CONCILIATION AGREEMENT . BETWEEN . US. DEPARTMENT OF LABOR . OFFICE OF FEDERAL CONTRACT COMPLIANCE PROGRAMS . AND KAISER ALUMINUM FABRICATED PRODUCTS- TRENTWOOD WORKS 15,000 EAST EUCLID AVE SPOKANE VALLEY, WA 99216 AND UNITED 338 14015 EAST TRENT AVE SPOKANE VALLEY, WA 99216 PART I: GENERAL PROVISIONS 1. This Conciliation Agreement(hereina?er ?Agreement?) is betWeen the Of?ce of Federal Contract Compliance Programs (hereinafter Kaiser Aluminum Fabricated Products-Trentwood Works (hereinafter ?Trentwood?) located at 15000 East Euclid Ave, Spokane Valley, WA 99216, and United Steelworkers, Local 338 located at 14015 East Trent Ave, Spokane Valley, WA 99216. 2. The violation identi?ed in this Agreement was found during a? compliance evaluation of Trentwood which began on March 9, 2006, and was speci?ed in a Notice of Violation issued on April 9, 2007. OF CCP alleges that Trentwood has violated Executive Order 11246, as amended, and implementing regulations at 41 CPR Chapter 60 due to the speci?c violation cited in Part II below. 3. This Agreement does not constitute an admission by Trentwood of any violation of Executive Order 11246, as amended, and implementing regulations. 4. The provisions of this Agreement will become part of Trentwood's Af?rmative Action Program (hereinafter Subject to the performance by Trentwood of all promises and representations contained herein, and in its AAP, all named violations in regard to the compliance of Trentwood with all OFCCP programs will be deemed resolved. However, Trentwoodis advised that the commitments contained in this Agreement do not preclude future determinations of noncompliance based on a ?nding that the commitments are not suf?cient to achieve compliance. 5. Trentwood agrees that OFCCP may review compliance with this Agreement. As part of such review, OFCCP may require written reports, inepect the premises, interview? Witnesses and examine and COpy documents as may be relevant to the matter under investigation and pertinent to Trentwood?s complianCe. Trentwood shall permit access to its premises during normal business hours for these purposes. Conciliation Agreement Kaiser-Trentwood Works 6. Nothing herein is intended to relieve Trentwood ?'om the obligation to comply with the requirements of Executive Order 11246, as amended, and/or Section 503 of the Rehabilitation Act of 1973, as amended, and/or 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. 7. Trentwood 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 to OFCCP, or' who ?les a complaint, or who participates in any manner in any proceedings under Executive Order 11246, as amended, Section 503 of the Rehabilitation Act of 1973, as amended, and/or the Vietnam Era Veterans? Readjustment Assistance Act of 1974, as arrlended (38 U.S.C. 4212). 8. This Agreement will be deemed to have been accepted by the Government on the date of signature by the Regional Director, unless the Deputy Assistant Secretary for OFCCP indicates otherwise within 45 days of the Regional Director's signature of this Agreement. 9. If at any time in the future, OFCCP believes that Trentwood has violated any portion of this Agreement during the term of this Agreement, Trentwood will be noti?ed of that fact in writing. This noti?cation will include a statement of the facts and circumstances relied upon in forming that belief. In addition, the noti?cation will provide Trentwood with 15 days from receipt of the noti?cation to respond in writing, except where OFCCP alleges that such a delay would result in irreparable injury. Enforcement proceeding for violation of this Agreement may be initiated at any time after the 15-day period has elapsed (or sooner, if irreparable injury is alleged) without issuing a Show Cause Notice. Where OFCCP believes that Trentwood has violated this Agreement, OFCCP may seek enforcement of this Agreement itself and shall not be required to present proof of the underlying violation resolved by this Agreement. Liability for violation of this Agreement may subject Trentwood to sanctions set forth in Section 209 of the Executive Order and/or other appropriate relief. PART II: SPECIFIC PROVISIONS Violation: A review of hiring practices by OFCCP revealed that Trentwood used a test not properly validated pursuant to the Uniform Guidelines on Employee Selection Procedures OJGESP) as outlined in 41 CF 60?3, which resulted in discrimination against female applicants in the selection process for Operative positions during the period April 1, 2004 through March 31, 2005. Conciliation Agreement Kaiser-Trentwood Works According to personnel activity data, testing documentation, management and employee