CHEM-TEXTS

Page 3 | Vol. 14, 1980

V. Calarco Looks at 1980

[PHOTO CAPTION:]
Vincent A. Calarco, center, President of the Uniroyal Chemical Company poses with the officers of the Uniroyal Chemical Management Club prior to his talk to the group. From left are Robert Smith, Treasurer; Ronald Lak, President; Calarco; Shirley Darling, Secretary; and Norman Boisseau, Vice President.

Vincent Calarco, President of the Uniroyal Chemical Company, in an address to the Uniroyal Chemical Management Club reviewed the division’s performance in 1979 and discussed the outlook for 1980. The following are highlights from his talk to the group at the Elks Club in Naugatuck.

1979 was the best year in the division’s history in terms of sales and profits.

Sales for the chemical Rubber and Plastic business segments of the Company – for which we are the major portion – were $448 million up from $442 million in 1978; and operating profits were 88 million, an increase of 24% over the $71 million in 1978.

4th quarter sales and profits for the Chemical Company set a record level in 1979.

These results are especially noteworthy since the Kralastic business which was sold in early 1979 accounted for over $90 million dollars in worldwide sales in 1978.

Agricultural Chemical sales had an exceptional year with sales 40% over 1978.

Specialty Chemical sales grew by nearly 35%. Improvements in Polywet alone resulted in 12% of this increase.

In February, Rovel, a new weatherable polymer was introduced to the market after two years of testing. Solid sales results are expected in 1981.

Rubber Chemicals, the division’s base business grew 25% worldwide. To continue this growth major new facilities in the U.S., Canada, Italy, Brazil and Taiwan are now under construction.

The International division generated a 21% increase in worldwide sales. Today the International division contributes over one-third of the Chemical Company’s total sales.

Looking ahead in 1980 growth is seen for Rovalene EPDM where the division is a technological leader.

TPR, a product manufactured in the Dispersions Bldg. presently has a 40% market share and looks forward to a 10% growth annually.

Rubber Chemicals is a mature market in the U.S. and dramatic domestic growth is not anticipated in 1980 but it does expect solid profit growth. The rubber chemicals growth is expected in the overseas market with the new plant under construction. Even with the slump in automobile sales there are very positive indicators for the rubber chemicals market to maintain its market position.

Agricultural Chemicals plans to bring a highly promising new product to the market several years ahead of time through an innovative technique. The product code is S-734.

Last year productivity in the U.S. declined in contrast to a 20% productivity increase at Uniroyal Chemical.

Productivity means getting more out of what you have in assets, like plants or machinery and making every machine or reactor or office equipment work more efficiently. In brief it means working smarter…using our minds to think and plan things out and to use new innovative approaches to the often traditional and time consuming ways of doing things.

In 1979 the Omite group increased production by 56% without any new investment other than in thinking about how to make the machinery do more.

In the past two years the productivity of TPR has doubled and in Geismar the production of Flexzone was increased by 30% without any new plant, new equipment or new people.

Productivity applies to office personnel as well. A group of secretaries at EMIC responded to the challenge and developed the Serendipity program which resulted in savings of $200,000.

Job Opening System—an Avenue to your Career Development

By Marge Woolfrey

The objectives of the Job Opportunity System are to provide employees with timely information about the availability of and requirements for open positions and another avenue for individual career development. Openings are communicated within the Naugatuck location by placing on bulletin boards the “Job Opening” notice. All non-exempt openings through Grade 24 will be communicated, except as noted below.

Exceptions to the System

Grade or title changes where the individual retains the same basic position but the grade or title is changed due to increased responsibilities. (e.g. Clerk Senior to Clerk Specialist)
Job placement for employees during reduction-in-force situations.
The establishment of temporary, Co-op or summer positions.
Reorganization changes by a manager within a department provided there is no increase in head count and no promotional opportunities created.
Placement of college-recruited trainee program graduates by Corporate or Division in their initial permanent positions.
Positions that are being held until the return of an employee from maternity leave or other approved leaves of absences.

How to Apply

You may apply for any opening for which you feel that you are qualified and have an interest, provided you have a recommendation from your present manager. If you meet the minimum qualifications of the position, you will be interviewed and subsequently informed whether or not you have been selected.

You will be contacted when you have been scheduled for an interview. You will receive feedback from the hiring manager after the interview as to whether or not you are selected.

Assignment to New Position

Generally, it is expected that you will be released to your new position as soon as possible after acceptance of an offer. Normally, this is within two weeks, but the release time may be negotiated further between the hiring and releasing managers.

Appeals Route

Normal established appeal routes should be used in cases where individuals disagree with or have questions about decisions made at this step of the process. In general, the first attempt to clarify the situation should be made through your manager and the person who made the selection decision. Further clarification or questions can be taken directly to the Human Resources Department for discussion.

Program is Working

During 1979, there were 26 Chemical employee promotions made through utilization of the Job Opportunity System. There were eight positions filled by transfer from other parts of the company because no one at the Naugatuck location applied for the openings. It is especially important to note that there were only two exceptions to the procedure during the year – one because of a reduction in force and one because of a special training program hire. Unfortunately, we are not perfect and two positions were filled without notice. In the future, all jobs without exception to the system will be placed on bulletin boards. There were other hires during the year where technical background requirements necessitated going to the outside.

