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INCLEMENT WEATHER POLICY The Company recognizes the need to establish a uniform policy for operations during periods

of inclement weather. Accordingly, it is established that: 1. When no decision has been made concerning early closing and an employee calls to report that he/she cannot make it into the office, the following guidelines should be applied: a. If the employee requests miscellaneous excused time (PW, XW, PH, V, etc.) such requests may be granted, based on the allowable number of employees that may be excused under the prevailing conditions as determined by management. Such employees should be informed that, should an abbreviated workday be declared later, the miscellaneous excused time requested will stand without adjustment. b. If the employee is eligible for, but does not request, miscellaneous excused time, the employee may be offered such time in accordance with the allowable number of excused employees (as per a. above). c. Employees who are not eligible for miscellaneous excused time or who refused to take such time, if eligible, shall be informed that they will not be paid for the day and that no adjustments will be made should an abbreviated workday be later declared (as per a. above). Further, the employee shall be considered absent and the absence will be recorded but red circled. No action will be taken under the normal administration of the Attendance Improvement Program; however, the absence will count and repeated instances of red circled absence will be handled under the REGIONAL ASSOCIATE ATTENDANCE PLAN (RAP) as a separate issue. 2. When a decision is made to close an office prior to the normal start time, all employees should be paid as management designated emergency closing, permitted. including those who might have called earlier and been granted miscellaneous excused time. 3. When an office opens for business, employees arriving after their scheduled start time will not be paid for the time not worked. Such lateness will be recorded but red circled. The tardiness will count but no action will be taken under the normal administration of the Attendance Improvement Program. Repeated instances of red circled tardies will be treated under the REGIONAL ASSOCIATE ATTENDANCE PLAN (RAP) as a separate issue. 4. When an early closing is announced and an employee requests to leave prior to an announced force reduction/closing hour, all time thereafter will not be paid. Each office will allow up to two such occurrences which shall count toward the final number that will be excused. If the employee is among those that would be required to stay then he/she must obtain a suitable volunteer. 5. When based on local conditions and at the discretion of the Director or his/her designee an early force reduction is declared, a reduced force of no greater than 25% in each title will be retained to conduct the business of the office. Such number will be determined annually from the number of personnel listed on the vacation schedule(s) during the initial vacation selection process. 6. When force is reduced, management shall select the person(s) required to stay, first from available volunteers. then from a rotating list arranged by seniority from the office of all personnel in each title. Order writers and order typists shall be considered two groups. Once a person has volunteered, been assigned to stay, or has obtained a suitable volunteer to work in his/her place, such person will not again be assigned until all other employees in his/her title have been thus assigned. Voluntary swaps shall count as single credit for the originally designated employee only. 7. Employees who are excused early on a day when a force reduction is declared shall be paid seven hours pay at the straight time rate. Early starts, shortened lunch hours, etc. will not count as overtime unless the employee remains and works the full tour in addition to such extra time. Should the office shut down completely before the normal closing time, then such additional time shall count for the purposes of determining overtime. Employees shall be informed of the details regarding overtime treatment during the introduction of the Inclement Weather Policy of which each employee shall be given a copy. Thereafter, there shall be no obligation for management to inform employees of their overtime options on a continuing basis except for new employees or transfers into the office. 8. There shall be no compensatory time off for employees required to work on a day when force is reduced and other employees are excused and paid, nor shall any normally scheduled hours worked count as overtime, except as set forth in 7. above. 9. Employees on temporary assignments to a location where an early force reduction is declared shall be paid for their normal additional travel time allotment and shall not be compensated for delays that are beyond the control of the Company, such as weather, traffic, accidents, etc. Should such employee(s) have been on the list to remain in their normal reporting office as part of the reduced force specified in 6., then he/she will remain eligible for assignment during the next weather emergency.