STAFF COUNCIL

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3% GWI effective May 28, 1995. 3% lump sum payment (LSP) in June 1996. 3% lump sum payment (LSP) in June 1997.

Such lump sum payments will be paid on a prorata basis to staff members who retire in the same year but prior to the date LSP are paid to active staff members.

- The Information Systems Department staff will be provided the same wages, benefits, allowances, expenses, etc. as other UAW staff.

- Automobile insurance will be continued until the end of the first full month of retirement.

The International Union will review the procedures for processing Expense Statements and do what it can to continue to turn expenses around as quickly as possible.

The holidays will be the same as those , provided under the UAW - GM Agreement.

Immediate increase from $410 per month Increase the $25 maximum for towing to $60.

- Security Staff: Immediate increase from - The insurance program will be improved

$176.67 per month ($40.77 per week) to $193.91 to the extent necessary to equal the benefit

per month ($44.75 per week). In June 1996, improved levels, coverage and programs added at

In addition to oil, which will continue to be psychiatric treatment will be increased

0 Covered Durable Medical Equipment will include items Medicare approved as of October 1, 1993:

The residual amount of life insurance for all retired staff will be increased by $5,000.

- The cost of the voluntary Dependent Life Insurance for both current and new enrollees has increased and will be the following amounts:

- The cost of the $10,000 Benefit for a spouse has increased from $4 per month to $5 per month.

- The cost for both the $ 10,000 spouses benefit and the $2,000 dependent children benefit has

The cost of the $20,000 spouses benefit has increased from $8.00 per month to $ 10.00 per month.

- The cost of the $10,000 benefit for dependent children has increased from $4.00 per month

The cost for both the $20,000 spouses benefit and the $ 10,000 benefit for dependent children has increased from $9.00 to $11.25

- The pension formula will be increased from 1.5 percent to 1.6 percent of average annual salary per year of credited service for retirements on or after January 1, 1995.

- The credited service program will be modified to provide accumulation of the one-third of a year bonus credit for each year of service after age 45 until five years of bonus credits are accrued, and to accumulate regular service credits for all periods of employment, effective for retirements on or after January 1, 1995.

- A special bonus of $650 will be provided to retirees in the Staff Council for each of the next three years. Surviving spouses will be provided a bonus of $400.

- The reduction applicable to the Social Security Adjustment Option will be reduced from one-half of 1 % per month (6% per year) for each month of retirement prior to age 62 to one-third of 1% (4% per year) for each such month for retirements on or after January 1, 1995.

The, 3% lump sum salary-payments to be made in 1996and 1997 will be included, as wages

- The Transitional Survivor's Income Benefit will be increased from $550 per month to $600 per month.

- - The same increase ($50) will be applied to the Bridge Survivor's Income Benefit.

In addition to the annuity options of five and ten years, the Severance Plan will be modified to include annuity options for fixed periods of fifteen and twenty years. Pursuant to IRS regulations, the fifteen year option must be started by at least age 65 and the twenty year option must be started by at least age 60. (See Exhibit B)

- The surviving spouse of a retired staff person who selected one of the annuity options will have the choice of continuing the option or selecting a payout. If, however, the surviving spouse also dies, then any remaining severance funds will be paid to the estate of the retired staff person.

Staff members will be provided the option of contributing through payroll deduction more than four percent of their salary into the severance plan, with no matching contribution from the International Union.

- Tuition Assistance and retraining programs comparable to those provided under the UAWGM Agreement will be provided for a staff person who is placed on layoff and does not have the opportunity to return to her/his prior place of employment.

each year. Upon request of the Staff Council President, a seniority list will be provided at two

- A grievance reinstatement procedure comparable to the procedure provided in the UAWGM Agreement will be provided in the Agreement.

A non-discrimination clause comparable to the clause in the UAW-.GM Agreement and a non

- Effective January 1, 1996 the actual cost of the Medicare premium for a staff member and the eligible spouse will be reimbursed.

The following calculations show the estimated crossover points at which the total net benefits realized from exercising the Social Security Supplement Option would be repaid, under the new and old plans, based on an inflation/interest rate assumption of 3.5 percent.

- The UAW-Staff Council Agreement, the Staff Manual and the benefit books will be updated and printed as soon as possible, but in no event later than 180 days after the convention is adjourned.

- A Section 125 Salary Reduction Arrangement will be provided allowing staff to use pre-tax dollars to pay for dependant care.

- Computers and related training will be provided where the International Union deems them to be necessary.

Except as indicated otherwise, the effective dates for all wage and benefit improvements is May 28,1995.

As UAW members, we are joined together in common commitment and common dedication. Together with the rank and file members who are the UAW, we are united in the common struggle to achieve progress and to help build a world in which man can bring to fulfillment his dream of a world in which peace, freedom, social justice and human brotherhood may be shared by all mankind.

