LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: EXERCISE OF SENIORITY DURING REDUCTION WITH LAYOFF SITUATION This will confirm our agreement reached during negotiations for the renewal of our 2004- 2009 Collective Agreement. The Parties agree that notwithstanding the provisions of Article 8, an employee affected by a permanent reduction with lay-off situation in accordance with Article 8:23 may exercise his/her company continuous service to displace an employee with the least Company continuous service in a Job Class 11 classification or lower, prior to being laid off. Further an employee who has previously worked in a job above Job Class 11 may exercise his/her Company continuous service to displace the employee with the least Company continuous service in any such job prior to being permanently laid off provided he/she is still capable of performing such job. This provision will also apply to an employee already in a labour pool, who is being laid off as a result of reductions as outlined above. The provisions outlined in this letter shall not apply in the case of a vacation shutdown of six weeks duration or less. For the Union: For the Company: ____________________________ ______________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ _______________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: RAIL TRANSPORTATION BENEFITS This will confirm our understanding reached during negotiations Re: the benefits outlined in Article 15:08. The Company does not intend to withdraw this benefit during the life of the Agreement. For the Union: For the Company: ____________________________ ______________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: TECHNOLOGICAL CHANGE The Parties recognize the importance of lessening as much as reasonably possible the effects of technological change upon the job security and the earnings of an employee having seniority who may be displaced from his/her job as a result of such change. The Company will notify the Union as far in advance as practicable but no later than sixty (60) days in advance of any technological change which may cause displacement of employees from their jobs. This notice shall indicate the approximate date the change will be in effect, the nature of the change, and the approximate number of employees affected. The Company will meet and inform the Union of the planned change and will, if requested, hold further meetings with the Union for the purpose of discussing general matters of mutual concern as to the interests of displaced employees. The Parties will also meet as far in advance as practicable prior to the time that the technological change is to take place to discuss methods to minimize the unfavourable effects of the technological change with respect to such displaced employees. In order to reduce the impact of displacement from a job due to technological change, an eligible employee will be entitled to assistance in accordance with the following: A. Definition Technological change shall mean the automation of equipment, or the mechanization or automation of duties, introduction of new equipment, or the replacement of existing plant equipment with new equipment. -2 - The displacement of an employee from a job description for any reason(s) not specified in the immediately preceding paragraph shall not be considered to be a displacement because of technological change. B. Eligibility An employee, in order to be eligible for an Earnings Supplement, must: (1) have 6 or more months of service, and (2) be permanently displaced from a job due to a technological change which directly or indirectly caused his/her displacement from that job description (3) have been a permanent occupant of the job from which he/she is displaced throughout the six (6) months immediately preceding the date that such displacement occurred and have worked on such job for a minimum of 520 hours, unless he/she was prevented from working during such six (6) month period by reason of justifiable absence or authorized leave of absence or authorized leave of absence in which event he/she must have worked a minimum of 520 hours on such job during the prior six (6) month period, and, (4) remain in the employment of the Company during the benefit period and, (5) accept the job with the highest rate of pay to which he/she is entitled and qualified to receive under the terms of the Collective Agreement during the benefit period and continue to accept assignment to any job with a higher rate of pay during the term of the benefit period. C. Earnings Supplement For each pay period during the benefit period to which an employee is entitled as provided in D below, an eligible employee will be paid the greater of: (1) his/her actual earnings during such pay period, or (2) the earnings supplement benefit for such period. The earnings supplement will be calculated by multiplying the applicable Standard Hourly Rate times the actual hours worked by such employee during the pay period. The applicants Standard Hourly Rate will be the Standard Hourly Rate of the job from which the employee was displaced provided that he/she had been a permanent occupant of such job for the period specified in B)3. above. - 3 - D. Duration - Earnings Supplement (1) An eligible employee will be entitled to have his/her earnings maintained in accordance with C. above for a period of 39 pay periods. (2) The period of time during which an employee will be eligible to receive an Earnings Supplement will commence at the beginning of the pay period in which the employee became eligible and shall continue for each subsequent consecutive pay period thereafter as provided in D)1. above. (3) Any pay period, during the whole of which an employee is absent from work solely due to sickness or injury and so certified to the Company, and is not entitled to any payment from the Company, during such pay period, shall not be counted and the benefit period shall continue for the remainder of its unexpired term commencing with the pay period in which the employee returns to work or would have returned to work following such sickness or injury, provided further that such employee remains in the employment of the Company. (4) Any pay period during which, either in whole or in part, an employee is absent from work for any reason other than sickness or injury, shall be considered as part of the consecutive period of time. E. Training If an eligible employee requires training or retraining, the Company will, subject to operating requirements and the first availability of training opportunities, offer such training or retraining on a job in his/her department which would potentially provide as closely as possible the job classification level which he/she held before his/her displacement. F. General Any dispute which may arise regarding the application of this Letter of Agreement to eligible employees may be discussed with the Company by representatives of the Union, at the request of either Party. - 4 - In the event of a disagreement concerning the interpretation or application of this agreement, a grievance may be presented at Step 2 of the Grievance Procedure provided for in the Collective Agreement. If the disagreement is not resolved, the grievance may be submitted for arbitration. For the Union: For the Company: ____________________________ _ ______________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: APPLICATION OF ELIGIBILITY – TECHNOLOGICAL CHANGE This confirms our understanding with respect to the application of eligibility in the Letter of Agreement on Technological Change. For employees affected by technological change in the jobs of Concentrator Attendant and Lab Attendant, their date of eligibility purposes will be their date in Final Product Attendant, Mill Tailings Attendant, Analyst or Sampler Tester and not their new job service date for Concentrator Attendant and Lab Attendant. This application will apply for six (6) months from the signature date of the new Collective Agreement. For the Union: For the Company: ____________________________ _ ______________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: TRAINING, CONCENTRATOR JOB GROUP This will confirm our agreement reached during negotiations for the renewal of our Collective Agreement 2004-2009. The present agreement establishes the provisions of training employees in the Concentrator Job Group prior to filling job vacancies. Jobs