Hertz Collective Bargaining Agreement

Section 1. Hiring of Employees

Only members in good standing in the Union shall be retained in employment. “Members in good standing” means employee members who tender periodic dues and initiation fees uniformly required to acquire or retain membership.

All employees covered by this Agreement shall become members of the Union within thirty-one (31) days from the effective date of this Agreement or within thirty-one (31) days from the date of employment, whichever is later, and shall remain members in good standing as a condition of continued employment. Only those employees in the job classifications set forth in each attached Addendum shall be covered by this Agreement.

Section 2. Union Recognition

The signing of this Agreement constitutes recognition of the Union, and no member shall be discharged for activity in representing the Union.

Section 3. Union Security

When new or additional employees are needed, the Employer shall use the Union as a non-mandatory hiring source and the Union shall have a reasonable opportunity to refer applicants, provided:

1. Selection of applicants for referral to jobs shall be on a non-discriminatory basis and shall not be based on or affected by Union membership, by-laws, rules, constitutional provisions, or any other aspect or obligation of Union membership.
2. The Employer retains the right to reject any job applicant referred by the Union.
3. The Union, through the Business Agent or shop steward, shall be permitted to meet with a new employee within ten (10) days of their first day of employment. The meeting shall be reasonable in duration in light of business needs.
4. The Employer shall, within ten (10) days of date of hire, forward to the Union a completed hire-in slip supplied by the Union containing the employee’s name, address, hire date, classification, wage rate, and social security number.

Section 4. Check-Off

The Employer, at the request of the Union, shall deduct membership dues and initiation fees from the wages of employees and promptly transmit such funds to the Union, provided the Employer has received from each employee a written assignment that shall not be irrevocable for more than one (1) year or beyond the termination date of the applicable agreement, whichever occurs sooner. Dues check-off will be effective only when all employees in the Local Union jurisdiction have signed dues check-off authorization cards.

Section 5. New Organization

1. When a Local Union in the jurisdiction of the Western Area organizes a Hertz Brand RAC unit in the classifications covered by the Addenda and is properly recognized and certified by the NLRB, and the Local Union requests inclusion in the Hertz/Western Area Master Agreement, the Master Agreement shall extend to the Local Union involved upon certification. The parties agree to meet within thirty (30) days, unless a longer period is mutually agreed, to negotiate wages, pension, and health and welfare coverage for the Local Addendum.
2. If Hertz Rent-A-Car opens a corporate location that is off airport but within the jurisdiction of this Agreement, then the Master Agreement shall apply to same.

Section 6. Non-Discrimination / Non-Harassment

1. Neither the Company nor the Union, in carrying out their obligations under this Agreement, shall discriminate or harass against any employee because of race, color, sex, gender, gender identity, sexual orientation, age, non-disqualifying physical or mental disability, marital or veteran status, political or religious affiliation, national origin, or membership in any labor or other lawful organization.
2. The Company agrees to continue its present non-discriminatory, non-harassment policy offering equal opportunities for available jobs to qualified applicants without regard to the factors referenced above.
3. All references in this Agreement to persons of one gender shall mean persons of all genders.

Section 1. Seniority Established

1. Seniority shall be separate for each city or agreed designated lesser unit. An employee’s seniority shall be by last date of hire in the employee’s job classification. A list of employees in the order of their seniority in job classification shall be posted in a conspicuous place at the place of employment and mailed to the Union quarterly.
2. Up to forty-five (45) days after the posting, an employee who believes there is a controversy of seniority standing shall submit a complaint through the grievance procedure. If no controversy exists after forty-five (45) days, the list shall be deemed established.

Section 2. Layoff and Recall

1. Reduction of forces due to lack of work shall be by seniority in a job classification. Each employee will be given five (5) workdays’ notice (or five (5) workdays’ pay in lieu of notice) of layoff except in case of an Act of God or Civil Riots. The last employee hired in a job classification shall be the first laid off. Employees may at the time of layoff exercise their seniority in any classification, provided they are otherwise qualified.
2. All employees are to be given written notice, or notice posted on a bulletin board, of impending layoffs no later than the end of the last shift worked prior to the commencement of such layoffs.
3. Recall: An employee laid off shall be given ten (10) days’ notice of recall by overnight delivery to the employee’s address of record. The employee must respond within five (5) days after receipt and report for work within seven (7) days after receipt unless otherwise mutually agreed.

