U.S. Department of Labor Employment Standards Administration Of?ce of Federal Contract Compliance Programs Buffalo Area Of?ce Niagara Center 130 South Elmwood Avenue, Rm 536 Buffalo, New York 14202 Reply to the attention of: CONCILIATION AGREEMENT BETWEEN THE US. DEPARTMENT OF LABOR OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS AND NEW PROCESS GEAR, INC, 6600 NEW VENTURE GEAR DRIVE EAST SYRACUSE, NEW YORK 13057 OFCCP CASE NUMBER R00141913 PART I: GENERAL PROVISIONS 1. Lo.) This Agreement is between the Of?ce of Federal Contract Compliance Programs (hereinafter OFCCP) and New Process Gear, Inc, (hereinafter NPG), 6600 New Venture Gear Drive, East Syracuse, New York 13057. The violations identi?ed in this Agreement were found during a compliance review of NPG, which began on, August 8, 2007 and they were speci?ed in a Notice of Violations issued on June 15, 2009. OF CCP alleges that NPG has violated Executive Order 11246, as amended, and implementing regulations at 41 CFR Chapter 60 due to the speci?c violations cited in Part II below. This Agreement does not constitute an admission by NPG of any violation of Executive Order 1 1246, as amended, and implementing regulations. The provisions of this Agreement will become part of Af?rmative Action Program (AAP). Subject to the performance by NPG of all promises and representations contained herein and in its AAP, all named violations in regard to the compliance of NPG with all OFCCP programs will be deemed resolved. However, NPG is advised that the commitments contained in this Agreement do not preclude future determinations of non?compliance based on a ?nding that the commitments are not suf?cient to achieve compliance. Working for America ?s Workforce . NPG agrees that OF CCP may review compliance with this Agreement. As part of such review, OF CCP may require written reports, inspect the premises, interview witnesses, and examine and copy documents, as may be relevant to the matter under investigation and pertinent to compliance. NPG shall permit access to its premises during normal business hours for these purposes. . Nothing herein is intended to relieve NPG from the obligation to comply with the requirements of the Executive Order 11246, as amended, Section 503 of the Rehabilitation Act of 1973, as amended, the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (38 U.S.C. 4212), and implementing regulations, or any other equal employment statute or executive order or its implementing regulations. . NPG agrees that there will be no retaliation of any kind against any bene?ciary of this Agreement, or against any person who has provided information or assistance, or who ?les a complaint, or who participated in any manner in any proceedings under Executive Order 11246, as amended, Section 503 of the Rehabilitation Act of 1973, as amended, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974, as amended (38 U.S.C. 4212). . This Agreement will be deemed to have been accepted by the Government on the date of signature by the Regional Director for OF CCP, unless the Deputy Assistant Secretary, OFCCP, indicates otherwise within 45 days of the Regional Director's signature of this Agreement. . If at any time in the future, OF CCP believes that NPG has violated any portion of this Agreement during the term of this Agreement, NPG will be noti?ed of that fact in writing. This noti?cation shall include a statement of the facts and circumstances relied upon in forming that belief. In addition, the noti?cation will provide NPG with 30 days from receipt of the noti?cation to respond in writing except where OF CCP alleges that such a delay would result in irreparable injury. Enforcement proceedings for violation of this Agreement may be initiated at any time after the 30-day period has elapsed (or sooner, if irreparable injury is alleged) without issuance of Show Cause Notice. Where OF CCP believes that NPG has violated this Conciliation Agreement, OFCCP may seek enforcement of this Agreement itself and shall not be required to present proof of the underlying violations resolved by this Agreement. Liability for violation of this Agreement may subject NPG to sanctions set forth in Section 209 of the Executive Order 11246, as amended, and/or other appropriate relief Page 2 of 10 (b) (7)(E) (b) (7) (E) (b) (7) (E) (b) (7)(E) (b) (7) (E) (b) (7)(E) (b) (7)(E) (b) (7) (E) (b) (7) (E) (b) (7)(E) (b) (7) (E) (b) (7) (E) (b) (7) (E) (b) (7) (E) (b) (7)(E) (b) (7)(E) each class member. A Noti?cation Letter (Attachment B) and a Release of Claims Under the Executive Order (Attachment C) will be sent to each class member. Attachment A includes all of the minority applicants who took the WorkKeys Assessment pre?employment test battery but did not advance to the next stage in the selection process due to their scores. The Noti?cation Letter advises the class members of the resolution of this case and that they have thirty (30) days from the receipt of the letter to respond. b. Fifteen (15) days after the last response was due, NPG will provide OFCCP with a list of class members not located, and any documentation demonstrating attempts to locate these individuals. OF CCP will have an additional thirty (30) days to attempt to locate those class members not found by NPG and will notify NPG of the results. 