WE HAVE PUT A COUPLE OF WATER CONTRACTS ON LINE FOR YOU TO READ, THESE CONTRACTS HAVE BEEN NEGOTIATED BY THE UTILITY WORKERS UNION OF AMERICA FOR WATER WORKERS.

CALIFORNIA WATER CONTRACT

AGREEMENT

Between the

CALIFORNIA WATER SERVICE COMPANY

And

LOCALS 160, 160C, 160D, 205, 283 AND 484

Affiliated with

UTILITY WORKERS UNION OF

A.F.L.-C.I.O.

Effective January 1, 2006

TABLE OF CONTENTS

PAGE

Preamble ……………………………………………………....…….……5

Section 1. Jurisdiction ……………………………………………....5

Section 2. Recognition ………………………………………….…..7

Section 3. Discrimination …………………………………………...7

Section 4. Union Membership ……………………………………...8

Section 5. Grievance Committee ……………………………….…..9

Section 6. Grievance Procedure ……………………………….……9

Section 7. Lay-Offs and Discharges ……………………………....11

Section 8. Hours and Conditions of Work …………………….…..11

a. The Normal Workweek ……………………….….11

b. There Shall be a Posted Schedule …………….…..12

c. Overtime …………………………………….……12

d. Double Time ………………………………….…..13

e. Scheduled Overtime ………………………….…..13

f. Call Outs ……………………………………….…14

g. Travel Time ……………………………………....16

h. Transfers ……………………………………….…16

i. Shift Work …………………………………….….16

j. Injuries ………………………………………..…..17

k. Part-Time Help ……………………………….…..18

l. Probationary Employees …………………………19

m. Temporary Employees …………………………...20

n. Change in Job Classification ………………….….22

o. Termination Wages ………………………………23

p. Split Shifts ………………………………………..24

q. Shift Work Premium ……………………………..24

r. Other Work Conditions …………………………..24

s. Job Descriptions ………………………………….26

t. Jury Duty………………………………………….26

u. Water Distribution Operator Certification……......27

Section 9. Wages ……………………………………………..…...32

Section 10. Seniority ………………………………………..……...32

Section 11. Holidays …………………………………..…………...38

Section 12. Vacations …………………………………………...….40

Section 13. Leave of Absence ………………………………...……42

Section 14. Military Service ……………………………..…….…...43

TABLE OF CONTENTS (Continued)

PAGE

Section 15. Sick Leave Allowance ……………………….……..….44

Section 16. Bereavement Leave ……………………………………44

Section 17. Tuition Reimbursement ………………………………..45

Section 18. Bulletin Boards …………….…...……………………...46

Section 19. Strikes and Lockouts.…………………………………..46

Section 20. Safety …………………………………………………..46

Section 21. Social Welfare Plan, Retirement Plan,

Long Term Disability

Plan and Savings Plan …………………………………47

Section 22. Donations ………………………………………………47

Section 23. Time Off for Official Union Business …………………47

Section 24. Assignability……………………………………………48

Section 25. Duration and Termination of This Agreement………....49

Section 26. Amendments and Modifications…………………....…..49

Section 27. Management Prerogatives …………………………......49

Conclusion …………………………………………......51

APPENDICES

Appendix A Union Job Classifications and Monthly Wage Rates Including Straight Time and Overtime Hourly Rates Effective January 1, 2006……………………………52

Appe

Appendix B Sick Time Allowance..................................….......... 58

Appendix C Absence from Work Not Due to Occupational Injury

or Illness…………………………………..…...…… 59

Appendix D Occupational Injury or Illness Covered by Workers'

Compensation Insurance……………………………60

AGREEMENT

BETWEEN THE CALIFORNIA WATER SERVICE CO.

AND LOCALS 160, 160C, 160D, 205, 283 AND 484

AFFILIATED WITH THE UTILITY WORKERS

UNION OF , A.F.L.-C.I.O.

THIS AGREEMENT, entered into the 21^st day of October 2006 between CALIFORNIA WATER SERVICE COMPANY, hereinafter referred to as “Company” and the UTILITY WORKERS UNION OF AMERICA, AFL-CIO on behalf of LOCALS 160, 160-C, 160-D, 205, 283 and 484 hereinafter referred to as “Union”,

It is the intent and purpose of the parties hereto to promote harmonious economic and industrial relationships between the Company and its employees; and to set forth herein the basic agreement covering rates of pay, hours of work and conditions of employment to be observed between the parties to this Agreement. The Company and the Union jointly agree to perform faithfully the obligations imposed by this Agreement.