Section 3. Seniority Broken

Seniority shall be broken by discharge if not reinstated, resignation, layoff exceeding seniority (not to extend beyond one year), promotion out of the bargaining unit except as agreed in local addenda, absence beyond limits set in Section 2(c), absence from work due to non-occupational injury or illness for 18 months, occupational injury or illness of 24 months or more, failure to return from approved leave, or absence from work for three (3) days without notifying the Employer unless due to conditions beyond the employee’s control.

Section 4. Seniority and Leave of Absence

A leave of absence granted by the Employer shall not interrupt seniority, provided the employee on such leave does not take another job.

Section 5. Rules

The application of seniority relating to starting time, shift preference, workweek, workday, overtime, classification work on premium days, job bidding, or general working rules shall be a matter of agreement between the Local Unions involved and the Employer, subject to the grievance procedure when no agreement can be reached. There shall be at least one shift bid per year and others as needed by the Employer.

Section 1. Workweek

1. The workweek shall consist of five (5) consecutive days of eight (8) hours each, except as otherwise provided. Lunch periods shall be unpaid and not exceed thirty (30) minutes unless additional unpaid time is granted by the Employer.
2. Where feasible and practical, the Company, by mutual agreement with the Union and the employees, may establish a workweek of four (4) consecutive ten (10) hour days.
3. Overtime shall be paid for all hours worked in excess of ten (10) hours in any one (1) day or forty (40) hours in any one (1) week when a four-day, ten-hour schedule is established. Effects on holidays, sick days, and vacation shall be negotiated locally.
4. The regular scheduled day shift shall start not earlier than 7 a.m. and end not later than 6 p.m. No night shift premium shall be paid for work performed between these hours on a regularly scheduled day shift.
5. Employees hired after 11/30/82 may be scheduled to work at various starting times during their work week.

Section 2. Overtime

1. Overtime shall be paid at time and one-half (1½) for all hours worked in excess of eight (8) hours in any one (1) day or forty (40) hours in any one (1) workweek. Each employee will be paid time and one-half for hours worked on their scheduled day off.
2. Mandatory overtime will be assigned by classification seniority in accordance with Article 11, Section 5. Workers can volunteer by seniority; if insufficient workers volunteer, the Company can mandate work by inverse order of seniority.
3. Employees who notify the Company at the start of their shift that they cannot work overtime beyond their shift will be excluded from forced overtime unless they are the only available person.

Section 3. Protection of Conditions

Wages, hours, or other conditions now in effect that are more beneficial to employees than those stipulated in this Agreement shall not be reduced or discontinued.

Section 4. Call Back / Call In

Any employee ordered to and reporting for work outside of their regular workday, when such work is not continuous with their regular workday, shall be guaranteed four (4) hours of pay. The sixth (6th) and seventh (7th) day shall be a guaranteed eight (8) hour day. When an emergency call-back occurs, the employee called shall be paid at one and one-half (1½) times the regular rate for the classification of work performed. This is not considered part of a split shift.

Section 5. Work in Other Classifications

When an employee is requested to do work in a higher rated classification, they shall receive the higher rate for all hours of work in that classification. When requested to work in a lower rated classification for less than a full day, they shall receive their regular rate for all work performed.

Section 6. No Pyramiding

There shall be no pyramiding of pay under this Agreement.

Section 7. Split Shift

A split shift shall be any shift with more than a one hour break in the work period. There shall be no split shifts except by mutual agreement.

Section 8. Workweek Definition

Except as otherwise provided for in the addenda, the period from Friday through Thursday shall be considered the workweek for all pay purposes, including the calculation of overtime.

Section 1. Eligibility and Qualifications

Unless specifically addressed in the Addenda, the following holidays shall be paid at the employee’s basic rate, including shift premium, when not worked, providing the employee has completed the probationary period (except for Labor Day):

• January 1
• Memorial Day
• July 4
• Labor Day
• Thanksgiving Day
• Day after Thanksgiving
• December 25
• Five (5) floating holidays

Each employee must request a floating holiday at least two weeks in advance. Approval will not be unduly withheld. Final approval will be granted two weeks prior to the day in question and once approved cannot be withdrawn or changed. All floating holidays must be taken during each calendar year or cashed out by separate check no later than the second payroll period of January to eligible employees on the payroll as of the preceding December 31.

