Marathon Wilmington CBA

AGREEMENT Between

Marathon Petroleum Company (MPC)

and

United Steelworkers A.F.L. – C.I.O., CLC USW LOCAL 675

Covering

EMPLOYEES OF LOS ANGELES REFINERY WILMINGTON (Including employees in the Technician-Laboratory and Technician-Maintenance classifications but excluding all other Technical employees engaged in Technical work and Office and Supervisory Employees)

May 1, 2019 - April 30, 2022

INDEX SUBJECT

PARAGRAPH

BARGAINING, Article II

PAGE 2

BENEFITS, Article IX

18

Death in Family

19

Jury Duty

19

Vacations

18

Health and Welfare Plans

18

DISCHARGE, SUSPENSION AND RESIGNATION, Article XIII

23

Loss or Retention of Right and Benefits

B

23

C, D

23

Right to Discharge

E

24

Time Limit for Filing Complaints

A

23

Restoration of Rights Upon Reinstatement

EMPLOYEES’ DUTIES, Article III

2

Assignment of Duties

A

2

Job Contents

B

2

GRIEVANCES, Article XV

27

HOLIDAYS, Article XVIII

31

Callout

D

32

Eligibility

C

31

Holidays

B

31

Holiday Pay

A

31

HOURS OF WORK, Article IV

3

Change of Shifts

E

4

Making Up Lost Time

D

4

Return of Tools

G

4

Scheduled Hours

A

3

Work Week

B

3

Work in Excess of 16 Hours

F

4

Work Schedules

C

3

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INDEX (continued) SUBJECT

PARAGRAPH

LAYOFFS, Article VIII

PAGE 17

Discharged Employees

E

17

Loss of Rights after 365 Days

B

17

Procedure for Layoff

A

17

Rehire within 365 Days

D

17

Rights while Laid Off

C

17

LEAVES OF ABSENCE, Article X

19

Company Regulations

D

20

Individual Requests

C

20

A, B

19

Union Business MISCELLANEOUS, Article XIV

24

Bulletin Boards

D

24

Collections and Solicitations

F

25

Complaint Prior to Contract

C

24

Compliance with State and Federal Law

H

25

Contracting of Work Safety Shoe Allowance

J

25

L

27

Damaged Clothing Equal Employment Opportunity

I

25

K

27

Meal Allowance

E

24

Meeting with Workmen’s Committee

G

25

Non-Discrimination

A

24

Transportation

B

24

OVERTIME, Article VI

6

Advance of Schedule

D

7

Change of Schedule

G

8

Emergency Call-Out

E

8

Failure of Relief to Report

A

6

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INDEX (continued) SUBJECT

PARAGRAPH

PAGE

Floating Work Day

B

7

Limitation of Overtime Rates

K

9

Part of Overtime Hour

C

7

Premium Pay

H

8

Pyramiding of Overtime

I

8

Time Off for Overtime Worked

J

8

Work During Lunch Period

L

9

Work in Excess of 8 and 40 Hours

B

7

Work on Scheduled Day Off

F

8

PHYSICAL EXAMINATION, Article XII

22

Applicant for Rehiring After 365 Days

A

22

Company Requirements

D

23

Following Illness

C

23

When Laid Off

B

22

PROMOTIONS, REDUCTION IN FORCES, SENIORITY, Article VII

11

Consolidation of Departments

R

16

Department Seniority

C, E

11

Employees – Starting

F

12

G

12

Department

M

15

Establishment of New Departments

T

16

Transfer to Maintenance Utility Clean Up Person

S

16

Layoff Method

N

15

Physical Limitations

J

14

C, D

11

Employees’ Right – Incapable of Performing Duties Assigned Employees’ Right – Reduction from

Plant Seniority

iii

INDEX (continued) SUBJECT

PARAGRAPH

PAGE

Posting of Vacancies

H

12

Procedure for Re-Employment from Layoff

P

16

Promotions

A

11

Promotion Chart

B

11

Reduction in Department

L

15

Refusal to Accept Promotion

V

16

Rights of Laid Off Employees

O

15

Records

U

16

Temporary Assignments

I

14

Temporary Transfers – Seniority

K

14

Q

16

Trainees, Students, Technical Employees and Other Specialists SAFETY, SANITATION, ETC., Article XI

20

Recommendations

A

20

Safety Committee

C

20

Unreasonably Hazardous Conditions

B

20

STRIKES AND LOCKOUTS, ARTICLE XVII

31

TERMS OF AGREEMENT, Article I

2

UNION SECURITY, Article XVI

29

WAGES, Article V

4

Conference with Company

E

5

Contract Negotiations

G

6

Job Rate Application

A

4

No Work After Reporting

C

5

Operating Down Periods

B

5

iv

INDEX (continued) SUBJECT

PARAGRAPH

PAGE

Shift Differential

D

5

Workmen’s Committee

E

5

ATTACHMENTS/AGREEMENTS Appendix A: Wage Schedule

34

Appendix B: 12-Hour Shift Schedule 1. 12-Hour Shift Procedures

38

2. 12-Hour Shift Relief Procedures

51

3. 12-Hour Supplemental

56

Appendix C: 10-Hour Shift Schedule for Maintenance

57

Appendix D: Maintenance Progression, Training and Qualifications

62

Appendix E: Maintenance Craft Utilization

67

Appendix F: Chart of Promotion

74

Appendix G: Timekeeping, Meal and Rest Agreement

75

Appendix G: Rest Period Side Letter Agreement

77

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AGREEMENT Between

Marathon Petroleum Company (MPC) and

United Steelworkers A.F.L. – C.I.O., CLC USW LOCAL 675 Covering

EMPLOYEES OF LOS ANGELES REFINERY WILMINGTON (Including employees in the Technician-Laboratory and Technician-Maintenance classifications but excluding all other Technical employees engaged in Technical work and Office and Supervisory Employees)

Marathon Petroleum Company, hereinafter referred to as “Company” on behalf of the Los Angeles Refinery and the United Steelworkers, A.F.L. – C.I.O., CLC, USW LOCAL 675, hereinafter referred to as “Union” as the exclusive bargaining agent of all employees of the Los Angeles Refinery (including employees in the Technician-Laboratory and TechnicianMaintenance classifications but excluding all other Technical employees engaged in Technical work and Office and Supervisory Employees) do hereby agree as follows: 1

ARTICLE I TERM OF AGREEMENT This Agreement shall be effective May 1, 2019 and shall remain in effect through April 30, 2022 and thereafter from year to year unless terminated by either Party upon written notice as provided in Paragraph “B” of this Article.

This Agreement may be amended at any time by mutual agreement of the parties.

Should either Party hereto desire to amend or terminate this Agreement, written notice thereof shall be given by such Party to the other at least sixty (60) days but not more than seventy-five (75) days prior to April 30, 2022 or to any annual anniversary date thereafter. If such a notice to amend is given, a conference shall be held between the parties to consider the proposed amendments. In the event no Agreement is reached on the proposed amendments by the anniversary date immediately following the date the above notice is given, either party may, after said anniversary date and on at least sixty (60) days written notice to the other, terminate this Agreement.

ARTICLE II BARGAINING The Company recognizes the Union as the exclusive representative of all the said employees for the purpose of collective bargaining in respect to rates of pay, wages, hours of work and other conditions of employment.

ARTICLE III EMPLOYEES’ DUTIES A. Employees are expected to perform any duties to which they have been assigned. Ordinarily, work peculiar to one classification will be done by employees assigned to such classification; but all work incident to or in connection with good housekeeping, running maintenance, and the like, which is usually performed or done by employees incident to their regular work, will, in so far as is reasonable, be performed or done by such employees.

B. Job Contents of each classification and any revisions thereto will be established by the Company after consultation with the Union. Copies of the written description of existing or revised Job Contents will be furnished to the Union. No change in existing Job Contents will be arbitrarily made for the purpose of reducing the rate of pay for any classified job.

C. For Operations Employees: Progression will be based upon job duty and responsibilities, and will include any and all special assignments as part of the progression. There will be no additional pay for special assignments for operators. Operators will work 8, 10 or 12 hour shifts as designated by management. It is understood, however that when an operator is working 2

their job duty station they will be working under the 12 Hour Rotating Shift Agreement. Management will select individuals who will work in day shift assignments and/or special assignments. The Company may designate the start times for the 8’s, 10’s or 12’s when an individual is not working the 12 hour rotating shift. No overtime will be paid to an individual until they have exceeded 8, 10 or 12 hours respectively, based upon their start time for employees working on any shift outside the 12 Hour Rotating Shift Agreement. Employees working a straight day or night 12 hour shift will be paid consistent with the 12 hour shift agreement.

Special assignments and other off-shift work lasting one or more months will utilize a voluntary process with an understanding that management has the right to select the qualified and capable individual to perform the role.

Normally, the Company will choose an individual from the volunteer list.

There may be circumstances where it becomes necessary to select an individual who has not volunteered. If there are no volunteers, management may assign at their discretion.

D. Maintenance Utility Cleanup Person Duties (refer to page 66) ARTICLE IV HOURS OF WORK A. Regularly scheduled hours of work shall not exceed eight (8) hours in any one day or forty (40) hours in any one week, at regular rates.

B. The workweek shall consist of seven (7) consecutive days commencing on Monday at 6:55 A.M. for day employees. In cases where an employee’s shift is extended and work time crosses the work week divide (from one workweek into another), the employee will continue to be paid as if there had been no break in work week unless the employee’s regularly scheduled shift has begun. When an employee’s regularly scheduled shift begins, they will be paid in accordance with provisions in this Agreement that define payment of regularly scheduled hours.

C. Regular weekly and daily work schedules will be maintained, but off schedule hours may be required from time to time. Regular work schedules will provide for consecutive days off, if practicable.

Weekly work schedules for regular maintenance day employees will be posted not later than 3:00 P.M. Friday, prior to the week in which they are effective, showing the designated shifts and days off for such employees during the following week.

Regular shift work schedules shall be posted not later than 3:00 P.M. Thursday prior to the month in which they are to be effective, showing the designated shifts and days off for such employees during the following month.

It shall be understood and agreed by the parties that, the Company has the 3

right to establish regular weekly, daily, or off scheduled hours of work without the necessity of securing Union agreement.

D. For time lost by an employee from their scheduled working hours due to illness or excused absence, the Company will, in so far as possible, consistent with good operating practice, and when there is work to be done, permit the employee to work on their regular day off in order to make up time so lost. However, an employee will not be permitted to make up lost time on any occasion where by so doing overtime rates are required by law or by the provisions of this Agreement, and shall be paid the regular hourly rate for the classification in which they may work while making up such lost time.

E. Employees will, subject to the approval of the Refinery Manager or their designee, be permitted to change shifts or days off for the purpose of conducting necessary personal business provided no overtime payments are occasioned thereby, and provided employees involved have signed overtime waivers.

F. Employees will not be required to work more than sixteen (16) consecutive hours without relief, except in extreme emergency.

G. A reasonable length of time will be allowed for employees to return tools and other Company equipment on Company time, taking due account of the distance of the work from the check-in point and the nature of the tools or materials to be handled.

H. The parties expressly provide that the mandates of the Labor Code Sections 551 and 552 of the California Labor Code are hereby superseded and waived except for those employees that have filed a form with the Company specifically stating that they do not wish to waive the mandates imposed by Labor Code Sections 551 and 552. The Company reserves the right to require any employee to take time off if scheduling the employee to work would constitute an unsafe or unhealthful work practice as determined by the Company, subject to the grievance procedure.

I. Employees assigned as unit trainer/special assignment in Operations, may work 8, 10 or 12 hour day schedules with starting times as determined by the business. Reference ARTICLE III, Paragraph C. ARTICLE V WAGES A. Employees will receive not less than the minimum wage rate provided by the classification of work performed, the rate to become effective immediately upon the employee taking over the duties of the job on their own responsibility under normal supervision.

It is understood that hourly employees who are assigned as trainers on an operating unit will be paid a regular hourly pay rate equal to the sum of the 4

highest hourly rate on that operating unit plus an amount equivalent to the operations shift differential. Hourly employees who are assigned as trainers in a maintenance department will be paid a regular hourly rate equal to the sum of the highest hourly rate in that maintenance department plus an amount equivalent to the shift differential.

Employees classified as Operator Fully Qualified (RC) will receive an additional sixty (60) cents per hour when taken off rotating shift for a special assignment. This rate will not be available to any operators who are not in the Operator Fully Qualified (RC) classification. If an Operator Fully Qualified (RC) is taken off shift to work as unit trainer or at the LPG Rack, they will not be entitled to this additional premium pay. Only employees assigned as Unit Trainers are entitled to the Unit Trainer premium pay.

Employees with a steam license will earn an additional fifty (50) cents per hour when working a console position on a unit requiring a steam license.

B. If an operating unit is down for a regular down period, or for test and inspection, operators while engaged in work on that unit or other units within the same department will continue to receive their regular rates of pay.

If an operating unit is down temporarily due to lack of running orders, or for extraordinary repairs or for construction work, persons employed as operators on such unit will be assigned duties to the best advantage, consistent with good operations.

If an operating unit is shutdown for one hundred eighty (180) days, the shutdown shall be considered permanent and affected employees reduced from the department in accordance with the provisions of Article VII. C. Employees required to report for work and then informed that there is not work shall receive four (4) hours pay at their regular rate provided the Company has not given the employee two hours prior notice that they will not be required.

Employees not receiving two hours prior notice who report for work shall receive the regular rate of pay for all time worked with a minimum of four (4) hours pay at the regular rate.

D. For all work performed on the third shift, normally from 2:30 P.M. to 10:30 P.M. for shift employees, and 3:30 P.M. to 11:30 P.M. for day employees, and on the first shift, normally from 10:30 P.M. to 6:30 A.M., for shift employees, and 11:30 P.M. to 7:30 A.M. for day employees, employees shall receive the shift differential provided at the Los Angeles Refinery.

Shift employees called out for emergency work between 2:30 P.M. and 6:30 A.M., and day employees called out for emergency work between 3:30 P.M. and 7:30 A.M., will receive the shift differential provided for such work.

E. An employee requesting a conference with the Company will be paid at their regular rate for the time so spent during their scheduled working hours.

5

An employee called by the Company into a conference with Management Representatives, for the purpose of investigating incidents that could result in disciplinary action will, upon the request of such employee, be accompanied during said conference by a member of the Worker’s Committee, or, in lieu thereof, an available Union steward. The employee and the Union representative will each be paid at their respective regular rates for the time so spent during their scheduled working hours.

F. The Company will, through its appointed representatives, meet with the Worker’s Committee at regular monthly intervals and at such other times as may be necessary to consider matters of mutual interest. The Committee will consist of a maximum of six (6) employees. The Company will pay such employees at their regular rate for the time so spent during their scheduled working hours.

G. The Company agrees to pay at regular rates for time lost by employees while engaged in contract negotiations for the employees covered by this Agreement. This provision is limited to a maximum of six (6) employees for fifteen (15) working days during each contract term.

ARTICLE VI OVERTIME A. If a shift employee’s relief fails to show up, such shift employee shall remain at their post until relieved. Whenever possible, employees will give the Company twelve (12) hours notice of their inability to report for work.

For purposes of filling unexpected vacancies that may occur after the regular monthly schedule is posted in Operating Departments, the following guidelines prevail: 1. Overtime work in job classification shall be distributed as equitably as practical among qualified employees in each job classification who are called in to perform such work. However, the Company reserves the right to assign employees already on duty to perform the required work without regard to the overtime distribution of such work among employees. a. If it is known less than 24 hours in advance that an employee will be absent, then the employee presently on shift will remain at his or her post for the first vacant shift. b. Should he or she, for justifiable reasons, request relief, the employee due out on the next shift will be contacted and if he or she desires to work this additional time he or she will come in ahead of his or her regular starting time to relieve the stuck employee; otherwise the next available person will be contacted. c. If it is known 24 hours or more in advance that an employee will be absent, the vacant shift may be split between the two 6

employees in the classification, provided that the two employees involved in splitting the shift have 24 hours prior notice. If the two employees involved do not have 24 hours prior notice to split the shift, then the vacancy will be filled as covered above. d. Having covered the first vacant shift as outlined above, then the vacant shift may be split between the employees in the classification on a 12-hour basis until the end of the scheduled week. In splitting the vacant shift, it will be divided in 4 hour segments; for example, if the vacant shift were the 2:30 P.M. to 10:30 P.M. shift, the two employees would work from 6:30 P.M. to 6:30 A.M. B. An employee will be paid time and one-half for all work performed in excess of eight (8) hours in any one day or in excess of forty (40) hours in any one workweek, or for consecutive hours of work performed in excess of eight (8) hours, unless otherwise agreed to in an Alternate Shift Agreement.

