company is required to post work schedules in advance of the work week. The intent of this schedule is to advise employees of any change in their schedules. It is the responsibility of the employee to check this schedule, and if an error is detected in the schedule, it must be reported to the supervisor or department head so that corrective action can be taken.

24. Employees will keep the Company informed of “off-the- job” accidents or illnesses that extends beyond one week. It is the employee’s responsibility to keep the Company informed if on continuing personal disability.

25. The Union may appoint their allowed departmental members to the Safety Committee. Alternates will be appointed to attend the meetings if regular appointee cannot be present to insure full representation at all meetings. The Company retains the right to determine the number appointed.

26. Medical reports used, that affect the employee’s job performance, will be furnished to the Union upon written request of the employee, who shall also furnish approval of the attending physician.

27. The Company’s policy on transportation has been revised to consist of the following:

Employees who are to be held over between the hours of 12 midnight and 6:00 a.m. will, upon being notified, inform the supervisor if he is unable to obtain transportation. If the supervisor tells the employee to stay on the job beyond midnight, he will be furnished transportation between the hours of 12 midnight and 6:00 a.m. to Madison or

48

Valdosta or within a ten-mile radius of the mill. (This is a Company policy and not negotiable).

28. When an employee is temporarily advanced to a supervisory position, he will be paid one dollar ($1.00) per hour above the top hourly rate that he supervises.

29. It was agreed the Union Grievance Committee, (up to the number specified in the Agreement) will be paid their regular time lost from work while attending the new third step in the grievance procedure.

30. The Company will give full consideration to sons and daughters of employees when hiring college students during the summer.

31. Scrap will be sold as is to personnel provided the individual can remove the approved material without Company expense.

32. Summer students will not displace regular operating personnel for possible work in the maintenance department during a maintenance shutdown or on curtailment of work.

33. Although the Company did not agree to remove the last sentence in Item IX, Section G, referring to holiday hours paid for but not worked, it was agreed the present language will be liberalized to the following degree:

When production employees are reassigned to work with maintenance or are given other assignments during a mill shut down of a week’s duration or more and a recognized holiday occurs during this period, they will be given credit for holiday hours paid for but not worked, provided they would have been scheduled to work on the holiday(s) if the mill had continued to operate.

Examples: Holidays occur on Monday, Tuesday and Wednesday. Employee is scheduled to work with maintenance during the shutdown week. He would normally have been off Tuesday and Wednesday if the mill had been running, therefore, he would be given credit for holiday hours paid for but not worked on Monday.

49

If the same employee had been normally scheduled to work the day shift, had the mill been in operation, he would be given credit for all holiday hours paid for but not worked in that week.

34. The Company will pay a minimum of six (6) straight time pay hours to any member of the paper machine crew when they are called out or held over during a wet felt(s) change. This will not apply for scheduled mill shutdowns and will be included as an addendum item of the Labor Agreement.

35. Any machine crew member on shift and actively engaged in changing a wet felt or felts will receive an additional two hours straight time pay in addition to his regular pay at the time. This additional pay will be paid only to those completing the installation of a wet felt or wet felts during a wet felt change downtime. In no event will this payment be made to more than one person in any job classification or to any Extra Hand. This clause will not apply for wet felts installed during scheduled mill shutdown.

36. Patented scaffolding will be considered as a general mill tool and will be assembled accordingly.

37. Production personnel may be assigned to perform non- repair or minor maintenance tasks within their own department during normal operations.

38. It is agreed that the Extra Hand classification will become the entry level job in the appropriate lines of progression and those individuals will accumulate job and departmental seniority as outlined in the Labor Agreement.

It is further agreed that this classification will be filled only when there is a permanent need. It will not be filled on a weekly or daily basis unless there is a specific need.

The Company will retain the right to move Extra Hands from Shipping Department to Machine Room Department and from Technical Department to the Pulp Mill for temporary needs.

The current Extra hands will be assigned permanently to their respective departments.

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Minimum number of Extra Hands by department:

Shipping Paper Pulp Mill Utilities
T echnical

- 2 - 4 - 4 - 4 - 1

May have more but not less.

Extra Hand employees with one or more years of service will receive two dollars and fifty cents ($2.50) above the Extra Hand rate of pay as defined in Appendix A.

39. The Scaler may be utilized during paper machine breaks; and the Scaler and the Paper Tester may be utilized to work with the machine crew during paper machine downtime. (When the fan pump is down.)

40. Whenever an increase in rate is designated to take effect after a definite period of time, all time of lay-offs, leaves of absence and so on, over a week’s duration, shall be eliminated from consideration in the “period of time” as time worked. Vacation periods excepted. Hours worked over-time shall be included as time worked.

41. The Company reserves the right to mail paychecks to any employee(s) who elect not to participate in direct deposit. The Company will give employees thirty (30) days advance notice that paychecks will be mailed.

42. The Company will continue to grant one-half (1/2), one (1), two (2) or three (3) day vacations to day workers provided they give two days advance notice whenever possible.