interview other information provided by Trentwood for the ab view period, there pplicants who tested for Operative positions. Of th emales who testec?ass the te none were hired Operative positions. In contrast, of the a es who tested assed the test an ere hired into Operative positions. This 1sProportionate hiring pattern is statistically s1gm'?cant at greater than two standard deviations. Trentwood had not properly validated tests and had not used altema?ve selection procedures to eliminate adverse impact. A statistically signi?cant number of female applicants failed to pass the tests and thus were screened out and subsequently not hired, while Trentwood continued to interview and hire males who passed the tests. This disproportionate adverse impact of the test procedure on females during the hiring process for Operative positions is statistically signi?cant at greater than two standard deviations. Based upon the foregoing and other evidence gathered during its investigation, the OFCCP concluded that Trentwood is in violation of 41 CFR 60-1 and 41 CFR 60-203. By entering into this Agreement, Trentwood has not admitted nor has there been any adjudicated ?nding that Trentwood violated any laws. Remedy: Trentwood agrees to revise its personnel practices and procedures to ensure that all quali?ed female applicants are afforded equal employment opportunity for employment in all Operative positions, for which they are quali?ed. Trentwood must agree to take the following corrective actions for the females identi?ed in Attachment A to this Agreement: Location and Noti?cation of ACMs: Within 60 days, but not earlier than 45 days after the effective date of this Agreement, Trentwood agrees to notify each Affected Class Member (hereinafter of his or her rights under this Agreement by sending a certi?ed letterl notifying the ACM of this Agreement and providing the ACM with a veri?cation form2 requesting current address, telephone number, social security number. Trentwood will also include a Release of Claims,3 an employment application form and a W-4 to complete and return with the noti?cation letter. ACMs who are located must retum the completed Veri?cation /Employment Interest Form and Release of Claims to Trentwood within 30 days of receipt of the certi?ed letter or forfeit any right to any relief. Attachment A Affected Class Members 1 Attachment Noti?cation Letter 2 Attachment Address and Social Security Veri?cation Employment Interest Form 3 Attachment Release of Claims Conciliation Agreement Kaiser-Trentwood Works In addition, within 105 days of the effective date of this Agreement, Trentwood will provide to OFCCP a list of any ACMS who have not responded to the noti?cation. OFCCP will have an additional thirty (30) days from receipt of notice ?'om Trentwood to ?nd the missing ACMs and to provide contact information to Trentwood of those ACMs it was subsequently able to ?nd. OFCCP will use its best efforts to contact the ACMs who have not responded. These best efforts include calling the ACMs at their last known telephone numbers to attempt to ascertain their mailing addresses. Within 20 days of the receipt of new information from OFCCP, Trentwood will notify the newly located ACMs of this Agreement and provide each such ACM with a veri?cation form and release. Each newly located ACM will have 30 days a?er receipt of the noti?cation letter to respond. If OFCCP is unable to locate a class member within the timeframe outlined above and Trentwood does not receive a response from a ACM within 30 days of the receipt of the noti?cation letter, the lack of response will be deemed to constitute a rejection of the financial settlement set forth in paragraphs and below. In that event, any and all back pay due to ACMs who were not found, or did not reSpond, will be equally distributed to the remaining located ACMs who responded within the 30-day period provided. All eligible ACMs who have signed and returned the release and interest form within 185 days of the effective date'of this Agreement will equally share the ?nancial settlement. (b)J ob Offers: Trentwood will extend bona ?de written job offers unti?f the ACMs are hired into ?ill-time status Operative positions. Offers of employment to the ACMs shall be made no sooner than 185 days following the execution of this Agreement, as set forth below: a. Any ACM who responds that they are interested in being considered for employment with Trentwood will bypass the written test and will proceed directly to the interview. The job offers shall be made in order of and based upon chronological date of the original application, earliest date offered ?rst, until