For the purpose of computing daily overtime only, the workday shall consist of the 24 hour period commencing with the time an employee begins work or is required to report for work. For all other purposes under this Agreement the workday shall be the 24 hour period commencing at 7:00 A.M. for day employees and 6:00 A.M. for shift employees. For Operations special assignments, reference Article III, Paragraph C. It is understood that when an employee works in advance of their regular schedule, such employee will not be paid time and one-half for any hours worked during their regular schedule on account of having worked in excess of eight (8) hours in any one day. This will not preclude payment of overtime for hours worked in excess of eight (8) hours on the last shift on Sunday and the first shift on Monday. This does not apply to Operations employees working special assignments. Reference ARTICLE III, Paragraph C. C. An hourly day employee working any fraction of an overtime hour will be paid on a six minute or 1/10 of an hour basis.

D. If the transfer to an off-schedule requires an employee to begin work in advance of their regular scheduled starting time they will receive time and one-half for the period up to the regular scheduled starting time for one day regardless of notice; however, 1.

Should the change in schedule include two or more consecutive days, they will be paid after the first day at their regular rate, and;

2.

Upon completion of the off-scheduled period, they will be returned to their regular schedule at their regular rate.

This rule will not apply to employees making up lost time as provided in Paragraph “D,” Article IV, or to changes in working schedules made for the convenience of the employees, subject to the provisions of Paragraph “B.” For Operations special assignments, reference Article III, Paragraph C. 7

E. An employee who has left the Refinery and is called back for any work outside their regular schedule or for emergency work on their day off, will receive pay for the actual time worked at the rate of one and one-half times their regular hourly rate, with a minimum of four (4) hours pay at their regular hourly rate, except that if such call-out runs into their regular schedule, and is less than two (2) hours and forty (40) minutes in advance of their regular schedule, they will receive one and one-half times their regular rate for the first two (2) hours and forty (40) minutes and then will be paid their regular rate for the balance of their regular schedule. In the event that such employee is required to report for such work and is later informed there is no work, they will be paid at their regular hourly rate for the time they are required to remain at their place of work, with a minimum of four (4) hours pay.

In addition, time worked on a call-out will include up to two (2) hours of travel time (each way) based upon where they live. Travel time will be included as part of the call-out pay.

F. If a shift employee is required to work on one of their regular days off, another scheduled working day shall be designated as their day off, and they will be paid time and one-half for such work unless they have received forty (40) consecutive hours notice prior to their regular day off or their alternate day off, whichever day shall first occur. Such employee will be entitled to not less than a full day’s work, except in the case of emergency callouts. This rule will not apply to employees making up lost time as provided in Paragraph D, Article IV or to changes in working schedules made for the convenience of the employees, subject to the provisions of Paragraph B. If a regular maintenance day employee is required to work on one of their designated days off as scheduled in accordance with the provisions of Paragraph C of Article IV they will be paid time and one-half for such work. This rule will not apply to employees making up for lost time as provided in Paragraph D, of Article IV or to changes in working schedules made for the convenience of the employees, subject to the provisions of Paragraph B. G. If an employee is transferred to another regular or off-schedule on a different hourly basis, they will be paid time and one-half for one day, unless they are given sixteen (16) consecutive hours prior notice that their schedule has been changed.

H. All time worked in excess of eight (8) hours in any one day, at overtime rates, will be deducted from the computation of overtime due on account of work in excess of forty (40) hours in one work week.

I. There shall be no pyramiding of the various premium or overtime rates for the same day worked.

J. Except to comply with API 755 Hours of Service limits no employee will be required to take time off later for overtime actually worked or paid for.

8

K. The provisions of Article VI and Article XVIII cover all conditions dealing with overtime or premium rates in so far as this Agreement is concerned, and no overtime or premium rates will be paid by reason of the provisions of any other Article of this Agreement, unless modified by an agreed upon Alternate Shift Agreement.

L. If an hourly day employee is required by the Company to work during their regularly scheduled lunch period, they will be paid straight time for such time and will be allowed an equal period of time with pay within one hour of their regular time for the purpose of eating their lunch.

M. In order to establish uniform procedures for overtime distribution in the Maintenance Department, the following procedures will govern: 1. Overtime Distribution Lists (ODL) will be received weekly and will be posted in hours worked and/or hours charged.

2. Change of schedule, holiday pay and work performed by hourly day employees as part of the scheduled 40-hour week will not be included in overtime calculation.

3. Only the names of employees who are on vacation at the time the Accumulated Overtime Record is prepared will be marked, “VAC.” Employees commencing their vacation on the following Monday will not be so marked.

4. Employees who wish to be excluded from overtime consideration, must sign an overtime waiver. This waiver will remain in effect until withdrawn in writing. Employees waiving overtime may not be worked overtime except under extenuating circumstances at the discretion of Management.

5. Employees waiving overtime, and subsequently withdrawing their waiver will be charged with overtime hours equal to the (high) overtime hours of other employees. The withdrawal shall become effective two (2) weeks after the date of written notice. An employee will then remain on the overtime distribution list for a minimum of three (3) months.

6. Employees entering a primary skill area will be charged with the previous weeks overtime hours equal to the (high) overtime hours of the employees in the skill area.

7. Employees absent two weeks or more for any reason will be charged with the overtime hours equal to the average of all overtime hours charged to the other employees in the skill area during the employee’s absence.

(Vacations are not considered as absence.)

8. Employees who are requested to work and excused; employees who cannot be contacted when called for overtime work; and employees without telephones, which precludes them from being called out in their turn will be charged with the overtime equal to the overtime so worked by a subsequent employee.

9

9. Employees who are working on a job, which requires overtime, will not be taken off the job for the purpose of assigning other employees thereto who have less overtime.

10. Overtime work in a job classification shall be distributed as equitably as practical among qualified employees in each job classification who are called in to perform such work. However, the Company reserves the right to assign employees already on duty to perform the required work without regard to the overtime distribution of such work among employees.

Although it is recognized that all craftsmen are reasonably qualified, it is further recognized that due to assignment and experience, some craftsmen will be more familiar with particular job assignments or skill area. When in an emergency it is deemed necessary to use the callout procedure to perform maintenance by one of those craftsmen considered more experienced and familiar with the job to be done, call-out may be made without regard for accumulated overtime hours.

However, total hours worked will be charged to that person or persons who may be called out under these conditions.

10(a). If an employee is working off-site in a training class, in excess of 10 miles or more away from the refinery, when there are hours offered to work overtime for an off-shift unforeseen job that goes past normal hours, (that particular day only) those hours will not be charged to the employee on the ODL. This does not preclude the employee for volunteering if they can work the overtime and will be allowed to only if the said employee can arrive in time for the specified work and if existing eligibility rules allow for it. However, management is not obligated to contact the individual who’s in training for the specific circumstance. In any case which the employee works the overtime, the worked hours will be indicated on the ODL in the same manner as any other overtime hours worked.

10(b). If Overtime Distribution List (ODL) accumulated hours become far too widespread amongst department crafts for various circumstances as determined by the department steward, then, subject to membership approval within the department, the disparity between the crafts can be reset to an agreeable level between employees. In this case, the senior department Steward will submit to department supervision or administer an appropriate figure for entry to reset hours. If the process is administered solely by department supervision, no mid-year adjustment may occur, and the subject hours may only be reset by the terms listed in ARTICLE VI, Paragraph 11.

10(c). If an employee works outside their normal job classification and receives a non-bargained higher rate of pay or conducts work outside their department for less than two weeks, they will be charged with 10

the high hours per day that any one individual worked upon their return. This will be indicated on the ODL upon their return to their regular job classification.

For work in excess of two weeks, the employee will be charged with the overtime hours equal to the average of all overtime hours worked and charged to the department employees.

11. The first of each year, overtime records will be reconciled as follows: a. The person with the least amount of overtime hours will be put back to zero (0) hours. b. The overtime hours of the low person will be subtracted from the hours charged to each employee in the skill area, with the resulting figure charged to each employee. Example: Dec. 31st Total Hrs. Jan. 1st New Balance Jones 37 hours — 11 = 26 hours Smith 23 hours — 11 = 12 hours White 11 hours — 11 = 0 hours ARTICLE VII PROMOTIONS, REDUCTION IN FORCES, SENIORITY A. In making promotions, the Company will consider seniority, ability and efficiency. Promotions to a permanent job vacancy will be made from the next lower job classification as shown on the Promotion Chart, currently in effect, when there are qualified employees therein, but when there are no qualified employees in the next lower classification, the Company will select a qualified employee from successive lower classifications. A qualified employee in a higher classification within a department may transfer to a job vacancy in any lower classification in such department.

When an employee is promoted, they will be allowed a reasonable time under competent supervision to establish their fitness and ability to perform the new duties to which they are assigned.

For the purpose of administering this provision, an employee assigned as a permanent relief for two classifications shall be considered to be in a separate classification next lower than the highest classification they relieve and such classification will be shown on the Promotion Chart.

B. A Promotion Chart will be posted currently for the information of all employees. A copy of said chart will be furnished to the Worker’s Committee and USW Local 675.

C. Employees shall have Refinery and Department seniority.

D. Refinery seniority shall become effective after an employee has actually 11

been in the employ of the Refinery for a period of three hundred sixty-five (365) consecutive days (during which they will be considered a probationary employee) and shall be computed from the date of their latest employment.

E. Departmental seniority shall become effective one hundred eighty (180) consecutive calendar days after an employee has been permanently transferred to a department, but shall be computed from the date when they first entered that department. If within such one hundred eighty (180) consecutive day period, an employee is returned to the department from which they were transferred, their earned seniority rights in the department to which they are returned shall be retained and the time spent in the department to which they were transferred shall be added thereto, but if they are returned after such one hundred eighty (180) consecutive day period, they will have seniority in the department to which they are returned only to the extent of the time spent in that department.

F. An employee may start their employment in any department.

G. An employee incapable of performing the duties of a job to which they have been promoted shall not lose their right to return to the job from which they were promoted nor their seniority rights to promote to some job for which they are capable.

H. In the Maintenance division, the Company will have the right to fill two (2) out of every three (3) future job vacancies either by direct hire into the Division or in such other manner as the Company may deem appropriate.

One (1) opening in the Maintenance Division out of every three (3) shall be posted for bid.

Vacancies for permanent jobs in the lowest classifications in the Maintenance Division, as set forth in the Promotion Chart currently in effect, which are to be filled by bid, shall be posted for a period of seven (7) days on bulletin boards provided especially for that purpose. Employees who desire a transfer to the Maintenance Division will be required to submit an appropriate signed bid form before the expiration of the seven (7) day period. The Company will fill the above mentioned job vacancies in accordance with Paragraph A of Article VII. Qualified employees who are absent on vacation, sickness and other excused absence will be allowed to submit an appropriate signed bid form within seven (7) calendar days after returning to work. If no employee bids, is eligible to bid, or is qualified to accept the job assignment posted for bid on the one (1) out of every three (3) permanent job vacancies in the Maintenance Division, Management is at liberty to fill such vacancy either by direct hire or in such other manner as the Company may deem appropriate.

If a bid has been declined by all qualified candidates after having been offered, or, if there are no qualified candidates after a bid has been posted, the bid will be considered satisfied and the Company will fill the position by direct hire into the position or in any other manner that the Company may deem appropriate.

12

The parties recognize that the Company has the right to hire employees in classifications above entry level. In those cases where the Company chooses to hire in entry level classifications in Machine and Transportation only, the parties agree that: •

At the close of bidding, the senior bidder passing the tests will be awarded the job.

•

Tests administered will be:

•

▪

Mechanical Aptitude

▪

Algebra

▪

Reading Comprehension

The specific tests may be changed as determined by management but must remain relevant to the job to be performed. Prior to changing the test, the Company agrees to review the test with the Union.

The parties agree that if the Company hires in the Maintenance or Operations Departments and there is an employee in the Maintenance Utility Cleanup Person classification that is in the classification because of a reduction in force, the employee will have the first rights to the position as long as the employee has the necessary qualifications.

When the employer is hiring above the entry level positions in the Maintenance Division they may do so. If a current employee at the Wilmington Refinery desires to transfer to this position and passes the test given to outside applicants, the employee will receive preference over outside applicants.

Openings in the Operating Division may be filled by direct hire, Management may permanently assign employees into such vacancies from the Laborer classification in the inverse order of their seniority, or such vacancies may be filled in such other manner as the Company may deem appropriate; however, the Company will consider the written request of employees to transfer from the Maintenance Division to the Operating Division or between various departments within the Division. An employee who is allowed to transfer from the Maintenance Division to the Operating Division or between various departments within the Operating Division will be considered as having utilized a bid right.

Employees who have accepted a bid to the Maintenance Division or who have been transferred to the Operating Division or between various departments within the Division on the basis of a written request, shall remain in their new job for a period of thirty-six (36) consecutive months before they can exercise their right to bid or request a transfer to any other job vacancy.

Should any conflicts arise between the provision of this Paragraph “H” and any other provision of the Labor Agreement, the provisions of this Paragraph “H” shall govern.

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I. When a temporary shortage of manpower exists in any department, employees may be temporarily assigned to such department and/or classification, and will receive the rate of pay upon such assignment as provided in Article V Paragraph C. Any such employee so utilized will not be disqualified from returning to their former job or penalized for failure to meet the job qualifications of the classification to which they are temporarily assigned. Such employees shall accumulate no seniority in the department to which they are temporarily loaned.

If for the convenience of the Company, employees are temporarily assigned to work in a department and/or classification other than their regular department and/or classification, no change will be made in their rate of pay unless the rate of pay for the classification in which they are assigned is higher than their regular rate, in which event they will receive the higher rate.

J. If an employee becomes incapable of performing their regular work through accident, sickness, or other cause, the Company will, if suitable work is available, provide such work as the employee is capable of performing, if another employee is not thereby laid off or reduced in rate of pay. If, on account of illness or temporary physical incapacity, an employee is absent or temporarily engaged in light work, the time spent during such absence or in such temporary employment will contribute toward their Refinery and Departmental seniority, but such time shall not be permitted to give such employee seniority advantage over any other employee who at the time such absence, or light work began had greater seniority in that department.

K. An (1) (2) (3)

employee who is transferred for the purpose of training, or is promoted to a supervisory or other excluded capacity, or is loaned temporarily to any other property of the Company or its affiliates at the Company’s request, shall continue to accumulate seniority in the department in which they were employed at the time of transfer for a maximum period of two years and if they return to that department within two years from the date of transfer, will be reinstated therein with the same seniority they would have been entitled to had they remained in that department.

If such transfer extends beyond said two year period, the employee’s Departmental seniority shall cease to accumulate as of the date said two year period ends and thereafter they will accumulate Refinery seniority only and upon their return to that department will be reinstated in the position to which their accumulated seniority entitles them.

An employee who has been transferred as provided in (1) (2) or (3) above for more than two years will accumulate no further Departmental seniority.

However, they will retain all seniority credited to them upon return to their former department will be reinstated in the position to which their accumulated seniority entitles them.

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L. If the number of such employees in any classification in any department is reduced, the reduction will be effected on the basis of Departmental seniority, and the employees affected by such reduction shall take their places in the next lower classification on the basis of Department seniority. If there are no employees in such lower classification with less Departmental seniority, they shall take their places in the still lower classification on the same basis.

M. If employees, hired prior to July 3, 1984, are about to be reduced out of any department or primary craft skill group, they may, within seven (7) calendar days after being notified, claim any departmental seniority they have in any other department or primary craft skill group, or they may claim a job in the lowest classification in any department on the basis of their Refinery seniority. If there are no employees with less seniority in that department or primary craft skill group, they may then claim a job in the Maintenance Utility Cleanup Person Classification on the basis of Refinery seniority. If employees reduced from any department decline to accept work in the Maintenance Utility Cleanup Person Classification they shall be considered as having resigned.