0. NPG will then have thirty (30) days to mail additional Notices and Releases to minorities from the list that OFCCP provided. These class members will have thirty (30) days to respond. d. NPG will provide OFCCP with the final list of all class members who were located and who returned the signed release ?fteen (15) days after the last response was due. OF CCP will approve the final list and notify NPG. The class members who return the completed, required forms within the established time?rames shall constitute the ?nal list of class members who shall be entitled to monetary and other bene?ts provided for in this Agreement. C. Offers of Employment: No offers of employment will be made due to the limited employment window, approximately nine months, of the Production Operator positions in question and the pending shutdown of the NPG facility in East Syracuse, NY. D. Monetary Settlement: The monetary settlement includes backpay of $55,008.00 plus IRS compound interest in the amount of $7,697.76 and bene?ts for ?ve months at 33% in the amount of $9,076.32 for a total of $71,782.08 after mitigation. will disburse the monetary settlement on a pro rata basis within 180-? days from the date it receives the ?nal list from the OF CCP, among all class members who have signed and returned the Release within the time period designated above. Class members who receive a payment from NPG will receive the appropriate IRS documents re?ecting such payment. No disbursement of the monetary settlement is to be made prior to 45 days following the effective date of this Agreement. The total monetary amount of 71,782.08 will not be reduced even if any of the ninety-three(93) class members cannot be located. Should any monies remain after that date they will be held until nine (9) months from the effective date of this Agreement; then NPG will then have thirty (30) days to evenly distribute the remaining monies among each class member who signed and returned the Release. Page 4 of 10 2. Violation: OFCCP determined that NPG failed to maintain and have available records or other information which would disclose the impact which its tests and other selection procedures had upon employment opportunities of persons of identi?able race or ethnic group in violation of 41 CFR 60-1.12A and 41 CFR 60-34 Remedy: Within ?fteen (15) days from the date of signature by the Regional Director of this Conciliation Agreement NPG will begin to maintain complete and accurate records of applicants by race and ethnicity to allow for the analysis of its pool of applicants to monitor whether the process is yielding an adequate pool of quali?ed minority applicants and to monitor for signi?cant adverse impact in the selection process. NPG shall continue to conduct an analysis of its entire selection/hiring process for Production Operator positions to identify adverse impact. If adverse impact is identi?ed, NPG will evaluate the individual components of its selection process to determine where the adverse impact occurred. If adverse impact is found to exist in any of the individual components of its selection process, NPG will take immediate action to correct or validate that component(s) in accordance with the Uniform Guidelines on Employee Selection. 3. Violation: OF CCP determined that NPG failed to perform an in-depth analysis of its total employment process to determine whether and where impediments to equal employment opportunity existed, as required by 41 CFR Speci?cally, OFCCP determined that NPG failed to evaluate its applicant and hire activity to determine whether there were selection disparities. OF CCP determined that NPG also failed to conduct an analysis of its selection procedures to determine whether they resulted in disparities in the employment of minorities. Remedy: Within ?fteen (15) days from the date of signature by the Regional Director of this Conciliation Agreement NPG will begin to evaluate its selection procedures and applicant and hire activity to determine whether there are disparities in the employment of minorities. 4. Violation: OF CCP determined that NPG failed to develop and execute adequate action- oriented programs designed to correct any problem areas identi?ed pursuant to 41 CFR 60- 2.17Cb), as required by 41 CFR Speci?cally, OFCCP determined that NPG failed to correct the selection procedure(s), which created barriers to employment opportunities in the hiring of minorities for Production Operator positions. Remedy: Within ?fteen (15) days from the date of signature by the Regional Director of this Conciliation Agreement NPG will begin to develop and execute action-oriented programs designed to correct any problem areas identi?ed, shall take good faith efforts to remove all identified barriers to their selection procedures in order to attain established goals and objectives. NPG commits that the above alleged violations will not recur. Page 5 of 10 PART REPORTING In order for OFCCP to monitor progress toward ?ll?lling the provisions of this Agreement, NPG shall submit the speci?c reports identi?ed below. NPG shall send each report to: Mary Ellen Bentivogli District Director U. S. Department of Labor Of?ce of Federal Contract Compliance Programs Buffalo Area Of?ce 130 South Elmwood Avenue, Rm 536 Buffalo, New York 14202 Reports for Violation 1 The first report is due forty-five (45) days from the effective date of this Agreement and will include documentation of mailing of the Notice and Release to the class members in Attachment A. - The second report is due ?fteen (15) days after the last response (from class members) was due and will include a list of class members who failed to respond to the Notice to Class Members or who were not located by NPG. The third report is due six (6) months from the effective date of this Agreement and will include documentation of monetary relief provided to all class members as speci?ed in subparagraph of the Remedy to Violation l. The documentation should include copies of all signed releases and canceled checks disbursed by NPG to the class members, or other equivalent documentation verifying that class members were paid. The fourth report is due twelve (12) months from the effective date of this Agreement and will contain an explanation of how the remaining monies were disbursed, to include the total amount that remained in the account, who