43. No more than two (2) employees may deadhead at each of the following job classifications in the Utilities Department: Field Operator A; Field Operator B; Field Operator C; and Water Plant Operator. Deadheaded employees within the Field Operator job family will perform all duties and responsibilities of

51

all job classifications within the job family.
[THE NEXT TWO (2) PAGES ARE THE SIGNATURE PAGES]

52

PULP MILL – LOCAL #646

Pulp Mill Operator Stockside Chief
Stockside Operator “A” Stockside Operator “B” Caustic Area Operator Caustic Area Assistant Pulp Mill Field Assistant Chemical Hand (When Used) Extra Hand 1 year**

Extra Hand

New Rate Effective

9/16/17

2.5% 41.14 38.37 35.35 34.48 33.62 33.17 29.87 24.40 17.92 15.42

New Rate Effective

9/16/18

2.5% 42.17 39.33 36.23 35.34 34.46 34.00 30.62 25.01 18.31 15.81

New Rate Effective

9/16/19

2.5% 43.22 40.31 37.14 36.23 35.32 34.85 31.38 25.64 18.70 16.20

New Rate Effective

9/16/20

2.5% 44.30 41.32 38.07 37.13 36.21 35.72 32.17 26.28 19.11 16.61

New Rate Effective

9/16/21

2.5% 45.41 42.35 39.02 38.06 37.11 36.61 32.97 26.93 19.52 17.02

New Rate Effective

9/16/22

2.5% 46.55 43.41 40.00 39.01 38.04 37.53 33.80 27.61 19.95 17.45

** Extra Hand 1 year is $2.50 above Extra Hand

55

PAPER MILL – LOCAL #646

Machine Tender
Refiner Tender
Wet End Utility Operator Back Tender
Third Hand
Fourth Hand
Fifth Hand
Dry End Operator
Utility Hand
Extra Hand 1 year** Extra Hand

New Rate Effective

9/16/17

2.5% 41.25 37.74 36.74 36.46 36.27 35.14 34.05 31.72 29.88 17.92 15.42

New Rate Effective

9/16/18

2.5% 42.28 38.68 37.66 37.37 37.18 36.02 34.90 32.51 30.63 18.31 15.81

New Rate Effective

9/16/19

2.5% 43.34 39.65 38.60 38.31 38.11 36.92 35.77 33.33 31.39 18.70 16.20

New Rate Effective

9/16/20

2.5% 44.42 40.64 39.56 39.26 39.06 37.84 36.67 34.16 32.18 19.11 16.61

New Rate Effective

9/16/21

2.5% 45.53 41.66 40.55 40.25 40.04 38.79 37.58 35.01 32.98 19.52 17.02

New Rate Effective

9/16/22

2.5% 46.67 42.70 41.57 41.25 41.04 39.76 38.52 35.89 33.81 19.95 17.45

** Extra Hand 1 year is $2.50 above Extra Hand

56

SHIPPING – LOCAL #646

Crew Leader-Loader Senior Loader Loader
Extra Hand 1 year** Extra Hand

New Rate Effective

9/16/17

2.5% 33.91 31.76 28.22 17.92 15.42

New Rate Effective

9/16/18

2.5% 34.76 32.55 28.93 18.31 15.81

New Rate Effective

9/16/19

2.5% 35.63 33.37 29.65 18.70 16.20

New Rate Effective

9/16/20

2.5% 36.52 34.20 30.39 19.11 16.61

New Rate Effective

9/16/21

2.5% 37.43 35.06 31.15 19.52 17.02

New Rate Effective

9/16/22

2.5% 38.37 35.93 31.93 19.95 17.45

** Extra Hand 1 year is $2.50 above Extra Hand

57

LABORATORY – LOCAL #646

Tall Oil Operator Mill Tester
Lab Tester
Shift Quality Tester Extra Hand 1 year** Extra Hand

New Rate Effective

9/16/17

2.5% 33.29 32.69 30.28 28.70 17.92 15.42

New Rate Effective

9/16/18

2.5% 34.12 33.51 31.04 29.42 18.31 15.81

New Rate Effective

9/16/19

2.5% 34.98 34.34 31.81 30.15 18.70 16.20

New Rate Effective

9/16/20

2.5% 35.85 35.20 32.61 30.91 19.11 16.61

New Rate Effective

9/16/21

2.5% 36.75 36.08 33.42 31.68 19.52 17.02

New Rate Effective

9/16/22

2.5% 37.66 36.99 34.26 32.47 19.95 17.45

** Extra Hand 1 year is $2.50 above Extra Hand

58

UTILITIES – LOCAL #646

Utility Operator (A) (qualified at 2 jobs) Utility Operator (A) (qualified at 1 job) Utility Operator (B) (qualified at 2 jobs) Utility Operator (B) (qualified at 1 job)Field Operator (A) (qualified at 3 jobs) Field Operator (A) (qualified at 2 jobs) Field Operator (A) (qualified at 1 job) Field Operator (B) (qualified at 3 jobs) Field Operator (B) (qualified at 2 jobs) Field Operator (B) (qualified at 1 job) Field Operator (C) (qualified at 3 jobs) Field Operator (C) (qualified at 2 jobs) Field Operator (C) (qualified at 1 job)

New Rate Effective

9/16/17

2.5% 41.22 41.14 41.22 38.58 35.68 35.64 35.60 35.68 35.34 35.01 35.68 34.69 33.67

New Rate Effective

9/16/18

2.5% 42.25 42.17 42.25 39.54 36.57 36.53 36.49 36.57 36.22 35.89 36.57 35.56 34.51

New Rate Effective

9/16/19

2.5% 43.31 43.22 43.31 40.53 37.49 37.44 37.40 37.49 37.13 36.78 37.49 36.45 35.37

New Rate Effective

9/16/20

2.5% 44.39 44.30 44.39 41.55 38.42 38.38 38.34 38.42 38.06 37.70 38.42 37.36 36.26