If employees, hired after July 3, 1984, are about to be reduced out of any department or primary craft skill group, they may, within seven (7) calendar days after being notified, claim any departmental seniority they have in any other department or primary craft skill group within the division, i.e., Operations or Maintenance, in which they are currently employed. If there are no employees with less seniority in that department or primary craft skill group, they may then claim a job in the Maintenance Utility Cleanup Person Classification on the basis of Refinery seniority. If employees reduced from any department decline to accept work in the Maintenance Utility Cleanup Person Classification they shall be considered as having resigned.

N. In the event of any contemplated layoff, reductions in departmental forces will be made under Paragraph M of this Article VII prior to actual layoff.

Employees shall be laid off in the inverse order of the employee’s Refinery seniority from the Maintenance Utility Cleanup Person Classification and the lowest classification in the other departments or skill groups.

Special consideration will be given to other individual departments upon mutual agreement by Management and the Union. After layoff, employees will be rehired in order of their Refinery seniority. Operating Division employees must be deemed qualified by the Company based on documented training or directly related prior work experience before they will be allowed to displace any less senior Maintenance Division employee under this provision.

O. Employees laid off for a period of more than three hundred sixty-five (365) consecutive days will lose all seniority rights. Employees laid off but reinstated within three hundred sixty-five (365) consecutive days or less will only have Refinery and Departmental seniority rights earned at the time of layoff.

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P. Any former employee who has earned seniority rights and is laid off for three hundred sixty-five days (365) or less, and who has kept their current address on file with the Company will be given notice at such address of a vacancy for which they are eligible. If they cannot be located at the address or do not report for duty within seven (7) days after a reasonable attempt to notify them has been made they shall, unless there are extenuating circumstances, lose their seniority rights, and their name shall be removed from the layoff list, and the next eligible employee shall be offered such vacancy, but if within the 7-day period they notify the Company of their intention to accept such vacancy, they shall then be allowed two weeks from the date of such notice of acceptance to report for work without the loss of seniority rights. The Company, at its discretion, may temporarily fill vacancies until the eligible employee is notified and reports for duty as set forth above.

Q. All trainees, students, technical employees, and other specialists may perform work in any classification, but shall not displace any employee regularly assigned to such classification.

R. When two or more departments are consolidated, each employee in such departments shall have the seniority in the combined department which they have accumulated in the department being consolidated.

It is understood that if departments in the Operating Division are consolidated, employees will be paid based upon their level of qualification in the newly consolidated unit, but no person will be demoted. Such employees will be required to qualify on all job duty stations in the newly consolidated unit.

S. If, on account of incapacity, age, sickness, or accident, it becomes necessary to transfer an employee to a Maintenance Utility Cleanup Person job, the Company may transfer such employee without regard to seniority. If an employee acting as a Maintenance Utility Cleanup Person is transferred by the Company out of such job, they shall be returned to the classification and department from which they were transferred to such job, and shall take their place therein on the basis to be agreed upon between the Company and the Union at the time of such transfer.

T. When a new department is established, vacancies for jobs within said department will be filled by the Company on the basis of ability, efficiency and general qualifications as defined in Paragraph A in this Article VII. U. The Company will have available, for the inspection of employees, accurate information and records on seniority, and employees, or their authorized representatives, upon request, will have the right to inspect these records.

Seniority lists will be furnished to USW Local 675 and the Worker’s Committee semi-annually.

V. As of the 2019 ratification, all operators with the exception of those currently frozen, will transition to a pay for qualifications model. From the point of this transition, no operators will be able to freeze in the future. Employees currently frozen, shall give up to three (3) calendar months’ notice in writing 16

to their supervisor of intention to unfreeze. A frozen employee who chooses to unfreeze, will transition to the pay for qualifications model based upon the number of job duty stations for which they are qualified.

All Operations employees are required to qualify on all jobs. An employee is required to qualify on each job within six (6) months. If more training is needed, extensions may be granted where, in the opinion of management, the additional training will result in the eventual qualification of the employee. No more than three (3) one-month extensions will be granted.

After the employee has successfully qualified on a job duty station, he/she must work that job duty station for 3 months prior to training on their next job duty station. This 3 month “soak period� shall start immediately upon completing the job duty station qualification.

It is understood that management may assign people to train on days or on shift.

If an employee is not able to complete training and demonstrate competency within the required time frame, management retains the ability to address the failure in a reasonable manner. (Examples could include, but are not limited to, re-training, mentoring, gap skills closure, demotion, discipline, or may include termination.)

In areas requiring a steam license, management will work with the Union in the event that additional time is required for obtaining the license. It is understood that the additional time will be reasonable when considering the totality of the circumstances.

ARTICLE VIII LAYOFFS A. Layoffs will be made on the basis of Refinery seniority in accordance with the provisions of Paragraph N of Article VII. B. If an employee is laid off and so remains for a period of more than three hundred sixty-five (365) consecutive days, they permanently lose all rights and benefits as an employee as of the date of their layoff.

C. A layoff for a period of three hundred sixty-five (365) consecutive days or less will be considered temporary, but during such period the employee laid off will not be entitled to any rights or benefits as an employee.

D. If a probationary employee who has been in the employ of the Company for a period of three hundred sixty-five (365) consecutive calendar days is reemployed within three hundred sixty-five (365) days after being laid off, all their rights and benefits as an employee which accumulated up to the date of their layoff will be reinstated.

E. When an employee is laid off or discharged they will be given a slip showing the reason or reasons therefore.

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ARTICLE IX EMPLOYEE BENEFITS 1. Vacation A. Employees will be eligible for vacation as follows: Years of Credited Service Date of hire through Year 4 Year 5 through Year 9 Year 10 through Year 19 Year 20 through Year 29 Year 30 and beyond

Vacation Amount 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks

Each employee shall be required to complete one (1) year of service before taking his/her vacation. Subsequent vacations may be scheduled consistent with the vacation scheduling process and taken during the calendar year.

B. If any of the holidays designated in Paragraph A of Article XVIII of this agreement occurs on an employee’s regular scheduled workday but while such employee is on vacation, they will receive an extra day of paid vacation, or at the Company’s option, a day’s pay in lieu thereof.

C. If an employee has been stepped up to a higher classification in the bargaining unit and goes on vacation immediately after having been stepped up to a higher classification the vacation will be paid at stepped up rate.

D. Vacations shall otherwise be governed by the vacation rules of the Company currently in effect.

2. Health and Welfare Plans Security plans and benefits arranged by the Company for employees generally shall be available to employees covered by this agreement.

“Security Plans” and “Benefits” include: • • • • • •

Company sponsored medical Plan Company sponsored dental Plan Long Term Disability Plan Thrift Plan (401k) Plan Company sponsored Pension Plan Company Vacation Plan

The conditions, rules and regulations of such security plans and benefits as established by the Company shall determine all questions arising thereunder. Site specific plans shall be governed by the applicable plan documents which shall determine all questions arising thereunder. The 18

Company shall make detailed information covering the provisions of such security plans and benefits available to the workers committee and employees upon their request either in writing or electronically.

3. Payment for Absence Due to Jury Duty When absent on account of jury duty an employee will be paid their regular salary or wage according to Company regulations.

For purposes of administering this paragraph, employees will receive their regular rate of pay while on jury duty and may retain jury fees and mileage.

Employees are responsible for keeping their immediate supervisor informed as to the times and dates for jury interview, examination, actual jury service and release date from jury duty so that employees are properly scheduled for work. Employees must turn in their jury cards to their immediate supervisor at the conclusion of each week.

4. Payment for Absence Due to Death in Family Employees may be granted up to three (3) days off with pay, when absent on account of a death in the immediate family, i.e., spouse, parents, children, brothers, sisters, grandparents, grandchildren, and in-laws (defined as the grandparents, parents, brothers and sisters of the spouse). An employee may be paid for additional time lost at the discretion of the Refinery Manager or their designee.

Employees shall have reasonable time off without pay to attend funerals of other relatives or close friends, after receiving permission from the Company.

5. Payment for Occupational Death Benefits A benefit of $500,000 will be paid for a work-related accidental death which occurs as a direct result of an accident while at work. This benefit will be paid exclusive of any existing company or statutory benefits.

6. Payment of Disability Benefits – Occupational From the first day of regular full-time employment, the company will provide up to a maximum of twenty-six (26) weeks at full pay and up to a maximum of twenty-six (26) weeks of half pay. All other provisions of the Company’s Disability Benefits Plan - Occupational will remain unchanged.

ARTICLE X LEAVES OF ABSENCE A. When Refinery conditions permit, a leave of absence for a period not in excess of twenty-six (26) days in any calendar year will be granted to an 19

employee to attend conventions or conferences as a representative of an employee group, without loss of any employee rights or benefits, except that they will not be paid for time lost during such absence.

B. A leave of absence of up to one (1) year for Union Business will be granted without pay to one (1) or two (2) employees of Los Angeles Refinery upon request of the Union. No such employee, however, will be allowed a renewal or extension of such leave in excess of a total period of three (3) consecutive years’ absence except that if such employee, after completing such leave of absences, returns to Company service for a period equivalent to the total time covered in the previous leave or leaves, they will then become eligible again for leave as above provided. The request should be addressed to the Refinery Manager of Los Angeles Refinery and the leave of absence will in no way affect the seniority standing of such employee.

C. In individual cases the Company will consider requests for additional leaves of absence of longer duration on account of Union business.

D. Otherwise, leaves of absence will be subject to Company regulations.

ARTICLE XI SAFETY, SANITATION, ETC. A. Employees may directly or through their representatives make suggestions or recommendations for the promotion of (a) safety and sanitation, (b) health, recreation, education and welfare of the employees, and (c) other similar matters of mutual interest to employees and the Company.

B. No employee shall be required to perform services that will unreasonably endanger their physical safety. Should a situation arise under which an employee in good faith believes the condition to be unreasonably hazardous, they may directly or through their representative request reference of the matter to the Refinery Managers or a representative designated by the Refinery Manager, whose decision shall be final.

C. In recognition of the mutual belief that a useful purpose would be served by instituting Industrial Health Research of the work environment by recognized independent authorities in the field of industrial health, it is mutually agreed, for the term of the currently effective Bargaining Agreement, that: (1)

There shall be established a Joint Labor Management Health and Safety Committee, consisting of equal Union and Company representatives, and not less than two or more than four each.

(2)

The Company will, from time to time, retain at its expense qualified independent industrial health consultants, mutually acceptable to the International Union president or their designee, and the Company, to undertake Industrial Health Research surveys, as decided upon by the Committee, to determine if any health hazards exist in the workplace.

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(3)

Such research surveys shall include measurements of the exposures in the work place, the results of which will be submitted in writing to the Company, the International Union president and the Joint Committee by the Research Consultant and the results will also relate the findings to existing recognized standards.

(4)

Company shall agree to pay for appropriate physical examinations and medical tests at a frequency and extent necessary in light of findings, set forth in industrial consultant’s reports, as may be determined by the Joint Committee.

(5)

The Union agrees that each research report shall be treated as privileged and confidential and will be screened by the Company to prevent disclosure of proprietary information or any other disclosure not permitted by legal or contractual obligations.

(6)

At a mutually established time, subsequent to the receipt of such research reports, the Joint Committee will meet for the purpose of reviewing such reports and to determine whether corrective measures are necessary in light of the Industrial Consultants findings, and to determine the means of implementing such corrective measures.

(7)

Within sixty (60) days following the execution of this Agreement, and on each successive October 1 s t thereafter, the Company will furnish to the Union all available information on the morbidity and mortality experience of its employees.

(8)

The Joint Committee shall meet as often as necessary, but not less than once each month, at a regularly scheduled time and place, for the purpose of jointly considering, inspecting, investigating and reviewing health and safety conditions and practices. The Union members of the Joint Committee shall have the right to investigate accidents in accordance with procedures established by the Committee.

The Joint Committee shall make constructive recommendations with respect thereto including, but not limited to the implementation of corrective measures to eliminate unhealthy and unsafe conditions and practices and to improve existing health and safety conditions and practices.

(9)

All matters considered and handled by the Committee shall be reduced to writing, and joint minutes of all meetings of the Committee shall be made and maintained, and copies thereof shall be furnished to the International Union President.

(10) Time

spent in connection with the work of the Joint Committee by Union representatives, including walk around time spent in relation to inspections and compensated for as their regularly assigned work.

(11) In

addition to the foregoing, Company intends to continue its existing Industrial Hygiene program as administered by Company personnel.

(12) Any

dispute arising with respect to the interpretation or application of 21

the provisions hereof shall be subject to the grievance and arbitration procedure set forth in the Agreement.

(13) The

Company will, at its expense, provide for the training of the Union members of the Joint Committee twice during the term of this Agreement when such training is requested by the Union Members of the Committee. Such training will be limited to five (5) days per Committee Member and will be conducted by qualified individuals, institutions or organizations recognized in the field.

ARTICLE XII PHYSICAL EXAMINATION A. Applicants for re-employment after a layoff of more than three hundred sixty-five (365) consecutive days shall submit to a physical examination by a local physician appointed by the Company whose findings shall be final.

Except in special cases, the Company will not rehire any such applicants who do not meet the minimum physical requirements of the Company for work to be performed.

B. Employees with earned seniority rights, who are about to be laid off, shall have the right to be examined by a physician appointed by the Company immediately prior to layoff.

Employees who exercise their right to be examined immediately prior to layoff may, after a layoff of three hundred sixty-five (365) days or less be required to be examined at the time of rehire. If the examination immediately prior to layoff and at the time of rehire shows the employee’s physical condition to be substantially the same, they shall be eligible for reemployment unless the examination at the time of rehire shows the employee to be unable or unfit to do the work for which they are being rehired.

Employees who did not exercise their right for examination immediately prior to layoff, shall, before being rehired after a layoff of three hundred sixty-five (365) days or less, be required to be examined by a physician appointed by the Company to determine their eligibility for re-employment and such employees shall, except in special cases, meet the minimum physical requirements of the Company for the work to be performed.

If the findings of the Company’s physician made at the time of rehiring are unfavorable to the person involved and they are unwilling to accept the same, then they shall have the right, at their own cost, to be examined by another physician agreeable to them. If the findings of such other physician show that the physical condition of such person is substantially as good as it was at the time of their layoff or meets the Company’s minimum physical requirements, dependent upon whether or not they were examined by a 22

Company physician at or immediately previous to the time of their layoff, then they shall submit to a physical examination by still another physician agreeable to them and the Company, whose findings shall be final. The cost of the last mentioned examination under this paragraph shall be borne by the Company.

C. In case an employee returns to work after being absent due to illness or physical impairment, the Company may require such employee to furnish a certificate signed by a physician appointed by the Company showing that they are physically fit to return to work. If such physician finds that the employee is not physically fit to return to work, then such employee may obtain a physical examination by a second physician agreeable to the employee. If the findings of the second physician are that the employee is fit to return to work, then the employee shall submit to an examination by a third physician agreeable to the employee and the Company, at the expense of the Company, and the opinion of such third physician shall be final.

D. The Company may, in cases of constantly recurring absence from duty, or in other exceptional cases, require the employee to submit to an examination by a physician appointed by the Company.

ARTICLE XIII DISCHARGE, SUSPENSION AND RESIGNATION A. In all cases of complaints arising over an alleged unjust discharge or suspension, written notice of such complaint must be filed directly with the Refinery Manager (instead of with the Supervisor or other immediate superior) within one week after the discharge or suspension, but otherwise the complaint shall be handled strictly in accordance with Article XV. B. When an employee is discharged or voluntarily resigns, they shall immediately lose all employee rights and benefits. When suspended, an employee loses all rights to wages during the period of suspension, but does not lose their other employee rights and benefits.

C. If a discharged employee is pursuant to a decision reached under Article XV, found to have been improperly discharged, or, if the discharge of an employee constitutes discrimination within the meaning of paragraph A of Article XIV they will be reinstated in the employ of the Company and the Board of Review shall, after consideration of all the circumstances, determine the restoration of rights and benefits to which they will be entitled, but in no event will any employee receive any greater pay or other rights or benefits over what they would have received if they had not been discharged.

D. If a suspended employee is, pursuant to a decision reached under Article XV found to have been improperly suspended, or, if the suspension of an employee constitutes discrimination within the meaning of Paragraph A of 23

Article XIV, they will be paid for the period covered by the suspension as determined by the Board of Review, after full consideration of all of the circumstances. In no event, however, will the employee be granted pay in excess of that which they would have received if they had not been suspended.