full-time job offers have been made and accepted, and l-time ACMs have reported to work or the class list is exhausted, whichever occurs ?rst. b. ACMs who accept an offer of employment will be given reasonable time of not less than fourteen (14) days and not more than thirty (30) days to report to work. Trentwood agrees to allow the female applicants to whom a ob offer is made, at least ?ve (5) days in which to accept or reject the job offer. If an ACM rejects the job offer or cannot be located and/or contacted, written documentation of his or herrejection or non-contact will be provided by Trentwood to OFCCP. Trentwood?s obligation regarding the ACMs ends when the list of female ACMs has been exhausted. For each ACM who accepts a job offer, Trentwood agrees to pay the current prevailing entry?level wage and provide all regular and normal on-the-job training. - Conciliation Agreement Kaiser-Trentvvood Works (c)Financial Settlement: Within 220 days from the effective date of this Agreement, Trentwood will equally distribute $102,035.26 in back pay and 25,702.05 in interest to the eligible ACMs. Such payment will constitute a ?ll settlement of any and all ?nancial claims related to this violation. Trentwood will submit docummtation to OFCCP of payment of the ?nancial settlement within 20 business days of the issuance of checks to the ACMs. The payments will be made in a lump sum to each ACM, less appropriate withholding deductions. Trentwood will send each ACM an appropriate form. Cease and Desist: Effective September 29, 2008, Trentwoodsdiscontinued the use of the Work Keys test and agreed to implement new selection procedures that do not cause females to be disproportionately screened out of the selection process for OperatiVe positions. - (e)Retroactive Seniority: ACMs hired at Trentwood under this Agreement will be granted seniority for bene?ts eligibility purposes dating back to the time that they would have, been hired had the alleged discrimination not occurred. Retroactive seniority will become effective on date of hire. (?Emplovment Process: Trentwood agrees to take proactive measures to ensure that this alleged violation does not recur. Within 60 days from the effectiVe date of this Agreement, Trentwood agrees to do the following: 0 Review its application and selection criteria and ensure that they are in technical compliance with the Uniform Guidelines on Employee Selection Procedures as provided in 41 CFR 60-3. 0 Implement new selection procedures that do not disproportionately eliminate female applicants from consideration for Operative positions. a Ensure that job quali?cations are unifonnly applied to all applicants. 0 Provide training on compliance with Executive Order 11246, as amended, and its implementing regulations, to supervisory and management employees involved in Trentwood's selection process. 0, Continue performing adverse impact analyses, at least annually, to oversee and monitor its selection process and placement results. Trenhwood agrees to provide safeguards to ensure that this violation does not recur. Conciliation Agreement Kaiser?Trenuvood Works PART REPORTING Kaiser Aluminum Fabricated Products-Trentwood Works (hereinafter ?Trentwood?) agrees to retain records pertinent to the alleged Violation resolved by this Agreement. In Of?ce of Federal Contract Compliance Programs, Seattle District Of?ce, 111 1 3":1 Ave, Suite 745, Seattle, WA 98101. Report 1 Report due date: (8) eight months following the date on which the Regional Director signs this Agreement Period covered: Effective date of Agreement through April 30, 2009 The ?rst progress report shall contain the following: 1. Copies of cancelled checks for the back pay and interest distributed to the ACMs. 2. Copies of the noti?cation letters Trentwobd sent to the ACMs. 3. Copies of completed Address and Social Security Veri?cation and Employment Interest Forms and Release of Claims submitted by ACMs to Trentwood. 4. Documentation of bona ?de job offers made to all ACMs, including those who were hired at Trentwood as intermediate Operative positions following the date of this Agreement. Such documentation will include a list of ACMs offered jobs, the date of the job offer, the date the offer wasaccepted or rejected, the starting salary and the name of the immediate supervisor. 5. A list of all ACMs who were considered for employment pursuant to this Agreement but whom Trentwood determined did not successfully pass the interview, drug/alcohol screen, physical capacities exam or background check, including the screen(s) that each such person failed and the reason for Trentwood?s determination the he or she failed the screen(s). 