New Rate Effective

9/16/21

2.5% 45.50 45.41 45.50 42.59 39.38 39.34 39.30 39.38 39.01 38.64 39.38 38.29 37.17

New Rate Effective

9/16/22

2.5% 46.64 46.55 46.64 43.65 40.37 40.32 40.28 40.37 39.98 39.61 40.37 39.25 38.09

59

UTILITIES – LOCAL #646

Water Plant Operator Extra Hand 1 year** Extra Hand

New Rate Effective

9/16/17

2.5% 29.63 17.92 15.42

New Rate Effective

9/16/18

2.5% 30.37 18.31 15.81

New Rate Effective

9/16/19

2.5% 31.13 18.70 16.20

New Rate Effective

9/16/20

2.5% 31.91 19.11 16.61

New Rate Effective

9/16/21

2.5% 32.71 19.52 17.02

New Rate Effective

9/16/22

2.5% 33.52 19.95 17.45

** Extra Hand 1 year is $2.50 above Extra Hand

60

STORE ROOM – LOCAL #646

Receiving Clerk
Day Clerk
Shift Clerk (1)
Shift Clerk (2)
Shift Clerk (3)
Shift Clerk (4)
Shift Clerk (5)
Utility Clerk 1 year** Utility Clerk 6 months* Utility Clerk

New Rate Effective

9/16/17

2.5% 32.32 30.34 29.01 28.20 27.48 27.04 26.47 17.91 17.66 17.16

New Rate Effective

9/16/18

2.5% 33.13 31.10 29.74 28.91 28.17 27.72 27.13 18.34 18.09 17.59

New Rate Effective

9/16/19

2.5% 33.96 31.88 30.48 29.63 28.87 28.41 27.81 18.78 18.53 18.03

New Rate Effective

9/16/20

2.5% 34.81 32.67 31.24 30.37 29.59 29.12 28.51 19.23 18.98 18.48

New Rate Effective

9/16/21

2.5% 35.68 33.49 32.02 31.13 30.33 29.85 29.22 19.69 19.44 18.94

New Rate Effective

9/16/22

2.5% 36.57 34.33 32.82 31.91 31.09 30.59 29.95 20.16 19.91 19.41

** Utility Clerk 1 year - $0.75 above Utility Clerk
* Utility Clerk 6 months - $0.50 above Utility Clerk

61

MILL SERVICE – LOCAL #646

Combination Driver Concrete Finisher (when used) Dempster Driver
Truck Driver
Mill Service Crew Leader Utility Hand
General Utility Hand Laborer

New Rate Effective

9/16/17

2.5% 27.66 26.94 25.90 25.83 25.77 24.68 20.05 14.90

New Rate Effective

9/16/18

2.5% 28.35 27.61 26.55 26.48 26.41 25.30 20.55 15.27

New Rate Effective

9/16/19

2.5% 29.06 28.30 27.21 27.14 27.07 25.93 21.07 15.65

New Rate Effective

9/16/20

2.5% 29.80 29.03 27.91 27.83 27.77 26.59 21.60 16.05

New Rate Effective

9/16/21

2.5% 30.55 29.75 28.60 28.53 28.46 27.26 22.14 16.45

New Rate Effective

9/16/22

2.5% 31.31 30.50 29.32 29.24 29.17 27.94 22.70 16.87

62

MAINTENANCE – LOCAL #646

General Maintenance Leader

Shift General Mechanic (A)

Shift General Mechanic (B)

General Maint. Mechanic (A)

General Maint. Mechanic (B)

General Maint. Mechanic (C)

General Maint. Mechanic (D)

Gen. Maint. Mech. Apprentice (AB)
Gen. Maint. Mech. Apprentice (AC)

Gen. Maint. Mech. Apprentice (AD) + 8 Months

New Rate Effective

9/16/17

2.5% 39.25 38.97 38.97 37.32 32.85 31.66 29.61

New Rate Effective

9/16/18

2.5% 40.23 39.94 39.94 38.25 33.67 32.45 30.35

33.67 26.40 22.76

New Rate Effective

9/16/19

2.5% 41.24 40.94 40.94 39.21 34.51 33.26 31.11

34.51 27.06 23.33

New Rate Effective

9/16/20

2.5% 42.27 41.97 41.97 40.19 35.38 34.09 31.89

35.37

27.74

23.92

New Rate Effective

9/16/21

2.5% 43.32 43.02 43.02 41.19 36.26 34.95 32.68

36.25

28.43

24.51

New Rate Effective

9/16/22

2.5% 44.41 44.09 44.09 42.22 37.17 35.82 33.50

37.16 29.15 25.12

32.85 25.76 22.20

63

MAINTENANCE – LOCAL #646

Gen. Maint. Mech. Apprentice (AD)
Oiler Leader
Shift Oiler

Oiler Day Oiler (A) Oiler (B) Oiler (C) Oiler (D)

New Rate Effective

9/16/17

2.5%

34.30 31.16 30.37 28.76 27.16 25.54 23.96

New Rate Effective

9/16/18

2.5%

35.16 31.94 31.13 29.48 27.84 26.18 24.56

New Rate Effective

9/16/19

2.5% 19.60

36.04 32.74 31.91 30.22 28.53 26.83 25.17

New Rate Effective

9/16/20

2.5% 20.09

36.94 33.56 32.71 30.97 29.25 27.50 25.80

New Rate Effective

9/16/21

2.5%

20.60

37.86 34.39 33.52 31.75 29.98 28.19 26.45

New Rate Effective

9/16/22

2.5% 21.12

38.81 35.25 34.36 32.54 30.73 28.90 27.11

64

E & I – LOCAL #1947

E&I Leader

Shift E&I Mechanic (A)

