NEW COLLECTIVE AGREEMENT FOR I-AGREEMENT (IN SWEDISH I-AVTALET, FORMER ALLOCHEMICAL INDUSTRY) IKEM – Innovation and Chemical Employers has entered into a new one-year agreement with IF Metall. Within the framework of the Industry agreement, on 31 Mars 2016, IKEM has entered into a new collective agreement with IF Metall. This agreement replaces the agreement for Allochemical industry, Leather- and Sports article industry agreement and Stone industry agreement. The new name for the collective agreement is in Swedish I-avtalet. The agreement enters into force on 1 April 2016 and runs until the end of March 2017. Briefly, the agreement involves the following. The new collective agreement has essentially the same content as the previous agreement for Allochemical industry. For other industries (i.e the stone industry) that change collective agreement, the parties have negotiated transitional rules that apply until 30 June 2019. Companies with former Allochemical collective agreement enters into the new agreement on 1 April 2016. For companies in Leather- and Sports article industry and Stone industry the agreement shall enter into force on 1 July 2016 when the former collective agreements expires. COST INCREASE The salary agreement entails that wages in 2016 will increase by a value equivalent to 2.0 percent based on the sector average wage. For 2016, this means that wage cost are 514.50 SEK/month on average per worker. In addition, it is agreed that 0.2 percent of extended allocation to the partial pension introduced in 2013. The total cost increase of the agreement is 2.2 percent for the contract period. Partial pension Additional allocation to the partial pension of 0.2 percent from 1 April 2016. The partial pension introduced in 2013, is now for a total allocation of 1.3 percent per calendar year. Wage The construction of the salary agreement is the same as previously and based on that the wage process is being local, at a company level. If the local parties do not agree otherwise, raised wages from April 1, 2016 by 514.50 SEK/month (2.94 SEK/hour). If local agreement on distribution cannot be reached, 75 percent of the above is generally distributed for 2016, 386.75 SEK/month (2.21 SEK/hour). The remaining 25 percent is distributed by the employer within the framework of the existing payroll system or, if these not exist, according to the agreement wage principles. Minimum monthly pay The agreement's minimum monthly pay is as follows: Employee's minimum monthly pay in SEK with effect from 1/4 2016 Age 18+ 20 755 New employees 3 months 17 642 Age under 18 13 906 The agreement blocks after 1 and 2 years of employment are not raised but remain at SEK 600 and SEK 1000 after pay adjustment each year. Employees with 1 or 2 years of employment in the company who have acquired increased competence in the form of experience and professional knowledge shall after pay adjustment have a monthly pay that exceeds the stated minimum monthly pay by the amount below: If the employee has worked for a year April 1, 2016, 21.355 SEK per month If the employee has worked at least two years April 1, 2016, 21.755 SEK per month New hourly-pay appendix Since companies almost exclusively uses monthly salary as a wage form, all amounts and regulations that only applies to workers who are hourly waged have moved to a separate hourly-pay appendix. The rules for hourly wages are now found in Appendix 3. Minimum hourly pay The agreement's minimum hourly rate is as follows: Employee's hourly rate in SEK with effect from 1/4 2016 Age 18+ 118,60 New employees 3 months 100,81 Age under 18 79,46 The agreement blocks after 1 and 2 years of employment are not raised but remain at SEK 3,43 and SEK 5.71 respectively after pay adjustment each year. The agreement's other remuneration The agreement's other remunerations are raised by the value of the agreement, i.e. 2.2 percent on 1 April 2016. A complete review of the new amounts may be found at the end of this summary under agreement period. WORKING HOURS AGREEMENT Clarification of the application of the weekly rest provisions To develop the agreement, the parties have agreed on a clarification of the working hours agreement regarding the rules on weekly rest. In brief, the weekly rest provisions should be handled in the following manner: Deviations from the weekly rest time and compensating rest The main rule is that the employee must have at least 36 uninterrupted hours of weekly rest for a defined seven-day period. From them main rule there can be deviations, meaning a shorter weekly rest period than 36 hours may be given, under certain specified circumstances. If deviations are made, the employee must be given compensating rest for the next seven-day period and shall be given coherently with the next weekly rest, which is thereby extended. The length of the compensating rest shall correspond to the number of hours that remains from the longest period of rest during the weekly rest period and up to 36 hours. For example, if the weekly rest period is limited so that the longest rest period is 24 hours over a seven-day