E. The Company reserves the right to discharge or suspend any employee for proper cause.

ARTICLE XIV MISCELLANEOUS A. There will be no discrimination against any employee on account of membership or non-membership in any church, society, fraternity or labor union.

B. If an employee reports to their regular place of employment as instructed, and then is instructed to report to another place for work, or, if any employee works beyond their regular or off schedule, and is compelled to remain at work past the hour when usual or regular means of transportation usually used by them is not available for their use, the Company will, upon request, furnish transportation.

It is understood between the Company and the Union, that at Company discretion, transportation home may be provided to carpooling employees when transportation is not available due to the driver of the carpool being held- over for unscheduled overtime. Only one (1) trip will be provided to a central drop-off point should there be two (2) or more employees involved.

It is further understood that the Company may deviate from scheduling procedures where considered appropriate. The Company reserves the right to discontinue the above if the program is misused. The Company would first meet with the Union to discuss methods of resolving the abuse.

C. This Agreement shall not be effective for the purpose of giving cause for complaint by reason of any act or happening which occurred up to the date of the signing of this Agreement.

D. Exclusive space on ten (10) bulletin boards for the use of the Union will be provided by the Company, but all notices and bulletins or any other material, before being posted on such boards, must first be approved by the Refinery Manager or their designated representative.

E. 1.

The Company will furnish a meal allowance of $12.50 or a meal voucher if an employee so desires, to any employee who is required to work more than two (2) hours beyond, or in advance, but continuous with their regular scheduled shift. Meal allowances or meal vouchers are not applicable to scheduled overtime required by the 42-hour shift rotation 24

or by overtime scheduled on the employee’s regular day(s) off. An employee, called back for emergency work under the provisions of Paragraph E, Article VI, will be furnished a meal allowance or a meal voucher after they have completed four (4) hours of actual work.

Additional meals allowances or a meal voucher will be provided at six (6) hour intervals thereafter.

2.

The Company will provide three (3) meal allowances or three (3) meal vouchers to each employee who reports to work on Primary Relief Duty.

3.

E3. In applying the above provisions when an employee is furnished a meal allowance or a meal voucher, if proper relief is available and with the approval of their supervisor, such employee may, if they so desire, for a period of not to exceed 30 minutes, be relieved of duty in order to eat their meal. Such time will be considered as time worked.

4.

Employees will be required to choose whether they elect meal vouchers or meal allowances. This election must be in writing and provided to the Company and will remain in effect for the remainder of the calendar year. Employees will be allowed to modify their elections on an annual basis, in writing, at the beginning of the calendar year at a time designated by the Company.

F. Solicitation of members for any employee group or collection of dues shall not be done during working hours.

G. The Company will through its appointed representatives meet with the Worker’s Committee at reasonable intervals for the consideration of matters of mutual interest. Memorandum minutes of these meetings will be kept and approval indicated by signature. Copies of these minutes will be made available for the Worker’s Committee.

H. Nothing contained in this Agreement shall be construed in any way as interfering with the obligations of the parties hereto to comply with any and all State and Federal laws, or any rules, regulations, and orders pertaining to matters covered herein, and such compliance shall not constitute a breach of this Agreement.

I. Employees who are assigned to perform work which unavoidably results in destruction or damage to their clothing by chemical action or other abnormal conditions will be eligible for reimbursement for such loss, subject to Agreement in effect.

J. It is expressly recognized that the Company has the right to contract out such work as it may consider desirable, however, the Company will not contract a maintenance or repair job normally performed by its own employees if such contracting would result in the layoff or demotion of qualified employees in the Division and/or classifications involved during the period of such contract job. This shall not preclude contracting work when necessary equipment required is not available in the Refinery.

As pointed out by Management at the outset of the 1984-1985 negotiations, 25

the Company simply must stabilize its operations to the extent possible, and it was with this thought in mind that Management had proposed the broad language on contracting out that the parties have heretofore been discussing, even though, as the record will clearly reflect, it was not Management’s intent to engage in any wholesale supplementation of its employees at Los Angeles Refinery with contractors. The proposal was also designed to preclude any misunderstandings over contracting out issues which could arise. In any event, in carrying forward in essentially verbatim form the existing contract language, it is doubly important that the parties have a clear understanding of its historic meaning and intent.

Accordingly, in order to avoid any future misunderstandings as to the application and meaning of the above language, it is to be understood that nothing in this language prohibits the Company from contracting work. In addition, the limitations imposed have no application to layoffs or demotions which result from or are related to the shutdown of a unit, facility, or method of operation at the Refinery, nor where the Company declines to recall employees prior to contracting out after an employee layoff, unless the Company has identified a permanent vacancy in its regular workforce for which an employee is qualified to fill. It is recognized that if the Company does contract work and employees are demoted or laid off, the Union has the right to grieve and if the Company’s action is ultimately deemed to be in violation of the Labor Agreement the involved employees shall be entitled to restitution as provided under the grievance procedure.

For the purpose of further clarification, the words “qualified employees” means employees who, at the time work under a contracted maintenance or repair job has begun, are actually working in the Division and/or Classifications involved in the contract work and who have demonstrated their ability to perform the work satisfactorily, except that, where in particular situations Company employees have not always been used on a job (such as stack repairs, maintenance of elevators, x-ray equipment, scales, and other specialized equipment) because of the special skill required, such Company employees shall not be deemed “qualified” to perform the contracted work.

Also, the words “during the period of such contract job” do not preclude the Company from contracting out additional maintenance or repair jobs while work under another and earlier such contract is being performed, so long as the requirement of the Paragraph with respect to layoff or demotion of qualified employees are followed in handling such additional contracts.

Likewise, the words “if such contracting would result in the layoff or demotion of qualified employees” are synonymous with the language “if layoffs or demotions would arise as a consequence of such contracting.”

The Company is mindful that the use of contract forces is a matter of serious and ongoing concern to the Union and it is not the Company’s desire nor its intent under the foregoing language that its employees 26

would be arbitrarily replaced by contractors. It is the Company’s intent under this language to continue to place primary reliance on its own employees, where it is feasible to do so, in the day-to-day conduct of its business. Nothing, however, in the foregoing is intended to restrict Management’s inherent right to adjust its forces to levels that are consistent with the day-to-day requirements of the Refinery. In considering the extent to which contract forces will be utilized, Management will continue to give serious consideration to the needs of the business, the efficiencies and economics involved and any other relevant considerations including, but not limited to, the effects of such decisions on the employment opportunities of its employees.

K. Under this Agreement there shall be no discrimination against any person in any way which will be contrary to the Civil Rights Act of 1964, as amended, or any other State, Federal or local laws or executive orders providing for equal employment opportunities and prohibiting discrimination because of race, color, religion, sex, national origin, age, permanent handicapped status or Vietnam Era Veterans. If for any reason an employee feels they have been discriminated against, their grievance will be handled in accordance with provisions of Article XV - Settlement of Grievances.

L. The Company agrees to increase the safety shoe allowance to $225.00 per year.

ARTICLE XV SETTLEMENT OF GRIEVANCES To assist the employees covered by this Agreement in presenting grievances the Union shall have the right to appoint a Grievance Committee consisting of not more than one regular employee of the Company in each department.

The Union and/or employee or group of employees shall have the right to present to the Company, complaints or grievances regarding alleged violations of express provisions of this Agreement. To facilitate the processing of complaints and grievances, stewards will be chosen by the Union.

A current list of such stewards will be provided to the Company. In all complaint cases, an effort should be made to settle the matter with the employee’s Supervisor. A current list of Supervisors will be provided to the Union.

A member of the Grievance Committee/Steward, when requested to do so by an employee, may, with the permission of their Supervisor, contact such employee during regular working hours without loss of pay for the purposes of discussing a cause for grievance, provided such discussion does not affect the efficiency and safety of Refinery operations.

Any grievance adjusted between the Company and an employee without the 27

knowledge of the Union shall not be construed as affecting the Union’s position in this or any other grievance prior or subsequent thereto.

It is the sincere desire of both parties that employee grievances be settled as fairly and as quickly as possible. Therefore, for the purpose of adjusting employee grievances and disputes as defined above, it is agreed that the following procedure must be followed: a) Step 1 – Within thirty (30) working days of an alleged contract violation, the aggrieved employee, shall present their Supervisor with a written grievance and discuss the grievance with the employee’s supervisor. The Supervisor will receive the grievance by signing the grievance report. The employee may be accompanied by a steward. Such meeting will be without loss of time to the employee, or their union steward, during regular working hours for time spent in developing the facts in conference with the Supervisor, provided however, this shall not preclude the Steward from meeting privately with the employee during the conference. The Supervisor shall answer the grievance in writing within ten (10) calendar days thereafter. b) Step 2 – If satisfactory settlement is not reached in Step 1, the grievance shall be submitted in writing within ten (10) working days thereafter via a representative of the Union to Human Resources for a second step meeting, which must be held within ten (10) working days. Human Resources shall have ten (10) working days from the date thereafter to answer the grievance in writing, sending copies to the USW Local office. c) Step 3 – If satisfactory settlement is not reached at Step 2, the grievance may be carried to arbitration at the written request of either party to the other within (20) working days after the Company’s written response in Step 2. An arbitrator shall be agreed upon between the Company and the Union from a panel of 7 arbitrators designated by the American Arbitration Association (AAA). Arbitrator selection will be carried out following the American Arbitration Association rules.

The scope of the Arbitrator’s authority shall be solely limited to the interpretation and application of the terms of this Agreement. The decision of the arbitrator shall be final and binding on all parties.

The fee and expense of the impartial arbitrator shall be divided equally between the parties. Each party shall bear the expense of presenting its case.

Any grievance filed during the term of the Labor Agreement shall be null and void if a grievance has not been heard by an arbitrator within an eighteen (18) month period from the date of the receipt of such grievance in writing by the Company as required pursuant to the Third step of this Article XV. Parties may mutually agree in writing to hold the time limits, referenced in this article in abeyance.

28

ARTICLE XVI UNION SECURITY A. 1. All of the employees covered by this Agreement who are members in good standing of the Union thirty (30) days after the date of this Agreement, or who during the term of this Agreement become members of the Union shall, unless they withdraw from the Union, remain members in good standing for the duration of this Agreement. For the purpose of this Agreement, good standing shall mean being current monthly in the payment or offer of payment of Union dues.

2. For the purpose of this Article, a member may withdraw from the Union by written notice to the Union and the company as follows: a) During the 30 calendar day period following the signing of this Agreement; b) During the 15 calendar day period prior to each anniversary date of this Agreement.

Such notice shall remove the employee from further application of Paragraph A-1 of this Article.

3. If a dispute should arise as to whether an employee: a) is subject to the provisions of this Article as provided in Paragraph A1 above, or b) withdrew from the obligations of this Article as provided in Paragraph A- 2 above such dispute may be submitted within 30 days to a Board of Review consisting of three members, one to be selected by the employee, one by the Union, and one by the two so selected. If the representatives of the employee and the Union cannot agree on a third member of the Board of Review within fourteen (14) days, then the third member will be selected by the American Arbitration Association in accordance with the procedure outlined in Article XV. Should the dispute arise under (b) above, the Board of Review shall have jurisdiction only to determine (1) whether written notice as provided in Paragraph A-2 was in fact given by the employee, and (2) whether such written notice was given by the employee within the time limits provided.

4. If an employee covered by this Article becomes delinquent in the payment of Union dues or if a Board of Review decides that an employee is subject to Paragraph A-1 above, such employee shall be so advised by the Union in writing with copy to the Company and shall have 15 calendar days thereafter in which to pay or offer to pay their Union dues.

B. Upon written request of an employee the Company will deduct from wages 29

due, the regular monthly dues of such employee as fixed by the Union, and shall continue to make such deductions each month until written notice to the contrary is served by the employee to the Company, with a copy to the Union. All money so deducted by the Company shall be paid to the Union on or before the 5th of the following month in which such deductions were made.

The authorization used by the employee shall be as follows: “You are hereby requested and authorized to deduct each month from wages due and payable to me, my regular monthly Union dues and pay the sum so deducted to the United Steelworkers, A.F.L.-C.I.O., CLC, USW Local 675, for my account on or before the fifth day of the month following the month for which said deductions are made. You are further authorized and requested to continue making such deductions each month unless and until you are advised by me in writing to discontinue same.”

“Date

Signed”

30

ARTICLE XVII STRIKES AND LOCKOUTS The Union agrees that there shall be no strike, including sympathy strikes, and no stoppage or slowdown of work for any cause, and the Company agrees that there shall be no lockout of the Union during the period of this Agreement.

ARTICLE XVIII HOLIDAYS A. An hourly day employee will be paid time and one-half for all work performed on the following holidays on the day on which they are observed. Should the calendar date of these holidays fall on Sunday, the holiday will be observed on the following day and should the calendar date of these holidays fall on Saturday, the holidays will be observed on the preceding Friday.

B. A shift employee will be paid time and one-half for all work performed on the following ten (10) holidays on the calendar date on which they occur: New Year’s Day Presidents’ Day Good Friday Memorial Day Independence Day

Labor Day Columbus Day Thanksgiving Day Day After Thanksgiving Christmas Day

Subject to the approval of the Refinery Manager or their designee, an employee is scheduled to work and so works a holiday shall be permitted to select an alternate day off at their regular rate of pay within 60 days after the holiday is observed, provided no overtime is occasioned thereby.

Employees may select a maximum of 4 alternate days within the current calendar year.

C. Hourly employees will receive a holiday equivalent to normal daily scheduled hours not to exceed eight (8) hours for these holidays whether or not they work on such holiday. Operations employees assigned to ten (10) hour schedules will receive ten (10) hours holiday pay when scheduled off on said holiday. In no event will any other employee receive more than eight (8) hours holiday’s allowance for any of the above holidays regardless of when it is observed. However, such holiday allowances shall not be paid to any employee who does not work on such holiday; (1)

If the employee is requested to work on the holiday and does not work, or

(2)

If the employee is absent on their last scheduled work day prior to or the first scheduled work day following the holiday, and said absence is unexcused, or

(3)

If the employee is on leave of absence of more than one week duration for reasons other than sickness or accident, or 31

(4)

If the employee is on leave of absence without pay due to sickness or accident, and the holiday occurs after the first week of continuous absence.

D. Payment for call-out on holidays will be made on the basis of time and onehalf, with a minimum of four (4) straight time hours for reporting or working in addition to the holiday allowance of straight time pay for normal daily scheduled hours are provided in Paragraph A of this Article.

32

The Union Committee will recommend ratification of the above and notify the Company of the membership decision immediately following the membership vote.