Shift E&I Mechanic (B)

E&I Technician

E&I Mechanic (A)

E&I Mechanic (B)

E&I Mechanic (C)

E&I Mechanic Apprentice (AB) (CBA)
E&I Mechanic Apprentice (AC) E&I Mechanic Apprentice (AD) + 8 Months

E&I Mechanic Apprentice (AD)

New Rate Effective

9/16/17

2.5% 39.25 38.97 38.97 38.97 37.32 32.85 31.66

32.85 25.76 22.20

New Rate Effective

9/16/18

2.5% 40.23 39.94 39.94 39.94 38.25 33.67 32.45

33.67 26.40 22.76

New Rate Effective

9/16/19

2.5% 41.24 40.94 40.94 40.94 39.21 34.51 33.26

34.51 27.06

19.60

New Rate Effective

9/16/20

2.5% 42.27 41.97 41.97 41.97 40.19 35.38 34.09

35.37

27.74 20.09

New Rate Effective

9/16/21

2.5% 43.32 43.02 43.02 43.02 41.19 36.26 34.95

36.25

28.43

New Rate Effective

9/16/22

2.5% 44.41 44.09 44.09 44.09 42.22 37.17 35.82

37.16 29.15 25.12 21.12

18.66

19.13

65

23.33 23.92 24.51

20.60

APPENDIX “B”
SIDE AGREEMENTS
LOCAL 646 MECHANICAL MAINTENANCE

1. WORK ASSIGNMENT

Motors connected to any mechanical machinery, mounted and shipped on a common base or bed plates belongs to General Maintenance Mechanics to load, unload, move and set into position.

It will be the responsibility of the Electrical and Instrument Men to move motors, generators or any other electrical equipment, except equipment mentioned above, from trucks to jobs, job to job, storeroom to job or job to storeroom. It shall also be the responsibility of the Electrical and Instrument Men to hang vertical motors, that is the Electrical & Instrument Men would mount these motors to the base with bolts necessary to hold the motor in place and the General Maintenance Mechanics would align the motors and tighten the bolts to secure the motors. The General Maintenance Mechanics may move motors to or from base to make alignment easier. Any related work such as “A” frames, monorails or bed plates will be work of General Maintenance Mechanics.

2. OPERATION OF THE TOOLROOM

When it is necessary to operate the toolroom continuously or for a full shift, the following procedure will be used.

The toolroom operator assigned to the toolroom will be called; if unavailable, call a day General Maintenance Mechanic according to the call out list. This applies also for holdover. Call or schedule the toolroom operator when there is a combination of more than 25 General Mechanics and E & I Mechanics working on weekends or breakdowns.

If the regularly assigned toolroom operator becomes sick during a regular assigned shift, the Company will designate a day general mechanic to fill the shift.

The Storeroom Shift Clerk will operate the toolroom during absence of the regular toolroom operator during a regular shift. (Example: trips to First Aid, personnel, bathroom, etc.)

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The Storeroom Shift Clerk will operate the toolroom for all departments when a toolroom operator is not assigned in accordance with above.

This procedure is for the duration of this contract.

Age and physical condition will be considered when filling a temporary vacancy.

The Company agreed that the oldest qualified mechanic will be assigned (optional) to the tool room at the General Maintenance Mechanic B rate. The mechanic has 30 work days to demonstrate qualification and/or decide to return to his former job without loss of seniority as stipulated on page 27, Section G, paragraph 3. If the mechanic decides after this period to return to his (or her) former job then he will be placed on the seniority list in accordance with the contract and gives up future rights to the tool room job.

3. CAUSTIC SODA RAILROAD UNLOADING

The Company will assign an individual to better schedule the materials so that when possible, daylight unloading will be performed, and by a day mechanic.

For the weekend, unloading will be by a call out, with the assistance of a shift mechanic to help hook up or uncouple as the need arises. Additional safety look-out assistance may be requested of an operator in the area, such as at the kilns. In an emergency, assistance may be required of any and all personnel. In any case, any individual involved must wear the complete protective equipment necessary for maximum safety.

4. If an employee is not released 1-1/2 hours past his lunch period, he will be paid and eat on the “run”. He will not be required to work more than 1-1/2 hours past his lunch period without relief for lunch on the “run”.

5. A classification, General Maintenance Mechanic Class “D” has been added.

It will be filled by selection from the list of senior qualified people requesting transfer to this department from other departments in the mill, including the Maintenance Department, whenever in the

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Company’s opinion a need exists. The selected individual shall be utilized fully on a trial basis for a period of up to six (6) months at which time he shall become permanent in this classification until he demonstrates to the committee that he meets the qualifications of General Maintenance Mechanic Class “C”.

This individual’s seniority in this classification will start as of date of transfer if he is retained at the completion of the trial period. Should he be returned to his prior job at any time during this trial period, he shall suffer no loss to his seniority in that job.

To qualify for consideration to the “D” class General Maintenance Mechanic, he must have successfully completed training in a basic skill requirement or have had some practical experience in this skill.

In addition, he must have successfully completed a course in basic welding or have the ability to perform basic welding. These qualifications as well as a satisfactory work attitude must be demonstrated to and approved by the committee in accordance with established procedure.

