ARTICLE 11

Wages

Section 1.      On December 6, 2004, the base hourly wage rate of each employee covered by this Agreement will be increased by the $0.33 cost-of-living allowance in effect on December 5, 2004, and this new base hourly wage rate will be further increased by three and one-half (3 1/2) percent.  Schedule A shows the hourly rate schedule which will be effective December 6, 2004.

Section 2.      December 5, 2005, the base hourly wage rate of each employee covered by this Agreement will be increased by three (3) percent.  Schedule B shows the hourly rate schedule which will be effective December 5, 2005.

Section 3.      On December 4, 2006, the base hourly wage rate of each employee covered by this Agreement will be increased three (3) percent.  Schedule C shows the hourly rate schedule which will be effective December 4, 2006.

Section 4.

(a)       An hourly cost-of-living allowance, which starts at $.00 on December 6, 2004, shall be determined semiannually based upon the conditions and provisions set forth in this Section and shall be paid to each employee covered by this Agreement in addition to his base hourly wage rate.

(b)       The cost-of-living allowance, if any, shall be determined on the basis of changes in the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers (CPI-W), United States City Average, All Items (1982-84 = 100) published by the United States Bureau of Labor Statistics, hereafter referred to as the "Index".

(d)               Adjustments in the cost-of-living allowance shall be effective on all five of the following dates in the amount of one cent (1¢) per hour for each full fifteen hundredths of one percent (0.15%) change in the Index for the months indicated below.  Each semiannual adjustment (increase or decrease) in the cost-of-living allowance shall not exceed a maximum of eighteen cents (18¢) per hour.                                                                                

                                             Based on the Percent 

                                                 Change in the Index          

Effective Date of Adjustment               From                         To

June 6, 2005                                 October 2004            April 2005

December 5, 2005                         April 2005               October 2005

June 5, 2006                                 October 2005           April 2006

December 4, 2006                          April 2006              October 2006

June 4, 2007                                 October 2006           April 2007

         In calculating the percentage change in the Index, the result shall be rounded to the nearest one hundredth of one percent (i.e., .005 and higher rounded upward, and less than .005 rounded downward).  For example, if the October 2004 Index is 151.0 and the April 2005 Index is 153.7 the calculation is: 

         Step 1  153.7 - 151.0 = 2.7

         Step 2  Divide 2.7 by 151.0 x 100 = 1.7881

         Step 3  Round to 1.79% and divide by .15% = 11¢ per hour.

Section 5.  No change will be made in a cost-of-living adjustment as a result of any revision made in the published figures for the Index after the effective date of the cost-of-living adjustment.

Section 6.  The continuance of cost-of-living adjustments is dependent upon the continued monthly publication of the Index in its present form and calculated on the same basis as at the time of the execution of this Agreement.  For any month in which the Bureau of Labor Statistics publishes the Index on both an official (revised) basis and the present (old series) basis, the official (revised) basis will be used.

Section 7.  In the event the Bureau of Labor Statistics does not issue the Consumer Price Index for the appropriate month before one of the effective dates referred to in Section 4 above, any cost-of-living adjustment required by such monthly Index shall be effective at the beginning of the first pay period after receipt of such Index.

Section 8.

(a)       All hourly-rated employees on the second shift will be paid, in addition to their base hourly wage rate plus cost-of-living allowance, a shift premium equal to ten percent (10%) of such hourly wage rate plus cost-of-living allowance for each hour worked.

(b)       The Company shall pay to all hourly-rated employees on the third shift seven and one-half cents (7-1/2¢) per hour in addition to their base hourly wage rate plus cost-of-living allowance.  Hourly-rated employees on the third shift whose regular shift comprises not more than six and one-half (6-1/2) working hours and who work a full six and one-half (6-1/2) hours on that shift shall receive therefore eight (8) hours pay including cost-of-living allowance.  All work performed on the third shift over six and one-half (6 1/2) hours or all work performed in excess of six and one-half (6 1/2) hours by any employee who is assigned to a six and one-half (6 1/2) hour shift shall be considered overtime and shall be paid for at time and one half.

(c)                Lateness of not more than eighteen (18) minutes or permission granted by the supervisor to leave prior to the end of the shift of not more than eighteen (18) minutes, or a combination of lateness and permission to leave early totaling not more than eighteen (18) minutes shall not disqualify the employee for the third shift premium.