Section 1—Jurisdiction

It is understood and agreed that this Agreement pertains to all employees of the Company employed in the East Los Angeles, Bakersfield, Visalia, Stockton, Bear Gulch, Marysville, Oroville, Chico, Los Altos-Suburban, Livermore, Salinas, Willows, Westlake, Selma, Bayshore, Rancho Dominguez, Kern River Valley, Antelope Valley and Redwood Valley districts of the Company, and to the General Office employees in San Jose, and to the electrical/mechanical technicians and the traveling meter mechanics each of which groups shall for the purpose of this Agreement be considered a separate district of the Company.

The Company has long maintained and honored the agreement with the Utility Workers Union of America, AFL-

CIO to perform certain work for the Company. The Company’s decision is based on its commitment to provide the best service, water quality and system infrastructure for our customers.

In keeping with that commitment:

1) Managers and Supervisors will seek authorization from the District Operations Coordinator and/or Vice President Human Resources prior to contracting out any work normally performed by the members of the Utility Workers Union of America, AFL-CIO bargaining unit.

2) District Operations Coordinator and/or Vice President Human Resources will examine the alternatives to contracting out the work, and if none exist, the Union Council President and Local President shall be notified of the special circumstances driving the need to contract the work out on an emergency basis.

3) The Council will notify the District Operations Coordinator and Vice President Human Resources of any unauthorized contracting out of Utility Workers Union work. The District Operations Coordinator and Vice President Human Resources will investigate and discuss the findings with the Council President. If the Union disagrees with the final decision, the Union can challenge the decision in accordance with the provisions of this Agreement.

Except in emergencies or for training purposes management will not perform work which is normally performed by employees within the certified bargaining unit.

The term “employee”, as used in this Agreement shall exclude employees in a supervisory capacity, such as Managers, Customer Service Managers, Superintendents and General Foremen.

Section 2—Recognition

The Company recognizes the Utility Workers Union of America as the sole collective bargaining agency for those employees of the Company covered by this Agreement, to the exclusion of all other collective bargaining organizations; and the Company further agrees to bargain collectively only with duly authorized representatives of this Union during the life of this Agreement.

The parties hereto have agreed that all of the separately recognized individual Bargaining Units are merged into a single Bargaining Unit for the purpose of representation.

Section 3—Discrimination

It is agreed that there shall be no discrimination, interference, restraint or coercion by the employer or any of its agents against any employee because of Union membership or Union activity. The Union agrees that there will be no intimidation, coercion or interference by the Union or agents thereof, against the Company or any of its employees, or the use of Company materials or equipment for Union business except for grievance procedures.

The Union and the Company agree that there shall be no discrimination because of race, color, creed, sex, national origin, physical handicap, medical condition, marital status, ancestry, disability, religious or political beliefs, and that Union and Company will comply with the requirements of the Age Discrimination in Employment Act of 1967, as amended, and the Americans with Disabilities Act. The use of masculine or female gender in this Agreement shall be

As a condition of employment, all employees as defined in Section 1 hereof who are members of the Union on the effective date of this Agreement and all employees who subsequently become members after the effective date of the

construed as including both genders and not as a sex limitation unless there is a bona fide occupational requirement.

Section 4—Union Membership

Agreement shall remain members for the duration of this Agreement. Any employee who is not a member of the Union on the effective date of this Agreement and who does not subsequently become a member, shall as a condition of employment, pay to the local Union to which he would otherwise be a member the monthly dues uniformly required of its members, as his fair share of the costs of representation by the Union for the benefits of such representation which he enjoys with members of the Union. A new permanent or temporary employee shall be required to become a member of the Union on the 30th day following his employment or the effective date of this Agreement which ever is later.

The Union shall, upon payment of the initiation fee and

periodic dues uniformly required of all members, make

membership available to all employees and shall not seek the discharge of any employee except for the failure to tender said initiation fee and periodic dues.

The Company agrees that after receipt of a voluntarily written and signed authorization from any employee on a form mutually agreed upon by the parties hereto it will deduct from the wages of said employee the amount of monthly dues as certified to the Company by the financial officer of the local Union to which the employee belongs or would belong as a member. Said amount will be forwarded to the financial officer of each respective local Union .

Section 5—Grievance Committee

The Union shall create a grievance committee at each district covered by this Agreement with authority to represent the employees in adjusting grievances. Each one of these committees shall consist of not more than three (3) members, all of whom shall be employees, and with whom the Company agrees to meet on any issue at any reasonable time when requested by the Union . These meetings, as well as negotiating meetings when held during working hours and including travel time, shall be without loss of pay. Duly accredited representatives of the Utility Workers Union of America, A.F.L.-C.I.O., shall have the right to attend all grievance and/or negotiating meetings.

Section 6—Grievance Procedure

Any employee or group of employees may refer any complaint or grievance whatsoever to the Union grievance committee. It is understood that all grievances shall be handled by a grievance committee of the district in which the complaint or grievance has arisen and that under no

circumstances shall an employee of one district serve on a committee handling grievances or complaints involving another district, except that the president of the local Union, his nominee, or the nominee of the California Water Utility Council may serve on any grievance committee of the local Union .