The thirty (30) day job bid will not apply to those transferred to “D” Class Maintenance Mechanic. If he is not retained in this classification for more than six months, he may return to his former job without loss of seniority and those affected will move back accordingly.

6. When it is known in advance, the Company will continue to provide additional help in the Storeroom. If an unusual workload arises over a week-end period, the Storeroom personnel should advise their supervisor or department head if it becomes obvious additional temporary help is needed.

7. Filling Storeroom Day Clerk Job

For absences of less than a full shift, the temporary vacancy will be filled by shift setup if a Utility Clerk is available.

For absences of a full 8-hour shift, the temporary vacancy will be filled as follows:

a. Shift setup if a Utility Clerk is available. 68

1. Call the off Shift Clerk.

2. Call the oncoming Shift Clerk.

3. Ask the 11-7 Shift Clerk to work 7-3 (up to 16 hours total).

4. Absences of a week or more will be filled by seniority setup.

8. The Company agreed that maintenance run all new tubing and that the E & I men replace or repair all signal tubing.

9. STOREROOM: It was agreed that shift clerks would be permitted to receive materials after the end of the normal work day of the Receiving Clerk. If it is known by 3:30 that materials will arrive not more than two hours after 3:30, the Receiving Clerk will be given the opportunity to stay over and receive the material.

10. If the Oiler Leader is off for one to four days, the Senior Day Oiler should be set up to Leader unless there is a Shift Oiler working his off day on a Day Oiler’s job. Then the off Shift Oiler would be set up to Leader. Never take a Shift Oiler off his regular shift to set up at any time.

APPENDIX “B”
SIDE AGREEMENTS
LOCALS 646 MECHANICAL AND 1947 E & I MAINTENANCE

1. MAINTENANCE HELPERS ON SHUTDOWN

Production personnel are not to be assigned to work over 40 hours as maintenance helpers during a shutdown, until all members of Local 646 are given the first opportunity to work additional hours during the week as maintenance helpers. The intent of this arrangement is to assure members of Local 646 that production personnel would not be paid overtime as maintenance helpers while members of Local 646 worked only 40 hours in the helper category.

There may be some exceptions to the hours worked in relation to the hours assigned, such as operators working as helpers on

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a job that is not completed until after the assigned stopping time, but it is not our intention for a helper to displace a mechanic. Also, when production workers return to their normal shifts, they may make more than 40 hours in that particular week.

These provisions also apply to Local 1947.

1. AGREEMENT BETWEEN GENERAL MAINTENANCE AND E & I DEPARTMENT

   1. Maintenance of all air filters used in E & I maintained equipment shall go to E & I Department.

   2. Flowmeters that are fabricated and have to be calibrated before installed, will be fabricated by E & I department. If fabricated in field, will be done by General Maintenance Mechanics. Stock fittings to be used by E & I Department.

2. It is agreed that when corrections are made on time cards,

the employee concerned will be notified if money is involved.

4. In response to the request that no contractor be allowed to tie into existing equipment, it was stated that items of this nature would be covered with the union involved when discussing the scope of the job to be performed.

APPENDIX “B” SIDE AGREEMENTS LOCAL 1947

1. If an employee is not released 1-1/2 hours past his lunch period, he will be paid and eat on the “run”. He will not be required to work more than 1-1/2 hours past his lunch period without relief for lunch on the “run”.

2. The E & I Technician classification is to be filled on qualifications. If a vacancy occurs for more than five (5) days, seniority will not be affected by filling a vacancy in E & I Technician classification. Individuals must be proficient in all phases of electrical and instrumental systems. This would include the knowledge to install, trouble shoot and repair any system within the responsibility of the E & I Department.

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3. It was agreed that maintenance run all new tubing and that the E & I Men replace or repair all signal tubing.

4. Seniority for all E & I personnel will be based on former job, then former department and mill seniority.

5. Field Instrumentation work related to the computer system will be performed by E & I personnel under the normal work order program.

6. WORK ASSIGNMENT

Motors connected to any mechanical machinery, mounted and shipped on a common base or bed plates belongs to General Maintenance mechanics to load, unload, move and set into position.

It will be the responsibility of the Electrical & Instrument Men to move motors, generators or any other electrical equipment, except equipment mentioned above, from trucks to job, job to job, storeroom to job or job to storeroom. It shall also be the responsibility of the Electrical & Instrument Men to hang vertical motors, that is the Electrical & Instrument Men would mount these motors to the base with bolts necessary to hold the motor in place and the General Maintenance mechanics would align the motors and tighten the bolts to secure the motors. The General Maintenance Mechanics may move motors to or from base to make alignment easier. Any related work such as “A” frames, monorails or bed plates will be the work of General Maintenance mechanics.

APPENDIX “B” SIDE AGREEMENTS LOCAL 646 PAPER, SHIPPING AND UTILITIES

1. TEMPORARY VACANCIES

It was agreed that temporary vacancies may be filled by the off man of the classification involved, if posted prior to the beginning of the work week.

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1. GUIDELINES FOR FILLING TEMPORARY VACANCIES — PAPER MACHINE ONLY

   1. Seniority set ups will be made first for temporary vacancies known to last for three or more weeks. These will be made in the order in which they occur, regardless of estimated length of absence. If at the initiation of an absence its length is indeterminate but later becomes known that it will be of three or more weeks, it will be so treated the week following this becomes known and thereafter.

