AGREEMENT

Between

COMMUNICATIONS WORKERS OF AMERICA

and

CAROLINA TELEPHONE AND TELEGRAPH COMPANY

Effective November 16, 2008

Through November 15, 2011

TARBORO, NORTH CAROLINA

Text Box:

TABLE OF CONTENTS

Article Title Page

	Agreement	1
	Definitions	1
1	Recognition	5
2	Company-Union Relations	6
3	Management Rights	6
4	Work Jurisdiction	8
5	Non-Discrimination	8
6	Probationary Period	10
7	Hours of Work and Basis of Compensation	11
8	Wages and Differentials	24
9	Health and Safety	30
10	Holidays	30
11	Vacations	32
12	Travel Time	39
13	Travel Expense	40
14	Seniority	43
15	Choice of Tours	44
16	Transfers	51
17	Absences from Duty	56
18	Force Adjustments	85
19	Termination Allowance	98
20	Tools and Working Equipment	101
21	Retirement and Benefits	104
22	Concession Telephone Service	119
23	Discipline and Discharge	119
24	Grievance Procedure	120
25	Arbitration	126
26	Lockouts and Strikes	128

Article Title Page

27	Management Performance of Craft Work	130
28	Union Rights and Responsibilities	131
29	Records	131
30	Distribution of Agreement	132
31	Bulletin Boards	132
32	Payroll Dues Deductions	133
33	Collective Bargaining Procedure and Coverage	135
34	Federal and State Laws	136
35	Duration of Agreement	136
36	Pay for Performance Compensation Plan and
	Other Incentive Programs	137
37	Recognition and/or Incentive Program	138
	In Witness Whereof	139
	Appendix A: Wage Schedules	140
	Appendix B: Pension Plan	156
	Appendix C: Savings Plan	160
	Appendix D: Memorandums of Understanding
	Moving Expenses-Displaced Employees	161
	Temporary Assignments	162
	Payroll Deductions - CWA Savings and
	Retirement Trust	165
	Home Garage	166
	Agreement Regarding Mutual Interpretation of
	Article 18 - Force Adjustments	169
	Seniority	170
	Administration of Payroll Deductions for
	COPE	171
	Seniority Determination	172
	INDEX	173

iii

AGREEMENT

THIS AGREEMENT, made this 16th day of November R

2008, by and between CAROLINA TELEPHONE AND TELEGRAPH COMPANY, herein referred to as the "Company" and the COMMUNICATIONS WORKERS OF AMERICA, AFL-CIO, herein referred to as the "Union". WHEREAS, the parties have carried on collective bargaining negotiations for the purpose of developing an agreement with respect to wages, hours and other terms and conditions of employment, and have reached agreement upon the terms of an agreement. NOW THEREFORE, this Agreement shall be binding upon the legal successors and assigns of the Company and the Union; and in consideration of mutual covenants herein contained, the parties have contracted and agree as follows:

DEFINITIONS

1.01 Basic Rate of Pay. The rate of pay, exclusive of all differential or extra payments.

1.02 Call-out. A call of an employee while off duty to work hours not previously scheduled and when the duration of the work cannot be predetermined, except that the following shall not be considered a call-out:

A. If the time worked immediately precedes, follows, and connects with regularly scheduled time.

B. Work assignments, when notice is given in advance and the minimum assigned time is two (2) hours on weekdays and three (3) hours on holidays and Sundays.

1.03 Change in Schedule. A change in schedule is a shifting of hours within the previously posted work schedule.

1.04 Connecting Work. Any work that connects with the beginning or end of scheduled time. If the employee requests and receives time off for a relief or meal period between the scheduled time and the connecting time, such break shall not change the connecting nature of the work.

1.05 Full-Time Employee. An employee engaged to work a full-time or normal workweek.

1.06 Gender. The use of the masculine or feminine gender, or titles such as frameman, switchman, etc., in this Agreement, shall be construed as including both genders and not a sex limitation.