Section 2. Holiday Pay When Worked

Any employee working on the above holidays shall be paid for hours worked at one and one-half (1½) times their regular rate of pay, inclusive of shift premium.

Section 3. Holiday During Vacation

If a holiday falls during an employee’s vacation, the employee shall receive an additional day off with pay or an additional day’s pay, provided they give fourteen days’ prior written notice to their supervisor.

Section 4. Eligibility Rules

To be eligible for holiday pay when no work is performed, an employee must be available for work on their last scheduled workday immediately prior to a holiday and on their first scheduled workday immediately following the holiday, unless the employee can show a justifiable excuse to the Employer and the Union. The employee must work their entire scheduled shift preceding and following the holiday unless excused by management. Employees on voluntary time off (VTO) shall not be denied holiday pay eligibility or holiday pay when applicable.

Section 1. Vacation Eligibility

1. Each employee with one year of continuous service shall, on their anniversary date of hire, receive ten (10) days’ vacation for one year of service; fifteen (15) days for five years; twenty (20) days for ten years; twenty-five (25) days for twenty years; and thirty (30) days for thirty years. Eligibility is predicated on the employee receiving a minimum of 1,450 hours of pay in the qualifying period.
2. Employees may elect not to take vacation in excess of five (5) days and instead cash out that portion during the vacation year with two weeks’ written notice.
3. Employees whose services terminate for any reason shall receive pro-rated vacation with pay based on completed calendar months of employment, with scales based on years of service.

Section 2. Vacation Pay

Vacation pay shall be calculated on the basis of an employee’s straight time hourly wage, including any shift premium.

Section 3. Vacation Scheduling

Vacation assignments shall be made at the Employer’s discretion whenever practicable, according to seniority. The vacation schedule shall be posted annually from December 1 through February 1. At least two (2) weeks advance notice of vacations shall be given each employee.

Section 1. Contributions

For each eligible employee, payment of the premium and administration cost of Health and Welfare Plans stated in the Addenda shall be made in the manner provided therein.

Section 2. Timely Payment

Premiums must be paid by the tenth (10th) day of the current month. Any Employer who fails to provide insurance benefits and fails to pay required premiums by the tenth day shall be held personally responsible to the employee for benefits that would have been provided.

Section 1. Participation

The Employer agrees to participate in the Teamsters-National 401(k) Savings Plan on behalf of all employees represented under this Agreement.

Section 2. Payroll Deductions

The Employer will make payroll deductions from participating employees’ wages in accordance with each employee’s salary deferral election, subject to compliance with ERISA and relevant tax code provisions, and will forward the withheld sum to State Street Bank or its successor as required by the Plan and Declaration of Trust.

Section 3. Participation Agreement

The Employer will execute a Participation Agreement with the Western Area of Teamsters and the Trustees of the Plan effective prior to any employee deferral being received by the Plan.

Section 4. Separate Deductions

The Employer agrees to require the payroll system to provide separate paycheck deductions so that the Plan may allow participant loans and, when administratively feasible, after-tax contributions.

Section 1

During the life of this Agreement, no strikes or work stoppages shall be caused or sanctioned by the Union, no employee shall engage in any strike or work stoppage including sympathy strikes, and no lockouts shall be entered upon by the Employer. Any action of the Employer in closing stations during a general strike, riot, or civil commotion for protection of station and property shall not be deemed a lockout.

Section 2

It shall not be a violation of this Agreement and shall not be cause for discharge or discipline if an employee refuses to enter property of another company involved in a lawful primary labor dispute or refuses to go through or work behind a lawful primary picket line.

Section 3

This Article shall not apply against the Employer or the Union where negotiations must be held during the life of this Agreement to negotiate wages as set forth in the Addenda. Five (5) days’ notice after the anniversary date set forth in an Addendum is required on both the Employer and the Union to evoke a strike or lockout, and such strike or lockout can only pertain to items re-opened in that Addendum.

Section 1

The Employer will not discharge or suspend any employee without just cause and shall give two warnings of the complaint against such employee in writing to the Union Business Agent and the employee before discharge or suspension for repetition of the same complaint. Discharge or suspension must be by proper written notice to the employee with a copy to the Union Business Agent.