the monies were disbursed to, the amount given to each . person, and proof that each person received the money. Report for Violation 2 through 4 . This report is due in the Buffalo Area Of?ce on February 28, 2011 and cover the period January 1, 2010 through December 31, 2010. The report will contain: A copy of adverse impact analysis conducted for the Production Operator position. If the selection process for this position has an adverse impact on minorities, NPG will provide the results of its review and/or examination of each individual selection component in the selection process for the Production Operator position. Included will be any actions taken by NPG as a result of its review. Page 6 of IO For any identi?ed problem areas NPG shall supply documentation which demonstrates the development and execution of action-oriented programs that it designed to eliminate the identi?ed problem. NPG agrees to maintain, during the life of this Agreement, all records pertinent to the alleged violations resolved by this Agreement and reports submitted under it, including the underlying data/information upon which the reports are based, for a period of not less than 2 years or until the termination date of this Agreement, whichever is later. Termination Date: This Conciliation Agreement will expire sixty (60) days after receipt of the ?nal progress report or if compliance is not accomplished by that date, then this Agreement shall remain in full force and effect until compliance is achieved. PART IV: SIGNATURES This Conciliation Agreement is hereby executed by and between the Of?ce of Federal Contract Compliance Programs and New Process Gear, Inc., 6600 New Venture Gear Drive, East Syracuse, New York 13057 - owers, anager ELE HODGE New Process Gear, Inc. Acting Regional Director CCP 6600 New Venture Gear Drive Northeast Region East Syracuse, NY 13057 201 Varick Street New York, NY 10014 DATE: 5; DATE: 6:19- 8010 MARY EL EN BENTIVOGLI LYNN HEAR District Director Assistant District Director Buffalo and Hartford Of?ces Buffalo Area Of?ce Northeast Region Northeast Region DATE: WM 5, 020/0 DATE: 54740 Page 7 of 10 ATTACHMENT A LIST OF CLASS MEMBERS Page 8 0f 10 ATTACHMENT NOTICE TO CLASS MEMBERS New Process Gear, Inc., 6600 New Venture Gear Drive, East Syracuse, New York 13057 (hereinafter NPG) and the Department of Labor's Of?ce of Federal Contract Compliance Programs have entered into a Conciliation Agreement to resolve alleged disparities in the testing applicants for Production Operator positions during the period January 1, 2007 through December 31, 2007. You have been identi?ed as one of the individuals who may have been tested during that time period. As part of this Agreement, you are eligible to receive a monetary award. Under the terms of this Agreement, you may receive the award up to six months from the date of this letter. In order to be initially eligible for this distribution, you must send the completed Release of Claims Form (including your valid social security number) to the following address: . New Process Gear, Inc., 6600 New Venture Gear Drive East Syracuse, New York 13057 Attention: (Name Title) By entering into this Agreement, NPG has not admitted nor has there been any adjudicated ?nding that NPG violated any laws. NPG has entered into this Agreement to resolve the matter without ?irther legal proceeding. - artment of Labor, our call will be If you have any questions, you may call omplian Of?ce of Federal Contract Compliance, and Buffalo Area Of?ce a responded to as soon as possible. Sincerely, Enclosure: Release ofClaims Page 9 of 10 ATTACHMENT RELEASE OF CLAIMS UNDER THE EXECUTIVE ORDER In consideration of the monetary payment by New Process Gear, Inc., 6600 New Venture Gear Drive, East Syracuse, New York 13057 (hereinafter NPG) to me, which I agree is acceptable, and also in consideration of the Conciliation Agreement between NPG and the Of?ce of Federal Contract Compliance-Programs (OFCCP), I (Class Members' Name) agree to the following: I. I hereby waive, release. and forever discharge NPG, its predecessors, related entities, subsidiaries and organizations, and its directors, of?cers, employees, agents, successors, and assigns, of and horn any all and all action, damages, liabilities, and claims arising out of or actionable under Executive Order 1 1246, as amended, which I or my representatives (heirs, executors, administrators, or assigns) have or may have which relate in any way to being selected for employment at any time prior to the effective date of this Release. . II I understand that if I am concerned about how the process described in this Release applies to me, I may contact OFCCP for assistance at: -mpum Of?cer USDanrtmaito?abor/Oi?onf Federal CmtractConmliamergrams 130 South Elmwood Avenue, Rm. 536 Buffalo, NY 14202 Phone I understand that NPG denies that it treated me unlaw?rlly or unfairly in any way and that NPG entered into the above? referenced Agreement with OFCCP in the spirit of conciliation and to bring closure to the compliance evaluation initiated by OFCCP on (date of executed Conciliation Agreement). I ?lrther agree that the payment of the aforesaid sum construed as an admission of any liability by NPG. IV. I declare that I have read this Release and that I have a ?rll opportunity to consider and understand its terms and to consult with my advisers. I further declare that Ihave decided of my own tree will to sign this Release. V. I understand that if I do not sign this Release, provide my social security number, and return it to NPG within thirty (30) days from the date Ireceive this Release, I will not be entitled to receive the payment (less deductions required by law) from NPG. IN WITNESS WHEREOF, I have set my hand on this day of 2010. (Signature) (Print Name) (Social Security Number) Page 10 of 10