Agreement

MASTER AGREEMENT

This Agreement and its attached Addenda, made and entered into this 1st day of October 2024, by and between THE HERTZ CORPORATION, a Delaware Corporation, with its principal place of business at 8501 Williams Road, Estero FL 33928, for its Hertz Brand Car Rental Division Stations located in the cities of Seattle, Washington; Portland, Oregon; Oakland, California; Ontario, California; Sacramento, California; Fresno, California; San Francisco, California; San Jose, California; Long Beach, California; Los Angeles, California; Burbank, California; Orange County, California; San Diego, California; Denver, Colorado; Phoenix and Tucson, Arizona; Albuquerque, New Mexico; El Paso, Texas; Eugene, Oregon; and Salt Lake City, Utah, hereinafter called the "Employer", and the WESTERN AREA OF TEAMSTERS on behalf of its affiliated Local Unions, Local 206, Eugene, Oregon; Local 853, Oakland, California; Local 495, Long Beach, California; Local 150, Sacramento, California; Local 305, Portland, Oregon; Local 104, Phoenix and Tucson, Arizona; Local 222, Salt Lake City, Utah; Local 431, Fresno, California; Local 495, Ontario, California; Local 481, San Diego, California; Local 492, Albuquerque, New Mexico; Local 495, Los Angeles, California; Local 495, Burbank, California; Local 495, Orange County Airport, California; Local 665, San Jose, California; Local 665, San Francisco, California; Local 745, El Paso, Texas; Local 117, Seattle, Washington; and Local 455, Denver, Colorado, hereinafter called the "Union."

Article 1. Union Security (Except Where Restricted by State Law)

Section 1. Hiring of Employees

SECTION 1. HIRING OF EMPLOYEES: Only members in good standing in the Union shall be retained in employment. For the purpose of this Section, "members in good standing" shall be defined to mean employee members of the Union who tender the periodic dues and initiation fees uniformly required as a condition of acquiring or retaining 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 of the Union 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

SECTION 2. UNION RECOGNITION: It is agreed that the signing of this Agreement shall constitute a recognition of the Union, and it is further agreed that no member shall be discharged for activity in representing the Union.

Section 3. Union Security

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 for the vacancies to be filled, provided, however:

  1. Selection of applicants for referral to jobs shall be on a non-discriminatory basis and shall not be based on, or in any way affected by Union membership, by-laws, rules, regulations, constitutional provisions, or any other aspect or obligation of Union membership, policies or requirements.
  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 his/her first day of employment. The meeting shall be reasonable in duration in light of business needs.

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

SECTION 4. CHECK-OFF: The Employer at the request of the Union is to deduct from the wages of employees, membership dues (and initiation fees) of the Union, and promptly transmit such funds to the Union; provided, that the Employer has received from each employee, on whose account such deductions are made, a written assignment which shall not be irrevocable for a period of more than one (1) year, or beyond the termination date of the applicable collective bargaining agreement, whichever occurs sooner. Dues check-off will be effective only in the case where all employees in the Local Union jurisdiction have signed dues check-off authorization cards.

Section 5. New Organization

SECTION 5. NEW ORGANIZATION:

  1. When a Local Union in the jurisdiction of the Western Area organizes a Hertz Brand RAC unit in the classification covered by the Addenda attached hereto, and is properly recognized and certified by the N.L.R.B., and said Local Union requests inclusion in the Hertz/Western Area Master Agreement, the parties agree that the coverage of the Master Agreement shall extend to the Local Union involved upon certification by the N.L.R.B. The parties further 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

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 in any manner whatsoever 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 of offering equal opportunities for available jobs to qualified applicants without regard for the factors referenced in 'a' above.
  3. All references in this Agreement to persons of one gender shall mean persons of all genders.

Article 2. Management’s Rights

The rights of the Employer shall include, but shall not be limited to, the right to conduct the business, the operation and the direction of the Employer’s working forces. The Employer’s discretion and judgment shall control the selection and retention of employees and the work and duties to which they are assigned, including the right to hire, transfer, schedule, promote, demote, suspend and discharge and the right to make rules and regulations concerning the conduct of the business and the employees, providing the same are not contrary to the terms of this Agreement. The failure of the Employer to exercise its rights under this Article, in any respect, shall not be taken as a waiver of its rights.

Article 3. Seniority

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 (UPS) to the employee’s address of record with the Employer. The employee must respond within five (5) days after receipt and report for work within seven (7) days after receipt unless otherwise mutually agreed. Failure to respond within the required time limits shall result in loss of seniority rights.