The relationship of the International Representatives, International Executive Board Members and International Officers to each other and our overall relationship and responsibility to the International Union, UAW, is a most unique relationship, for we are all members of the UAW and as such, we are all a part of the UAW. As members of the UAW and as International Officers, International Executive Board Members and International Representatives, we are united in our common loyalty to the UAW, for the UAW is our Union.

The combination of democratically elected leadership, together with the staff structure of international Representatives, make us all an integral part of the democratic fabric of the UAW.

The UAW is dedicated to maintaining the highest ethical, moral and democratic standards and is determined to remain eternally vigilant in keeping the UAW honest, clean and decent and free from the evils of both corruption and outside political ideology. In this effort, each of us as an International Officer, International Executive Board Member or international Representatives, must share in the responsibility and each of us must carry out respective duties in a manner consistent with these high standards.

When UAW was a smaller Union, our problems were less complex. The team comprising the leadership of the International Onion and its staff of International Representatives was able to maintain closer and more intimate personal relationships. As the Union has grown, so had the size of the staff. The diverse interests and activities of the Union and the increasing complexity of the problems with which it must grapple have made it more difficult for the team of leadership and staff to maintain close contact on a day-to-day basis. Yet the daily interchange of ideas, suggestions, recommendations and discussion is an essential ingredient in the fulfillment of our Union's cause.

It is, therefore, mutually recognized that an internal structure and procedure are desirable and needed in the relationship of the International Officers, International Executive Board Members and International Representatives to promote the continuation of the close personal relationship of UAWs early period. We must strengthen these ties, so that together we can more effectively meet our responsibilities to our membership, their families and the communities in which they live, and be equal to the challenges that lie ahead.

The policies, structure and procedures set forth herein are designed to help meet these challenges by promoting teamwork among the elected international leadership and UAW staff.

We can all be confident that the spirit of unity in our common loyalty and dedication to the UAW will keep our Union indivisible and ever vigilant of the membership.

This Appendix represents the changes the parties negotiated to the Agreement in 1997, including certain contractual changes which are reflected in bold face in the preceding, revised Agreement. The balance of the changes, as well as other current benefits, practices and procedures, are covered in other sections of this Manual and the Health Care Handbook.

* 3% LSP in- June 1997, as previously scheduled, based on salary in effect at that time.

Note: Lump sum payments will be paid on a pro-rata basis to staff members who retire during the 12 months preceding the date such payments are made to active staff members.

Change the CPl reference base from 1967=100 to 1993-95=100 effective with the March 1999 adjustment.

Track the holidays provided under the UAW-GM Agreement, including Veteran's Day in November 1998.

Provide for a mandatory summer shutdown during the first two weeks of July in each year of the new Agreement, starting in July 1997. The first week will fall during the week in which Independence Day is celebrated, and will include the number of additional nonrecurring holidays needed to fill out that week. The second week will represent the mandatory use of one week of a staff member's annual vacation entitlement.

• The International Union reaffirms its commitment to employ temporary staff for periods not to exceed six months, provided, however, that temporary organizers may be employed longer than six months if the organizing campaign to which they are assigned runs beyond the six month limit.

• increase the availability of COBRA for a third 18-month period of layoff at the staff member's expense.

The insurance program will be modified to include applicable improvements added at GM in 1996 negotiations, namely:

•Increase the maximum amount reimbursable for non-par hospital stays (room and board) from $160 to $230 per day.

•Increase the maximum amount reimbursable for outpatient, non-par hospital services from $25 to $35 per condition.

Add coverage for teeth whitening and mouth guards, both of which will be applied to the annual dental maximum.

Provide for concurrent examinations when more than two dental cleanings are required per year.

Add coverage in certain situations related to repair following an accident, without being subject to the annual dental maximum or the lifetime orthodontic limit.

The Vision Program will be modified to include applicable improvements added at GM in 1996 negotiations, namely:

The maintenance legend drug list will be updated to correspond with the GM list through addition of the following drugs effective January 1, 1997:

Estradiol Estrogens, esterified Estropipate Fluvastatin Medroxyprogesterone/Estrogens, conjugated Methyltestosterone/Estrogens, conjugated Methyltestosterone/Estrogens, esterified Metoprolol succinate Naproxen sodium Quinicline gluconate

Covered DME and P & 0 lists will be updated effective January 1, 1997 to include new items reimbursable under Medicare as of October 1, 1996, namely:

• Durable Medical Equipment: 1) spring-powered device for lancets, used by diabetics with their home blood glucose monitors; 2) electronic bowel irrigation/evacuation system; 3) disposable pack (water reservoir bag and collection bag) for use with the electronic bowel irrigation/evacuation system.