The system is a program designed to involve you earlier in the promotional process. It establishes a formal method for interested and qualified employees to obtain open position information and to request consideration for specific promotional opportunities.

Local 218 Contract Signed

URW Local 218 and the Naugatuck Chemical Plant have signed a new local supplemental agreement, effective February 4, 1980. Joe Rzeszutek, President of Local 218 and Bob Douglas, Industrial Relations Manager, reported that the major changes in the new contract provide for improved vacation scheduling for employees, work efficiency improvements through better utilization of personnel and inequity adjustments for various job classifications.

Douglas emphasized that “efforts were directed at negotiating improvements in work efficiencies to improve overall operations without a “take-away” program affecting our employees. These efficiency improvements are essential to improve the plant’s productivity and to off-set rising costs so that we can sustain operations at Naugatuck and provide a strong base for future

continued on page 4

Plant to Close for Two Weeks

The Naugatuck Chemical plant will be shut down for two weeks beginning June 30th and July 7th. The plant will reopen on Monday, July 15th.

During the shutdown the Maintenance Dept. will make a general maintenance overhaul throughout the plant, install new equipment, and do preventive maintenance work.

In Chemical Manufacturing Bldg. 100 and Bldg. 118 will operate along with Bldg. 72.

Health Support Program Continues

The Health Support Program which offers assistance to employees with alcohol or drug problems is still very active. However, there has been a change in the meeting place and time.

Dennis Baldwin who is the Health Support counsellor will now hold sessions at the Chemical Plant Hospital on Tuesdays and Thursdays from 6 P.M. to 9 P.M. Bill Smith will hold counselling sessions on Mondays from 2:30 P.M. to 4:30 P.M. at the Hospital.

All telephone calls regarding the Health Support Program should be made to Don Conty, Bldg. 84. His telephone number is 723-3472. All matters will be held in strictest confidence.

The Health Support Program has helped a number of employees and their families overcome the disease of alcoholism since its inception several years ago.

May is High Blood Pressure Month

High blood pressure is a major factor in stroke and heart attack. This disease has no characteristic symptoms and it must be treated by a physician.

The disease usually can be controlled with drug therapy and some simple diet changes.

During May a blood pressure clinic will be held on Wednesdays and Fridays at the Plant Hospital from 9 A.M. to 11 A.M. An appointment in not necessary. Simply walk in and ask one of the nurses for a blood pressure check.

and $2,690 to another person) in respect of deferred cash awards previously granted under the Management Incentive Plan.

All participation units shown in the second column were outstanding on January 31, 1964, with the exception of 136 units previously awarded to persons other than directors and officers.

The numbers of shares shown in the last column include, where applicable, shares covered by unexpired and unexercised options granted under the Bonus Plan in 1958.

Proposed Adoption of 1964 Stock Option Plan

Proposal to be Considered

In the judgment of the board of directors, further provision should be made by the company for the granting of stock options to employees occupying positions of importance and responsibility. The board regards such options — particularly those which are accorded special status under the Federal income tax laws — as an effective means by which the company may attract and retain outstanding personnel and induce such personnel to invest in the company’s stock and identify their interests more closely with those of the stockholders.

Believing that it would serve the best interests of the company and its stockholders, the board of directors has formulated a proposed 1964 Stock Option Plan. At its meeting held February 12, 1964, the board passed a resolution declaring that in its opinion the adoption of such plan is advisable, and directing that the annual meeting of the stockholders to be held April 21, 1964, be called for the purpose, among others, of taking action thereon.

Proposed 1964 Stock Option Plan

The text of the proposed 1964 Stock Option Plan is set forth in Exhibit A to this proxy statement, and reference is made thereto for a full statement of its terms and provisions.

The proposed plan would permit the granting of stock options to officers and employees of the company and its subsidiaries occupying positions of importance and responsibility who have demonstrated unusual ability or initiative and who can make significant contributions to the company’s success. The plan would be administered, and options thereunder would be granted, by the board of directors, whose decision on any question arising under the plan would be final.

The stock options granted under the plan would be options to purchase common stock of the company newly issued for such purpose or acquired by the company and held in its treasury. Subject to adjustment in certain specified events, the aggregate number of shares of such stock which could be purchased upon the exercise of options granted under the plan would be 200,000, which is less than 4% of the number of shares of such stock issued and outstanding on January 31, 1964. In the opinion of counsel, no stockholder of the company would have any preemptive right to purchase any of the shares which might be optioned under the plan.

The terms and conditions of the options granted under the plan would be determined by the board of directors subject to certain limitations. No such option would be exercisable until the optionee had continued to be an employee for at least twelve months after the granting of the

The Flagship – Page 6

6 • The Flagship • Winter 1998

New Hire’s:

Toys for Tots

IMPORTANT MEDICAL INSURANCE TELEPHONE NUMBERS:

CHEM-TEXTS – 1980-v14-s290