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.

Article 4. Workweek – Overtime

Section 1. Workweek

  1. The workweek shall consist of five (5) consecutive days of eight (8) hours each, except as otherwise provided in this Agreement or separate Addenda. 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. Should the Company and any signatory Local Union agree to establish a workweek of four (4) consecutive ten (10) hour days, it is agreed that overtime shall only 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. The effects of the workweek as it relates to holidays, sick days and vacation shall be negotiated locally and not to exceed current contractual levels.
  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 any 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 for on the basis of time and one-half (1½x) the employee's straight time hourly rate for all hours worked in excess of eight (8) in one day or forty (40) hours in any one (1) week, or for all hours worked on the employee's scheduled day off.
  2. MANDATORY OVERTIME. All 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. Employees may make one phone call of reasonable duration, if necessary, to arrange for childcare, etc., when required to work mandatory overtime.
  3. Employees who are notified at report time of mandatory overtime shall not be forced beyond their scheduled shift if they are unable to remain, unless no other qualified employee is available.

Section 3. Protection of Conditions

More beneficial working conditions now in effect shall not be reduced or discontinued by this Agreement.

Section 4. Call Back – Call In

Any employee ordered to and reporting for work at a time outside of his/her regular workday, when such work is not continuous with his/her regular workday, shall be guaranteed four (4) hours of pay.

The sixth (6th) and seventh (7th) day when ordered to report and work shall be guaranteed eight (8) hours pay.

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 to be considered a part of the split shift.

Section 5. Work in Other Classifications

When requested to work in a higher rated classification, the employee shall receive the rate of the classification in which the employee is working for all hours worked in that classification.

When requested to work in a lower rated classification, the employee shall receive his/her regular rate.

Section 6

There shall be no pyramiding of pay under this Agreement.

Section 7

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

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.

Article 5. Holidays and Holiday Pay

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, irrespective of the day on which they fall, providing, with the exception of labor day, the employee has completed the probationary period:

  • January First
  • Memorial Day
  • July Fourth
  • Labor Day
  • Thanksgiving Day
  • Day after Thanksgiving
  • December Twenty-Fifth
  • Five (5) Floating Holidays

Each employee must request a floating holiday at least two weeks in advance. The employee must have the Employer's approval, which will not be unduly withheld; moreover, the Company will make reasonable efforts to make floaters available. Employees shall not be required to work on their floating holidays. Seniority will apply if more than one employee requests the same day. 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 they will be 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. The Employer will notify each employee June 1 and September 1 each year of his remaining floating holidays to be taken that year. If the Employer fails to notify an employee of final approval for using a floating holiday ten calendar days prior to the day in question, the day off shall be granted.

New employees shall accrue floating holiday eligibility at the rate of $0.50 days per month worked during the calendar year hired, and thereafter shall have eligibility for five (5) floating holidays. Floaters will be allowed to be taken in succession, where practicable. All floating holidays must be taken in full increments.

Bids for fixed holidays will be posted two weeks in advance of the holiday. Such bids will come down in eight days and final assignments will be posted five days prior to the holiday.

Section 2. Holiday Pay When Worked

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

Section 3. Holiday During Vacation

In the event a holiday falls during the employee's vacation, the employee shall receive an additional day off with pay, or an additional day's pay. The employee may make this election provided he/she gives fourteen days prior written notice to his/her supervisor.

Section 4. Eligibility Rules

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

In order to be eligible for holiday pay when scheduled to work on the holiday, the employee must work the entire holiday shift and satisfy the requirements set forth above. The definition of an "entire shift" shall exclude tardiness up to ninety (90) minutes. Such exclusion shall be limited to the purpose set forth herein.

An employee will be given five (5) days' notice to work on a holiday except in the case of emergency. Any employee who is laid off or discharged other than for proven theft, at the end of his/her work week, shall receive pay for any holiday that falls on the first day of the employee's shift the following week.

Article 6. Vacations

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.

Article 7. Health and Welfare

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.

In the event of failure to pay required premiums, the Union may take whatever action is necessary to secure compliance.

Article 8. Pension

The Employer shall pay into the Western Conference of Teamsters Pension Trust on a fiscal month basis. Contributions are remitted on a maximum of 160 straight-time hours for eight (8) months and 200 hours for four (4) months throughout the year, with a maximum of 2,080 hours per year per employee.

Effective October 1, 2024, the Employer agrees to contribute a maximum of $2.895 per hour (including $0.18 for PEER 84). Effective October 1, 2025, the maximum is $2.995 per hour (including $0.18 for PEER 84). Effective October 1, 2026, the maximum is $3.045 per hour (including $0.19 for PEER 84).

