Document 6B6nQVJEKLZzjaZ77nGgj78zo
P. O. BOX 792
TELEPHONE 592-6418
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE, TEXAS 78363
AFS-76
December 2, 1998
Hoechst Celanese Chemical Group 1250 W. Mockingbird Lane P.O. Box 569320 Dallas, Texas 75356-9320
Attention: Mr. T. R. Shandley
Re: Maintenance and Construction Service Agreement December: 30, 1985 Through April 30, 1989
Dear Rogers: In response to your request for further information concerning our
letter,AFS-73, of November 21, 1988, we submit the following.
July 85
Straight Time Payroll Cost Revised 12/1/88
Sept 85 Sept 86 Sept 87
Change Sept 88 9/87to9/88
FICA
7.05
7.05
7.15
7.51
7.51
NC
SUT 3.08
3.08
4.18
4.23 (1) 4.10
(.18)
FUT .4 .4 .4 .4 (2) .4
NC
W.C 1.57
2.016
2.67
3.92
6.256
2.336
G.L
.492
.604
.909
1.11
1.65
.54
UMB.
.240
1.101
2.641
2.4
1.0 (1.40)
TOTALS 12.832
14.251
17.95
19.62
20.916 (3) 1.296
Note 1: This rate,(4.10), has changed from the 4.983 rate estimated letter (AFS-73), because of two reasons: tfl. Cur calculation mistake pointed out in our meeting of November
14, 1988. If2.Information from the Texas Employment Commission which indicates the probibility of a base rate decrease from 8.77% to
8.35%.
Note 2. This rate (.4), for Federal Unemployment Tax added to the estimated state unemployment tax rate (4.1) constitute the 4.5% we are proposing to delete from our fee in 1989, with the provision that we bill you quarterly at cost, for these taxes.
16711
page 2 AFS-76
Note
3. This indicates a tax and insurance increase of 1.296% for 1989, however, due to the high volume of work in 1988 and the excellent
projections for 1989, overhead cost, as percent of sales, has dropped to the point we will be able to absord these increased cost.
Thank you for your understanding in this matter. If you have further questions, please contact us.
Very truly yours.
Aaron F. Starks Vice-President
cc: Bay City: C. R. Pennington; A. C. Enlow; R. E. Allen S. R. Starks
Bishop
D. G. Pausky; D. L. Yancey; D. D. Siemonsma; R. C. Seawright; J. J. Starks
Corpus Ghristi:
R. R. Graham; L. W. Hartman; S. W. Eason; W. E. Clark
Pampa:
R. G. Guard; L. E. Moore; L. T. Johnston; C. R. Jones; P. D. Ley
16712
P. O. BOX 792
TELEPHONE 592-Mi a
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE, TEXAS 78363
November 21, 1988
AFS-73
Hoechst Celanese Chemical Group 1250 W. Mockingbird Lane P.O. Box 569320 Dallas, Texas 75356-9320
Attention: Mr. T. R. Shandley
Re:
Maintenance and Construction Service Agreement December 3Q, 1985 Through April 30, 1989
Dear Rogers:
In response to our meeting of November 14, 1988 and our best
effort to remain competitive in the fulfillment of the referenced
agreement,
we resubmit our letter of September 26, 1988,
concerning an amendment to Article 10 of the referenced contract
to cover increased tax and insurance costs.
We propose to forego the 2.2% fee increase, requested for September 5, 1988, if we can remove the rates from our fee for both State and Federal Unemployment taxes and bill you quarterly, in 1989, at cost. We feel this is important to both of us in light of the uncertainties we face for 1989 and the difficulties in establishing a percentage rate that is equitable in covering these costs.
Attached is the proposed amendment to Article 10 of the referenced contract. We request this amendment be effective December 26, 1988. Please indicate your acceptance of this amendment by signing the attached document. Return the executed copy to Arthur Brothers, Incorporated and keep the original for your files.
Thank you for your understanding in this matter
Very truly yours,
.ARTHUR BR0T,f
7?
INCORPORATED
Aaron F. Starks Vice-President
16713
AFS-73 Page 2
cc: Bay City:
C. R. Pennington; A . C . Enlow; R. E Allen S. R. Starks
Bishop :
D. G. Pausky D. L. Yancey; D. D Siemonsma; R. C. Seawright; J.. J., Starks
Corpus Christ!: R. R. Graham; L. W. Hartman; ! . W. Eason; W. E. Clark
Pampa: R. G. Guard; L. E. Moore; L. T. Johnston; C. R. Jones; P. D. Ley
16714
1989 C.QKTRACT AMENDMENT
Effective December 26, 1988
ARTICLE 10.