No progressive discipline need be given in cases of proven dishonesty, being under the influence or possession of narcotics or intoxicating beverages while on duty, failure to report accidents, permitting unauthorized persons to ride in company vehicles, willful destruction of property, proven theft, gross insubordination, unauthorized personal use of vehicles, fighting, threatening violence, sleeping on the job, or unlawful harassment.

Section 2

An employee may request an investigation of discharge, suspension, or warning notice, and the Union Business Agent shall have the right to protest. Any protest shall be presented in writing within ten (10) days after the notice, exclusive of Saturdays, Sundays, and holidays.

Section 3

The Employer shall give a discharged employee a written notice of termination and send a copy to the Local Union Business Agent.

Section 4

All new employees will receive a copy of the Company Rules and Article 11, Section 1 of the Master Agreement, and shall sign indicating receipt.

Section 1. Steps

1. Step 1: The representative of the Union and the employee involved shall present the grievance to the Manager within ten (10) days of the occurrence (or within thirty (30) days if due to improper pay). An answer shall be given within three (3) days or such extended time as may be mutually agreed.
2. Step 2: The Business Agent shall present the grievance to the General Manager. It shall be presented and answered in writing within five (5) days or such extended time as may be mutually agreed.
3. Step 3: If a satisfactory settlement has not been reached, the matter shall be referred to a Board of Adjustment.

Section 2. Board of Adjustment

1. The Board of Adjustment shall consist of two (2) representatives of the Union and two (2) representatives of the Employer. A decision of the Board shall be final and binding. If the Board cannot reach a decision, it shall select an impartial arbitrator from a list furnished by the Federal Mediation Service.
2. The Board and arbitrator shall not have the power to add to, delete, change, or modify this Agreement.
3. The expenses of arbitration shall be borne equally between the Local Union and the Employer.

Section 3

When an Arbitrator or Board of Adjustment or grievance settlement calls for the Company to pay a penalty as a result of employees other than bargaining unit employees doing bargaining unit work, the penalty will be time and one-half (1½).

Section 4

Monetary awards resulting from grievance adjudication shall be paid to the employee affected within a reasonable period of time, no later than the second payday after the award is granted, with a copy of the check sent to the Local Union.

Section 1. Sick Leave

Unless otherwise provided in the Addenda, employees with one year or more seniority shall receive ten (10) days of sick leave with pay including shift premium as of January 1, and annually thereafter, commencing with the first day of illness. Eligible employees may take up to five (5) of these days as floating holidays pursuant to Article 5.

Section 2. Unused Cash Out

Unused sick leave as of December 31 shall be granted no later than the second payroll period of January to each eligible full-time regular employee by separate check at the current daily rate in an amount not to exceed the maximum outlined, or by mutual agreement as paid time off. Employees who have not used any sick leave by December 31 will be cashed out at 150% the value of the allotted sick leave.

Section 3. Payment on Separation

On resignation, discharge (other than for proven theft and other cardinal offenses), permanent disability, retirement, or death, an employee or the employee’s estate shall collect cash payment for all unused sick leave, pro-rated.

Section 4. Hospital Leave

Each regular full-time employee with one year or more seniority shall receive six (6) days of hospital leave each year. Hospital leave is used prior to sick leave and applies only when the employee is admitted as a patient in a licensed hospital. Hospital leave may be accumulated up to eighteen (18) days.

Section 5. Bereavement

A regular full-time employee who has successfully completed probation shall be paid for time lost at their current hourly rate not to exceed five (5) days’ pay in the event of death in the immediate family. Three (3) days’ pay applies for death of a grandparent, grandchild, stepfather, stepmother, current mother-in-law, or father-in-law. Where the funeral occurs more than 300 miles from the employee’s home and the employee attends, such leave will be five (5) days.

Section 6. Leave of Absence

A personal leave of absence without pay not to exceed thirty (30) days may be granted by the Employer for a legitimate reason provided operating requirements permit. Such leave may be renewed for two additional thirty (30) day periods with permission from the Employer. Seniority shall not be interrupted during the leave.

Section 7. FMLA

Employees who have worked for the Employer for a minimum of twelve (12) months continuously and at least 1,250 hours in the past twelve months are entitled to take up to twelve (12) weeks unpaid leave during any twelve month period as set forth in the Family and Medical Leave Act of 1993. The employee’s seniority rights shall continue as if the employee had not taken leave, and the Employer will maintain health insurance coverage during the leave with normal cost sharing.