The grievance committee may, at its discretion, take up any grievance with the Company. Such a grievance shall, in the first instance, be reported to the district manager, local manager or department head. If the grievance is not settled at the local level within five (5) working days, it shall be reported in writing, by registered mail, to the president of the Company at his office in San Jose . A reply shall be made by the Company within five (5) days of notification of the grievance to the president.

If the grievance is not settled in this reply, the Company shall, at the request of the Union , meet with the grievance committee within ten (10) calendar days after such request. If, after every reasonable effort has been made by the committee and the Company to settle the grievance and no satisfactory settlement has been obtained, the matter shall, at the request of either party, be submitted for arbitration. The arbitration board shall consist of three (3) members, one (1) selected by the Union , one (1) selected by the Company and the third (3rd) selected by the two.(2) thus appointed. If the parties selected by the Company and the Union fail to agree upon the third (3rd).arbitrator within seven.(7) calendar days, the director of the Federal Mediation and

Conciliation Service shall be requested to submit a panel of five.(5).arbitrators and from such panel the arbitrators representing the Company and the Union shall promptly select the third (3rd) arbitrator by the alternate striking of names from said panel. For other service agreed upon between the Company and the Union .

The board of arbitration shall render its decision within seven (7) calendar days after hearings have been concluded, provided, however, that by mutual agreement this time may be extended.

A written record of the disposition of each grievance shall be kept.

A majority vote of the board of arbitration shall control its decision. Its decision shall be final.

If a grievance case goes to the board of arbitration, and this board finds in favor of the employee, the employee shall be returned to his former position with full seniority, other rights, and with full back pay, except when the board rules otherwise.

The expenses of the arbiter for the Company shall be borne by the Company. The expenses of the arbiter for the Union shall be borne by the Union, and the expenses of the third (3rd) party shall be paid equally by the Company and the Union .

Any of the time limits set forth in this Section 6 may be extended by mutual agreement between the Union and the Company.

No employee shall be laid off while a member of a committee settling a grievance or negotiating a contract.

Section 7—Lay-Offs and Discharges

The Company shall notify the Union in writing of all cases involving employees who are members of the Union and who are:

(a) Discharged for cause

(b) Demoted for cause

(d) Laid off because of lack of work

In the case of a lay-off because of lack of work the Company shall, whenever possible, so notify the Union in advance of such lay-off; provided, however, that in case of the abolishment of any job now a regular part of the Company’s operations, ten (10) days’ notice shall be given.

Section 8—Hours and Conditions of Work

(a) The normal workweek for employees covered by this Agreement shall begin on Sunday and end on Saturday and shall consist of forty (40) hours, being five (5) days of eight (8) hours each exclusive of the lunch period. The provisions of this paragraph shall not apply to part-time employees.

The company may create alternative work schedules (other than 8 hours per day) when appropriate. Alternative work schedules will be documented in a Letter of Understanding, which must be signed and agreed to by the Union Local President; CWUC President; Vice President Human Resources; District Operations Coordinator and Local District Managers.

(b) There shall be a posted schedule of each workweek, where applicable, approved by management and there shall be no split weeks unless mutually agreed. Changes in present working schedules shall be discussed with the Union before such changes are made. Unless forty-eight (48) hours advance notice of a schedule change is given, the first shift will be paid at one and one-half (1-1/2) times the straight time rate. This provision for overtime pay will not apply to schedule changes made because of illness, bereavement, or

other emergency. Where a schedule change is made due to illness, bereavement, or other emergency the employee shall be paid at the rate of one and one-half (1-1/2) times the straight time rate for the first four (4) hours of the shift and the remaining four (4) hours of the shift shall be paid at the straight time rate. It is understood that posted vacation relief schedules constitute proper notice of schedule changes.

(c) Overtime is defined as all the time worked in excess of eight (8) hours in any one (1) day and shall be paid for at the rate of time and one-half (1-1/2). All time worked in excess of twelve (12) hours in any one day shall be paid at the rate of double time and in the event the overtime should continue into the following day, the additional continuous overtime shall be paid at the double time rate. In no event shall the employee be expected to work in excess of forty (40) hours in a workweek unless he is paid at the appropriate overtime rate for all time worked in excess of forty (40) hours.

The overtime rate shall not be paid on both a daily and weekly basis for the same hours so worked.

Overtime pay shall be computed to the nearest one-half (1/2) hour or hour of overtime worked, as follows:

Overtime Worked Overtime Pay

Less than 1/4 hour None

1/4 hour but less than 3/4 hour 1/2 hour

3/4 hour but less than 1-1/4 hour 1 hour

And so on for all additional overtime worked.