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Basic Agreement
Section 16: Technological Change

Section 16 - Technological Change



16.01Both parties recognize the importance of lessening as much as reasonably possible the effects of technological change upon the job security and the earnings of an employee who may be displaced from his job as a result of such change.

In order to reduce the impact of displacement from a job due to technological change, an eligible employee will be entitled to assistance in accordance with the following provisions.


Definition

16.02Technological change shall mean:

  1. The automation of equipment, or

  2. The introduction of new equipment, or

  3. The replacement of existing equipment with new equipment, or

  4. The mechanization or automation of duties, or

  5. The replacement of an existing facility with a new facility, which produces the same or similar product.

which directly results in the permanent displacement of an employee from a job. The subsequent permanent displacement of junior service employees by an employee directly displaced from a job in accordance with the above shall also be considered to be a direct displacement due to a technological change.

The displacement of an employee from a job as a result of depressed business conditions, relocation or reassignment of equipment which is not the direct result of a technological change in such equipment, resource depletion or product obsolescence or market shift which is not the cause of the result of a technological change, fault of the employee, or layoffs caused by any strike, slowdown, lockout, sabotage, Act of God, or breakdown, shall not be considered to be a technological change.


Eligibility

16.03An employee, in order to be eligible for a Maintenance of Earnings Benefit must:

  1. Have eighteen (18) or more months of service and

    1. Be permanently displaced from a job to which he has been permanently appointed or permanently assigned, as a direct result of a technological change, or

    2. Be permanently displaced from his job as a direct result of the elimination or amalgamation of such job, or

    3. Be permanently displaced from a job as a result of a permanent closure of an existing facility, and

  2. Have been assigned to the division in which such technological change displacement has occurred, for the three (3) month period immediately preceding such displacement, and

  3. Remain in the employment of the Company during the benefit period, and

  4. Accept the job with the highest rate of pay to which he is entitled and qualified to receive under the terms of the Basic Agreement during the benefit period and continue to accept assignment to any job with a higher rate of pay during the term of the benefit period.


Maintenance of Earnings Benefit

16.04For each pay period during the Benefit Period to which an employee is entitled as provided in Clause 16.05, an eligible employee will be paid a Maintenance of Earnings Benefit, calculated as follows:

  1. A Maintenance of Earnings Benefit differential will be calculated which represents the difference between the Gross Hourly Rate of the job from which the employee was displaced as specified in Clause 16.03(b) and the Gross Hourly Rate of the job to which the employee is permanently assigned at the time of the displacement.

  2. The Maintenance of Earnings Benefit differential will be applicable for each hour worked on a job during the pay period which carries a job class equal to or lower than the Gross Hourly Rate of the job to which the employee is permanently assigned as specified in Sub-Clause (1) above.

  3. In the event that an employee works on a job during the pay period which carries a higher Gross Hourly Rate than the Gross Hourly Rate of the job to which he is permanently assigned as specified in Sub-Clause (1) above, the differential will be reduced by the difference between the Gross Hourly Rate of the job to which he is permanently assigned and any higher Gross Hourly Rate of a job on which the employee works in the pay period.

  4. The Maintenance of Earnings Benefit will represent the total of the earnings calculated in accordance with Sub-Clause (2) and Sub-Clause (3) above plus the balance of the employee's actual earnings during the pay period.

  5. The Gross Hourly Rate of the jobs specified in Sub-Clause (1), Sub-Clause (2) and Sub-Clause (3) above shall include in addition to the applicable Standard Hourly Rate, any other hourly supplementary payments applicable for hours worked on such jobs.


Duration

16.05
  1. An eligible employee will be entitled to have his earnings maintained in accordance with Clause 16.04 for the greater of fifty two (52) pay periods or four (4) pay periods for each year of Company service not to exceed one hundred and four (104) pay periods.

  2. An eligible employee who exhausts the one hundred and four (104) pay periods will further be entitled to have his earnings maintained for an additional twenty six (26) pay periods at fifty (50) percent of his applicable Maintenance of Earnings Benefit.

  3. The period of time during which an employee will be eligible to receive a Maintenance of Earnings Benefit will commence at the beginning of the pay period immediately following the pay period in which the employee became eligible and shall continue for each subsequent consecutive pay periods thereafter for the appropriate number of pay periods to which the employee is entitled as provided above.

  4. Any pay period, during the whole of which an employee is absent from work solely due to sickness or injury (as evidenced by a Doctor's certificate as required by the Company) and is not entitled to any payment from the Company during such pay period, shall, subject to the provisions of Sub-Clause (vi) below, not be counted and the benefit period shall continue for the remainder of its unexpired term commencing with the pay period in which the employee returns to work or would have returned to work following such sickness or injury, provided further that such employee remains in the employment of the Company. The day's pay to which an employee is entitled under the provisions of Clause 11.01 will not be considered as a payment of the Company for purposes of this paragraph.