Covered By This Agreement & Minimum On-The-Job Training Required Concentrator Repairperson - 84 Hours Concentrator Attendant - 226 Hours Lab Attendant - 192 Hours Training, excluding classroom and orientation training, will be given by working the minimum required number of hours with a qualified employee on the job. Under normal circumstances such training will be done on a continuous basis. However in no case will a training session be less than 6 hours. Whenever overtime is necessary to meet these training requirements, it will be offered to the qualified employee and not to the employee being trained. Employees being trained for Concentrator Attendant and Lab Attendant, who have not been previously trained, will be paid two job classes below the standard rate of the job for which he/she is being trained during the minimum on the job training period. At the completion the prescribed hours of this period the employee will be paid the standard hourly rate of the job being performed. During the initial training period, the Company will provide training in a minimum of 50% of the tasks in each job and 100% of the tasks in the first six months. The employee must accept the training presented to him/her. Concentrator Repairperson Minimum-On-The-Job Training Hours 84 Hours Concentrator Attendant Minimum On-The-Job Training Hours Grinding 48 Hours Tailings Line 24 Hours Spirals 18 Hours Pumpbay/Filters 24 Hours Ore Storage 4 Hours Classifier 4 Hours Crusher 4 Hours High Tension 24 Hours Rotary Dryer/Jones Reclaim 36 Hours Dryer 36 Hours Loadout 4 Hours Lab Attendant Minimum On-The-Job Training Hours Sampler Tester 72 Hours Analyst 120 Hours For the Union: For the Company: ____________________________ ___________ ______________________ T. Harris R. Behrendt Staff Representative Resident Manger ___________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: APPRENTICESHIP PROGRAM REQUIREMENTS This will confirm our understanding on the posting of apprentice openings. The following requirements will be maintained for minimum entrance into the Company Apprenticeship Training Program for candidates who have not been previously enrolled in an Apprenticeship Program Maintenance Mechanic Grade XII plus 2 Years Technical School Welding Grade XII plus 2 Years Technical School Automotive Grade XII plus 2 Years Technical School Machinist Grade XII plus 2 Years Technical School Electrical Grade XII plus 2 Years Technical School The above criteria will be waived for employees in the Company’s employ as of the signature date of the Collective Agreement and who have a minimum of one-year trade school. Such employees will be given preference over candidates not in the employ of the Company and will be selected in accordance with 14:26 of the Collective Agreement. For the Union: For the Company: ____________________________ ___________ ______________________ T. Harris R. Behrendt Staff Representative Resident Manger ___________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: PAID TIME FOR CHAIRMAN OF EMPLOYEE SAFETY COMMITTEE This will confirm our agreement reached during negotiations for the renewal of our Collective Agreement 2004 - 2009 In addition to the provisions of Article 17 of our Collective Agreement in respect to the above mentioned subject, the Chairman of the Employee Safety Committee will be granted a maximum of forty eight (48) hours per month with no loss of pay to participate in safety related activities outside the property of the Company. Time off must be scheduled in advance on a monthly basis in order for the Company to provide for relief in his/her absence. The schedule will be coordinated through the Section Manager, Environment/OH&S. Furthermore, the hours listed above may be used to accompany a Government Safety Inspector on official tours on the Company property. An additional twenty-four (24) hours per month will be granted with no loss of pay for the purposes of accompanying a Company Representative in environmental activities related to the monitoring of dust levels in the plant. For the Union: For the Company: ____________________________ ________________________________ T. Harris R Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: SCHEDULING OF EMPLOYEES DURING SHUTDOWNS IN EXCESS OF FOUR DAYS This will confirm our understanding reached during negotiations with respect to the selection of employees for work during shutdowns in excess of four days. Whenever possible, work requirements will be filled by the employee with the greatest job continuous service in the classification required. When such a shutdown is a vacation shutdown employees will be offered the available work in order of their job continuous service, until the work requirements have been met. Should insufficient employees accept the opportunity to work, employees with the least job continuous service will be assigned. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manger ____________________________ _______________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: SCHEDULING OF EMPLOYEES DURING SHUTDOWNS OF FOUR DAYS OR LESS This will confirm our understanding reached during negotiations with respect to the selection of employees for work during shutdowns of four days or less. Whenever possible, work requirements will be filled by the classified employees on the shift in which it occurs. However, if there is a requirement for labourers during a shutdown of four days or less, it will be offered to the senior employees in the Department concerned. When there is a requirement for a classified employee to work, it will be offered to the senior employee in that classification on the shift in which it occurs. If insufficient employees accept the opportunity to work on a given shift, and before the junior classified employee is forced to work, it will be offered to employees in the same classification on the other shifts. - 2- However, in no case will an employee from another shift be offered the work if it results in the payment of overtime. For the Union: For the Company: ____________________________ ______________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ _________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: JOB COMBINATION AND JOB ELIMINATION This confirms the Company's intent with respect to Job Combination and Job Elimination. When two or more jobs are combined and a new classification is established as a result of such a combination, the new job shall be filled by senior employees in the jobs being combined. The remaining employees in the jobs being combined shall be granted seniority in the new job and will be reduced in accordance with Article 8:23 of the Collective Agreement. Employees who have worked in any of the jobs being combined, but are not incumbents at the time of combination, shall be granted job seniority in the new job effective the date it is first filled and shall be considered to have worked in the job for the purpose of applying the provisions of Article 8:23 A.3. When a job is eliminated and the functions of the job being eliminated are added to an existing job, the incumbents in the job being eliminated will be granted job seniority as of the date that the new duties were added to the existing job and shall have rights as outlined in 8:23 A.3. For the Union: For the Company: ____________________________ _________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT: TRAINING - CONDUCTOR AND ENGINEMAN The present agreement establishes the provisions of training employees for the jobs of Conductor and Engineman in the Concentrator Job Group. Jobs Covered by This Agreement and Minimum Training Time Needed CONDUCTOR - 200 Hours ENGINEMAN - 200 Hours Only trained employees will be assigned to fill vacancies in the jobs listed. Training, excluding classroom training, will be given by working the minimum required number of hours with a qualified employee on the job, and under normal circumstances such training will be done on a continuous basis. When overtime is necessary to meet these objectives, it will be offered to the qualified employee and not to the employee being trained. The employee being trained will be paid the rate of pay of the job for which he is being trained. An employee who wishes to cancel training for the job of Conductor and Engineman, after having completed less than 50% of the required training, may do so by relinquishment of his eligibility for promotion as outlined in Article 8:29 a) of the Collective Agreement. - 2- Once an employee receives the training for either of the above jobs, his/her relinquishment for promotion as provided for in 8:29 a). of the Collective Agreement will not apply in the case of promotion for filling temporary and permanent vacancies. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT 12 HOUR SHIFTS This confirms our understanding with respect to the implementation of a 12-hour shift schedule for employees who are assigned to a seven-day rotating shift schedule. The Company agrees to implement such schedule on the basis that it does not cost the Company any additional monies. For employees working a twelve-hour shift schedule, the Parties agree that the following amendments shall be applied to the current Collective Agreement (2004- 2009). 6:06 An employee required to be absent from work to attend the funeral of his/her father, mother, spouse, child, brother, sister, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandchildren or grandparents shall be granted a funeral leave for the time necessary for that purpose. For three days of such leave he/she shall be paid for twelve (12) hours at his/her straight time hourly rate. 6:09 An employee who is summoned to serve on a criminal jury or to attend court as a witness in a criminal or quasi-criminal case, will be paid an allowance equal to the difference between the payment he/she received for each day of service and the pay he/she would normally have received had he/she worked as scheduled on each day of such service. To qualify for such an allowance, an employee must give his/her Supervisor at least three (3) days notice of his/her impending absence and later must provide the Company with Court documentation justifying his/her absence for jury service or his /her attendance at court as a witness and verifying any payment he/she has received for jury service. The foregoing provisions shall also apply where an employee is scheduled to work the 20:00 to 08:00 shift immediately prior to being required for jury duty or as a witness in response to a summons for any time during the 08:00 to 20:00 period of the day. - 2 - 7:01 An employee shall be considered probationary for a period of forty (40) days of actual work. At the end of the probationary period such employee's name shall be placed upon the seniority lists, where applicable, as of the date of commencement of work for the Company. 8:13 B. Vacancies resulting from absenteeism, illness, injury, suspension or leave of absence will be considered as permanent if they last longer than 10 shifts. C. Vacancies such as those in B) preceding, which last less than ten (10) shifts, vacancies which are caused by annual vacation and those which exist while permanent vacancies are being filled shall be considered as temporary. 11:04 If the discharge is appealed to arbitration, the Arbitrator will have full jurisdiction to uphold or to reduce the discharge to a suspension and to fix the duration of the suspension. If the Arbitrator rejects the discharge or reduces it to a suspension, the employee shall be reinstated and paid for time lost since the date of discharge or for the period of time not covered by the suspension but in no case shall this period exceed 120 working days, to which shall be added any number of days that the Arbitration was delayed by request of the Company or from which shall be subtracted any number of days that the arbitration was delayed by request of the Union. Such payment shall be the difference between the amount of money actually received by the employee for work performed by him/her in each week during the period that he/she was off work due to discharge and the amount that he/she would have received for each such week for regularly scheduled work had he/she been continued at work in the job classification that he/she held at the time of his/her discharge. 12:03 A. The normal week shall be established by the work schedule. 12:04 Daily hours of work shall be consecutive and two (2) lunch periods, not to exceed twenty (20) minutes each, shall be considered as time worked. Where required, the employee shall eat on the job and the Company shall not be obligated to provide a relief man for such time. An employee who works more than two (2) hours beyond his/her regular shift will be provided with a hot meal and the time to eat it (not to exceed twenty (20) minutes) will be considered as time worked. - 3 - 12:05 Weekly work schedules shall be posted no later than noon, Thursday, of the preceding week and no changes shall be made in such schedules solely for the purpose of avoiding the payment of overtime rates. If it is later necessary to change his/her schedule, without having given him/her at least twenty-four (24) hours notice of the change, an employee will be paid at the rate of double time for the first eight (8) hours of the changed scheduled. The remaining scheduled hours will be paid at straight time. 12:06 Overtime at the rate of time and one-half will be paid for hours worked on an employee's scheduled days off. Overtime at the rate of double time will be paid for hours worked in excess of twelve (12) consecutive hours. Overtime will not be paid on the basis of hours worked in a week. Work scheduled and performed on Sunday will be paid for at the rate of time and one-half for the first eight (8) hours and at the rate of double time for hours worked in excess of eight (8), except that an employee who is scheduled and works 84 straight time hours in a pay period will receive double time for hours worked on a scheduled Sunday off during that pay period. Any period of overtime which ends with an incomplete half (1/2) hour, that portion of the half hour will be rounded to a full half (1/2) hour for pay purposes. 12:10 An employee who reports for and actually performs work as assigned on a scheduled shift will be paid for at least four (4) hours, eight (8) hours if he/she works more than four (4) hours, twelve (12) hours if he /she works more than eight (8) hours, at the rate of pay for the job for which scheduled unless he/she is assigned to a higher rated job in which event he will be paid at the rate of the job performed. 12:12 A. An employee requested to return to work for a full extra shift after having left the property and with at least four (4) hours prior notice or who is requested to provide shift relief with less than four (4) hours prior notice, and who reports for such work and works as assigned, will be paid at the overtime rate of time and one-half or at the appropriate Holiday or Sunday work rate, when applicable, for all hours worked and shall be given the opportunity to work at least twelve (12) hours. - 4 - B. An employee requested to return to work, after having left the property other than for his/her scheduled shift or shift relief, with less than four (4) hours prior notice or for less than twelve (12) hours work, and who reports for such work and works as assigned, will be paid at the overtime rate of double time and for at least three (3) hours for such extra work. Upon being requested to return to work the employee will be informed of the work to be performed and the work required will be confined to work necessitated by the callout. At the completion of said work, the employee, at his/her discretion, may leave the job or, if he/she agrees, to be assigned to other work, in which case he/she will continue to be paid at the rate of double time for so long as the extra work continues, or to the commencement of his/her scheduled shift. 13:01 For the purposes of this Article: A. All shifts beginning between 6:00 A.M. and Noon will be day shift. B. All shifts beginning between 6:00 P.M. and 6:00 A.M. shall be night shifts. 13:02 Not applicable. 13:03 A shift premium of fifty (50) cents per hour will be paid for all hours worked during the night shift. 14:37 If an employee shall be assigned temporarily for the Company's convenience to a job other than his/her regular job, when work is available to the employee on his/her regular job, he/she shall receive the established rate of pay for the job performed or for his/her regular job whichever is higher. Such an employee assigned to a higher rated job during a work day will be paid at the higher rate for the remaining portion of the first eight (8) hours of the shift even though he/she returned to his/her regular job during that period. Should the employee work at the higher rated job in excess of the first eight (8) hours he shall be paid at the higher rate for the balance of the shift. 