FOR THE COMPANY Marathon Refining and Marketing Company LLC LAR Refinery Wilmington, California

FOR THE UNION United Steel, Paper and Forestry, Rubber Manufacturing Energy, Allied Industrial and Service Workers International Union, Local 675

33

APPENDIX A

May 1, 2019 – April 30, 2022 Wilmington Wage Schedule Hourly Represented Employees Hourly Classification

Hourly Rate Effective 5/1/19

Effective 5/1/20

Effective 5/1/21

Electrical Electrical Technician Level 6 Electrical Technician Level 5 Electrical Technician Level 4 Electrical Technician Level 3 Electrical Technician Level 2 Electrical Technician Level 1

49.58 48.67 46.45 44.82 41.56 37.93

51.32 50.37 48.08 46.38 43.01 39.26

53.37 52.38 50.00 48.24 44.73 40.83

Instrument Instrument Technician Level 6 Instrument Technician Level 5 Instrument Technician Level 4 Instrument Technician Level 3 Instrument Technician Level 2 Instrument Technician Level 1

49.58 48.67 46.45 44.82 41.56 37.93

51.32 50.37 48.08 46.38 43.01 39.26

53.37 52.38 50.00 48.24 44.73 40.83

Machine Machinist Level 6 Machinist Level 5 Machinist Level 4 Machinist Level 3 Machinist Level 2 Machinist Level 1

49.58 48.67 46.45 44.82 41.56 37.93

51.32 50.37 48.08 46.38 43.01 39.26

53.37 52.38 50.00 48.24 44.73 40.83

Transportation Heavy Crane Operator Transportation Level 5 Transportation Level 4 Transportation Level 3 Transportation Level 2 Transportation Level 1

49.58 48.67 46.45 44.82 41.56 37.93

51.32 50.37 48.08 46.38 43.01 39.26

53.37 52.38 50.00 48.24 44.73 40.83

Pipe Pipefitter Level 6 Pipefitter Level 5 Pipefitter Level 4 Pipefitter Level 3 Pipefitter Level 2 Pipefitter Level 1

49.58 48.67 45.87 44.26 40.46 37.92

51.32 50.37 47.48 45.81 41.88 39.25

53.37 52.38 49.38 47.64 43.55 40.82

MAINTENANCE

123

34

APPENDIX A (Continued) Effective 5/1/19

Effective 5/1/20

Effective 5/1/21

Weld Welder Level 6 Welder Level 5 Welder Level 4 Welder Level 3 Welder Level 2 Welder Level 1

49.58 48.67 45.87 44.26 40.46 37.92

51.32 50.37 47.48 45.81 41.88 39.25

53.37 52.38 49.38 47.64 43.55 40.82

Transition 30-36 Months Grandfathered 36 Months Grandfathered Reliability Specialist

47.89 47.10 48.98

49.57 48.75 50.69

51.55 50.70 52.72

Laborer Level 6 Laborer Level 5 Laborer Level 4 Laborer Level 3 Laborer Level 2 Laborer Level 1

49.58 48.67 45.28 43.69 40.23 37.92

51.32 50.37 46.87 45.22 41.64 39.25

53.37 52.38 48.74 47.03 43.31 40.82

Maintenance Utility Clean-up Person, 4 yrs Maintenance Utility Clean-up Person, 3 yrs Maintenance Utility Clean-up Person, 2 yrs Maintenance Utility Clean-up Person, 1 yrs Maintenance Utility Clean-up Person, Entry

33.12 31.31 29.50 27.69 25.88

34.28 32.41 30.53 28.66 26.79

35.65 33.71 31.75 29.80 27.86

47.13 45.63 38.78 36.48 34.06

48.78 47.23 40.14 37.76 35.25

50.73 49.12 41.75 39.27 36.66

Operator Fully Qualified (RC) Operator Fully Qualified Operator Level 5 Operator Level 4 Operator Level 3 Operator Level 2 Operator Level 1 Operator Trainee

49.58 49.58 48.90 47.87 47.13 40.00 36.77 33.55

51.32 51.32 50.62 49.54 48.78 41.40 38.06 34.73

53.37 53.37 52.64 51.53 50.73 43.06 39.58 36.12

zField Operator

43.24

44.76

46.55

MAINTENANCE (Continued)

Labor Department

LABORATORY Quality Control Technician #2 Quality Control Technician #1 Quality Control Tester A Quality Control Tester B Quality Control Tester Start OPERATIONS

35

APPENDIX A (Continued) The applicable shift differential shall be as follows: Evening Shift: Seventy-five cents (75¢) per hour for work between 2:30 P.M. and 10:30 P.M. for shift employees, and 3:30 P.M. and 11:30 P.M. for day employees.

Night Shift: One dollar fifty cents ($1.50) per hour for work between 10:30 P.M. and 6:30 A.M. for shift employees, and 11:30 P.M. and 7:30 A.M. for day employees.

NOTE: Employees working other than daylight schedules will be paid shift differential as follows in addition to their regular rate: (1) A day employee working from their daylight No. 2 shift into No. 3 shift is paid applicable differential for No. 3 shift (2) An hourly employee working from their daylight No. 2 shift into No. 3 shifts paid the applicable differential.

(3) An hourly employee working from No. 3 shift into No. 1 shift is paid the differential applicable for the hours worked each shift.

(4) An hourly shift employee working from No. 1 shift into No. 2 shift is paid only for the differential applicable for hours worked on No. 1 shift.

(5) Employees called out on No. 3 or No. 1 shift will be paid the differential applicable for the hours worked.

(6) Hourly day employees working in advance of schedule between 3:30 P.M. and 5:30 A.M. will receive the shift differential applicable for such hours worked.

36

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37

APPENDIX B

TWELVE HOUR SHIFT PROCEDURES AGREEMENT between TEXACO REFINING AND MARKETING, INC. and OIL, CHEMICAL AND ATOMIC WORKERS INTERNATIONAL UNION, AFL - CIO Covering Employees of LOS ANGELES PLANT THE OPERATIONS DIVISION

and LONG BEACH TERMINAL July 3, 1996 to July, 1999

38

APPENDIX B (Continued)

TABLE OF CONTENTS ITEM

PAGE

Introduction ............................................................................................................... 1 Administration Definitions .............................................................................................. 2 Scheduling Definitions ............................................................................................... 3 Pay Applications ........................................................................................................ 4 Straight Time ................................................................................................ 4 Scheduled Overtime ..................................................................................... 4 Unscheduled Overtime ................................................................................. 4 Shift Differential ............................................................................................ 4 4-week Cycle Comparison ............................................................................ 4 Future Wage Adjustments ............................................................................ 5 Reporting Pay............................................................................................... 5 Emergency Call-Out ..................................................................................... 5 Change of Schedule ..................................................................................... 5 Advance of Schedule.................................................................................... 5 Conferences Called by Management ............................................................ 5 Work in More Than One Classification .......................................................... 5 Overtime Meals ................................................................................................ 5 Change of Shifts or Change of Days Off ....................................................... 6 Making Up Lost Time .................................................................................... 6 Holiday Pay .................................................................................................. 6 Work On a Holiday ....................................................................................... 6 Benefits Plans ........................................................................................................... 7 Vacation Pay ............................................................................................................. 7 Accident & Sickness benefit Plan .............................................................................. 8 Savings Plan ............................................................................................................. 9 Group Pension Plan .................................................................................................. 9 Group Life Insurance Plan ............................................................................................. 9 Jury Duty ................................................................................................................. 10 Death in Family ............................................................................................................ 10 Unpaid Absences (Personal Business) .................................................................... 10 Relief Procedure...................................................................................................... 10

39

APPENDIX B (Continued) INTRODUCTION

The Company has completed the feasibility trial period that began on January 2, 1994 and is prepared to continue the 12 hour Day schedule during the period of the Agreement beginning on July 3, 1996 to July 2, 1999. Management will continue to closely monitor various factors to determine the success of the 12-hour shift schedule.

In determining the success the following criteria must be met: 1)

No adverse effect on the health and safety of employees.

2)

No adverse effect on productivity or operating efficiency.

3)

No adverse effect on attendance. Regular attendance is a job requirement.

4)

No increase in payroll or operating costs.

5)

No adverse effect on employees’ wages or benefits.

6)

Ability to successfully obtain all necessary reliefs. There must be no problem in obtaining replacements for shift employees who are unable to report for their regular scheduled shifts.

7)

All other Articles and Administrative Procedures in the collective bargaining agreement not specifically addressed by this twelve hour Shift procedure, remain in effect.

Any modifications to this procedure during the term of the contract will be made by mutual agreement. However, if the 12 hour shift schedule is discontinued for any reason by either party, beyond the term of the Agreement referenced above, such cancellation will not be subject to the grievance and arbitration articles of the agreement and will not be cause for any other legal proceeding by either party.

40

APPENDIX B (Continued) ADMINISTRATIVE DEFINITIONS

Work Day

Twenty-four (24) consecutive hours starting at 06:01 AM of the preceding day to 06:00 AM of the following day.

Work Week

Seven (7) consecutive work days starting with 05 : 55 A M S u n da y to 05 : 54 : 59 A M t he fo llo win g S u nd a y. I n ca se s wh e re an em p lo ye e ’ s sh if t is e xt e nd e d a nd wo rk t im e cro sse s th e wo rk we e k d ivide (f ro m o n e wo rk we e k in to a no t he r), t h e em p lo ye e will co n t inu e t o b e p a id a s if th e re h ad b ee n n o b re a k in wo rk -we e k, u n le ss th e e mp lo ye e s re gu la rly sch ed u le d sh if t h a s b e gu n . Wh e n t h e e m p lo ye e ’ s re g u larly sch e d u led sh if t be g in s, t h e y will b e p a id in a cco rd a n ce wit h p ro visio n s in t h is A g re em en t th a t d ef in e pa yme n t o f re g u la rly sch ed u led h ou rs. (Mo d if ied p e r L et t e r o f A g re em en t be t ween Te so ro Re f in ing & Ma rke t in g Co m pa n y, L o s A n ge le s Re f ine ry (W ilm in g to n ) An d Un it e d St e e lwo rkers (US W ) a n d it ’s L o ca l 6 7 5 re g a rd in g P ro je ctOn e da t ed 8 t h Jun e 2 0 17 )

Work Schedule

12 consecutive hours of work per day

Base Rate

Prevailing hourly straight time rate – not factored

Day Shift

6:00 AM to 6:00 PM

Night Shift

6:00 PM to 6:00 AM Factored Rates Normal scheduled 12-hour shifts will be paid at factored base rates plus applicable shift differential and overtime calculations.

An average shift differential of $.88 for all night shift hours (6:00 PM to 6:00 AM) will be paid for ease of administration.

TWELVE-(12) HOUR SHIFT SCHEDULE (See attached schedule) A. Present procedures for requirement will be continued.

filling both

scheduled

and

unscheduled relief

1. Present procedures for reporting absences will be continued. The Shift Foreman will determine if there are qualified people available at straight time rates. PRD employees must also be available to work on their normal days off. It is recognized by the parties that availability of off-duty operators on a willing and voluntary basis is a key to the success of a 12-hour shift.

2. On-shift employees may be required to continue working for four (4) hours 41

past their scheduled 12-hour shift.

B.

Overtime Work All overtime work, which is defined as hours worked outside the employee’s normal 12-hour scheduled will be paid at 1-1/2 times the unfactored (base) rate.

Call- outs will be paid at 1-1/2 times the unfactored (base) rate. There will be no pyramiding of overtime premium.

42

APPENDIX B (Continued) SCHEDULING DEFINITIONS

8HS

The 8-hour shift schedule as defined by the Agreement.

12HS

The 12-hour shift schedule as defined by this procedure.

8BR

The Straight Time 8HS base rate currently in effect in the Agreement.

12BR

The Straight Time 12HS base rate as defined by this procedure.

Scheduled Overtime Those hours worked in excess of 8 hours but not more than 12 hours on any scheduled work day.

Unscheduled Overtime

Those hours actually worked in excess of 12 hours in any workday or beyond an employee’s regular scheduled work week.

D – Day Shift

6 AM – 6 PM

N – Night Shift

6 PM – 6 AM

NOTE All rates of pay applicable to the 12 hour shift are based and factored from the classifications eight (8) hour pay rates listed in the Hourly Rate and Classification Schedule of the Agreement.

43

APPENDIX B (Continued) PAY APPLICATIONS

1) Straight Time – The 12BR for each job classification under the 12HS will be .87755 of the corresponding 8HS base rate (8BR).

2) Scheduled Overtime – When working the 12HS as scheduled, the scheduled overtime (8.1 to 12.0 hours) will be paid at the rate of 12BR x 1.5 3) Unscheduled Overtime – Unscheduled overtime (more than the scheduled 3 or 4 12-hour workdays in any workweek) will be paid at unfactored 8BR x 1.5 4) Shift Differential – A single shift differential of $.88 per hour will be paid for such scheduled or unscheduled hours actually worked on the night shift.

5) 4-week Cycle Comparison – a 4-week cycle has 168 working hours.

44

APPENDIX B (Continued) Future Wage Adjustments Any future percentage or cents per hour wage adjustment will be applied to the 8BR and then converted to the 12BR by applying the .87755 conversion factor.

Reporting Pay When reporting for work as scheduled and then told there is no work, a minimum of 4 hours pay at the rate of 12BR is guaranteed. However, this guarantee will not apply if at least two (2) hours notice has been given that there is no work.

Emergency Call-out When called out to work hours that are in addition to an employee’s scheduled hours of work, and these additional hours do not connect with either the beginning or the end of the scheduled shift, payment at the appropriate overtime rate will apply, with a minimum guarantee of 4 hours pay at the 12 BR. Change of Schedule at the Company’s Convenience Should the Company change an employee’s work schedule after 3:00 PM on Thursday, prior to the week for which the schedule is effective, the employee will receive payment at the applicable 8BR x 1.5 for the first shift worked on the changed schedule. Any change of schedule for the Company’s convenience will, of course be accomplished according to the 12HS workweek.

Advance of Schedule Employees who begin work in advance of their regular scheduled shift less than two hours and forty minutes and such work connects with the beginning of their shift will be paid at the applicable 8BR x 1.5 for the first 2 hours and 40 minutes, then paid the regular rates for balance rates for balance of the scheduled shift.

Conference Called by Management Employees called into conference by Management outside of their normal scheduled work hours will be paid at the applicable 8BR x 1.5.

Overtime Meals Employees working the 12HS will be entitled to an overtime meal allowance or an overtime meal voucher when working more than 2 hours beyond their scheduled quitting time and the overtime is unscheduled (i.e., after working more than 14 consecutive hours of work): or when called out for emergency work and the employees was not given to prepare a meal(s) and after the employee has worked 4 hours. Overtime meals are not applicable for voluntary relief duty unscheduled overtime.

45

The Company will provide three (3) meal allowances or (3) meal vouchers for employees working Primary Relief Duty. (Modified per Letter of Agreement between Tesoro Refining & Marketing Company, Los Angeles Refinery (Wilmington) and United Steelworkers (USW) and it’s local 675 regarding ProjectOne dated 8th of June 2017) APPENDIX B (Continued) Change of Shifts or Change of Days Off Subject to Management approval in advance, shift trades for the employees’ convenience will be permitted under the following conditions: 1) 2) 3)

An overtime waiver must be signed by both parties desiring the trade and must be pre-approved by the department supervisor.

All trades must be completed in the same work week in which the trade occurs.

No extra cost shall be incurred by the Company.

Making-up Lost Time Employees who are concerned about their attendance records may be allowed to make-up their lost time. Provided work is available. Hours worked at making up lost time will be paid at the applicable 12BR. Make-up time must be completed in the same week in which the absence occurs.

Holiday Pay Ten paid holidays are currently observed. In addition to holiday allowance (paid at 8 hr BR x 8 hrs, exclusive of shift differential), an employee will be paid his/her regular rate (8BR x 1.5) for 12 hours when an employee is required to work on a holiday.

Holiday Allowance: (whether a employee works or not): 8HS 8 Hour Base Rate x 8 Hours Work on a Holiday: (for employees who start their shift on holiday) 8HS 8 Hr Base Rate x 1.5 x 12 hrs.

Plus 8 HR Base Rate

46

APPENDIX B (Continued) BENEFIT PLANS Application to Benefit Plans Below is a comparison between the 8HS and the 12 HS as applied to benefit plans.

8HS 12HS 1. Based on a 40-hour workweek of Based on a 42-hour workweek of 8-hour shifts (2080 hrs/yr) 12-hour shifts (2184 hrs/yr) 2. Scheduled overtime hours are not included in benefit plans calculations

Scheduled overtime hours are not included in benefit plans calculations

The monthly contribution level (employee and Company) is based on pay class. Under the 12HS. your pay classes would automatically go up. Therefore, you would be contributing more towards your benefit plans and the Company would also be contributing more towards your benefit plans. A higher contribution towards benefit plans also means additional benefits.

Vacation Pay 1)

Vacation pay will be paid at the 12BR, as through the employee had worked a regular scheduled workday, but exclusive of shift differential.

2)

Employees will be entitled to their earned annual vacation as follows: 12-Hour Years of Service 1–4 5–9 10 – 19 20 – 29 30

Weeks 2 3 4 5 6

Days 7 10 5 14 17 5 21

Hours 84 126 168 210 252

3)

Vacation will be scheduled in blocks of work days (in blocks of 3 or 4 consecutive work days determined by the 12HS schedule). All vacation must be scheduled to begin and end or begin or end with scheduled days off. A vacation period includes days off at the start and/or end of a selected vacation.

4)

Current vacation selection procedures remain in effect.