  5. Any pay period during which, either in whole or in part, an employee is absent from work for any reason other than sickness or injury, shall be considered as a part of the consecutive period of time.

  6. Any period during which an employee is absent from work due to sickness or injury shall be considered as a part of the consecutive period of time, where such employee had been absent from work for the entire twelve (12) months immediately preceding the time that he would have been displaced from the job as specified in Clause 16.03(b).

  7. An employee who is eligible to receive a Maintenance of Earnings Benefit in accordance with the Eligibility provisions as defined herein shall remain eligible for such benefit from the time of his displacement until the expiration of the Benefit Period provided such employee continues to comply with the Eligibility provisions.

Should such employee, as a result of illness or injury (as evidenced by a doctor's certificate as so requested by the Company) be unable to maintain the Gross Hourly Rate of the job from which was originally displaced at any time during his Benefit Period, such employee will receive a Maintenance of Earnings Benefit differential in accordance with the Eligibility provisions for the balance of his Benefit Period.


16.06Payments made by the Company for Maintenance of Earnings Benefits shall be deducted by the Company from the funds in the Technological Change Account. No Benefits will be paid for any pay period in which the Company determines that the funds available in the Technological Change Account are insufficient to pay Benefits in that pay period.


Training

16.07If an eligible employee requires training or retraining, the Company will offer such training or retraining under the provisions of the "Employee Training Program" on a job in his division which would potentially provide as closely as possible the job classification level which he held before his displacement.

If the eligible employee requires training and requests same on a job other than the job designated by the Company, and such requested job would potentially provide as closely as possible the job classification level of the job designated by the Company, he may apply for such training under the provisions of the "Employee Training Program".

In the event that the Company determines that the eligible employee requires training and a training opportunity as specified above does not exist within his division, the Company will, subject to operating requirements and the availability of training opportunities, retrain him for a job in another division which would potentially provide the job classification level which he held prior to his displacement. If the employee accepts such training in another division, he will be entitled to exercise his service record for the purposes of applying for a permanent vacancy on such job. If he is appointed to the job in the new division, he will be transferred by the Company in accordance with the provisions of Clause 7.13(b) of the Basic Agreement. Any such training shall be carried out in accordance with the provisions of the "Employee Training Program".

An employee displaced from a job in accordance with Clause 16.03(b) above will be given preferential consideration for a vacancy in a Trade or Craft Apprenticeship or Assigned Maintenance Training Program, provided that the employee has the prerequisite qualifications as established by the Company.

For the purposes of this Clause 16.07, the provisions of the "Employee Training Program" relating to rates of pay for such training shall not apply during the period that an employee is entitled to a benefit under Clause 16.05 hereto.


16.08
  1. The Company will notify the Union in writing as soon as possible in advance of any technological change which may cause a displacement of employees from their jobs.

  2. There will be a Union Technological Change Committee not to exceed four (4) employees, one (1) of whom will be the Union President/Unit Chair or his delegate, the other three (3) employees as selected by the Union. The Company Committee will consist of the Plant Manager and the Human Resources Manager or their delegates and two (2) other Company representatives.

  3. Meetings between the two (2) Committees will be convened once every three (3) months at a mutually convenient date and time and more frequently on urgent matters as the case may be requested by either party. Time spent at such meetings by employees on such Union Committee will be paid at their average hourly rate during the preceding pay period.

  4. The purpose of such meetings will be to review any technological change and matters which may arise out of such Technological Change as it applies to employees. In advance of such meeting, the parties will establish an agenda of matters to be discussed.

  5. The Company will provide, as soon as practicable, the estimated time frame for the implementation of any technological change and will advise as to the number of employees potentially affected. Such estimates will be refined by the Company from time to time in subsequent meetings.

  6. The Company will each year furnish the Union with a statement showing the net worth of the Technological Change Account and the amounts paid from the account during the preceding year.


16.09In the event any major technological change which will affect a substantial number of employees is introduced during the terms of this agreement, the Company will meet with the Union six (6) months in advance of such implementation so as to review the application of the Technological Change Program with respect to the affected employees.

To this end, it is proposed that a committee be established when required so as to ensure an equitable administration of the Technological Change Program under such circumstances. It is acknowledged that such committee will have the authority to amend by mutual agreement of the committee, where appropriate, the eligibility provisions of Clause 16.03 and specifically Clause 16.03(b). In this regard, the committee will consider the eligibility of employees who have been regularly performing jobs which are eliminated due to a technological change but who are not permanent incumbents of such jobs. For this purpose, an employee who had worked on such job(s) for at least one thousand and forty (1040) hours during the year immediately preceding such elimination, will be considered for an appropriate maintenance of benefit.






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