1.07 Headquarters Exchange, Location, Town. An exchange area, location or town designated by the Company as being the place of employment for a particular employee.

1.08 Holiday Work. Any work that begins on an authorized holiday.

1.09 Net Credited Service. Length of service as computed for pension and benefit purposes.

1.10 Night Tour. A tour that falls wholly or partly within R

the period from 8:00 p.m. to 7:00 a.m.

1.11 Nonscheduled Time. Nonscheduled time consists of the following:

A. Nonconnecting work of which the employee is advised while on duty or when the duration of the work assignment can be predetermined.

B. Assignment of an employee to work on a nonscheduled day for a full tour or when the duration of the assignment can be predetermined.

1.12 Occasional Employee. One who is engaged for a period of not more than three consecutive weeks regardless of the length of his/her daily or weekly assignments. He/she is an employee only on the days he/she works.

1.13 Overtime Rate. One and one-half times the basic rate of pay as required under the terms of the Fair Labor Standards Act.

1.14 Part-Time Employees. An employee is scheduled to work less than the number of hours in the normal workweek.

1.15 Part Tour. A work assignment of shorter length than the normal tour or workday.

1.16 Premium Pay. Pay at the overtime rate for non- overtime work at hourly rates equal to the overtime rate, for example, Sunday work.

1.17 Regular Rate of Pay. Basic pay plus any differential pay for work on evening and night tours. No overtime or extra pay other than evening or night differential is included in regular pay.

1.18 Service Requirements. Service requirements as determined by the Company.

1.19 Session: One of the two parts into which a tour is divided.

1.20 Sunday Work. Any that begins on a Sunday.

1.21 Temporary Employee. One whose term of employment is intended to last more than three (3) weeks but not more than one (1) year.

1.22 Tour. Any eight hours of performance of assigned duty.

1.23 Tour Differential. Payments, over and above the basic rates, made to weekly rated employees who work tours that do not fall wholly within the day period,

7:00 a.m. to 8:00 p.m.

1.24 Wage Length of Service (Wage Credit). Period credited to an employee in the application of the wage schedule for his/her job title. In paid absence cases under the "Plan for Employees' Pensions, Disability Benefits, and Death Benefits", only the first month of such absence is included in computing wage experience credit, except that employees absent as a result of, and who receive payments for, accidents arising out of, and in the course of, employment shall accumulate wage experience credit during the time of such absence and payment.

1.25 Workday. The period of time between 12:00 midnight preceding and 12:00 midnight ending any day. Any tour or call-out is a part of the workday on which such tour or call-out begins. Any connecting time that precedes a tour is a part of the workday on which the connecting time begins. Any connecting time that follows a tour is a part of the workday on which the tour begins, even though such connecting time

continues until the beginning of a subsequent tour. Pay for work that starts at or after 12:00 midnight preceding the day and before midnight ending the day shall be at the rate prescribed for that day.

1.26 Work Group. A group of employees who are assigned to the same work location (place of reporting) and who interchange on work assignments and relieve each other; or who are assigned to the same first line supervisor and are assigned to separate work locations and who interchange on work assignments and relieve each other. However, it is understood and agreed that this definition shall have no application for weekly work schedules (vacation excluded) for employees who are required by the Company to perform work functions related to special circuits.

Article 1

RECOGNITION

The Company recognizes and will deal with the Union as the sole collective bargaining agent with respect to wages, hours of employment, and other conditions of employment for all employees presently listed under the wage guides in Appendix A of the Network Operations at the Company's offices and installations in the State of North Carolina but excluding all professional employees, confidential secretaries, Director's secretaries, General Manager's secretaries, Branch Manager’s secretaries (for Marketing and Business Development), supervising clerks, guards and supervisors as defined in the National Labor Relations Act, as amended. Not included are employees of the Company at Southern Pines, Pinehurst, Vass, Carthage, Whispering Pines, Robbins, Fuquay Varina, Angier, Siler City, Pittsboro, Bonlee, Goldston, Gibsonville, and Kernersville.