5)

Comparison of vacation hours based on years of service: Years of Service 1-4 5-9 10- 19 20 - 29 30+

Current 8HS Hours 80 120 160 200 240 47

12 HS Hours 84 126 168 210 252

APPENDIX B (Continued) Accident & Sick Benefit Plan 1)

Employees who are absent due to accident or sickness will be paid at the 12BR as though they had worked a regular scheduled work day for the first 84 consecutive hours, but exclusive of shift differential Periods of A&S leave that exceed 84 consecutive hours will be paid at the 8BR to assist in maintaining accurate records of A&S balances

2)

Employees will be paid in accordance with the following schedule: FULL PAY 12-Hr Years of Service After 1 2 3 4 5 6 7 8 9 10

Weeks 4 4 4 4 8 8 8 8 12 13

Days 14 14 14 14 28 28 28 28 42 46

HALF PAY 12-Hr Hrs. 168 168 168 168 336 336 336 336 504 552

Weeks 2 7 12 17 18 23 28 33 34 39

Days 7 25 42 60 63 81 98 116 119 136

Hrs. 84 300 504 720 756 972 1176 1392 1428 1632

3)

In Keeping with present policy the re-qualifying period of 13 weeks will have accrued after an employee has actually worked a minimum of 552 scheduled hours during a period of 4 consecutive months. Absences of 2 consecutive scheduled work days or less will not be counted against requalification for full benefits.

4)

Employees who are absent due to accident or sickness for their scheduled block of 3 or 4 consecutive work days, must be cleared through the Medical Dept before returning to work

5)

Employees must furnish proper medical certification when absent for more than 5 regular scheduled successive work days as determined by the 12HS

6)

Comparison of short-term disability hours based on years of service: Years of Service After 1 2 3 4 5 6 7 8 9 10

Current 8HS Hours Hours Full Pay Half Pay 160 80 160 280 160 480 160 680 320 720 320 920 320 1120 320 1320 480 1360 520 1560 48

12HS Hours Full Pay 168 168 168 168 336 336 336 336 504 552

Hours Half Pay 84 300 504 720 756 972 1176 1392 1428 1632

APPENDIX B (Continued) Employee Savings Plan Because scheduled overtime hours are included towards Savings Plan contributions under the 12-Hour Shift Schedule, benefits increase under the 12HS. Group Pension Plan Because scheduled overtime hours are included towards Retirement Plan contributions under the 12-Hour Shift Schedule, benefits increase under the 12HS. Group Life Insurance Plan Because scheduled overtime hours are included towards Term Life Insurance Plan contributions under the 12-Hour Shift Schedule, benefits increase under the 12HS. The amount of your monthly payments for contributory life insurance is based on pay class and the schedule of coverage elected.

49

APPENDIX B (Continued) EMPLOYEE ASSISTANCE POLICIES Jury Duty 1)

In accordance with Company policy, an employee is required to return to work when released from jury duty early enough to work one-half his/her shift.

Employees who are scheduled for jury duty must inform the company in advance.

Employees on call for jury duty are expected to report to work for their shift until they are notified that they are required to serve. If an employee cannot call-in prior to the start of their shift, the employee should report to work, and if required to report to jury duty the next day, work up to four (4) hours and a qualified relief will be obtained. When employees are confirmed to report for continuous jury duty they will be placed on a day shift schedule (8 hour) until the completion of jury duty and thereafter returned to their regular schedule.

2)

On-call employees will be paid at the 12BR until they are assigned to a case of 8BR, as though they had worked a regular scheduled work day, but exclusive of shift differential, for scheduled time lost when serving jury duty. Employees assigned to a case or required to continually serve are placed on an eight (8) hour schedule and will be paid at the 8BR.

Death-in-Family Employees will be paid at the 12BR, as though they had worked a regular scheduled work day, but exclusive at shift differential, for scheduled time lost for death-in-family in accordance with Company policy.

Unpaid Absences (Personal Business) Unpaid personal business will be accrued for as is currently handled by the Company.

An employee who works only a portion of the work day will be paid for actual hours worked at the 12 BR and 12 hour scheduled overtime rate if worked before the employee's departure.

Relief Procedures Management must be assured that vacancies will be covered should an unexpected absence occur.

Prior to implementation of a 12HS schedule, Management and the employees will have established written relief assurances and procedures, for scheduled absences and Primary Relief Duty for unscheduled absences as attached.

50

APPENDIX B (Continued)

TEXACO REFINING and MARKETING, INC. Los Angeles Plant Long Beach Terminal Laboratory

TWELVE HOUR SHIFT SCHEDULED and UNSCHEDULED RELIEF PROCEDURES

51

APPENDIX B (Continued) TRMI Texaco Los Angeles Plant, Long Beach Terminal and Laboratory DEPARTMENTS COVERAGE OF OPEN SHIFTS SCHEDULED ABSENCES Scheduled absence is an absence that is known in advance e.g. vacations long term illness, training, or other authorized leaves of absence. Such absences are usually filled by scheduling relief operators to the open shifts. If there are no sufficient relief operators to cover the shifts, first on a voluntary basis, and if qualified volunteers are not available, mandatory assignments will be made by the unit foreman. Such assignments will be made on the basis of selection of the least senior qualified person in the affected classification who have not already worked an open shift that week. In the event, the least senior qualified person is unavailable, the next qualified employee will be assigned in reverse seniority order.

Assignments to cover scheduled open shifts on either a voluntary or mandatory basis must not conflict with the primary relief duty schedule in the non-scheduled overtime guidelines.

Relief operators will receive work assignment schedules outlining the days shifts and PRD schedule they will be required to work during the following four (4) week period.

PRIMARY RELIEF DUTY (PRD) for NON SCHEDULED ABSENCES Non-scheduled absences are defined as absences with short notice. e.g. sickness, AWOL, personal, bereavement, etc. It is imperative that coverage of such absences is available at all times and this is a critical factor necessary for the successful continuation of a Twelve Hour Shift Schedule at the Los Angeles Plant.

To insure coverage of open slots due to nonscheduled absences. a duty schedule the PRD Schedule, will be issued in each unit/department. This schedule will be published in each area showing each person’s primary relief assignments for the next four (4) weeks. Operators will be assigned primary relief duty on a rotational basis on their days off for each shift on each unit. This PRD will vary on each unit basis the crew size operator qualifications and flexibility and staffing levels.

The following guidelines will be utilized If there is a qualified extra operator on the oncoming shift the extra person may be used to fill the vacancy as determined by the unit foreman.

If there is no qualified extra on the oncoming shift or the extra person cannot fill the slot, the following will apply.

1.

The unit foreman will use the voluntary relief duty list and a primary relief duty list.

52

APPENDIX B (Continued) 2.

3.

If a shift vacancy occurs the foreman will review the voluntary relief list first. If a qualified person is on the list, that person will be called. If no such person is available, the person assigned to the PRD will be required to work the open shift.

The voluntary relief list will not relieve a person assigned to PRD from their obligation to report in accordance with the schedule if no qualified volunteers can be found. Nor does the voluntary relief list relieve a person from the additional pre-commitments required of PRD. If an employee assigned to PRD desires to work such duty, they must sign up on the voluntary relief list. Failure to report for PRD when required will subject an employee to disciplinary action up to and including termination.

Employees who cannot report to work as scheduled must give as much advance notice as possible. A minimum of two (2) hours is required. If possible, to give the relief person time to get to work by shift change so the off going employee can be relieved as scheduled.

If an employee is late to work for a scheduled shift, for more than 15 minutes without giving advance notice to the foreman, he/she may be sent home without pay for the entire shift if he/she is late, and the primary relief or volunteer who has already agreed to work has the night to work the entire shift if they wish, or they can stay at work or go home and let the tardy employee work the rest of the shift. In either case the Company will only pay for 12 hours work to one employee for any scheduled shift.

The PRD schedule will be used to cover non-scheduled overtime and will be a mandatory pre-commitment which indicates a responsibility by the unit employee to work overtime on their days off. The following procedures shall apply: 1.

Employee shall provide operations supervision with an accurate working telephone number where he/she can be reached during their PRD hours.

It is the responsibility of the employee to contact the shift foreman and provide an alternate contact means if the employee experiences telephone problems at their normal place of residence or their normal contact phone number whichever is applicable. If the unit foreman cannot contact the employee, the employee will be subject to the provision of paragraph five (5) below.

2.

Employees assigned to PRD must be available one (1) hour prior to shift change and one (1) hour after shift change.

Standby Hours are as follows: Day PRD

5am to 7am

Shift #1

Night PRD

5pm to 7pm

Shift #2

53

APPENDIX B (Continued) 3.

PRD employees must be able to reach the plant within one and one half hours, or additional reasonable times based on driving distance, after being notified to report to work. Employees must be in such a condition that they can satisfactorily perform the job in a safe manner without impairment from authorized medication or unauthorized substances.

4.

The PRD will be scheduled and three (3) meal allowances or three (3) meal vouchers will be provided if employees are required to report to work. ( Modified per Letter of Agreement between Tesoro Refining & Marketing Company, Los Angeles Refinery (Wilmington) and United Steelworkers (USW) and it’s local 675 regarding ProjectOne dated 8th of June 2017) Pay will be provided only for hours worked at the unscheduled overtime rate of pay.

5.

The failure of an employee assigned PRD to report or respond to a call from supervision, will result in appropriate disciplinary action up to and including discharge.

6.

A sufficient number of qualified employees will be assigned PRD to cover vacancies in all the unit classifications. Trading of scheduled PRD among qualified operators will be permitted with the advance approval of the unit foreman or designee. Trades will not result in any employee having responsibility for two consecutive shifts, nor can there be any other additional cost to the Company.

7.

If a employee who is scheduled for PRD is unable to respond due to sickness or injury they must speak with the shift foreman personally (not with other control room operators) as soon as possible so someone else can be assigned PRD for that shift.

A certificate of disability from a physician may be required by the Company before the employee can return to work.

8.

Employees who are initially notified of a PRD job assignment and then advise the foreman that they cannot report due to sickness, injury may not be permitted to return to work without a medical certificate will be considered as unavailable for PRD and subject to the appropriate disciplinary action.

9.

Any hours or partial hours of absence/lateness by the employee on PRD will be applicable to the provisions of the plant attendance control and safety incentive programs in effect.

PRD CALL-OUT PROCEDURE 1.

Employees will provide their supervisor or foreman with one (1) primary phone number that will be used to contact the employee when a PRD callout is required.

2.

If the supervisor/foreman calls and receives an answering machine reply a message will be left by the supervisor/foreman advising the employee of the PRD requirement with instructions to return the call immediately.

54

Except in emergencies, the supervisor/foreman will wait approximately fifteen (15) minutes. After such time, the supervisor/foreman can begin contacting another qualified employee to fill the open position.

APPENDIX B (Continued 1.

If a pager phone number has been given as the primary number by the PRD employee, the supervisor/foreman will make a second call to the primary number approximately fifteen (15) minutes after the initial call was made to the pager number. If a return response is not received within a reasonable and immediate period, the supervisor/foreman may, at their discretion, attempt to call a secondary phone number provided by the employee, or proceed to contact another qualified employee to fill the open slot.

2.

If there is no answering machine reply to the supervisor/foreman’s call (i.e. the phone only rings), then paragraph three above will be followed.

If significant problems develop that are associated with filling PRD requirements, it may cause the Company to invoke its right to terminate the Twelve Hour Shift Schedule.

However, other PRD procedures acceptable to the Company and the Union may be implemented to help facilitate the process, as actual experience warrants.

55

APPENDIX B (Continued) SUPPLEMENTAL AGREEMENT COVERING THE CONTINUATION OF THE TWELVE HOUR SHIFT SCHEDULE for TEXACO LOS ANGELES PLANT The Twelve Hour Shift Schedule and Relief procedures governing 12 Hour shift for the Operations Division Laboratory and Long Beach Terminal, shall continue through the term of the Agreement, July 3, 1996 to July 2, 1999 with the following understandings. *(RP&S Truck Rack Unit Trainers & Technician Lab Currently Excluded) 1. The provisions in the Articles of Agreement and Administrative Procedures dated July 3, 1996 which are in conflict with the Twelve Hour Shift Schedule Procedure and modified only to the extent necessary to accommodate the implementation of the specific 12 Hour Shift procedures as agreed to by both parties.

2. The stipulations covering affects to Employee Benefits Plans, as listed in Article IX of the Agreement, are modified only to the extent necessary to conform to the procedures of the 12 Hour Shift Schedule.

3. If the 12 Hour Shift Schedule is discontinued the base wage rates will then revert back to the Eight Hour Shift. Hourly Rate and Classification Schedule in the Agreement.

4. The Company and the Union agree that there shall be no strikes or lockouts during the term of the Agreement over disputes arising out of the provisions of the 12 Hour Shift Schedule or this Supplemental Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Supplemental Agreement as of th this 24 day of the month of May, 1996.

Oil, Chemical & Atomic Workers International Union, AFL-CIO

Texaco Refining and Marketing, Inc. Los Angeles Plant

By

By

<S> D R Hall Plant Manager

By

<S> L. Rodriguez

<S> S. Sullivan Local Representative

Negotiations Committee â&#x20AC;&#x201C; Los Angeles Plant <S> J. Dierks <S> V. Tena

<S>

<S> R. Moore

<S>

L. Sheehan S. Washington

<S> R. Stoneham <S> C. Meeks <S> N. Neal <S> M. McFariand

56

APPENDIX C

Memorandum of Agreement Between United Steel Workers, Local 675 (USW) And Marathon Petroleum Company January 1, 2006 For Maintenance and E&I Departments Four Day - Ten Hour Work Schedule

Distributed To: Local - Original CONTACT FILE

*For historical reference the original agreement was entered into between Shell Oil Products US â&#x20AC;&#x201C; Los Angeles Refinery and USW. Modifications reflect changes in effect as of June 8, 2017.

57

APPENDIX C (Continued) Memorandum of Agreement Between United Steel Workers and Its Local No. 675 (USW) And Marathon Petroleum Company January 1, 2006 This agreement sets forth understandings reached between the USW Local 675 (hereafter called the Union) and the Shell Oil Products US - Los Angeles Refinery (hereafter called the Company) and both also referred to as the “parties” to this agreement.

As agreed to by the parties the effective date for the proposed 10-hour shift schedule will be January 1, 2006. Effective with execution to this Agreement, the Company may assign employees in the Maintenance and E&I Departments to schedules of four 10-hour days in a workweek (4x10). It is recognized that this agreement effects only Maintenance and E&I Department employees and excludes all other employees in the defined bargaining unit.

(1) The normal work schedule will be four (4) consecutive days, Monday through Thursday. It is understood and agreed that the Company may also schedule employees four (4) consecutive work days Tuesday through Friday to allow maintenance work to be accomplished Monday through Friday on a straight time basis. It is further understood that the Company may also schedule employees four (4) consecutive days Thursday through Sunday (hereinafter referred to as the Weekend Shift), to allow maintenance work to be accomplished on a week -end on a straight time basis. (Modified per Letter of Agreement between Tesoro Refining & Marketing Company, Los Angeles Refinery (Wilmington) and United Steelworkers (USW) and it’s Local 675 regarding ProjectOne dated 8 th of June 2017) It is understood that the Company retains the right to revise the daily, weekly, or off schedule hours of work to meet changing work requirements as provided for in the Articles of Agreement Administrative Procedures.

(2) The Tuesday through Friday schedule will be staffed first on a volunteer basis, then on a seniority basis by department date, meaning the least senior employees by department date will be chosen first, providing all of the necessary skills are available to accomplish the scheduled work. Skills from each discipline will be scheduled to cover the Tuesday through Friday schedule.

(3) Selection of the weekend shift will be based upon volunteers first, with the most senior department qualified craftsperson selected first, and then, if no volunteers, as new employees are hired in the maintenance department, these new hires may be assigned. In either event, the weekend shift will be put up for selection on an annual basis at a time consistent with vacation selection for Maintenance. If an employee volunteers, selection will be based upon most senior department qualified craftsperson first, and then, if no volunteers, employees hired after June 8, 2017 will be selected. (Modified per Letter of Agreement between Tesoro Refining & Marketing Company, Los Angeles Refinery (Wilmington) and United Steelworkers (USW) and it’s Local 675 regarding ProjectOne dated 8 th of June 2017) (4) Days off for employees working this 10-hour schedule will be consecutive (Friday, Saturday, Sunday or Saturday, Sunday, Monday or Monday, Tuesday, Wednesday).