CONTRACTOR'S FEE.
(a) For providing Labor and
supervision therefore Contractor shall be paid in addition to the amount
provided in Article 9 hereof, a Fee, which consists of three components, of
3.0.0% of the direct wage cost attributable to (i)actual straight-time hours
worked (ii) the straight-time portion of any overtime hours worked.
The Fee consists of three components (i) 27.0% for all payroll costs, (excluding all State and Federal Unemployment Taxes).employees benefits and small tools (ii) 2,0% for profit and overhead, and (ill) 1.0% for Umbrella Liability Insurance Coverage, as per the following schedule:
Total Annual Direct Wage Cost (Exclusive of Premium Portion of Overtime) $8,212,564.00 or less
Payroll costs.(excluding all state and federal unemployment taxes),employee benefits, and small tools
27.0%
Umbrella Liability Insurance Coverage i (September 5. 1988 through September 3, 1989)
(Renegotiated each like period thereafter)
1.0%
Overhead and Profit
Total Fee:
2.0% 30.0%
8,212,564.00 or more (including other all 5mm coverage)
Payroll costs,(excluding all state and federal umemployemnt taxes),employee benefits, and small tools
Umbrella Liability Insurance Coverage
Overhead and Profit
clients
requiring
27.0%
0.0% 2.0%
Total Fee:
29.0%
Contractor shall be paid a markup equal to 8.5 percent of that portion of Contractor's total direct wage cost attributable to the premium portion of wages paid for overtime hours worked by its authorised employees on authorized work hereunder.
At the end of each quarter, -beginning December 26, 1983, Contractor shall bill Company at cost for all State and Federal Unemployment taxes applicable to authorized work hereunder.
It is understood that Company may, in the future, wish Contractor to perform similar work at other Company plants. Such other plants may be added to this Agreement using the same conditions and percentage Fee and markups described herein. The annual period for the work performed at such other plant shall be deemed to have the same commencement date as "the
annual period hereunder.
Hoechst Celanese
ArthupnBrotheJrsA^.^Encorporated
By:
By:
Title:
Title:
Date:
Date:
16715
PURCHASE CONTRACT ADVICE ANO ABSTRACT CELANESE CHEMICAL COMPANY, INC.
supplier
-9-Imm-Vma
PACILlTV
Tighnr
^t&S*,nd ?^F* ?!*----- CCCj--Iafr
CONTRACT NO.
ORIGINAL CONTSAtefc^F.
**
THIS NOTICE DATE:
1-1-77
_______________ March 4, 1985
TERMINATION RIGHTS ANO NOTICfc REQuIM^NTS
w
"~
*Spclal Hot*: Taralnebla by either party at tha and of any contract yaar on at laaat 60 daya prior written node*.
J MAXIMUM OUANTITYj
MINIMUM
; FI X EO
Trequirements
I
I PARTIAL FULL
UNIT PRICE ANO F.O.B.
i TOTAL OOLLAR VALUE
Actual wagaa and solaria*., plus a faa of 31Z on tha first BlOtM, than 30.3* on wage* & aalarlaa In excess of 910HK. 13** Z on tha praalua portion of ovartlaa.
i
Eat. $15*4t la 1983
PRICE CHANCE PROVISIONS
TERMS Of PAVMENT
SubJact to approval to CCC., vagas t aalarlaa nay b* ebangad at aaytiaa.
SPECIAL FEATURES/REMARKS
. Weakly, Hat 14 |
Haw pay achadulaa for all locations:
1. Bishop - Exhibit A 2. Bay City - Exhibit B 3. Paapa - Exhibit C 4. .CCCTC - Exhibit D
DISTRIBUTION -- WITH DOCUMENT COPV
|OISTRIBUTlON -- WITHOUT document copv
Executive Baoorda-Orlginal-Dallaa
3.A. Block-Dallaa Z.D. Luka--2C
E.B. Allan-BC C.K. Iorio-Biabop
M.J. Aalung-Paapa L.B. Horra-Paapa J.A. PoUaad-CCCTC
L.V. Hatkaaa-CCCIC
j I !
