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EMPLOYEE COMPLIANCE/DISCIPLINARY POLICY (8 CCR 3203 (a) (2) ) Under FHEMCO policy, all employees are required to follow company safety policies and operating procedures. When needed, employees will be provided with additional training and information, or re-training to maintain their knowledge. The discipline policy of FHEMCO is intended to encourage employee compliance with the FHEMCO IIPP and to comply with the mandate of California Labor Code 6401. 79 (a) (6) . Although FHEMCO reserves the right to discharge "at will, " we believe that employees found performing work in an unsafe manner that would endanger the employee or another employee shall be subject to discipline or termination by management. The President and Construction Superintendant will determine the course of action best suited to the circumstances for the Construction Department. The President and the Vice-President will determine the course of action best suited to the circumstances for the Service Department. The steps to be taken at a minimum shall include the following: First. Warning - As the first step in correcting unacceptable behavior, the supervisor/manager shall review the pertinent facts with the employee. The supervisor will consider the • severity of the problem, and the employee's past perform- ance. A written warning will be issued to the employee, which will be documented by the supervisor in the employee's personnel file. A copy of which will be given to the employee. Second Warning - If the unacceptable performance continues, the next step will be a second warning. The warning will clearly state the safety policy that was violated and steps the employee must take if it is to be corrected. Probation may be a part of the second warning. It may also include time off without pay. At the completion of the probationary period, the supervisor will meet with the employee to determine if the employee has achieved the required level of performance. Third Warning - A third warning is an indication to FHEMCO that the employee is performing negligently and has a disregard for the safety of himself and his fellow employees. A third warning consists of a Suspension with- out pay for a period of no less than one day and no more than five days. If the safety violations are serious and can cause serious injury FHEMCO retains the right to terminate the employee. Upon the third warning the employee is placed on "Safety Probation" for twelve months. 4