16:01 Each employee shall receive, for any of the holidays set forth in Section 16:02, a holiday allowance equal to eight (8) hours pay at the straight time rate which he/she receives, or would have received had he/she worked on such holiday, providing the following criteria are met: A. The employee is not absent without permission on his/her last scheduled working day preceding and his/her first scheduled working day following the holiday, unless reasons for such absence are judged valid by the Company. B. He/she performs work or is on vacation in the pay period in which the holiday is observed. 16:03 In addition to holiday allowance provided in 16:01, the employees who are required to work on Holidays shall be paid, in addition to the shift premiums provided by the Agreement, as follows: - 150% of their regular rate for the first twelve (12) hours; - 200% of their regular rate for the next four (4) hours; - 250% of their rate for all hours worked in excess of sixteen (16). 16:04 Not applicable due to change in Article 12:06 which stipulates that overtime will not be paid on the basis of hours worked in a work week. For the Union: For the Company: ____________________________ _________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT SUMMER STUDENTS This will confirm our understanding reached during negotiations with respect to the hiring of students for vacation relief and peak summer work. Students will perform the following tasks: - All work tasks in the Concentrator job group with exception of Engineman and Conductor & Concentrator Repairman. - All labour work throughout the property. - All janitorial work. - Assist or perform Field Service Attendant duties depending upon meeting certification requirements. - Work tasks in the warehouse classification. - Special cleanup throughout the property. - Assist Concentrator Repairman & Trade & Craft employees but not perform the primary functions of these jobs. - Relamping throughout the property. - Driving a pickup to do pickups or provide transportation. General guidelines to be applied re work assignment for students: - Regular employees who have recall rights will be recalled before students are hired. - Students will be first reduced or laid off prior to regular employees. - Students will not be assigned to classified positions on a shift until all permanent laborers on the shift in the department concerned have been promoted into these positions. - Students will be employed during the period May 1 to September 1. Students will be paid the following rate of pay: - Laborer - (70% of the rate) - Classified jobs –rate of the job performed. - Students will not receive COLA or Northern Allowance payments. For the Union: For the Company: ____________________________ _________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ __________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT CONTRACTING OUT This will confirm our understanding reached during negotiations for the renewal of our Collective Agreement 2004-2009. 1. When a contractor is awarded a contract to perform work on site, every effort will be made to have the contractor, or subcontractor, hire laid off Wabush Mines' employees providing they are capable of performing the work requirements. The Contractor will be advised of this arrangement and given a list of laid off employees at the time the contract is awarded. 2. The Company will assign Bargaining Unit Employees with Service Representatives who are performing maintenance work on equipment under warranty provisions. In cases involving maintenance of mine equipment, a Service Representative may provide technical assistance to Bargaining Unit Employees in carrying out their functions. 3. Should further information be required, following discussions provided for under Article 2:04, a Committee of two (2) representatives from each Party will be established to deal with the matter. The Company will delay its final decision until the Committee has completed discussions and made its recommendations. For the Union: For the Company: __________________________ _________________________________ T. Harris R. Behrendt Staff Representative Resident Manager __________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT SCHEDULING OF 12 HOUR SHIFTS This confirms our understanding reached during negotiations with respect to scheduling of employees. The Company will not change the work schedule of an employee working on 12 hour shifts, in the middle of a pay period, when such change will result in an employee working two consecutive 60 hour work weeks in the same pay period. When it is necessary to change an employee from a day shift schedule to a 12 hour schedule, such change will also be done at the beginning of a pay period, if the change otherwise results in an employee working more than 84 hours in the pay period. For the Union: For the Company: __________________________ __________________________________ T. Harris R. Behrendt Staff Representative Resident Manager __________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT REDRESS FOR GRIEVANCES This will confirm our understanding reached during negotiations with respect to redress for grievances presented under 9:04 of the Collective Agreement. If it is determined that redress is required following the presentation of a record of complaint or grievance under the provisions of 9:04, the redress will be made to the grievor who presents the complaint or grievance provided he/she work at the time of the incident. If the grievor is at work at the time of the incident and redress is determined, it will be made to the employee in the classification who would have performed the work and who is lowest on the overtime list. An alleged violation of Article 2:03 and 2:04 will be processed in accordance with the provisions of these Articles. For the Union: For the Company: ______________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ______________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, John McGrath LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT JOB POSTING - TRADESPERSON This will confirm our understanding reached during negotiations for the renewal of our Collective Agreement 2004-2009. A Tradesperson who posts to a job, in a line of promotion and is subsequently reduced, may return to the job he/she previously occupied, provided he/she has not been absent from the job for more than one year; his/her continuous service in the previous job allows him/her to hold that job, and he/she is then able to perform the full requirements of the job. For the Union: For the Company: ___________________________ __________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ______________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT SERVICES LABOURERS This will confirm our understand with respect to job assignments to Labourers in the Services Group. The Senior Labourer may request a particular job assignment at the beginning of a shift. However, when insufficient labourers are available to meet all job assignments, labourers will be required to accept such assignments. When an overtime opportunity exists, the normal overtime provisions will apply. For the Union: For the Company: _____________________________ _________________________________ T. Harris R. Behrendt Staff Representative Resident Manager _____________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT TRAINING FOR ENTRANCE JOBS In order to have trained employees available to fill entrance jobs, in the lines of promotion, the Company may select employees in accordance with the Collective Agreement for the purposes of training in these jobs even though there may be employees eligible for recall in such jobs. Once the training has been completed an employee will be returned to his/her regular job and will not be permitted to refuse a recall to the position for which he/she was trained if a vacancy for such job is filled in accordance with 8:15 or 8:18 within six (6) months. Entrance jobs are: Minimum/Maximum Mobile Crane Operator 6-8 weeks Rotary Drill Operator/Blaster 4-6 weeks Warehouseperson 4-5 weeks Lab Attendant 4-6 weeks Should a vacancy occur while an employee is being trained, it will be filled in accordance with the provisions of 8:15 or 8:22 of the Collective Agreement and not by the employee being trained. -2 – An employee will not be credited with overtime while he/she is absent from his/her job for purposes of training as outlined above. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT APPLICATION OF ARTICLE 8:27 This will confirm our understanding with respect to the application of 8:27 of the Collective Agreement 2004-2009. 1. An employee who has been assigned to a job in accordance with 8:27 will have his/her case reviewed on an annual basis to confirm whether the causes for his/her assignment are still applicable. This review will include discussions with the medical practitioner who was involved in the recommendation to have the employee reassigned. Should the cause of the employee’s assignment under 8:27 no longer exist, he/she will no longer be protected under the provisions of this article and the continuous service provisions of Article 8 will apply. 2. An employee assigned under Article 8:27 will also apply for any job which is posted under 8:18 provided he/she meets the full requirements of the job being posted and the causes for which he/she was reassigned under 8:27 does not prevent him/her from being assigned to that job. - 2 - 3. When more than one employee is being considered under the provisions of 8:27, the employee with the most company continuous service will be given the first available opportunity for which the employee may be qualified and capable of performing. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT NEW ORE DELIVERY PROCESS The following confirms the understanding reached between the parties with respect to items arising from the introduction of the new ore delivery process by Quebec North Shore and Labrador Railway. 4. Improvements will be made to the load out booth. These improvements will be done with the current budget. The engineering has begun. 5. No changes will be made to the current 12 hour shift schedule for train crews. 6. Before adding any new duties to the current job description of the train crews, an understanding must be reached between the parties (union and management) when the duties being added are not related to railway work. 7. Auto Mechanics currently assigned to work on locomotives will remain on their present work schedule and will be assigned other functions in the mobile shops when not working on railway equipment. 8. In order to apply the new method of Wabush ore deliveries, three locomotives will be kept and maintained at Scully Mine. These locomotives will be refurbished in the next few years. The Company does not intend to replace the current locomotives at this time. However, in the event it does, any new locomotives will be maintained by the Wabush Maintenance people in the same manner as other new equipment arriving on the property. -2 – 9. The Company agrees to provide a centralized reporting area for train crews which will serve as a storage area for personal property, lunch room, communications center, etc. However, in the event that the train is loading or making a meet, lunch will be taken aboard the locomotive. 10. In recognition of the fact that Wabush crews will discontinue the operation of ore trains to and from Ross Bay junction, the company agrees to the following: - Employees who are employed in the job of Enginemen will receive an additive of six job classes. - Employees who are employed in the job of Conductor will receive an additive of five job classes. The above additives will not increase the basic job class of 14 (Conductor) and 15¾ (Enginemen) but will be considered as add-on for purposes of creating a rate of pay. 11. The task of uncoupling or coupling of trains arriving or departing Wabush junction will be performed by the Wabush team crew subject to the conditions outlined in the final report date March 13, 2001. 12. It is not the Company’s intention to change the composition of the current train crew as a result of the introduction of the new ore delivery process or while this process continues to be in place. 13. Freight which is designated for Wabush will be picked up by the Wabush train crew (once a week) at Ross Bay Junction. Similarly, freight cars will be returned from Wabush to Ross Bay junction by the Wabush train crew. - 3 - The above provisions apply only if the new ore delivery process is introduced in place of the present process and the parties agree to the implementation of the new process. Further, the provisions apply only to the issue of the new ore delivery process and shall not be considered as prejudicial in dealing with other cases which may arise in future. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources LETTER OF AGREEMENT between On one part : Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And on the other part: United steelworkers of America, local 6285, hereinafter referred to as the Union SUBJECT APPLICATION OF ARTICLE 8.18 B The following confirms our understanding with respect to the application of 8.18 B. An employee who applies for a posted job and is unable to accept the job due to scheduled vacation, will be given job seniority which will entitle him/her to be recalled at the next available opening. This application will be utilized for one applicant only and once per job posting. For the union: for the company: ___________________________ _______________________________ Tom Harris R. Behrendt Staff Representative Resident Manager __________________________ ________________________________ J. Skinner, President John R. McGrath U.S.W.A. , Local Union 6285 Director, Human Resources LETTER OF AGREEMENT between On one part : Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And on the other part: United steelworkers of America, local 6285, hereinafter referred to as the Union SUBJECT JOB CLASSIFICATION This will confirm our agreement with respect to job combinations implemented in the 2004-2009 negotiations. The Company will provide job descriptions to the Union in accordance with CWS. The Parties further agree that the rate of pay for the new jobs is established through negotiations between the Parties. The new rates of pay will not be considered as benchmarks in the event that future job combinations occur. However, in the event there is a requirement for future combinations, the previous job classifications which were in place prior to the 2004 negotiations may be used for comparison and/or reference purposes. For the union: for the company: ___________________________ _______________________________ Tom Harris R. Behrendt Staff Representative Resident Manager __________________________ _______________________________ J. Skinner, President John R. McGrath U.S.W.A. , Local Union 6285 Director, Human Resources LETTER OF AGREEMENT Between On One Part: Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And On The Other Part: United Steelworkers of America, Local 6285, hereinafter referred to as the Union. SUBJECT PRODUCTIVITY IMPROVEMENT AGREEMENT PRODUCTIVITY IMPROVEMENT COMMITMENT The parties are aware that intense domestic and international competition in the iron ore business including competition from electric furnace mini-mills demands aggressive steps to allow the company to remain a viable supplier to the domestic and international steel industry. The Company can only attract capital from its owners for necessary improvements so long as there are productivity improvements and other cost reductions resulting from those investments to justify the investment. Investment alone, however, will not ensure competitive, high quality products. The parties agree that even though Company employees have made contributions to improve productivity, much more must be accomplished. The way that work has traditionally been performed must change in order to ensure the future viability of the Company and enable it to provide its employees the quality of life they deserve. Employees must be less restricted and more efficient in the performance of their jobs. Employees will be required to function as they have not been required in the past. During the life of the collective agreement 2004, the parties agree to develop means by which to maximize the effective use of the work force and equipment through implementing new and innovative approaches and the way work is performed. The CWS system will be utilized when required and the provisions of this document will not detract in any way