   2. Set ups will next be made for short term absences (one, two, three weeks). These will be made in the order of the seniority of the absentees, starting with the senior man and proceeding in descending order of seniority regard- less of known length of absence.

   3. In preparing a weekly work schedule, all personnel entitled to a set up will be set up. This includes even those who will be absent themselves. Set ups for them will then be made according to Paragraph 1 or 2.

   4. In the event there are not enough extra men available to make seniority set ups for all vacancies, or, in the opinion of the Company some individuals who would be set up are not qualified, absences will be filled working off days first in the senior job classification in which an absence occurs. Additional vacancies so filled will be in descending order of job classification in which they occur.

2. CALLING EXTRA HELP FOR PAPER, SHIPPING, PULPMILL, UTILITIES

When extra help is needed in any department under the jurisdiction of Local 646 the following procedure will be used to secure this extra help:

a. Ask man on job to double over. 72

1. Call incoming man for partial shift.

2. Call off man for full or partial shift.

3. Call other man in job classification.

4. Call other qualified help.

5. If a man is called to work a partial shift and at shift change extra help is needed, he will be allowed to stay.

4. VACATION SCHEDULING — PAPER MACHINE

In order to allow six (6) men to be on vacation during any one week the two items listed below were agreed upon:

1. When a supervisor is on vacation this will not be considered a vacation absence, and the Company will have the right to make one complete set up, provided an hourly employee from the paper machine is set up to supervisor.

2. After the shift schedule has been posted, and the need for an emergency vacation occurs, the Company will have the right to work men on their off days on the job classification where the emergency vacation occurs.

5. The Company agreed to permit permanent shift swaps if it was agreeable with both employees involved and the union and the department head.

6. In response to the union’s request for assistance on the winder when unusual conditions are present, it was agreed that whenever the winder operation requires additional help and the assistant superintendent is not immediately available in the area, the back tender or third hand has the authority and responsibility to obtain additional help from the crew on the broke beater. In the event extra help is needed at shift change, the operating winder crew will be offered first choice of this work.

7. It was agreed that winder personnel would not be used in the stock preparation area except in case of emergency. This work will be performed by the people responsible for this area.

73

8. Whenever possible, the Company agrees that when it becomes necessary to train an employee on a job classification, the employee will be trained by men in the same classification.

9. The Company reiterated their position on supervisors performing hourly work by stating, “we do not want supervisors to do hourly employee’s work except in cases of emergency or as outlined in our Agreement.” In case of shutdowns, it is the Company’s intention that adequate people and/or time will be available for this.

10. All personnel will be requested to retain a safe working distance when loading or unloading on shipping dock and maintain safe working conditions in the area.

11. The Company will continue to request the railroads to furnish clean box cars and box car doors in good working condition.

12. When the work load is such that additional help is needed, we will furnish additional help as in the past. This also includes pancake rolls.

13. When it is determined that the Power Utility Man is going to be in the Recovery area for an extended period of time, we will continue to bring in extra help.

14. WEEKLY SCHEDULE – Utilities Department Shift Set-up:

The Utilities Department will use a shift set-up for all department employees for scheduling on a weekly basis. The Union can return to the seniority set up by notifying the Company. The Company can return to the seniority set up by notifying the union.

1. A temporary seniority promotion will be made only for absences of four (4) weeks or more, if known in advance. Vacations are not included.

2. If there are more vacancies than extra people available, shift set up will be used starting with the most senior employee absent. Overtime will occur at the vacant classification where the set up cannot be completed all the way to the bottom

74

job.

c. If extra men are available for absences (on a weekly basis) and cannot be scheduled using shift set up, a seniority set up will be used. However, a vacation will not be scheduled after the cut-off date on vacations that will require a seniority set up.

d. Selection of vacation dates will be handled on a mill seniority basis; however, the number of vacations on one shift may have to be restricted.

APPENDIX “B” SIDE AGREEMENTS LOCAL 646
PULPMILL, UTILITIES

1. SHIFT SET-UP FOR TRAINING

It is agreed that the following procedure will be followed on shift set-up for training whenever an employee is temporarily absent:

A shift in a set-up status for training may still stay set up for the balance of the work week even though a vacancy occurs on that shift. In this event, a set-back will be made at the end of the week.

It is understood that shift setups will be used to fill temporary vacancies for vacations and training.

2. SHUTDOWN WORK — PULP MILL / UTILITIES

It is agreed that when there is a temporary shutdown of the mill and work is to be done by some of the operating personnel in the Pulp Mill or Utilities, this work will be done by the senior men in the area where the work is scheduled and the persons performing this work will be paid their regular rate.

Example 1: If during a shutdown, work is available for two men in the digester area, the two senior digester cooks will be offered this work. Should either of them refuse the work, it will be offered to the next senior, etc.

75

Example 2: If during a shutdown, work is available for eight men in the digester area, the work would first be offered to the four digester cooks and the four digester first helpers. Should any of these men prefer not to work, the senior digester Capper would be given the next opportunity, etc.

It is also agreed that if work is to be done in the Washer Area and there is work for more than the Washer Operators, the Senior Washer Helper or Helpers will be offered this work.
It is also agreed that, if work is available outside the department, the senior men in the department will be given this work if they want it and will be paid the rate for the job they are assigned. The rates for these jobs will be posted in advance.

It is understood that the above applies only to members of Local #646 working in the Pulp Mill or Utilities. It is also understood that the over eight in 24 hour period does not apply to this agreement.