• Prosthetic and Orthotic Appliances: 1) lower extremity, quick-change self-aligning unit, for use with a knee prosthesis; 2) encloskeletal knee-shin system, stance flexion feature to control movement of the knee socket in a prosthesis; 3) endoskeletal knee-system microprocessor for automatic control of a knee prosthesis; 4) endoskeletal system, high activity knee control frame to hold the prosthesis in place; and 5) encloskeletal system lower-extremity dynamic prosthetic pylon to increase freedom of movement for above and below the knee amputees.

• Provide an Optional Group Life Insurance Program for active and retired staff up to age 70, based on the Optional Group Life Insurance Program available to OPEIU Local 494 members.

• Provide terminally ill staff members and retirees the option of receiving a paydown of their life insurance prior to death, in accordance with guidelines established under the UAW-GM Agreement.

Increase the salary-related pension formula from 1.6% to 1.8% for retirements occurring on or after October 1, 1996.

increase the special bonus currently scheduled for retired staff in September 1997 from $650 ($400 for surviving spouses) to $700 ($430 for surviving spouses).

Provide additional special bonuses for retired staff of $800 ($490 for surviving spouses) in September 1998 and September 1999.

Note: The cost of these special bonuses will continue to be financed in part by the offset of COLA.

The LSPs to be made in 1997 will be included as wages for pension calculation purposes.

Provisions will be implemented to address the Social Security age/benefit gap issue prior to the January 2000 effective date of the related legislation, including examination of the cost and administrative feasibility of providing supplemental Social Security payments between age 62 and the age at which the retiree will receive 80% of his/her Social Security benefit.

• The International Union will provide an annual report to the Staff Council summarizing the investment results of the Staff Severance Plan and the related interest rate calculations.

• Modify the latest age at which a staff member may elect to begin receiving payments under the voluntary Severance Plan Payout Options, as follows:

Increase the monthly Transitional Survivor Income* Benefit and the monthly Bridge Survivor Income Benefit from $600 to $650.

• The International Union will adopt a program to take advantage of recent legislation extending the availability of 401(k) plans to tax-exempt organizations, subject to IEB and governmental approvals.

• The International Union will establish a Committee to undertake this review. The Committee will include the president of the Staff Council and his designee.

• The Committee will review a wide range of issues, including the establishment of a stand alone plan and/or, to the extent appropriate, modification of the current Severance Plan with respect to a staff member's 4% contribution, including examination of options to permit self-directed investments of such contributions. The Committee will also determine the earliest date feasible for potential implementation: calendar year 1997 if possible, but no later than calendar year 1998.

The Legal Services Plan will be modified to include applicable improvements added at GM in 1996 negotiations, namely:

• Providing, in states requiring it, court appearance by a lawyer for uncontested matters involving custody, non-support and alimony.

• Expanded coverage by removing a restriction for otherwise eligible dependents who received $2,000 or more of annual adjusted gross income.

• Full benefits for participants seeking post-divorce modification of child support or alimony orders when such modification is required by a "material change" in the participant's earnings.

• Preparation assistance and representation in cases involving Social Security Disability Insurance Benefit claims.

Increase the annual Tuition Assistance maximum for college degree programs from $3, 100 to $3,800.

Increase the annual Tuition Assistance maximum for job-related and personal development courses from $1,900 to $2, 100.

Provide up to $1,000 per year in Tuition Assistance and/or compulsory fees for each dependent child or step-child of an active, retired or deceased staff member pursuing post-secondary education or training at an institution accredited, by a governmental or nationally-recognized agency.

Provide up to $1,000 per year in Tuition Assistance and/or compulsory fees for retired staff members attending approved courses.

Provide that there will be no pyramiding of Tuition Assistance payments. Staff members and retirees must first fully utilize any entitlement they may have under an employer-based tuition assistance program(s). If such entitlement is less than the above amounts, the International Union will make up the difference. If such entitlement equals or exceeds the above amounts, no payment will be made by the International Union.

Provide that during the term of the Agreement up to $100 of the Tuition Assistance available for job-related and personal development courses may be used for approved financial planning courses, seminars or consulting arrangements selected by the staff member.

• In cases involving the repair of a staff member's work vehicle as a result of a collision or when such vehicle has been stolen, provide reimbursement for a rental vehicle beyond 30 days in exceptional circumstances due to delays in parts availability or other, similar problems outside a staff member's control, subject to review and approval of the Accounting Department.

• A letter will be sent to staff outlining Family Education Center expense reimbursement options/procedures.

• The International Union will review the procedures established for the processing of Expense Statements and implement new practices, where practical, in order to continue to reimburse staff as quickly as possible.

• A list of temporary staff will be provided to the Staff Council semi-annually.

Except as indicated otherwise, the effective date for all benefit improvements is January 1, 1997.

Three years from the first Monday following notification that the Staff Council has ratified the Agreement.