Section 8. FMLA Extension

Employees eligible under Section 7 may extend a leave of absence for a period not to exceed three (3) months following the end of FMLA leave. This additional period is not subject to FMLA requirements and the Employer is not required to maintain health insurance coverage during the extended leave period.

Section 9. Medical Leave of Absence

In the event of illness, injury, or pregnancy, an employee with seniority status will be given a leave of absence not to exceed six (6) months after satisfactory medical evidence is submitted. An additional six (6) months may be granted upon submission of satisfactory medical evidence. Seniority shall not be interrupted during such leave.

Section 1. Lead Workers / Working Foremen and Dispatchers

The Company’s past practice regarding the appointment and retention of Lead Workers/Working Foremen and Dispatchers shall continue. The Company has the right to appoint and retain all employees in these classifications.

Section 2. Uniforms

The Employer agrees that uniforms and protective clothing necessary for the work performed shall be furnished, maintained, and laundered by the Employer at no cost to the employee, provided the uniform is worn in the prescribed manner.

Section 3. Work Equipment

The Employer agrees to furnish equipment necessary for performance of the employee’s work including rain gear, waterproof boots, rubber aprons, gloves, goggles, masks, and tools (not mechanic’s tools).

Section 4. Rest Periods

All employees shall be granted a fifteen (15) minute rest period during each half shift. Employees shall be allowed a rest period of not less than 15 minutes for each four (4) hours of working time.

Section 5. Physical Examinations

Any Employer who requests the employee to take a physical examination must bear the cost and compensate the employee for work time lost. New applicants required to take physical examinations before employment will not be compensated for time.

Section 6. Responsibility

Employees shall not be responsible for damaged, lost, or stolen property except in a case of proven negligence or failure to follow the Employer’s instruction.

Section 7. Compensatory Injuries

In case of compensatory injuries under the Workers’ Compensation Act, an employee who is able to continue on the job but is required to visit a doctor for treatment shall be allowed a maximum of three (3) hours of each doctor’s visit without a deduction in pay.

Section 8. Jury Duty

Employees who are called for examination for jury duty or who serve as jurors shall be paid the amount of wages lost with proper documentation provided to the Company. Jury duty is considered work time except for overtime.

Section 9. Employment Agency Fees

If employees are hired through an employment agency, the Employer is to pay the employment agency fee.

Section 10. Union Representatives

Accredited representatives of the Union, upon making their presence known to management, shall have access during business hours to the premises where members of the bargaining unit work, provided that conferences and meetings do not hamper or obstruct the normal flow of work.

Section 11. Preservation of Work

In the event of an increase in the work presently performed by members of the bargaining unit, the Employer agrees that such work shall continue to be performed by members of the Local Union involved.

Section 12. Tool Protection for Mechanics or Equivalent

The Employer shall reimburse the employee for a major loss of required hand tools due to fire, catastrophe, or theft on the Employer’s premises, subject to inventory and reporting requirements.

Section 13. Hikers

Shuttlers are not to perform Vehicle Service Attendant work.

Section 14. Part-Time Employees

The Employer may employ persons in the classifications covered by each Addendum on a part-time basis. Part-time employees are covered by the terms of the Master Agreement as amended by the applicable Addendum with exceptions regarding holiday pay, vacation pay calculations, layoff order, overtime applicability, and benefit eligibility.

Section 15. Personnel Files

Employees have a right to review a copy of their own personnel file upon request. Reviews will be promptly scheduled by the Employer.

Section 16. Intoxication

If an employee is suspected of being under the influence of drugs or alcohol and appears impaired, the Company will provide either round-trip transportation or return the employee to their home when required to take an off-site drug test for permissible reasons.

Section 17. Seasonal Employees

Seasonal employee provisions will be as negotiated by representatives of the Employer and the Union and set out in the separate addenda.

Section 18. Payroll Adjustments

Payroll shortages involving fifty dollars ($50.00) or more will be corrected and payment made available within forty-eight (48) hours of reported shortage or on the next business day the employee is working, whichever is later. Errors of less than fifty dollars will be corrected in the following payroll cycle, provided notice by Friday of the preceding week.

Section 1. Legislation

If in any state wherein this contract is executed, any provision of this Agreement is or becomes invalid under any court ruling or federal or state law, then such provision shall be modified to comply or renegotiated for adequate replacement if possible and legal.