3. During discussion affecting the Technical Department, a question was raised regarding the activities of the Mill Tester classification and the committee was assured that the Mill Tester will not be used to do routine paper testing for primary disposition of the rolls.

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Appendix 2 PCA Mills Alternative Pension Plan

I. Defined Benefit Plans

1. All employees on the payroll as of the expiration date of their local agreement shall receive a $1 increase in the multiplier for all past and future service. Effective January 1, 2014 for all locations, if a non- employee spouse of a retiree dies within two (2) years of retirement and the retiree elected a joint survivor benefit, the defined pension benefit shall be restored to a single life annuity level for the PCA pension plan (2003 and forward) upon a timely (within 6 months) notification of death.

2. The defined benefit plans for employees (the “DB plans”) at each location will be closed to all new hires based on their expiration year according to the following grid:

3. Going forward, eligibility for DB plans benefit accruals will be determined by years of service and age as of the applicable Effective Date.

II. Grandfathered Employees

A.

B.

C.

As of the Effective Date in the grid in I.B above, a DB plan participant

who is:
(1) at least 55 years of age; or
(2) whose age and years of continuous service (including continuous

service from predecessor companies) equal 70 or more, will be a “Grandfathered Employee” and will continue to accrue benefits under the DB Plan in which s/he participates.

For Grandfathered employees, the multiplier will be increased for all past and future service by $3 on the first January 1 following the expiration date of the Local Agreement. An employee who elects to waive his/her grandfathered status, as described in II.C. below, will not be entitled to this $3 multiplier increase

Employees meeting the criteria described in II.A. above will have the option to waive their grandfathered status and be treated as non- grandfathered employees. Any employee who wishes to waive their grandfathered status must notify the company in writing in the 90-day period before the Effective Date in I.B. The waiver must be a knowing waiver based on an informed decision. This waiver is irrevocable. A

77

release form must be signed by the participant and their spouse (where applicable).

III. Non-Grandfathered Employees and New Hires

A.

B.

As of the Effective Date in the grid in I.B above, a DB plan participant

who is:
(1) less than 55 years of age; and
(2) whose age plus years of continuous service total less than 70, will

be a “Non-Grandfathered Employee.” A Non-Grandfathered Employee’s DB plan benefit accrual will be frozen as of the applicable Effective Date, but s/he will continue to accrue age and service for purposes of vesting and early retirement eligibility.

Employees hired on or after the Effective Date will be “New Hires” and will not be eligible to participate in any Company sponsored DB Plans but will participate in this Alternative Pension Plan as a Non- Grandfathered Employee.

IV. Hourly Savings Plan for Union Represented Mill Employees

The existing 401(K) Plan will be amended to include or modify the following provisions.

A. CompanyContribution
1. CompanyMatchingContribution.

1. i)  As of the Effective Date referenced in grid I.B. above, the Company Matching Contribution will be modified. The company will match the participant’s contribution at a rate of $1.00 for every $1.00 contributed on the first three percent (3%) of Compensation (see Exhibit B) and $0.50 for every $1.00 contributed on the next two percent (2%) of Compensation. Therefore a Company Matching Contribution of up to four percent (4%) of Compensation is possible if the participant contributes at least five percent (5%) of Compensation.

2. ii)  All Union Represented Mill Employees, including New Hires, Non-Grandfathered and Grandfathered Employees will be eligible to receive the Company Matching Contribution.

2. Company Automatic Contribution.

i) As of the Effective Date referenced in grid in I.B above, the Company will make Automatic Contributions for all New Hires and Non-Grandfathered Employees.

i) Each pay period, an Automatic Company Contribution will be made as a percentage of the participant’s Compensation (see Exhibit B) based on a combination of the participant’s age plus service as described in the schedule below. No employee

78

iv)

contribution is required to be entitled to the Automatic Company Contribution.

iii)

For purposes of the table above, age and service shall be determined as of December 31st of the year in which the Contribution is allocated.

The Company Automatic Contribution shall be computed each pay period (weekly) and contributed to a participant’s account as soon as reasonably practicable after the end of each paycheck date. For the purposes of computing the Company Automatic Contribution, compensation shall be defined as: 1) the greater of actual weekly eligible compensation earned (compensation as defined in Exhibit B); or 2) Multiply 40 hours by a participant’s hourly rate while a participant is in a leave status, including FMLA, personal leave of absence, sickness and accident leave, workers compensation leave, military leave status, layoff status, and Long Term Disability, not to exceed one year. Multiple leave statuses occurring during the one year maximum period shall run concurrently.

The Company Contribution will vest by 20% each year until full-vesting is achieved at 5 years. Previous services of employees shall be recognized under this vesting provision.

V. General 401(K) Plan Provisions

1. The Savings Plan will not permit loans on employer contributions, loans shall be allowed on employee contributions.

2. During the term of this Agreement, eligible employees may make pretax contributions to the Savings Plan.

3. New Hires will be immediately eligible to participate in the 401(K) Plan and will be automatically enrolled in the 401(K) at a five percent (5%) employee contribution level. Upon the Effective Date of this Alternative Pension, the Non-Grandfathered and Grandfathered employees who do not participate at least at a 5% employee contribution level will be enrolled at a five percent (5%) employee contribution level. The Company shall give the Non-Grandfathered and Grandfathered employees a 60-day notice of this enrollment and those employees shall have until the date of the change to lower the contribution.

