Subject to the approval of the Board of Trustees of Indiana University and a vote of the membership of AFSCME, Local 1477-01, the Indiana University Administration and the Officers of AFSCME, Local 1477-1 are agreeable to the following.

1. Wage Adjustment, effective July 1, 2004:
   1. Employees earning below $25,000 per year will receive a $625 increase in their base salary.
   2. Employees earning $25,000 or more per year will receive a 2.5% increase to their base salary.
   3. All increases will be rounded to the nearest cent per hour.
2. In accordance with Policy 3.2, Paragraph D, the following incentive pay plan to reduce absenteeism will be implemented:
   1. Employees will receive an additional incentive pay of 5 cents per hour effective with the start of the pay period on July 4, 2004 through the end of the last full biweekly pay period in December, 2004.
   2. This incentive pay will be continued for another six months if the appointed Service Maintenance employees reduce their use of non-FMLA sick and absent-without-pay time by 250 hours in the 13 biweekly pay periods in the six month period from July, 2004 through December, 2004 as compared to the base period of the 13 most recent biweekly pay periods back from May 20, 2004. The total hours of non-FMLA sick and ABS in the six month base period (i.e., 13 biweekly pay periods from November 9, 2003 through May 8, 2004) for all SM staff was 3,180 hours.
   3. If the reduction of 250 hours is not achieved, the incentive pay will be discontinued at the end of December, 2004. To continue the $0.05 per hour incentive for an additional six months, the total hours of non-FMLA sick and ABS must be reduced by 250 hours to 2,930 hours or less in the six month comparison period (i.e., the 13 biweekly pay periods from July 4, 2004 through January 1, 2005).
   4. If the reduction of 250 hours is achieved, the incentive pay will be continued for another six month period. At the end of each subsequent six month period, the reduction of 250 hours from the base period must be maintained or the incentive pay will be discontinued.
3. A five member committee consisting of the IU South Bend Human Resources Director, the IU South Bend Assistant Director of Facilities, a management member of another IU campus physical plant, and two members of the union will be appointed to assess the incumbent of the Maintenance Worker (SMOP) ability to meet the minimum qualifications of the Mechanical Maintenance Journeyman I (SMOR).
   1. If the incumbent meets these minimum requirements, the position will be reclassified to the higher level.
   2. If there are areas of the requirements in which additional training and/or experience are needed in order to achieve them, on-the-job training and/or classroom training will be provided so that the incumbent is able to work at the higher level. When this is achieved, the position will be reclassified to the SMOR level.
   3. At the point of reclassification, SMOR duties will be routinely assigned.
   4. Concerns will be brought to the attention of the Vice Chancellor for Administrative and Fiscal Affairs.