4. When a company contracts out work formerly performed by bargaining unit employees, is the company violating the recognition clause of the Labor Agreement? This matter of arbitration stems from the following grievance: ‘‘The Company has unilaterally eliminated all janitor jobs and did not honor the contract.

After foundry janitor jobs were evaluated, the Company informed the Union in a job evaluation meeting that the jobs would be cut. this action is in direct violation of the contract and did not comply with discussions between Company and Union over subcontracting during negotiations. Adjustment sought? Make employees whole.’’

William Ikerd, the Company HR manager, provided the Company Answer which was:

‘‘The Company has honored the re-evaluation of the foundry janitor jobs and upgraded these jobs from Class L-1 to Class 1. We have also paid

$.80 per hour more, effective 6/26/06, the date of the upgrade.

In 1989, the Company negotiated an L-1 rate for janitors to spread the pay scale through ten job classifications rather than eight. We agreed to

‘‘red circle’’ the wage rate of the employees who already held title to the Class 1 janitorial jobs.

Effective 9/18/89, we agreed that all future janitors would be classified as Class L-1 with a lower pay scale. We agreed to an $.80 per hour lower rate for the Class L-1 job classification.

For 17 years, the L-1 rate has been sufficient pay for janitorial pay in our facility. However, in June of this year, the Union requested a re-evaluation of all class L-1 janitors.