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VI. Investment Education

A. While the parties realize they cannot provide financial advice, they do recognize the value of employee awareness and participation in investment education programs. As such, the company commits to continue offer access to retirement planning education according to the Task Force Agreement attached here as Exhibit A to this Appendix.

VI. DisabilityInsurance

1. A long term disability (“LTD”) benefit will be provided for all Non- Grandfathered participants and new hires. This benefit will provide 60% of base monthly earnings (defined as monthly base wage, however, if an employee has worked 12 consecutive months or more in a temporary set up, the set up rate shall be used as the hourly rate to calculate the monthly base wage) replacement. This benefit will replace any disability benefits payable under the DB plans. The cost for the LTD plan will be paid by the employer.

2. A voluntary long term disability (“LTD”) benefit will be available for all Grandfathered participants. This benefit will provide 60% of monthly earnings (defined as monthly base wage, however, if an employee has worked 12 consecutive months or more in a temporary set up, the set up rate shall be used as the hourly rate to calculate the monthly base wage) replacement. This benefit will be offset by any disability benefits payable under the DB plans. The cost will be paid by the participant.

3. Local Union long-term disability plans shall not be an offset to the Company provided LTD benefit.

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SUBJECT

LABOR AGREEMENT INDEX PAGE

Absentees, Medical Exams and Notification      20, 38, 48 (24), 48 (26)

Automatic Change of Rate                                51 (40) Bulletin Boards                                                  37

Call-in Pay
Caustic Soda Railroad Unloading                      67 Change or Modification of Agreement               43 Continuous Operation                                      17 Contract Protection/Successorship                    42 Contractual Relationship                                    5 Discharge, Causes for                                       36 Disciplinary Action                                             34

Discrimination
Emergency Work                                              19

Extra Hand Extra Help

Paper, Shipping and Utilities                   51 (39), 72 (3), 73 (6), 74 (12),

74 (13)

Fire Service
Flexibility, Assignment                                         1 Funeral Leave                                                  32, 46 (9)

Gainsharing
General Purpose of Agreement                           1 Grievance Procedure                                        14, 49 (29)

24, 46 (6)

1
50 (38)

37

19

81

High Work Pay                                                  46 (13)

Holidays
Hours for Workers                                             20 Insurance and Pensions                                    19 Integration of the Master Agreement                 43

Job Posting

30, 49 (33)

13, 48 (22), 67 (5)

Jurisdictional Agreement
(Maintenance and E&I)                               70 (2)

Jury Duty

34

Leave of Absence                                             33

Local 646 Appendix “B” Side Agreements         66

Locals 646 and 1947 Appendix “B”
Side Agreements                                              69

Local 1947 Appendix “B” Side Agreements       70 Local 646 Appendix “B” Side Agreements         71 Local 646 Appendix “B” Side Agreements         75

Lockers
Machine Clothing and Wire Time                       25, 50 (34-35)

Maintenance and E&I Provisions             26 Maintenance Helpers on Shutdown                   69 (1)
Meal Information                                               67 (4), 70 (1) Minor Maintenance                                             2, 50 (37) Miscellaneous Clause                                       44

Overtime
Paper Mill Cranes, Operation of                        46 (5) Pay Rules and Practices                                   22

Hog Law (over 16 hrs. in 24 hrs.)            23 82

38

22

Employees Held Over at End of Shift Probationary Period – New Employees Promotions, Refusal of
Recognition

Report Pay

Representation

Safety and Safety Shoes

Safety Regulations

Scaffolding

Schedule Change

Schedule, Weekly (Pulp, Paper, Utilities, Technical, etc.)

Seniority, Application of

Seniority, Definition of Job

Department Mill

Seniority, Layoffs During Shutdown Day Workers

Shift Workers
Paper Mill and Shipping
Utilities
Pulp Mill, Maintenance, E&I, Technical All Departments

Seniority, Layoffs Other Than Shutdown Seniority, Recall After Layoff
Seniority Rights
Severance Pay

Shift Differential Shift Swap

24
6 (B)

12 (C), 14 (F) 3

24 3 37 38

50 (36) 20

48 (23), 73 (4), 74 (14)

6 (C)

5 6 6

6 6 7 7 8 8 8

9
9
5, 10

44
26
21, 73 (5)

83

Shutdown Work – Pulp Mill and Utilities             75 (2) Summary of Benefits                                         41
Summer Students                                             47 (20), 49 (30),

49 (32) Temporary Employees                                      45 (3)

Temporary Jobs Setups

Setbacks
Supervisory Setups                                                                  49 (28)

75

75

Temporary Vacancies, when Overtime is Required

10 Termination of Agreement                                 44 Toolroom, Operation of                                     66

Training
Transportation of Employees                             48

74 (8), 75 (1) (27)

Union Security

4

Vacancies, Temporary, when
Overtime is Required                                        10

Vacancies, Permanent (Job Posting)                 10, 48 (22)

Vacations
Day Workers

26

51 (42) Paper Machine                                                                                73 (4)

Voting – State/National Election                        22

Wages

Work Assignment Local 646

18, 49 (28), 55

66 (1) Local 1947                                                                                            71 (6)

Work Regulations and Practices                        19 Workers’ Compensation – Supplemental Pay    33

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Packaging Corporation of America Shift Calendar
Valdosta Mill 2017

85

Packaging Corporation of America Shift Calendar
Valdosta Mill 2017

86

Packaging Corporation of America Shift Calendar Valdosta Mill 2018

87

Packaging Corporation of America Shift Calendar
Valdosta Mill 2018