Section 2

Nothing contained in this Agreement shall be construed so as to require the Employer to violate any applicable law.

1. Wages

Wages shall be as set forth in Exhibit A.

2. Probationary Period

The probationary period shall be ninety (90) days. This period may be extended by one thirty (30) day increment to one hundred twenty (120) days by mutual agreement between the Employer and the employee with notification in writing to the Union.

3. Shift Premium

Employees who work a shift of which half or more of the working hours are scheduled between 6:00 p.m. and 6:00 a.m. will be paid the night shift premium of fifty cents ($0.50) per hour for the hours worked.

4. Overtime

All time worked in excess of eight (8) hours and less than eleven (11) hours in one day and/or forty (40) hours in one week shall be paid at one and one-half (1½) times the regular straight time rate. The rate shall be two (2) times the regular straight time rate for all hours worked in excess of eleven (11) hours in one day.

The Company has agreed to provide a two (2) hour notice for mandatory overtime. Mandatory overtime as a continuation or extension of a shift is limited to three (3) hours, voluntary thereafter. Sixth day mandatory overtime is limited to eight (8) hours. Weekly mandatory overtime assignments are limited to twenty (20) hours unless the employee agrees to work more.

5. Parking

The Company agrees to paid parking for employees at the designated lot at no more than eight dollars ($8.00) per month, per employee.

6. Tool Reimbursement

The Company will reimburse Journeymen Mechanics, Mechanics, and Utility Mechanics up to twelve hundred dollars ($1,200.00) each contract year for the purchase of tools to utilize in service within the Company. In the event tools are requested by an employee above and beyond the tool allowance and the Company determines the requested tool to be necessary, the Company will purchase the tool.

7. Mechanic Training

Mechanic training provisions are described in the official PDF.

11. Part-Time Employees

No more than fifteen percent (15%), rounded to the next highest number of part-time employees, may be employed in the classification of Vehicle Service Attendant. Part-time employees shall be laid off before full-time employees.

12. Seasonal Employees

The Employer may utilize seasonal help as vacation relief and during peak periods in the classifications of VSA’s and Utility Mechanics. Seasonal employees shall not have seniority. Seasonal employees are paid overtime in accordance with California law. Seasonal employees will be laid off first and will not be used if any employee with seniority status is on layoff.

13. Health and Welfare

The Employer agrees to contribute to the Western Alliance Trust for the purpose of providing Medical, Dental, Vision, and Life Accidental Death & Dismemberment coverage for each full-time employee and their eligible dependents. Contributions are payable on or before the 20th of the month preceding the month of coverage.

Employees may waive benefits under specified conditions, including proof of other group coverage and completion of the Trust Fund’s waiver form.

14. Mechanic Bidding Rules

Starting time, shift preference, and work week for mechanics shall be bid based on job classification in order of seniority in that classification.

15. Starting/New Hire Rates Minimum Wage Rates

Employees will be paid at a minimum the rates in Table A below that correspond with their job title. Employees are eligible for the greater of the minimum pay rate or the contractual wage increase, but not both.

San Diego employees with ten (10) or more years of service as of 10/1/24 will receive a one-time payment of $1,750 (minus applicable taxes).

Ex. 1: Letter of Understanding (Mechanic Training)

The parties confirm that when mechanics are sent for training, lodging and meals will be provided by the Employer consistent with normal policies. The Employer will make training opportunities available for mechanics consistent with its business practices.

Ex. 2: Letter of Understanding (Mechanic Helper)

The Company will recognize the mechanic helper classification with a new wage progression. The position will perform lube, oil and tire work, POI’s, toe-in toe-out wheel alignment and minor mechanical repairs.

The Company agrees that there will be no reduction of hours or layoff of existing mechanic positions as of the ratification of the Master Agreement. It is not the intent of the company to replace mechanics with mechanic helpers who shall not exceed the following: one mechanic helper for each one (1) mechanic.

Ex. 3: Letter of Understanding (VSA Incentive Plan)

The Company, at its discretion, may implement, change, or terminate incentive plans for Vehicle Service Attendants upon proper notification to the Union ten (10) days in advance. The Company shall not discipline employees for not participating in the incentive plan, nor use the plan to discipline employees, but reserves all disciplinary rights and practices under Article 11.