from the rights and obligations of the parties under the CWS system. Productivity Improvement Committee The parties will, from time to time at the request of either the Company or the Union, establish Productivity Improvement Committees. Each committee shall be made up of an equal number of hourly and salaried employees, not to exceed three of each. Committee members shall be experienced in the area to be examined. Bargaining unit employees on the committee shall be selected by the Union. The specific purpose of each committee shall be agreed upon in advance by the Mine General Manager and Local Union President. The general purpose of such committees shall be to examine operating and maintenance standards and practices to seek improvements that meet the guidelines of the Productivity Improvement Commitment of this Agreement. Such committees will meet promptly and regularly when established and will receive required technical assistance from appropriate Company and Union resources. Such committees shall have the duty and responsibility to work in good faith, consistent with this Agreement. The committees shall develop specific findings and recommendations which shall be delivered jointly to the Mine General Manager and the Local Union President. In the event the committees cannot reach consensus on all findings and recommendations they shall report such findings and recommendations as they may deem appropriate separate and apart from those upon which they do agree. The committees shall be dissolved after they report out unless they are extended by mutual agreement. Upon receipt of the findings of the committees, the Mine General Manager and Local Union President may: (1) approve the agreed upon findings and recommendations of the committee which shall then be implemented; (2) modify the findings and recommendations of the committees as they may mutually agree and implement them; or (3) disagree, in whole or in part, with the findings or recommendations submitted by the committees. The application of this Agreement will not preclude either party from pursuing their existing rights and obligations under the collective agreement. Suggested areas for productivity and job efficiency improvements are listed below. MINE OPERATORS, SHOVEL OPERATORS, DRILLERS, MOBILE CRANE OPERATORS AND FIELD SERVICE ATTENDANT After proper training will perform minor maintenance and assembly activities in addition to those normally performed in their classification, such as: Use cutting torch (F.S.A.) Assist in changing shovel trip cables Assist in change out of hoist and suspension cables Assist in changing cutting edge on dozers, graders, and loaders Replace light bulbs on pit equipment Assist in changing shovel and loader bucket teeth and dozer ripper teeth. Perform preventive maintenance inspections. Replace fuses on 12 volt systems Provide assistance to maintenance personnel as required in the repair of their own equipment. Utilize computers and other technology as tools of the job as required (For example, data entry and retrieval; job-related problem solving) CONCENTRATOR ATTENDANT & CONCENTRATOR REPAIRPERSON After proper training will perform minor maintenance and assembly activities in addition to those normally performed in their classification, such as: Use cutting torch (Concentrator Repairperson) Install or assemble prefabricated pieces in the course of performing normal Concentrator Repairperson duties (Concentrator Repairperson) Adjust pump packing Adjust scrapers Adjust or replace skirting (Concentrator Repairperson) Remove/Install spray nozzles Assist in performing mill lining and chute wear liners repairs (Concentrator Repairperson) Assist in removing, installing and replacing spray bars, piping, hoses and valves (up to 2”) Check reducer levels. Perform minor mechanical repairs such as changing V-belts, sheaves, guards, small motors (Concentrator Repairperson) Take samples and deliver to the Lab if required (Concentrator Attendant) Perform preventive maintenance inspections Replace light bulbs or indicator bulbs. Change and clean water strainers and filters Change Tuyeres in Dryers under running operational conditions Inspect and assist Concentrator Repairperson in changing all screen media and screen equipment wear parts Remove and replace victaulic piping components (8” or less) Provide assistance to maintenance personnel as required in repair of equipment Utilize computers and other technology as tools of the job as required. WELDERS: After proper training, will perform the following functions in addition to those normally performed by their trade: Replace ends on welding leads. Remove chute liners and guards to facilitate assigned work. Perform equipment steam cleaning required to facilitate a Job. Paint and/or touch up minor welding repairs Slinging and Rigging as required Erect and dismantle tube and clamp scaffolding. Utilize computers and other technology as tools of the job as required. Remove wooden scaffolding when dismantling is not required Assist Maintenance Mechanics when working together on a specific assignment in performing welding duties MAINTENANCE MECHANICS After proper training, will perform the following functions in addition to those normally performed by their trade Perform minor welding and cutting. Drill holes in walls and ceilings to install pipe, anchors and fasteners, grouting equipment bases and use jack hammer to repair concrete bases. Mechanically remove and replace chute sensing devices to perform assigned maintenance. (example: remove, install and repair air lines when required to complete mechanical task) Replace shovel and production loader teeth. Perform equipment steam cleaning required to facilitate job. Remove scaffolds when dismantling is not required, strap components to pallets for shipping using metal strapping machine, paint small components, ex. elbows after minor repairs are made, remove covers on wooden crates to access parts, reinstall covers on wooden crates. Replace ends on welding leads Remove and replace resistance temperature devices Erect and dismantle clamp and tube scaffolding Utilize computers and other technology as tools of the job as required ELECTRICIAN /INSTRUMENT REPAIRPERSON After proper training, will perform the following functions in addition to those normally performed by their trade Connect and disconnect motor/bearing resistance temperature devices as required. Use torch to heat bearings, for installation and removal. Connect/disconnect and replace thermocouples. Perform work on the 24 volt systems on production trucks. (See Exhibit B for detail.) Perform equipment steam cleaning required to facilitate job. Replace (bolt and unbolt) motors, exciters, blowers, etc. in conjunction with electrical assignments. Utilize computers and other technology as tools of the job as required Switching of 4160 volt equipment if certified. Remove and replace guards to facilitate work. Repair/replace scale idlers and perform scale alignment. Remove wooden scaffolding if dismantling is not required AUTOMOTIVE MECHANICS: After proper training, will perform the following functions in addition to those normally performed by their trade Perform heating and burning with oxy-acetylene and/or propane in conjunction with jobs normally assigned to them. Perform electric arc welding. (See exhibit C for detail.) Disconnect wheel motors and exciters when change out is required. Perform equipment steam cleaning required to facilitate job. Perform minor equipment repairs. (See Exhibit D for detail.) Repair all components on hydraulic crawler backhoes & mobile cranes. Utilize computers and other technology as tools of the job as required. Erect and dismantle clamp and tube scaffolding Remove wooden scaffolds when dismantling is not required Footnotes All attendants and trade or craft employees will change light bulbs in their work area. For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources EXHIBIT A All employees who operate light vehicles will perform minor repairs on service and small fleet vehicles as follows: 1. Change out Fuses 2. Add oil, coolants, etc. 3. Performs operational checks . EXHIBIT B Electricians/Instrument Repairperson Working on the 24 Volt System: Electricians will be able to work on the 24 volt system on the production trucks without having them assigned to the 24 volt system along with an Automotive Mechanic. Current practice is that an Electrician will only work on the 24 volt system with an Automotive Mechanic to assist in locating a problem. Examples of work to be done: 1. 