Article 2

COMPANY-UNION RELATIONS

Section 1: The Company and the Union recognize that it is in the best interest of the parties, the employees, and the public that all dealing between them be characterized by responsibility and respect. To this end, the Company and the Union and their respective representatives will apply the terms of this Agreement fairly in accord with its intent and meaning, and consistent with the Union's status as exclusive bargaining representative of all employees in the unit.

Article 3

MANAGEMENT RIGHTS

Section 1: It is understood and agreed that the Company has all customary and usual rights, functions, and authority of management.

Section 2: The Company shall have the exclusive right to:

A. Direct and supervise the Company's plant and business operations and policies;

B. Assign, modify or change work duties or requirements;

C. Establish and maintain rules for safe and efficient operations;

D. Move a facility or operation to another location or another facility, or close or liquidate a facility;

E. Discontinue, temporarily or permanently, in whole or in part, the conduct of its business or operations;

F. Install, remove, or change machinery and equipment and introduce new or improved methods, materials and facilities;

G. Determine the qualifications for and make the selection of its managerial, supervisory, professional and administrative personnel;

H. Determine, administer, rearrange and change methods, materials, equipment work and safety standards or performance requirements needed in any job or area;

I. Decide the number of employees needed at any particular time or place and be the sole judge of the quality and acceptability of the communication service rendered to the public.

The exercise by the Company of any right listed in A.-I., inclusive, of this section may not be made the subject of the grievance or arbitration procedure of this Agreement. The Company has the unqualified right to place any or all of such enumerated rights into effect without notice to, or negotiation with the Union.

Section 3: It is further understood and agreed that all rights heretofore exercised by, or inherent in the Company, not modified or restricted by the terms of this Agreement, are retained solely by the Company.

Article 4

WORK JURISDICTION

Section 1: This Agreement does not guarantee to any employee or classification of employee in the unit described in Article 1 the exclusive right to any work. While the Company recognizes the right of its employees in normal circumstances to perform its work rather than suffer a lay-off from employment, yet the Union recognizes the right of the Company to contract out or transfer work to other persons when it determines that same is warranted.

Section 2: The Company agrees that in its employment of contract labor to assist in the carrying out of its program of construction, installation, removal, maintenance or repair of its telephone plant, it will not use contract labor so as to result in the layoff of any regular employee normally performing the same work as that which is contracted out, and that the Company will not work hourly rated contract forces in excess of a normal forty (40) hour workweek when qualified Company forces performing the same type of work in the exchange are available and have not been afforded the same amount of overtime opportunity in that week.

Article 5

NON-DISCRIMINATION

Section 1: Neither the Company nor the Union, its agents or members shall:

A. Discriminate against any employee because of his/her being or not being, or becoming or not becoming, a member of the Union; or

B. Intimidate or coerce any employee into joining or not joining, or continuing or not continuing his/her membership in the Union; or

C. Discriminate against any employee because of action taken by either party in processing grievances under the provision of this Agreement; or

D. Discriminate against any employee because of race, religion, color, age, handicap, creed, sex, sexual orientation or national origin. In keeping with this Agreement, neither the Company nor the Union will tolerate sexual harassment by any of its employees. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when:

1. Submission to the conduct is made either an explicit or implicit condition of employment;

2. Submission to or rejection of the conduct is used as a basis for an employment decision affecting the harassed employee; or

3. The harassment substantially interferes with an employee's work performance or creates an intimidating, hostile, or offensive work environment.

Section 2: The Company and the Union will comply with the Americans with Disabilities Act to ensure fair and equitable treatment of applicants and employees with disabilities. The parties herein will further ensure that reasonable accommodations are afforded to disabled applicants and employees on a case by case basis.