(5) A regular workday shall consist of ten (10) hours, exclusive of meal period. The normal work schedule for 10-hour shift workers shall be from 7:00 a.m. to 5:30 p.m. The employee may, however, begin their work up to five (5) minutes early, which shall be referred to as the Flexible Start of Shift window. If the employee chooses to begin work before 7:00 a.m., these hours worked will be paid at a straight time rate of pay. As the normal schedule is 10 hours, overtime will be paid for all hours worked in excess of 10 hours per day or 40 hours in a workweek. If an employee has chosen to report to report to work during the Flexible Start of Shift window, once they have worked ten hours, any hours worked in between when the

58

10 hours elapsed and the official end of the shift (5:30 p.m.) will be paid at an overtime rate of pay. Any hours worked between when ten hours have elapsed and the official end of shift will be paid on a minute for minute basis at an overtime rate of pay. Article VI, Overtime, paragraph C, is specifically superseded for these hours worked as set forth herein. (Modified per Letter of Agreement between Tesoro Refining & Marketing Company, Los Angeles Refinery (Wilmington) and United Steelworkers (USW) and it’s Local 675 regarding ProjectOne dated 8th of June 2017) A “Volunteer Call-Out Sign-up Sheet” will be used by the Maintenance and E&I Departments. This will facilitate equitable distribution of overtime opportunities to those indicating an interest in working the overtime as well as increasing efficiency of maintenance response.

(6) During weeks in which a holiday(s) occurs, the Maintenance and E&I Departments will maintain a 10-hour per day work schedule. The Maintenance and E&I department will observe the following eight (8) Holidays, which will be paid 10-hours at the straight time rate. ??WC 1?/4/05 New Years Day Presidents Day Memorial Day Independence Day

Labor Day Columbus Day Thanksgiving Day Christmas Day

59

APPENDIX C (Continued) (6) Should the calendar date of these holidays fall on Sunday for the normal work schedule, the holiday will be observed on the following workday.

M 10

Example:

T 10

W 10

Th 10

F X

S X

S H

M OH

T 10

W 10

Should the calendar date of these holidays fall on Sunday (Example l) or Monday (Example 2) for the Tuesday through Friday work schedule, the-holiday will be observed on the following workday.

Example: (1) (2)

M X H

T 10 OH

W 10 10

Th 10 10

F 10 10

S X X

S H X

M X X

T OH 10

W 10 10

Should the calendar date of these holidays fall on Friday (Example 1) or Saturday (Example 2) for the normal schedule, the holidays will be observed on the preceding workday.

Example: (1) (2)

M 10 10

T 10 10

W 10 10

Th OH OH

F H X

S X H

S X X

M 10 10

T 10 10

W 10 10

Should the calendar date of these holidays fall on Saturday for the Tuesday through Friday schedule, the holiday will be observed on the preceding Friday Example:

M X

T 10

W 10

Th 10

F OH

S H

S X

M X

T 10

W 10

(7) Maintenance and E&I hourly employees will receive a holiday equivalent to normal daily scheduled hours not to exceed ten (10) hours for these holidays whether or not they work on such holiday. In no event will an employee receive more than ten (10) hours holiday's allowance for any of the above holidays regardless of when it is observed. However allowances shall not be paid to any employee who does not work on such holiday as outlined in Article XVIII, (C) (1-4) page 34.

Administrative Guidelines (6) Vacation eligibility will be converted to hours and employees will be charged with 10 hours of vacation for a 10 hour day shift, depending upon the employee's actual work schedule at the time the vacation is taken. At year-end, should hours of vacation remaining be less than 10 hours, the employee will have the option of either: (a) taking a full 10-hour day off, but receive pay only for remaining vacation hours; or, (b) carrying the remaining vacation hours (less than 10 hours) over into the next calendar year or succeeding years until a full 10 hours of vacation has accrued.

Subject to Company approval, single day vacations and vacation deferrals may be taken in accordance with the provisions of the June 26, 2002 Shell Oil Products-U.S./Motiva Enterprise/PACEWIU, Shell Benefits Agreement.

(7) Disability Benefits will be paid for scheduled hours absent in accordance with the scheduled work hours in effect during the period of disability.

(8) Application to other benefits will be the same as for employees working an 8-hour work schedule in that they are based upon straight time hours.

(9) Provisions in the current Articles of Agreement regarding Reporting Pay and pay for Call Out will not be affected by this Agreement.

60

APPENDIX C (Continued) (10) The Company and Union mutually agree to meet at the request of either party in an attempt to resolve problems that may arise due to the 10-hour shift schedule. In this same regard the parties ·also agree to meet on a formal basis if necessary to review and discuss the overall experience and acceptability of the 10-hour shift ·schedule. Should significant difficulties arise in the application of the 10-hours schedule; the parties agree to meet to discuss appropriate alternative shift schedules.

(11) This Letter of Agreement shall remain in full force and effect until changed by mutual agreement of the parties. In addition, either party may terminate this agreement by providing written notification not less than thirty days before the end of the calendar year.

(12) The foregoing supersedes other parts of the Articles of Agreement otherwise in conflict with this provision.

If the above is in accordance with your understanding please indicate your acceptance in the space provided below, which is subject to membership ratification. Return two original signed copies to this office. it is understood that a ratification vote 'will be held as soon as practicable, but no later than two '(2) weeks from the date of this tentative agreement.

As agreed to and accepted this 4th day of November 2005.

Bob Johnston International Representative United Steel Workers

Ana M. Kopf Human Resources Manager Shell Oil Products – Los Angeles Refinery

Local 675 Representative Union Negotiating Committee:

61

APPENDIX D

Memorandum of Understanding The following Classification and Wage Progression, Training and Qualification Requirements will apply to employees in the Maintenance Division of the Los Angeles Refinery (Wilmington): A:

Employee Progression 1.

This training progression will take place over a four year period of time for employees in the Instrument, Electrical, Mechanical and Transportation Departments.

2.

The Instrument, Electrical, Mechanical and Transportation Departments will be divided into six (6) steps. Each step will have a series of requirement qualifications as outlined in Attachment B to this Appendix. Upon completion of the qualifications for each level, the employee will progress to the pay grade for that level. Employees may qualify earlier than the required time, and this will not have any impact on the due date for the next level of qualification. It is understood that an employee may challenge testing prior to taking a class and if successful, will be considered competent for that skil1 or class. It is further understood that employees must be qualified to perform the work associated with the first five (5) levels of progression. All employees must progress to a Level 5. a.

Employees will be hired at Level 1. Employees must progress to Level 2 by completing all Level 1 and Level 2 training within 21 months of entry into the classification.

b.

Level 3 must be completed within 30 months of entry into the classification.

c.

Level 4 must be completed within 39 months of entry into the classification.

d.

Level 5 must be completed within 48 months of entry into the classification.

e.

The Reliability Specialist (Level 6) is not required for employee progression.

Should the employee choose to promote to Reliability Specialist they must be able to demonstrate ability to perform both leadership and administrative functions as described in their job descriptions. In addition, they must become a subject matter expert in a specific subject matter as determined by business needs. Progression levels are described below: 1.

2.

Instrument Department â&#x20AC;&#x201C; The Instrument Department has five (5) levels of progression. In addition to the five (5) Levels of Progression, an employee may, but is not required to progress to the classification of Reliability Specialist. a.

The curriculum of the first three (3) levels will consist of the general skills of the craft in which the technician is assigned.

b.

The curriculum of the next two (2) levels will consist of the complex skills of the craft in which the technician is assigned.

c.

It is understood that the Instrument Technician and/or Instrument Reliability Specialist will use the pipe, rig, machine or electrical skills to facilitate efficient work associated with the craftsperson's primary craft.

Electrical Department â&#x20AC;&#x201C; The Electrical department has five (5) levels of progression. In addition to the five (5) levels of progression, an employee may, but is not required progress to the classification of Reliability Specialist.

62

APPENDIX D (Continued)

3.

4.

a.

The curriculum of the first three (3) levels will consist of the general skills of the craft in which the technician is assigned.

b.

The curriculum of the next two (2) levels will consist of the complex skills of the craft in which the technician is assigned.

c.

It is understood that the Electrical Technician and/or Electrical Reliability Specialist will use the pipe, rig, machine or instrumentation skills to facilitate efficient work associated with the craftsperson's primary craft.

Mechanical Department â&#x20AC;&#x201C; The Mechanical Department has five (5) levels of progression. In addition to the five (5) Levels of Progression, an employee may, but is not required to progress to the classification of Reliability Specialist. a.

The curriculum of the first three (3) levels will consist of the general skills of the craft in which the Machinist is assigned.

b.

The curriculum of the next two (2) levels will consist of the complex skills of the craft in which the Machinist is assigned.

c.

It is understood that the Machinist and/or Machine Reliability Specialist will use the pipe, rig, electrical or instrumentation skills to facilitate efficient work associated with the craftsperson's primary craft.

Transportation Department â&#x20AC;&#x201C; The Transportation Department has five (5) levels of progression. In addition to the five (5) Levels of Progression, an employee may, but is not required to progress to Level 6. a.

The curriculum of the first three (3) levels will consist of the general skills of the craft in which the craftsperson is assigned.

b.

The curriculum of the next two (2) levels will consist of the complex skills of the craft in which the craftsperson is assigned.

c.

It is understood that the Transportation Craft will use the basic pipe skills to be used in conjunction with their rig or crane assignment.

3.

If an employee is not able to complete training and demonstrate competency within the required time frame, management retains the ability to address the failure in a reasonable manner. (Examples could include, but are not limited to: re-training, mentoring, gap skills closure, demotion, discipline, or termination.)

4.

If an employee is not able to complete any required training classes in the classification to which they will next be promoted within the expected time frame due to Management's inability to provide the training, the Company will promote the employee to the next level without the employee having completed the course material or demonstrating competency through testing or other methods. The employee must successfully pass any testing required with this class or otherwise demonstrate competency when the course is made available by the Company.

63

APPENDIX D (Continued) 5.

The Classifications and Wage Rates of the employees in the Maintenance Department will appear in the Wage Table of the CBA as outlined in Attachment A. B. It is understood that the skills and training included as Attachment B to this proposal consist of the basic training and skills required by employees in the classification and may change over time as business needs and technology change. Prior to the implementation of any change to these requirements, the Company will review the changes with the Workers Committee to ensure they are relevant to the performance of the Maintenance Crafts. It is further understood that an employee must meet all qualifications and skills identified for each level in order to receive the rate of pay associated with individual skills or tasks.

C. It is understood that at times, employees within each Craft Line may be called upon to serve as Trainers or Subject Matter Experts in the development of training or in providing training for others within any craft. In these instances, employees in transition called upon to serve in these capacities will be selected based upon skills exhibited and will receive an additional $1.32 per hour above their current pay rate. Employees who have progressed to a Level 5 Craftsperson will receive $1.32 above the highest classification in their department for all hours that they function in this capacity. Note that additional pay does not apply to mentoring, facilitating on the job training, job shadowing, or acting as lead over a less skilled or less experienced employee.

D. Incumbent Transition 1.

All employees hired prior to May 1, 2015, assigned to Instrument, Electrical, Mechanical, and Transportation Departments will participate in the training associated with the flexibility opportunities described herein.

Employees transitioning into the Skill Based Progression will have sixty (60) months to complete all general, complex and flex skill requirements of their craft.

2.

All employees hired prior to May 1, 2015, will have twenty-four (24) months from May 1, 2015 to return to their old progression. An employee who returns to the old progression will still be required to complete training associated with all the general and complex skill requirements of their craft within the original sixty (60) months time frame. Employees returning to their old progression will not be required to complete flex training. An employee who chooses to return to the original progression will be paid according to the previous time based progression.

3.

Participation in the flex program will not extend the original sixty months an employee has to qualify in the general and complex skills in the craft to which they are assigned.

4.

Employees who are at less than 30 month classifications transitioning to the new Maintenance Progression will receive $35.67 (Level 2) per hour prior to any general wage increase. These employees will advance based upon the newly defined progression. (Skill progression).

5.

Employees at the 30 or 36 month classifications transitioning to the new Maintenance Progression will be paid at $41.11 per hour prior to any general wage increase. When the employee has successfully completed their training through Level 5, their pay will be increased to the Level 5 rate of pay.

64

APPENDIX D (Continued) 6.

Employees in the Reliability Specialist and Heavy Crane Operator classifications transitioning to the new Maintenance Progression will be paid at $42.30 per hour prior to any general wage increase. When the employee has successfully met the requirements of a Heavy Crane Operator or Reliability Specialist, their pay will be increased to that level.

7.

Employees transitioning to the new Maintenance Progression will be provided training by the Company to facilitate efficient transition to the new progression.

8.

Employees transitioning to the new Maintenance Progression will have sixty (60) months to achieve qualification at Level 5 of their classification.

E.

If an employee has transferred from another department and is unsuccessful in qualifying for a position in their new classification, the employee may return to the Department or Division from which they transferred and exercise their seniority rights.

F.

Employees will be expected to demonstrate competency and complete any refresher training required in the performance of their job every 36 months consistent with OSHA requirement.

G.

The following pertains to the Reliability Specialist or Level 6 classifications: 1.

Leadership skills are essential to the Reliability Specialist or Level 6 classifications.

2.

Any employee desiring to progress to Level 6 or Reliability Specialist will be required, as the first training requirement to successfully complete leadership training. This training could include, but is not limited to, classroom training, individual coaching, or mentoring. If an employee is not able to demonstrate the leadership skills at the completion of the training, he/she will be given a full and objective evaluation of those areas necessary to meet the requirement.

3.

After successful completion of the leadership training, the employee will receive specialty area training as outlined in Attachment B.

4.

If the Company is unable to provide training or has a limited opportunity in specialty areas to progress to Level 6 or Reliability Specialist to all employees who meet the leadership or behavioral requirements, training will be offered based on Seniority.

5.

It is the parties intent that all employees able to qualify as Level 6 or Reliability Specialist will be allowed to do so.

Agreed to this 30th of April, 2015, pending ratification.

For the Company:

For the Union:

65

APPENDIX D (Continued) Attachment B Instrument Technician Progression – See item 20 of the Maintenance Craft Utilization Agreement Electrical Technician Progression – See item 21 of the Maintenance Craft Utilization Agreement Machinist Progression – See item 19 of the Maintenance Craft Utilization Agreement Transportation Progression – See item 22 of the Maintenance Craft Utilization Agreement Laborer Progression – See item 15 of the Maintenance Craft Utilization Agreement Pipefitter Progression – See item 17 of the Maintenance Craft Utilization Agreement Welder Progression – See item 18 of the Maintenance Craft Utilization Agreement Required for Electrical, Instrument and Machinist Classifications Demonstrate the ability to perform administrative and leadership functions described in the Level 6 job duties and expectations and become a subject matter expert in at least one of the specialty areas described in the job description.

66

APPENDIX E

Maintenance Craft Utilization Letter Agreement The Parties agree that under the terms of this Letter Agreement, employees of the Wilmington USW Bargaining Unit may be assigned to work at the Carson facility and Carson employees will be allowed to work at the Wilmington facility. With acceptance of this Agreement, the Parties agree that any clauses in the CBA that are inconsistent with this Agreement will be modified and that this Agreement supersedes any areas in the CBA that are in conflict.

1. Employees assigned to work at Carson will receive the higher rate of pay for work performed, either Carson or Wilmington.

2. Employees will not be assigned to work at the Cogeneration Division or the Calciner Unit of the Refining Division.

3. Employees assigned to the Electric Department will not be entitled to work at the LAR(C) facility.

4. 25% of the current Maintenance employees, excluding electricians, can opt out of craft utilization.

All employees hired after ratification of this agreement will be required to perform cross-refinery work. An employee who initially has chosen to opt out may opt in at any point in the future. Once an employee has opted in they cannot opt out in the future.

5. The intent of this agreement is not to transfer people to another facility on a permanent basis, as such, a current employee will not be assigned to the other location for more than 1,500 straight time hours in a calendar year. All employees hired after 5/1/2019, will be assigned to Carson for a maximum of six (6) months. Generally, no subsequent transfer will be allowed for a period of at least two (2) weeks, however, the Parties recognize that there will be occasions when a craftspersonâ&#x20AC;&#x2122;s skill or familiarity with the work at Carson necessitates assignment with less than a two (2) week gap and have agreed that an exception may be generated in those instances. If an individual chooses to return to work at Carson they may waive the requirement for a two (2) week gap. The two (2) week gap only applies to transfers of six (6) months.

6. The classification rates of pay for current maintenance department employees who opt in and those hired after 5/1/2019 will be increased by .25% (one quarter of one percent). The .25% increase will be applied after any general wage increase is applied. Only employees who opt in will be eligible to receive the increase. Employees who opt in on or before December 31, 2019 will remain eligible to receive the increase. Employees who opt in after December 31, 2019 will not be eligible for the increase. This increase will not apply to employees hired in to the Maintenance Utility Clean Up classifications.