period, this must be compensated during the next seven-day period with 12 extra hours of rest (36-24 = 12). The following weekly rest is therefore extended from 36 to 48 hours. The clarification above is done because there is an incorrect interpretation that an interrupted weekly rest should always be compensated with 36 new hours, which would provide an uninterrupted weekly rest period of 72 hours. The interpretation is therefore incorrect. New 36 hours may of course be relevant if the employee is not able to get any weekly rest at all during the 7day period, which may be the case for example during stand-by duty. Circumstances which allows deviation from 36-hour weekly rest The circumstances which allows deviation from the weekly rest remains and concern the following situations: 1. When establishing shift schedules with local agreement weekly rest periods can, in some cases be limited to a minimum of 24 hours. Since the deviation in this case is based on that the local parties agree to get such an agreement, it is deemed to have fully taken into care the compensating rest for up to 36 hours. 2. Employer can unilaterally make deviations down to at least 30 continuous hours of weekly rest to be able to establish efficient shift schedules concerning continuous shift work, and for on-call and stand-by duty and overtime work. 3. Deviation can always be made by local agreement. 4. Deviations may also be made temporarily if it is caused by some special circumstance that the employer could not have foreseen, for example unplanned shift changes or overtime. 5. Deviations can be made at Relief work All deviations except point 1 above requires that the employee shall be given compensating rest. NEW AMOUNTS FOR THE AGREEMENT PERIOD 01-04-2016 TO 31-03-2017 § 3 Wages Item 2:1 The agreement´s minimum pay is as follows: Employee's minimum monthly pay in SEK with effect from 1/4 2016 Aged 18+ 20 755 New employees 3 months 17 642 Age under 18 13 906 Employees with 1 or 2 years of employment in the company who have acquired increased competence in the form of experience and professional knowledge shall after pay adjustment have a monthly pay that exceeds the stated minimum monthly pay by the amount below: 1/4 2016 After 1 year of employment 600 After 2 years of employment 1000 § 4 Supplement for inconvenient and displaced working hours etc. Item 1 Supplement for inconvenient working hours Evening and night work with effect from: 1/4 2016 From 18.00 to 06.00, unless a higher amount is stated below 39,95 Sundays and holidays with effect from: From 06.00 Saturday and 18.00 the day before a public holiday to 06.00 the day after Sunday or a public holiday, unless a higher amount is stated below 62,22 Major public holidays with effect from From 06.00 New Year's Eve To 06.00 2 January From 18.00 Maundy Thursday to 06.00 the Tuesday after Easter From 06.00 1 May To 06.00 2 May From 06.00 the Saturday before Whit Sunday to 06.00 the day after Whit Sunday From 06.00 National Day to 06.00 the day after National Day From 06.00 Midsummer Eve to 06.00 the day after Midsummer Day From 06.00 Christmas Eve to 06.00 the day after Boxing Day 124,28 Item 2 Supplement for displacement of normal working hours Supplement for displacement of normal working hours with effect from 1/4 2016 Supplement in SEK 34,39 § 5 Overtime etc. Item 4 Attendance compensation 1/4 2016 Weekdays 162 Friday, Saturdays, Sundays and public holidays 206 Item 5 Duoble shift compensation 1/4 2016 Further full shift completed 206 Item 6 Compensation for overtime at weekends 1/4 2016 Call-out during both Saturday and Sunday 326 § 6 Stand-by duty Item 2 Employees on stand-by duty are compensated per hour as follows (SEK per hour): Weekdays Monday - Friday, unless a higher amount is stated below 1/4 2016 11,06 Sunday and holidays with effect from: From 07.00 Saturday to 07.00 Monday or 19.00 the day before a public holiday to 07.00 the day after the holiday, unless a higher amount is stated below 26,94 Major public holidays with effect from: From 07.00 New Year's Eve to 07.00 2 January From 19.00 Maundy Thursday to 07.00 the Tuesday after Easter From 07.00 1 May to 07.00 2 May From 07.00 the Saturday before Whit Sunday to 07.00 the day after Whit Sunday From 07.00 National Day to 07.00 the day after National Day From 07.00Midsummer to 07.00 the day after Midsummer Day From 07.00 Christmas Eve to 07.00 the day after Boxing Day 53,86 § 9 Vacations Item 6 Vacation pay guarantee 1/4 2016 Age 18+ 1 362 Age under 18 1 022 Appendix 3 Special rules for hourly paid § 1 wage Mom 1:1 Minimum hourly rate The agreemenst´s minimum hourly rate is as follows: Employee´s hourly rate in SEK with effect from 1/4 2016 Age 18+ 118,60 New employees 3 months 100,81 Aged under 18 79,46 Employees with 1 or 2 years of employment in the company who have acquired increased competence in the form of experience and professional knowledge shall after pay adjustment have an hourly rate that exceeds the stated minimum hourly rate by the amount below: 1/4 2016 After 1 year of employment 3,43 After 2 years of employment 5,71