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ARTICLE 3-MANAGEMENT RIGHTS

Section 1.Except as specifically provided in this Agreement, all management rights, power, authority and functions, whether heretofore or hereafter exercised, and regardless of the frequency or infrequency of their exercise, shall remain vested in the Employers. It is recognized that such rights, power, authority and functions include, but are not limited to, the full and exclusive control, management, and operation of their business, the determination of the scope of their activities, business to be engaged in and all matters pertaining thereto, the location of such business or businesses, the materials and products to be acquired or utilized and the machinery and equipment to be utilized and the layout thereof; the right to establish or change shifts, schedules of work and production schedules and standards, the right to establish, change, combine, or eliminate jobs, positions, job classifications and descriptions, job duties and functions; the right to establish or change compensation; the right to introduce new or improved procedures, methods, processes, facilities, machines, and equipment or to make technological changes, the right to maintain order and efficiency; the right to contract for or subcontract any work; the determination of the number, size and location of their business operations or any part thereof and the extent to which, the means and manner by which their business or any part thereof shall be operated, relocated, shut down or abandoned; the right to terminate, merge, consolidate, sell or otherwise transfer their business or any part thereof, the right to make and enforce safety and security rules and rules of conduct; the determination of the number and identity of employees, the assignment of duties thereto, and the right to change, increase or reduce the same; the direction of the work force, including but by no means limited to hiring, selecting and training of new employees, and suspending, scheduling, assigning, discharging, laying off, recalling, promoting, demoting and transferring of their employees.

Section 2. It is the intention of the Employers and the Union that the rights, powers, authority and functions referred to herein shall remain exclusively vested in the Employers except insofar as specifically surrendered or limited by express provisions of this Agreement. In exercising their rights, the Employers will not violate this Agreement.