24 volt system portion of the production truck PM. 2. Troubleshoot reported problems associated with the 24 volt system. 3. Complete all repairs on 24 volt system after the problem has been located, including: Repairs to wiring on the dash warning system lights, any and all control wiring, wiring to and from truck microprocessors, wiring to and from sensors in the DDEC engine monitoring system, wiring and change out of the electronic control modules in DDEC, change out of any dash lights, light bulbs, switches (pressure, flow, etc.), repair wiring to clearance, head, tail brake and back-up lights. This would not preclude Automotive Mechanics from also being assigned to work on the 24 volt system either with or without an Electrician being present. Assignments to Automotive Mechanics could include any and all work that they presently perform on the 24 volt system. EXHIBIT C Employees in the Automotive Mechanic classification will perform electric arc welding. Examples of the type of welding that Automotive Mechanics will perform are listed below. Also listed are examples of the type of welding that Automotive Mechanics will not perform. The lists themselves are not all inclusive, but are intended to be representative of the intent of this agreement. Items 1-19 below can be performed by both Automotive Mechanics and Welders. After proper training, Automotive Mechanics will perform heating and burning with oxy-acetylene and/or propane, in conjunction with jobs and equipment normally assigned to them. Welding Examples: 1. Cutting edge bolts and nuts - dozers, crawlers, graders. 2. Bucket tooth and adapter wedges and c-clamps. 3. All forms of bucket and blade pins and keepers. 4. Other pin keepers except as related to steering and brakes. 5. Bucket wear shoes and keepers. 6. Hydraulic cylinder pin keepers. 7. Tractor side frame rock guards. 8. Tractor side frame wear strips. 9. Hydraulic hose guards (half-rounds and angle irons). 10. Hydraulic hose brackets. 11. Electrical wiring support brackets and conduit brackets. 12. Light brackets. 13. Mirror brackets. 14. Box limit switch brackets. 15. Small hinge and door repair (not box hinges). 16. Equipment cab repairs (not straightening or rebuilding). 17. Exhaust system repairs (not gas welding). 18. Welding related to removing broken bolts and studs (not pad eyes or pulling fixtures). 19. Removing seized bearings and races. Welding Exclusions for Automotive Mechanics. 1. Blade liners (weld-on). 2. Truck box liners - huck and weld. 3. Equipment frame repairs. 4. Fuel tanks/reservoirs. 5. Hydraulic cylinders and steel hydraulic lines. 6. Handrails, steps, ladders, platforms, stairs. 7. Lifting devices, stands, manipulators, fixtures, pad eyes. 8. Box pad supports. 9. Box hinge repairs. 10. Welding buildup of bores. 11. Hard facing buildup. 12. Fuel and pressure tank supports, brackets. 13. Body/frame/cab straightening (accident damage). 14. Any work relating to structural members, safety, lifting, pressure, or otherwise affecting the safety of employees. 15. Minor fabrication. EXHIBIT D After proper training, Automotive Mechanics, will perform minor equipment repairs that would include the following: 1. CHANGE OUT Fuel Nozzles (i.e. Wiggins fuel nozzles) 2. CHANGE OUT Fluid Nozzles (Grease, Lube, Coolant, Windshield Solvent Water) in Mobile Shop 3. CHANGE OUT Air Nozzles/Fittings on Air Supply Lines in mobile shop 4. CHANGE OUT Light Bulbs in Service Center (when no electrical line truck is required) 5. CHANGE OUT Hose Reels in mobile shop 6. CHANGE OUT antifreeze fluids and lube Pumps in mobile shop 7. Tighten Lube Fittings LETTER OF AGREEMENT between On one part : Wabush Mines, Cliffs Mining Company, Managing Agent and Wabush Lake Railway Company Limited, hereinafter, referred to as the Company. And on the other part: United steelworkers of America, local 6285, hereinafter referred to as the Union SUBJECT OPERATIONS PERFORMANCE INCENTIVE PLAN PURPOSE The purpose of the Operations Performance Incentive Plan is to encourage continuous improvements in mine costs and productivity by providing incentive compensation to hourly employees for improvements in these areas. Financial benefits gained will be shared between the employees and the Company. GENERAL A. All hourly and salaried bargaining unit (USWA) employees of Wabush Mines, Wabush Lake Railway Company and Arnaud Railway Company (together the “Company”) are covered by this Plan B. Employees who terminate prior to distribution of the awards shall not be eligible to receive an award for the period. C. Shut down periods do not qualify for incentive pay. D. Students and temporary employees are not eligible. E. The Plan is administered by the Human Resources Department. Performance is independently measured and reported by the Mine Control Department. F. All bonus payments, performance targets and elements of Plan design, including changes, are approved by the CCI Chief Executive Officer (“CEO”). PLAN PHILOSOPHY Cost control, cost reduction and increased productivity are vital to the long-term survival of the mine and to the competitive success of the mine owners. The Plan is designed to reward employees for meeting or bettering the mine’s current year objectives for operating cost and productivity. The Plan is adaptable to the mine’s evolving objectives and designed to be “self-funding” through achievement of performance targets which add value for the mine owners. DEFINITIONS A. Cost Performance Bonus Cost Performance Bonus is based on Company Actual Operating Cost each Plan Quarter and Plan Year versus the Company’s Budgeted Operating Cost for that Plan Quarter and Plan Year. B. Budgeted Operating Cost The Budgeted Operating Cost is the budgeted mine cost per ton for the applicable Plan Quarter and Plan Year as shown in the final budget adopted by the mine partners excluding financing costs, depreciation, amortization, and expenses relating to asset retirement obligations (ARO), subject to the adjustments described below. C. Actual Operating Cost C Actual Operating Cost is the total mine book operating cost per ton for the applicable Plan Quarter and Plan Year as reported to the owners as determined in accordance with generally accepted, accounting principles, excluding financing costs, depreciation, amortization, and expenses relating to asset retirement obligations, subject to the adjustments described below. The Actual Operating Cost for each Plan Quarter and Plan Year will be the same cost per ton (as adjusted, if any) as that is determined in the Operations Performance Incentive Plan for Salaried Employees, provided such adjustment(s) are consistent with the provisions of this Plan. The actual cost of this Plan in excess of any bonus amount, if any, which is in the budget shall not be included in Actual Operating Cost for the purposes of determining a bonus payout. Because the Budgeted Operating Cost includes estimated savings from capital projects, early benefit from the completion of such projects would theoretically contribute to the actual Cost Performance Bonus. Productivity Bonus Productivity Bonus is based on Company Actual Productivity each Plan Quarter and Plan Year versus the Company’s Budgeted Productivity for that Plan Quarter and Plan Year. Budgeted Productivity The Budgeted Productivity is the budgeted Wabush Mines production of pellets (excluding chips), subject to adjustment for stockpiling or purchase of concentrates, divided by the budgeted Plan Hours for the applicable Plan Quarter and Plan Year as shown in the final budget adopted by the mine partners. Actual Productivity Actual Productivity is the actual Wabush Mines production of pellets (excluding chips), subject to adjustment for stockpiling or purchase of concentrates, divided by the actual Plan Hours for the applicable Plan Quarter and Plan Year. Plan Hours Actual bargaining unit employee hours worked at the Company. Plan Year Plan Years shall be the full and partial calendar years of January 1st, 2005 through March 31, 2009. Plan Quarter Plan Quarters shall be the monthly periods of January through March, April through June, July through September, and October through December in each Plan Year. METHOD OF BONUS CALCULATION AND PAYMENT A. The Cost Performance Bonus is based on the