6. Provide OFCCP with documentation re?ecting Trentwood?s implementation of its new selection procedures which ensure that female applicants are not being disproportionately eliminated from consideration for Operative positions. - Conciliation Agreement Kaiser-Trentwood Works Report 2 Report due date: November 15, 2009 Period covered: May 1, 2009 through September 30, 2009 The second progress report shall contain the following: 1. Evidence that training on the selection process was provided to Trentwood management and that such training addressed compliance with Executive Order 11246, as amended, and its implementing regulations. Include the date and location of training, the names and positions of the managers who attended, the names and positions of the trainers, copies of training materials disseminated to the employees, and the cost of the training. - 2. The total number of applicants and hires (applicant ?ow and hire logs) for Operative positions. The applicant log will Show the name, speci?c race/ethnicity, gender,. date of application, referral source, and disposition of each applicant for each phase in the selection process. The hire log will show the name, speci?c race/ethnicity, gender, referral source, date of hire and job title. 3. The results of the adverse impact analysis for applicants and hires for Operative positions for the period corresponding to the AAP for 4/1/2009 to 9/30/09. 4. If the total selection process for the Operative positions has a statistically signi?cant adverse impact, as de?ned in 41 CFR an outline of the applicant selection process developed and implemented by Trentwood including a description of each stage in the selection process and the criteria used to evaluate applicants at each of those stages. 5. If the total selection process for the Operative positions has a'statistically signi?cant adverse impact, as de?ned in 41 CFR 60-3.4D, the results of Trentwood?s evaluation of the individual components of the selection process for adverse impact. 6. Where appropriate, the actions taken by Trentwood after determining that any component of its selection process for Operative positions has a statistically signi?cant adverse impact. TERMINATION DATE: This Agreement will remain in ?ll] force and effect for eighteen (18) months from the Effective Date of the Regional Director?s signature of the Agreement or until the written acceptance of the second Progress Report, whichever is later. Conciliation Agreement Kaiser-Trentwood Works PART IV: SIGNATURES This Agreement is hereby executed by and between the Of?ce of Federal Contract Compliance Programs, Kaiser Aluminum Fabricated Products-Trentwood Works located at 15000 East Euclid Ave, Spokane Valley, WA 99216, and United Steelworkers, Local 338 located at 14015 East Trent Ave, Spokane Valley, WA 99216. DATE: 7/59/0/ DATE: 7/30/Od? 0 Tech Expert Kaiser Aluminum Fabricated Products- Of?ce of Federal Contract Trentwood Works Compliance Programs 15000 East Euclid Ave Paci?c Region Spokane Valley, WA 99216 DATE: 36/Cf DATE: 1% gli/?g '11' OQS -- .u ennan District Director Regional Director Of?ce of Federal Contract Of?ce of Federal Contract Compliance Programs Compliance Programs Seattle District Of?ce Paci?c Region DATE: [sol 2mg President United Steelworkers Local 338 Spokane Valley, WA 99216 Attachment A Female Class Members KAISER ALUMINUM FABRICATED PRODU WORKS 15000 East Euclid Ave, Spokane Valley, WA 99216 First Name Last Attachment NOTIFICATION LETTER Certi?ed Mail, Return Receipt Request [Name] Dated: [Street] [City, State, Zip Code] Dear [Ms/Mr.) [Name]: Kaiser Aluminum Fabricated Products-Trentwood Works (hereina?er ?Trentwood?) loCated at ?15000 East Euclid Ave, Spokane Valley, Washington 99216 and the Department of Labor?s Of?ce of Federal Contract Compliance Programs (hereinafter have entered into a Conciliation Agreement (hereinafter to resolve alleged disparities in hiring for Operative positions "between April 1, 2004 and March 31, 2005. You have been identi?ed as one of the individual who applied for such a position and was not hired during that time period. As part of this CA, you are also eligible to receive a monetary distribution of at least subject to law?il payroll deductions. Under the terms of this CA, you may receive a payment up to eight (8) months from the date of this letter. In order to be eligible for this distribution, you must execute and return the following enclosed documents, (1) Address, Social Security Veri?cation and Employment Interest Form and (2) Release of Claims, thirty (3 0) days of your receipt of this letter to: PAUL DIRECTOR OF HUMAN RESOURCES KAISER