Opening of Bids - Privet Lane Culvert Replacement Project Proj No 118-013B - G. E. Marshall, Inc.

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LETTER OF UNDERSTANDING - #2 During the 2013 negotiations of the Collective Bargaining Agreement between Teamsters Local No. 142 and the Four County Highway Contractor Group for General Construction of Heavy & Highway Projects covering Lake County and Porter County, Indiana and Calumet City, Illinois (Agreement), the parties discussed existing challenges to the union construction market. As a result, the parties recognized that they need to cooperate more fully to allow unionized contactors to be more competitive in the market place which is now kPirnnrd tha raalm of possibility and to create jobs for unemployed and under -employed members of Teamsters Local No. 142. Therefore the parties have agreed to the following changes (in whole or in part) to the Agreement when applying this Letter of Understanding (LOU): Article 11 (Hourly Wage Rates) -the base wage rate for work being performed shall be 80% of the base wage rate for the applicable Group classification or as mutually agreed to by the Contractor and the Union, on a project -by -project basis. • Wages and fringes that are effective on the first day of the job shall be frozen for the duration of the job on all multi-yearjobs, with the exception of any fringes that have a governmental restriction prohibiting such. Article 7, Section 1 (Work Week/Work Day) - Overtime pay (Monday thru Saturday) shall be paid only when over 40 hours. All hours worked (Monday thru Saturday), regardless of what project or projects are worked, shall contribute toward the total hours worked that week for the purpose of calculating overtime pay. This includes both projects that fall under this LOU and all other projects that do not fall under this LOU. A reasonable effort will be made to ensure that the hours worked under this LOU are distributed fairly between the employees. • Article 7, Section 3 (Reporting to work) — shall be "2 and Actual Hours Worked" for situations involving inclement weather, equipment breakdown or governmental action. • Article 9 (Training & Apprenticeship Fund) - this Article shall not apply. • Article 12 (Shift Work) — this Article shall not apply. In no case shall the base wage or combined base wage and fringe package be less than the project owner required base wage or combined base wage and fringe package. This LOU shall apply to all Union Primes contractors and to all Union Subcontractors, when bidding to Union Prime contractors, who are signatory to the Agreement. 27