Actual Operating Cost as a percentage of Budgeted Operating Cost measured quarterly and annually as shown on the attached Table A. Payments are based upon the next full ½ of 1% changes as set forth in the attached Table A. For example, at 99.6%, the Plan Quarter payment is $0.164 per Plan Hour; at 99.5%, the Plan Quarter payment is $0.231 per Plan Hour. B. The Productivity Bonus is based upon the Actual Productivity as a percentage of Budgeted Productivity measured quarterly and annually as shown on the attached Table B. Payments are based upon the next full ½ of 1% changes as set forth in Table B. C. The greater of the Cost Performance Bonus or the Productivity Bonus shall be paid in each Plan Quarter and for each Plan Year. D. The Cost Performance Bonus or Productivity Bonus payment shall be determined by multiplying the appropriate hourly bonus amounts for the Plan Quarter or Plan Year by the number of Plan Hours for each employee during the Plan Quarter or Plan Year. The maximum Cost Performance Bonus shall be $1.497 per Plan Hour for a Plan Quarter and $.998 per Plan Hour for a Plan Year and the minimum Cost Performance Bonus for each shall be $.00 per Plan Hour. The maximum Productivity Bonus shall be $.656 per Plan Hour for a Plan Quarter and $.437 per Plan Hour for a Plan Year and the minimum Productivity Bonus for each will be $.00 E. The failure to meet the Cost or Productivity Bonus in one Plan Quarter shall not affect the calculation during the remaining (or preceding) Plan Quarters in the Plan Year. F. The Cost Performance Bonus or Productivity Bonus amount for each employee will be paid on a calendar quarter and annual basis within 14 days of Cleveland-Cliffs Inc’s public release of its financial statement each quarter. G. Any payments made pursuant to this Plan shall not be included in the employee’s earning s for purposes of determining any other pay, benefit or allowance. COMMUNICATION TO EMPLOYEES A. A summary description of the Budgeted Operating Cost, Actual Operating Cost, Budgeted Productivity and Actual Productivity and calculations of the Operations Performance Incentive Plan for each Plan Quarter and Plan Year will be visibly posted in appropriate locations and copies will be made available upon request to each hourly employee whether or not a payment is made for that Plan Quarter or Plan Year. B. Quarterly and annual Actual Operating Cost, as a percent of Budgeted Operating Cost and Actual Productivity as a percentage of Budgeted Productivity together with Plan Bonus per Plan Hour, shall be reported to employees periodically. ADJUSTMENTS A. The Actual Operating Cost and Actual Productivity may be adjusted for the following factors when such changes materially affect Budgeted Operating Costs or Budgeted Productivity for a period: Changes in stripping ratio (adjusted to actual) Changes in timing of major furnace repair Other implemented events as deemed appropriate by the Executive Vice President of Operations or Chief Executive Officer H. Generally, the Budgeted Operating Cost, Actual Operating Cost, Budgeted Productivity and Actual Productivity shall not be adjusted further for purposes of bonus measurement during the Plan Year or for any Plan Quarter calculation period. Changes in such factors as market conditions and purchase prices or unexpected operating problems or financial penalties reflect the reality of the business environment and must be overcome by improved performance in order to beat the competition who face similar situations. Likewise, the mine may benefit from unusual favorable events. Following are examples of the limited unplanned (unbudgeted) events that may be considered by the senior operations officer and the CEO for possible adjustment of the bonus performance measurements if such individual adjustment has a material impact on costs or productivity for the period. 1. Production volume changes (if greater than 100,000 tons) during the year due to a change in owners’ actual requirements. A mine short fall against scheduled production would not be eligible for adjustment. 2. Major capital expenditure change, e.g., significant cost improvement projects included in the budget that are delayed or cancelled due to unusual factors outside the mine’s control. 3. Unusual penalties or refunds from governmental agencies. 4. Change in accounting principle. 5. Act of nature (e.g., fire, flood, etc.) excluding “abnormal” weather. 6. New labor contract or bonus payments. 7. Imprudent current cost reduction action at the expense of long-term results, or prudent current cost incurred to benefit future years. 8. Other substantial factors, e.g., inventory adjustment, in-process inventory change, asset write down, or “windfall” cost credit. H. If the mine requests an adjustment that would benefit the mine’s bonus payout, the mine is expected to be equally objective in identifying any adjustments that would adversely impact the bonus payout. I. Any adjustments shall be made on a timely basis rather than waiting until Plan Year end. Any adjustments made during the Plan Year will not be applied to the payments made for previous Plan Quarter(s) but may be applied to the current Plan Quarter or future Plan Quarter payments in the Plan Year(s). ACCESS TO INFORMATION The local union presidents, staff representative and/or designated representatives of the International Union shall have access to relevant information used in the annual mine cost budgeting process. The Company will present the budget and give a full explanation thereof to the appropriate Union representatives. Persons having access to information under this Plan may be required to sign a confidentiality agreement satisfactory to the Company. ADMINISTRATION A. This Plan will be administered by the Company in accordance with its terms and the costs of administration shall be the responsibility of the Company. B. Any differences arising between the parties regarding the application of this Plan shall first be submitted to the Local Union President and Company Director of Human Resources for resolution. If it is not resolved at that level, the matter will be referred to the Union staff representative and Company General Manager for resolution. Failing to reach agreement, either party may appeal the matter through the grievance procedure to arbitration. The arbitrator shall adhere to the standard of avoiding windfall gains or penalties to either the employees or the Company within the Context of Section III above. TABLE “A” Actual Cost as a % Quarterly Annual Annualized Of Budgeted Cost (1) Hour Bonus Hour Bonus Bonus 90.0% $1.497 $0.998 $4,565 90.5% $1.430 $0.953 $4,362 91.0% $1.363 $0.909 $4,158 91.5% $1.297 $0.865 $3,955 92.0% $1.230 $0.820 $3,752 92.5% $1.164 $0.776 $3,549 93.0% $1.097 $0.731 $3,345 93.5% $1.030 $0.687 $3,142 94.0% $0.964 $0.642 $2,939 94.5% $0.897 $0.598 $2,736 95.0% $0.830 $0.554 $2,532 95.5% $0.764 $0.509 $2,329 96.0% $0.697 $0.465 $2,126 96.5% $0.630 $0.420 $1,923 97.0% $0.564 $0.376 $1,719 97.5% $0.497 $0.331 $1,516 98.0% $0.430 $0.287 $1,313 98.5% $0.364 $0.243 $1,110 99.0% $0.297 $0.198 $ 906 99.5% $0.231 $0.154 $ 703 100.0% $0.164 $0.109 $ 500 100.5% $0.123 $0.082 $ 375 101.0% $0.082 $0.055 $ 250 101.5% $0.041 $0.027 $ 125 102.0% $0.000 $0.000 $ 0 (1) Maximum Payment at 90% TABLE “B” Actual Productivity % of Budgeted Quarterly Annual Annualized Productivity (1) Hourly Bonus Hourly Bonus Bonus 110.0% $0.656 $0.437 $2,000 109.5% $0.631 $0.421 $1,925 109.0% $0.607 $0.404 $1,850 108.5% $0.582 $0.388 $1,775 108.0% $0.557 $0.372 $1,700 107.5% $0.533 $0.355 $1,625 107.0% $0.508 $0.339 $1,550 106.5% $0.484 $0.322 $1,475 106.0% $0.459 $0.306 $1,400 105.5% $0.434 $0.290 $1,325 105.0% $0.410 $0.273 $1,250 104.5% $0.385 $0.257 $1,175 104.0% $0.361 $0.240 $1,100 103.5% $0.336 $0.224 $1,025 103.0% $0.311 $0.208 $ 950 102.5% $0.287 $0.191 $ 875 102.0% $0.262 $0.175 $ 800 101.5% $0.238 $0.158 $ 725 101.0% $0.213 $0.142 $ 650 100.5% $0.189 $0.126 $ 575 100.0% $0.164 $0.109 $ 500 99.5% $0.123 $0.082 $ 375 99.0% $0.082 $0.055 $ 250 98.5% $0.041 $0.027 $ 125 98.0% $0.000 $0.000 $ 0 (1) Maximum payment at 110% For the Union: For the Company: ____________________________ ________________________________ T. Harris R. Behrendt Staff Representative Resident Manager ____________________________ _________________________________ J. Skinner, President John R. McGrath U.S.W.A., Local 6285 Director, Human Resources