J.F. Harpar-Bishop M. Candrlck-Haad &
D.L* Yancay-Bl*hop,A Kendrick,Corpus Christl
J.A. Bousquat, Jr. - Dallas E.L. Fajml - Bay City J.J. Pritach-- Bishop E.G. Brandt - Bishop, CE& D.E. Tahnan - Paapa G.J. 71sher - CCTC
A.C. Abahar-Biahop,Ctrt
E.J. Andaraon-Blahop,d/{
a(L
16716
ABSTRACTED av-T.E., Sh*Ml*V
Pahruarv 27. 1983
OAT
P. O. f JX7R
TELEPHONE sbhmio
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE. TEXAS 78M3
February 13, 1985
AFS: Oil
Celanese Chemical Company P. 0. Box 47320 Dallas, Texas 75247
Attention: Mr. X. R. Shandley
Re: Cost Plus Fee Maintenance Contract Dated January 1, 1977
Dear Rogers:
Due to the current surplus of qualified personnel and declining wage rates in the various areas, we are proposing a substantial reduction in our wage rates.
We have carefully reviewed each task, being performed under the re ferenced contract and to the best of our ability, assigned the current prevailing Classification and Wage Sates.
Attached are sample payrolls and invoices; before and after the re ductions, for the purpose of comparison. Also, attached are the revised Classification and Pay Rate Schedules. Please note that a "Technician" Class has been added. This is for emergency use only, requiring.approval of an Arthur Brothers Corporate Officer after discussion and agreement with a Celanese Manager.
Without doubt, this is a difficult decision because it will cause hardship on the individual employee. However, when considering all the realities, it becomes evident that this is a proper move and in the best .interest of all concerned.
We propose that Che revised "Classifications and Pay Rates" become effective Monday, March 4, 1985.
We are looking forward to another' successful year with your firm.
Very truly yours
AFS/lb Enclosures
I
Aaron F. Starks Vice-President
!
16717
P. O. SOX 792
TELEPHONE 582-6*1*
ARTHUR BROTHERS
incorporated HIWAV 77 BYPASS KINGSVILLE, TEXAS 70363
February 13, 1985
AFS: 012
Celanese Chemical Company P. 0. Box 47320 Dallas, Texas 75247
Attention: Mr. T. R. Shandley
Re: Cost Plus Fee Maintenance Contract, Dated January 1, 1977 Exhibits A, B, C & D
i
1985 Contract Revision
The attached Classification and Pay Rate Schedules will become effective and be incorporated in the referenced contract Monday, March 4, 1985 for the respective plants.
Please acknowledge these changes by signing below and returning the copy to us^ Please keep the original for your files.
Celanese Chemical Company, Inc. P. E. Hime Vice-Presldent Operations
Arthur Brothers. Incorporated
16718
I
Exhibit (A) Bishop
Effective March 4, 1985
Classifications and Pay Rates
A. Salaries Superintendent General Foreman
Range
39,000/52,000 30,750/43,700
B. Hourly Rates
1. General
Administrative Assistant Foreman Leadman Labor Foreman Technician
Construction
Maintenance
9.75 - 11.65
.75 - 1.00 above Construction Mechanic A
.50 above craft supervised
11.65 12.00 - 14.00
11.65 12.00 - 14.00
Mechanic A Mechanic B Mechanic C Mechanic D
Utility A Utility B Utility C
-
Helper A Helper B Helper C
Utility Service A Utility Service B Utility Service C
Service A Service B Service C
11.65 11.20 10.80 10.40
10.00 9.60 9.20
8.80 8.40 8.00
7.50 7.00 6.70
6.30 6.00 5.60
11.42 11.00 10.60 10.20
- 10.00 9.60 9.20
8.80 8.40 8.00
7.50 7.00 6.70
6.30 6.00 5.60
Clerical Field Buyer
3.50 - 9.50 10.00 - 11.65
2. Warehouse
Foreman Utility -Service A Utility Service B Utility Service C
Rotating Shift
10.79 7.85 7.35 7.05
'
Sc. Day
10.44 7.50 7.00 6.70
Sc. Evening
10.79 7.85 7.35 7.05
Service A Service B Service C
6.65 6.35 -6
6.30 6.00 5.60