7. The curriculum for the crafts will be governed by the curriculum established by the Company.

While the newly established curriculum for all classifications will not be included in the tentative agreement, the Company agrees that when changes are made they will meet with the Union to discuss the changes.

8. The Parties will define the dividing line of work between the Maintenance Utility Cleanup Person and Laborer crafts. The parties agree that the chart of responsibilities are as follows:

67

APPENDIX E (Continued) Maintenance Utility Clean-Up Person a.

The scope of work performed by employees within this classification will be moderate skills work, consisting of labor utilizing hand tools. b. The following Job Comparisons and Descriptions, Laborer and Maintenance Utility CleanUp Person define the position requirements.

LABORER

Maintenance Utility Clean-up Person

Description Can Lead and Direct (Up to 4 or 5 individuals) and perform moderate to complex skill level work utilizing hand tools or heavy equipment.

Description Perform moderate skill level work using simple hand tools.

Tasks Completed

Tasks Completed

Vessels - Lead Crews - Prepare vessels to dump, clean & charge - Inventory material, coordinate access to vessels (blinds & entry permits), remove inner manways

Vessels - Wash vessels - Use shovels and wheelbarrows to move materials

Concrete - Lead Crews - Operate heavy equipment to excavate, demolish, prepare and finish concrete - Coordination of job tasks

Concrete - Use simple equipment to prepare and pour concrete

Hazardous Materials - Lead Crews - Operate heavy equipment and lead tasks in containment, recovery and movement of product

Hazardous Materials - Use simple equipment to contain, recover and move refinery materials

Flexing in the Transportation & Garage Crafts

Flexing in the Transportation & Garage Crafts

Equipment Utilized

Equipment Utilized

- Shovels - Picks - Brooms - Hoses - Mixers - Tampers - Flatteners - Wheelbarrows - Other simple equipment, as required - Vacuum Trucks - Marklifts - Dump Trucks - Backhoes - Wheel loaders - Lowboy Trucks - Flatbed Trucks - Bobtail Trucks - Forklifts

- Shovels - Picks - Brooms - Hoses - Mixers - Tampers - Flatteners - Wheelbarrows - Other simple equipment, as required - Yard Forklift - Marklifts - Flatbed Trucks - Trash Trucks

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APPENDIX E (Continued) 9. Employees will work the hours of the facility they are assigned to.

10. Employees assigned to work at LAR(C) may be entitled to work overtime based upon job continuity, however, they will have no rights to overtime in any other instance. In the event that there are other overtime opportunities, LAR(W) employees may volunteer to work the overtime but will not be entitled to work it.

11. LAR(C) employees assigned to work at LAR(W) may have rights to work overtime only for job continuity, however, they will have no rights to overtime in any other instance. In the event that there are other overtime opportunities, LAR(C) employees may volunteer to work the overtime but will not be entitled to it.

12. Except as provided herein, all other terms of the Agreement covering employees who are assigned work under this provision shall govern and remain in effect.

13. Assignments under these provisions will not change Bargaining Unit membership nor will it change the employee’s assignment to a department.

14. In the event of a Strike or Lockout at LAR(C), employees working under this Agreement will not be used to fill openings caused by the labor dispute.

15. Modify the Laborer classification by creating a new progression consisting of six (6) levels of progression and eliminating the existing progression. Employees will be required to progress through Level 5 of the classification. The Laborer Level 6 classification will be a classification reserved for leading other individuals and will be selected based upon Management’s determination of the most qualified candidate. The Laborer Level 6 may be filled either on an intermittent or a permanent basis at Management’s discretion.

There will be no automatic progression from Maintenance Utility Cleanup Person to the Laborer Classification. All positions will be filled via direct hire by management selection.

Create a new section of Attachment B entitled Laborer Progression Training Plan/Skill as follows: “The Labor Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Labor Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Labor Department will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the Labor Department will consist of the pipe and transportation skills to facilitate efficient work associated with the craftsperson’s primary craft.”

The rates of pay for employees in the Laborer classifications are reflected below: Laborer Level 1 $36.64 Laborer Level 2 $38.87 Laborer Level 3 $42.21 Laborer Level 4 $43.75

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APPENDIX E (Continued) Laborer Level 5 Laborer Level 6

$47.02 $47.90

The rates identified above are rates prior to any general wage increase being applied.

16. Create a new classification in the Labor Department that will consist of five (5) levels of progression as follows: Maintenance Utility Cleanup Person, 4 years Maintenance Utility Cleanup Person, 3 years Maintenance Utility Cleanup Person, 2 years Maintenance Utility Cleanup Person, 1 year Maintenance Utility Cleanup Person, Entry

$32.00 per hour $30.25 per hour $28.50 per hour $26.75 per hour $25.00 per hour

The rates identified above are rates prior to any general wage increase being applied.

There will be no automatic progression from Maintenance Utility Cleanup Person to Laborer or any other Maintenance Craft. Employees in the Maintenance Utility Cleanup Person position may be assigned to work with a qualified craftsperson or under the direction of a qualified craftsperson in any Maintenance Department thus providing them with the ability to gain the skills necessary to apply and be selected for a position in any Maintenance Craft.

17. Create a new classification, Pipefitter with the following progression with training progression added to Attachment B: Pipefitter Level 1 Pipefitter Level 2 Pipefitter Level 3 Pipefitter Level 4 Pipefitter Level 5 Pipefitter Level 6 Employees will be required to progress through Level 5 of the classification. The Pipefitter Level 6 classification will be a classification reserved for leading other individuals and will be selected based upon Management’s determination of the most qualified candidate. The Pipefitter Level 6 may be filled either on an intermittent or a permanent basis at Management’s discretion.

Create a new section of Attachment B entitled Pipe Progression Training Plan/Skill as follows: “The Pipefitter Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of pipe shop will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the pipe shop will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the pipe shop will consist of the weld and transportation skills to facilitate efficient work associated with the craftsperson’s primary craft.”

The rates of pay for employees in the Pipefitter classifications are reflected below: Pipefitter Level 1 $36.64 Pipefitter Level 2 $39.09 70

APPENDIX E (Continued) Pipefitter Level 3 Pipefitter Level 4 Pipefitter Level 5 Pipefitter Level 6

$42.76 $44.32 $47.02 $47.90

These rates are the rates agreed to prior to applying any general wage increases.

18. Create a new classification, Welder with the following progression: Welder Level 1 Welder Level 2 Welder Level 3 Welder Level 4 Welder Level 5 Welder Level 6 Employees will be required to progress through Level 5 of the classification. The Welder Level 6 classification will be a classification reserved for leading other individuals and will be selected based upon Management’s determination of the most qualified candidate. The Welder Level 6 may be filled either on an intermittent or a permanent basis at Management’s discretion.

Create a new section of Attachment B entitled Weld Progression Training Plan/Skill as follows: “The Weld Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Weld Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Weld Department will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the weld shop will consist of the pipe and transportation skills to facilitate efficient work associated with the craftsperson’s primary craft.”

Welder Level 1 Welder Level 2 Welder Level 3 Welder Level 4 Welder Level 5 Welder Level 6

$36.64 $39.09 $42.76 $44.32 $47.02 $47.90

These rates are the rates agreed to prior to applying any general wage increases.

19. Modify Machinist classification by changing the title Reliability Specialist to Machinist Level 6.

Modify Attachment B, Wilmington Machinist Progression Training Plan Skill by eliminating depiction of courses and skills for Machinist – Level 1 through Machinist – Level 5 and replacing with the following: “The Machine Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Machine Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Machine Department will consist of the complex skills of the craft in which the craftsperson is assigned.

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APPENDIX E (Continued) 3) The curriculum for each level of the Machine Department will consist of the pipe and transportation skills to facilitate efficient work associated with the craftsperson’s primary craft.”

20. Modify Instrument Technician by changing the title Reliability Specialist to Instrument Technician Level 6.

Modify Attachment B, Wilmington Instrument Technician Progression Training Plan Skill by eliminating depiction of courses and skills for Instrument Technician – Level 1 through Instrument Technician– Level 5 and replacing with the following: “The Instrument Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Instrument Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Instrument Department will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the Instrument Department will consist of the pipe, transportation and electrical skills to facilitate efficient work associated with the craftsperson’s primary craft.”

21. Modify Electrical Classification by changing the title Reliability Specialist to Electrical Technician Level 6.

Modify Attachment B, Wilmington Electrical Technician Progression Training Plan Skill by eliminating depiction of courses and skills for Electrical Technician – Level 1 through Electrical Technician– Level 5 and replacing with the following: “The Electrical Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Electrical Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Electrical Department will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the Electrical Department will consist of the pipe, transportation and instrument skills to facilitate efficient work associated with the craftsperson’s primary craft.”

22. Modify Attachment B, Wilmington Transportation Progression Training Plan Skill by eliminating depiction of courses and skills for Transportation – Level 1 through Transportation– Level 5 and replacing with the following: “The Transportation Department training progression program will be divided into 5 levels.

1) The curriculum of the first three levels of Transportation Department will consist of the general skills of the craft in which the craftsperson is assigned.

2) The curriculum of the last two levels of the Transportation Department will consist of the complex skills of the craft in which the craftsperson is assigned.

3) The curriculum for each level of the Transportation Department will consist of the pipe skills to facilitate efficient work associated with the craftsperson’s primary craft.”

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APPENDIX E (Continued) 23. Eliminate the following classifications from the Classification Index and Chart of Movements: Craft Helper Janitor Laborer/Janitor Casual labor 24. The Company agrees to add the following specialty skills to the existing Instrument Reliability Specialist Job Description, hereinafter referred to as Level 6 Instrument Craftsperson: TDC/DCS/IPF shutdown systems Technician; Analyzer technician (incl. gas monitors and Heater O2 and combustion analyzers; Tank Gauging Technician (communications; i.e.; Modbus, Fieldbus, Fiberoptic, wireless); Valve/Regulator & pneumatics technician. Specializes in shop rebuilds of valves and regulators. The parties recognize that these may change in the future in accordance with Article 3, Paragraph B. 25. The Company agrees to add the following to the Electrical Reliability Specialist, hereinafter referred to as the Level 6 Electrical Craftsperson: Motor Operated Valve Specialty (i.e.

Limitorque); Batteries/UPS systems; Advanced relay testing/Transformers (PDG); Circuit Breaker testing (PDG) (Control, overhaul, repair). The parties recognize that these may change in the future in accordance with Article 3, Paragraph B. 26. For all new classifications, the Company agrees to follow the procedure under Article 3, Paragraph B to create the Job Descriptions.

27. The Parties agree that progression to the Level 6 classifications in all Maintenance Departments with the exception of Transportation are voluntary in nature and will be based upon qualifications as determined by the Company with specific skill as identified in the Job Descriptions. Once the employee has elected to progress to a Level 6, the Company will choose which specialty the employee will be assigned to.

28. The Parties agree that if an employee has chosen to progress to a Level 6 and subsequently changes his/her mind, they can voluntarily demote to a level 5.

29. The parties agree that if the Company hires in the Maintenance or Operations Departments and there is an employee in the Maintenance Utility Cleanup Person classification that is in the classification because of a reduction in force, the employee will have the first rights to the position as long as the employee has the necessary qualifications.

30. When the employer is hiring above the entry level positions in the Maintenance Division they may do so. If a current employee at the Wilmington Refinery desires to transfer to this position and passes the test given to outside applicants, the employee will receive preference over outside applicants.

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APPENDIX F

Chart Showing Promotion of Hourly Rate Employees at Los Angeles Refinery Wilmington

Transpt

General Shops

M&C

Elect

Inst

Alky

SP&W

ETD

RP&S

CRU/ HTU

H2Proc

HCU

CPD

Lab

Heavy Crane Operator

Pftr Lvl 6

Welder Lvl 6

Mach Lvl 6

Elect Lvl 6

Inst Lvl 6

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

Op Fully Qualified

QC Tech 2

Transpt Lvl 5

Pftr Lvl 5

Welder Lvl 5

Mach Lvl 5

Elect Lvl 5

Inst Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

Operator Lvl 5

QC Tech 1

Laborer Lvl 4

Transpt Lvl 4

Pftr Lvl 4

Welder Lvl 4

Mach Lvl 4

Elect Lvl 4

Inst Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

Operator Lvl 4

QC Tester A

Laborer Lvl 3

Transpt Lvl 3

Pftr Lvl 3

Welder Lvl 3

Mach Lvl 3

Elect Lvl 3

Inst Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

Operator Lvl 3

QC Tester B

Laborer Lvl 2

Transpt Lvl 2

Pftr Lvl 2

Welder Lvl 2

Mach Lvl 2

Elect Lvl 2

Inst Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

Operator Lvl 2

QC Tester Start

Laborer Lvl 1

Transpt Lvl 1

Pftr Lvl 1

Welder Lvl 1

Mach Lvl 1

Elect Lvl 1

Inst Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Lvl 1

Operator Trainee

Operator Trainee

Operator Trainee

Operator Trainee

Operator Trainee

Operator Trainee

Operator Trainee

Operator Trainee

Labor

Laborer Lvl 6

Laborer Lvl 5

M/UCP

74

75

76

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position at a petroleum facility to the extent that the employee is required to carry and monitor a communication device, such as a radio, pager, or other form of instant communication, and to respond to emergencies, or is required to remain on employer premises to monitor the premises and respond to emergencies. (c) If a nonexempt employee holding a safety-sensitive position at a petroleum facility is affirmatively required to interrupt his or her rest period to address an emergency, another rest period shall be authorized and permitted reasonably promptly after the circumstances that led to the interruption have passed. If circumstances do not allow for the employee to take such a rest period, the employer shall pay the employee one hour of pay at the employee's regular rate of pay for the rest period that was not provided. (d) For purposes of this Agreement, the following definitions apply: (1) "Petroleum facilities" means petroleum refineries, marine and onshore terminals handling cmde oil and petroleum products, bulk marketing terminals, asphalt plants, gas plants, catalyst plants, carbon plants, and any other facility involved in the processing, refining, transport, or storage of crude oil or petroleum products.

(2) "Safety-sensitive position" means a job in which the employee's job duties reasonably include responding to emergencies at a petroleum facility, including, but not limited to, those subject to fatigue guidelines.

(3) "Emergency" means a situation or event requiring prompt or immediate intervention to prevent or respond to a disruption in normal operations, which could cause harm to employees, equipment, the environment, or the community.

Any disputes concerning the application of these rest period provisions will be subject to final and binding arbitration pursuant to the terms of the applicable collective bargaining agreement.

If a statutory change, regulation, revision, Court determination, or other change in law renders this Agreement unnecessary, illegal, or ineffective, then the Union and the Company agree that nothing in this Agreement shall alter in any way either party's prior legal rights or obligations with respect to collective bargaining under the National Labor Relations Act. Nothing in this Agreement shall alter any rights afforded to the Union or the Company under the Collective Bargaining Agreement, 12-Hour Shift agreements, side letters, or any related agreements, excepting any provisions and rights in those agreements and side letters pertaining to employee rest periods. Nothing in this Agreement shall limit the rights afforded to the Company or the Union under state and federal law, the Collective Bargaining Agreement, 12Hour Shift agreements, side letters, or any related agreements, including but not limited to the Company's or Union's rights with respect to employee schedules and, specifically, the Company's right to modify work schedules and the Union's rights with respect to the same.

Nothing in this Side Letter alters any rights the Union has to enforce the terms of this Side Letter or the Collective Bargaining Agreement. Nothing in this Agreement shall constitute a waiver of the right to bargain over proposed changes to the terms and conditions of employment.

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The Union fully supports and endorses the purpose and legality of this Agreement and agrees that it shall neither challenge its legality or rest periods provided for hereunder nor support, aid, or encourage any legal challenge to this Agreement.

Nothing in the bargaining history of this Agreement shall be used by either party or anyone else to argue that either party hereto has waived or altered, in whole or in part, any rights or obligations possessed by either party, under this Agreement or under law.

This Agreement is effective the date it is executed by the parties and shall remain in effect unless and until a statutory change, regulation, revision, Court determination, or other change in law renders this Agreement illegal or ineffective.

Marathon Petroleum Corporation

Tesoro Refining & Marketing Company, LLC

United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, Local 675

51 I 30907v.2

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