CORRECTIVE ACTION

1. The corrective action procedure is designed to provide a consistent, flexible, and fair method of correcting problems created by those employees who fail to observe established rules of conduct and standards of performance. The objective of this procedure is:
   1. To assure fair and equitable treatment for all employees.
   2. To assure that a consistent approach to corrective action is used and understood by all employees.
   3. To provide for management review of severe disciplinary action.
   4. To provide documentation of the type and nature of all disciplinary action.
2. A three-step procedure will normally be used in taking corrective action so that employees will have an opportunity to correct performance (excessive absenteeism, misconduct, poor work performance, safety infractions, etc.) Management will perform periodic inspections at the jobsites and document the inspections on the ESCO Group Job Site Evaluation Report.
3. There are a number of acts of misconduct, however, that are universally recognized as being serious violations of acceptable standards of behavior. The acts of misconduct may be accompanied by a disciplinary suspension without pay and/or termination. The following specific acts of misconduct may subject an employee to immediate termination:
   1. The sale, distribution, processing or use of alcohol, non-prescription or illegal drugs or intoxicants while on company premises, or during working hours.
   2. Refusal or willful failure to carry out proper instructions.
   3. Theft, unauthorized possession, misappropriation, damage or destruction of property belonging to the company, a fellow employee, contractors, or facilities we are performing work for.
   4. Serious violation of company safety rules.
   5. Provoking, instigating, threatening, or engaging in an act of violence toward fellow employees, guests, business invitees or members of management.
   6. Firearms, fireworks, or live ammunition will not be permitted at any time.
   7. Immoral conduct, indecency, sexual harassment, or making of obscene remarks.
   8. Being convicted of a felony criminal offense.
   9. Failure to report to work regularly and on time, or to notify the company when absent. An absence of 3 consecutive workdays without notification will be considered an automatic resignation without notice.
   10. Any acts of ‘horseplay’ which could affect a job site or employee negatively, result in injury or result in property damage.

The steps in the Corrective Action Procedure are:

1. Written warning with Counseling
   1. The first line supervisor, safety director, or management will discuss the problem with the employee to help him/her understand their performance or the rule/policy they have violated, and the nature and impact of the misconduct.
2. Written warning with second counseling
   1. If instruction/counsel does not correct the situation, the supervisor, safety director, or management will re-instruct the employee to help him/her correct unsatisfactory performance. During the second counseling session, the employee should be advised that failure to correct or improve the situation may subject him/her to disciplinary action up to and including discharge.
3. Final Written Warning
   1. The final warning serves to discipline employee for continued unacceptable performance or an infraction from the list of serious violations. The final warning may be accompanied by a disciplinary suspension without pay, for a minimum of one day to a maximum of two weeks, or by termination.

Acknowledgement Form

ESCO Group’s Employee Warning Report

ESCO Group’s Witness Statement Form