6.65 6.35 5.95
16719
Exhibic (A) Bishop
2. Engineering
Engineer Oraf csman Estimator Planner/Scheduler
Effective Date - March 4, 1985
15.00 - 32.00 6.00 - 23.00 6.00 - 23.00 6.00 - 23.00
ACKNOWLEDGEMENT: P. E. Hime '
16720
Exhibit <B) Bay City
CLASSIFICATIONS AM) PAY RATES
Effective -Date - March 4, 1985
Page 1 of 2
A. Salaries
Superintendent General Foreman
Range
39,000/52,000 30,750/43,700
B. Hourly Rates
1. General
Safety Co-ordinator Foreman Assistant Foreman Services Foreman Technician
Mechanic A Mechanic B Mechanic C Mechanic D
Construction
Maintenance
12.00
12.00
12 .50 - 14.50
12.50 - 14.50
.25 - .50 above Mechanic A
12.00
12.00
12,,00 - 14.00
12,00 - 14.00
12.00 11.50 11.00 10.50
11.50 11.00 10.50 10.25
Utility A Utility B Utility C
Helper A Helper B Helper C
Utility Service A Utility Service B Utility Service C
10.00 9.25 8.50
9.00 8.50 8.10
7.75 7.30 6.90
10.00 9.25 8.50
9.00 8.50 8.10
7.75 7.30 6.90
Service A Service B Service C
6.40 6.00 5.75
6.40 6.00 5.75
Clerical Leadman
5.,00 - 10.00
5.00 - 10.00
.50 above craft supervised
2. Assigned Warehouse Foreman
Rotating Shift 12.35
St. Day 12.00
St. Evening 12.35
Utility A Utility B Utility C
Utility Service A Utility Service B Utility Service C
10.35 9.60 8.85
9.35 8.85 8.45
10.00 9.25 8.50
9.00 8.50 8.10
10.35 9.60 8.85
9.35 8.85 8.45
16721
Exhibit (B) Bay City
2. Assigned
Service A Service B Service C
Effective Date - March 4, 1985
Page 2 of 2
Rotating Shift
6,75 6.35 6.10
St. Day
6.40 6.00 5.75
St. Evening
6.75 6.35 6.10
ACKNOWLEDGEMENT:
P. E. Rime
*
16722
Exhibit (C) Parapa
Effective Date - March 4, 1985
CLASSIFICATIONS AND PAY RATES
A. Salaries
Superintendent Assistant Superintendent General Foreman
Range
39,000/52,000 33,350/46,200 30,750/43,700
B. Hourly Rates
Foreman (above craft supervised) Leadman (above craft supervised) Technician
Mechanic A Mechanic B Mechanic C
1 Utility A
Utility B Utility C
Helper A Helper B
Helper C
Utility Service A Utility Service B Utility Service C
--
Service A . Service B
Service C
Clerical Engineer
20.00/diem/day for 1 month
Draftsman 15.00/diem/day for 1 month
Maintenance
.75 - 1.00 .50 12.00 - 14.00
11.50 10.75 10.00
10.00 9.60 9.20
8.90' 8.50 8.10
7.90 7.50 7.10
6.80 6.40 6.00
5.00 - 10.00 17.50 - 36.00
10.75 - 23.50
ACKNOWLEDGEMENT
P. E. Hime
+
16723
Exhibit (P) Corpus Chrlstl
Classifications and Pay Rates
A. Salaries Superintendent Ceneral Foreman
8. Hourly Rates
1. General
Administrative Assistant Foreman Leadman Labor Foreman Technician
Mechanic A Mechanic B Mechanic C Mechanic D
Utility A Utility B
f Utility C
Helper A Helper B Helper C
Utility Service A Utility Service B Utility Service C
Service A Service B Service C
' Clerical Field Buyer
2. Engineering
Engineer Draftsman
Effective Date - March 4., 1985..
Range
39,000/52,000 30,750/43,700
Construction
Maintenance
9.75 - 11.65
.75 - 1.00 above Construction-Mechanic A
.50 above craft supervised
11.65
11.42
12.00 - 14.00
12.00 - 14.00
11.65
11.20
10,80 10.40
10.00 9.60 9.20
11.42 l/i.OO 10.60 10.20
10.00 9.60 9.20
8.80 8.40 8.00
8.80 8.40 8.00
7.50 7.00 6.70
-7.50 7.00 6.70
6.30 6.00 5.60
6.30 6.00 5.60
3.50 - 9.50 10.00 - 11.65
15.00 - 32.00 6.00 - 23.00
ACKNOWLEDGEMENT P. E. Hime
16724
P. o. BOX 792
ARTHUR BROTHERS
INCORPORATED
HIWAY 77 BYPASS KINGSVILLE. TEXAS 78363
1985 Contract Revision Summary
TELEPHOtC 502-4410
Twelve Month Savings Baaed on 1984 Volume:
Bishop Bay City Pampa Corpus Christl
Total Savings:
$1,301,836.23 287,245.64 248,915.34 37.291.65
$1,875,288.86
1984 Volume Percent Reduction Based on 1984 Volume
$17,737,660.48 10.572
/
16725