For new employees hired on or after October 1, 2021, the Employer shall pay an hourly contribution rate of $0.10 (including PEER/84) during the probationary period, not to exceed the first 90 calendar days. The Employer agrees to abide by rules established by the Trustees to facilitate determination of hours and collection of contributions.

Article 9. Teamsters National 401(k)

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 for purposes of collective bargaining.

Section 2. Payroll Deductions

The Employer will make or cause to be made 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.

Article 10. No Strike – No Lockout

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, but not limited to, 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, including the lawful primary picket line of the Union party to this Agreement, 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.

Article 11. Conduct of Employees

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.

Article 12. Grievance Procedure

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.

Article 13. Supervisory Employees

Employees not covered under this Agreement shall not perform work within the jurisdiction of the Union except in emergencies, for instruction or training, when the complement of regular employees is temporarily reduced by absence not to exceed one day, or when workload is temporarily increased.

Article 14. Sick Leave and Bereavement

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.

Article 15. General Provisions

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.

Article 16. Legal Requirements

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. If the parties are unable to reach agreement on a replacement provision within sixty (60) days, either party may have recourse under the grievance and arbitration procedures on the re-negotiated item.

Section 2

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

Article 17. Addenda

Minimum wage rates as well as job classifications and modifications for employees covered by this Agreement have been established by negotiations between representatives of the Employer and the Union and are set out in the separate Addenda attached hereto, which form part of this Agreement as though set out herein in full.

Article 18. VSA Productivity

The parties agree to establish productivity standards at each location based on time and motion studies conducted by an expert agreed to by the parties, with a 60-day break-in period before enforcement. Standards will be applied on a monthly basis and enforced through a five-step disciplinary process, subject to the grievance procedure.

Article 19. Teamsters D.R.I.V.E.

The Employer agrees to deduct from the paycheck of employees covered by this Agreement voluntary contributions to D.R.I.V.E. (Democratic/Republican/Independent/Voter Education) and transmit the totals monthly to DRIVE National Headquarters with the name, Social Security Number, and amount deducted.

Article 20. Term of Agreement

The written provisions are binding upon the Employer and the Union unless otherwise modified in the attached Addenda. The Addenda shall continue in effect unless there is an Addendum reopener, in which event either party will notify the other party with sixty (60) days’ written notice prior to October 1 of any subsequent year. This Agreement continues from year to year unless either party gives written notice of desire to amend at least sixty (60) days prior to September 30, 2027.

Signatures

Damascus Castellanos, Secretary-Treasurer IBT Industrial Trades Rep – International Brotherhood of Teamsters (1/14/2025)

Eric Leef, Executive Vice President & Chief Human Resources Officer – The Hertz Corporation (1/14/2025)

Letters of Understanding

Letter of Understanding: Incentive Plans (7/21/2022)

The Employer and Union acknowledge the Incentive Plans letter included in the official PDF and incorporated here by reference.

Letter of Understanding: Mechanics Efficiency Program (7/21/2022)

The Employer and Union acknowledge the Mechanics Efficiency Program letter included in the official PDF and incorporated here by reference.

San Diego Addendum: Mechanics, Utility Mechanics, Vehicle Service Attendants & Mechanic Helpers

This addendum applies to Local 481, San Diego, California, for the period October 1, 2024 to September 30, 2027.

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.

Probationary employees may be terminated with or without cause and without recourse to the grievance procedure during the probationary period.

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 opportunities, certification premiums, and related requirements shall be administered consistent with the mechanic training language set forth in the official PDF and associated side letters.

8. Vacations

Vacation eligibility, scheduling, and pay for employees under this Addendum shall be administered in accordance with the vacation provisions of the Master Agreement unless modified by this Addendum.

9. Holidays

Holiday eligibility and holiday pay under this Addendum shall follow Article 5 of the Master Agreement, including new-hire treatment where specifically provided in the official PDF.

10. Part-Time Vacation and Holiday Rules

Part-time vacation and holiday calculations for classifications under this Addendum shall follow the rules stated 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.

Table A: Minimum Start Rate and Annual Increases
Job Title Start Rate (10/1/24) Annual Increase (10/1/25) Annual Increase (10/1/26)
VSA $18.50 $2.00 $1.00
Mechanic Helper $21.00 $2.00 $1.00
Utility Mechanic $24.00 $2.00 $1.00
Mechanic $32.00 $2.00 $1.00

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).

Appendix A: Side Letters

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.