ALWINUM FABRICATED PRODUCTS- TRENTWOOD WORKS 15000 EAST EUCLID AVE SPOKANE VALLEY, WASHINGTON 99216 By entering into this CA, Trentwood has not admitted nor has there been any adjudicated ?nding that Trentwood violated any laws when it did not hire you for the Operative position. Trentwood has entered into this CA for its convenience and to resolve the matter without further legal proceeding. If you choose to reapply, you Will be subjected to an abbreviated application process. You will bypass the written test and proceed directly to the interview, drug/alcohol screen, physical capacities exam and background check. Kaiser Alum Noti?cation Letter Page 2 of 2 If you fail to return any of the required documentation within the speci?ed timeframe, you will be ineligible for monetary and/or other relief provided by this CA. If you have any questions, you may call me at (509) 927-6447 and your call will be returned as soon as possible. Sincerely, Paul Stoyell-Mulholland Director of Human Resources Kaiser Aluminum Fabricated Products-Trentwood Works cc: EOS Technical Expert . . apartment of Labor Enclosures: Address Veri?cation and Employment Interest Form Employment Application Release of Claims Attachment Address and Social Security Veri?cation and Employment Interest Form (Continued) Yes, I am still interested in employment with Kaiser Aluminum Fabricated Products- Trentwood Works and enclosed is a completed application. I [3 No, I am not currently interested in employment with Kaiser Aluminum Fabricated Products- Trentwood Works. I certify the above as true and correct. Signature Date Attachment RELEASE OF CLAIMS In consideration of the payment by Kaiser Aluminum Fabricated Products- Trentwood Works of at least less deductions required by law, which I agree is acceptable, and also in consideration of the Conciliation Agreement between Kaiser Aluminum Fabricated Products-Trentwood Works and the Of?ce of Federal Contract Compliance Programs (hereinafter I agree to the following: I. I hereby waive, release and forever discharge Kaiser Aluminum Fabricated Products- Trentwood Works and its current and former officers, directors, agents, representatives, servants, employees, attorneys, subsidiaries, departments and units, sister corporations, parent corporations, af?liates, joint ventures, and related entities, as - well as its predecessors, successors and assigns (hereinafter collectively referred to as Kaiser Aluminum Fabricated Products-Trentwood Works?), of and from any and all actions, causes of action, damages, liabilities, and claims arising out of or actionable under Executive Order 11246, as amended, and/or Section 503 of the Rehabilitation Act of 1973, as amended, and/or the Vietnam Era Veterans? Readjustment Assistance Act of 1974,as amended (38 U.S.C. 4212), which I or my representatives (heirs, executors, administrators, or assigns) have or may have which relate in any way to my not being selected for employment at any time prior to the . effective date of this Release. 11. I understand that if I am concerned abont how the process described in this Release applies to me, [may contact the OFCCP for assistance: iIiecEcal Expert U. S. Department of 1 111 Ave, Suite 745 Seattle, WA 98101 (NC) Telephone Number: (206) 398- I understand that Kaiser Aluminum Fabricated Products-Trentwood Works denies that it treated me unlawfully or unfairly in any way and that Kaiser Aluminum Fabricated Products-Trentwood Works entered into the above- referenced Conciliation Agreement with OFCCP in the spirit of conciliation and to bring closure to the Compliance Review initiated by OFCCP on March 9, 2006. I further agree that the payment of the aforesaid sum by Kaiser Aluminum Fabricated Products-Trentwood Works to me will not be offered or admitted as evidence in any proceeding or construed as an admission of any liability by Kaiser? Aluminum Fabricated Products- Trentwood Works. IV. I declare that Ihave read this Release and that I have had a ?1111 opportunity to consider and understand its terms and to consult with my advisors. I further declare that I have decided of my own free will to sign this Release. V. I understand that if I do not sign this Release and return it to Paul StoyeIl-Mulholland, Director of Human Resources, at Kaiser Aluminum Fabricated Products-Trentwood Works, 15000 East Euclid Ave, Spokane Valley, Washington, 99215, within thirty (30) days of my receipt of this Notice, I Will nOt be entitled to receive the payment (less deductions required by law) from Kaiser Aluminum Fabricated Products- Trentwood Works. IN WITNESS WHEREOF, I have set my hand to this Release on the ,2008. day of Signature