Part XVI: Letters of Understanding

#1 RE: SOCIETY-MANAGEMENT FUNCTION/ESR BOUNDARY ISSUES
Intent
This LOU seeks to clarify employee rights during the operation of Article 64 related to positions at or near to the boundary between the Society and Management Function and provide an equitable means for employees to participate in competitions or a mix and match and follow their work where it has been transferred in or out of the Society's jurisdiction as a result of a reorganization. It is not intended to provide enhanced employment continuity rights in comparison to employees whose work has not changed jurisdiction.
The Problem
1	Position X is in the old organization and is in the Society. The duties change very little in the new organization but the change is sufficient to alter the jurisdiction of the position (e.g., the span of supervision and control is expanded and there will be more Society direct reports).
	Under the current rules the Society-represented employees currently in position X will not be permitted to compete for the position in the new organization during a mix and match.
2	There is a converse of 1. Position Y is currently excluded from the Society (i.e., MF or ESR). In the new organization the position is substantially the same but the jurisdiction of the job will move to the Society's jurisdiction. Once again, the change is minimal (e.g., there is reduced supervision and fewer or no Society direct reports).
3	Position Z is being formed in the new organization. It appears that it will be excluded/included but there is uncertainty about some factors (e.g., the number of direct reports). Therefore, the jurisdiction is uncertain and may eventually change.
	In this case, Management could make an arbitrary designation as excluded and the Society could challenge the designation later. If Management were to do this, then the Society-represented employees would not be able to compete for the position during a mix and match process. If the ultimate jurisdiction was within the Society, it could be that the selection process would have to be repeated.
	If Management were to designate the position as included in the Society then MF and ESR would be excluded from a mix and match process. A similar result could occur, if the jurisdiction were to subsequently change.
The Solution
A joint process for identifying positions X, Y and Z will be established as follows:
1	Management will identify the X, Y and Z positions and identify the employees who could be adversely affected. The Society will have approval/veto rights. (Note: This is intended to ensure X, Y and Z positions are legitimate and not intended to increase the opportunities for MF and ESR employees or reduce the opportunities for Society represented employees to exercise their seniority rights in the mix and match process.)
2	Category X - These positions will be filled in the MF mix and match or advertised Hydro One-wide using the normal vacancy process if not filled in the mix and match. Society represented employees identified under paragraph 1 will be treated equally to MF employees during a mix and match but may only be selected for Position X. If the position is advertised Hydro One-wide then the employee will be treated preferentially (i.e., be granted the same priority as surplus MF or ESR) for the specified position only. If the employee is not selected, then the employee can exercise all of his/her normal rights under Article 64. Where the employee is not selected for the position, the Society and the employee will be advised of the selection criteria and provided with reasons for non selection.
3	Category Y - These positions will be filled in the Society mix and match or advertised Hydro One-wide using the normal vacancy process if not filled in the mix and match. MF or ESR employees identified under paragraph 1 will be treated equally to Society employees during a mix and match but can only be selected providing they meet the senior qualified criteria for Position Y (i.e., such employees cannot be placed in any other position or displace Society-represented employees). If the position is advertised Hydro One-wide, then the employee will be treated preferentially (i.e., be granted the same priority as surplus Society) for the specified Y position only. If the employee is not selected, then the employee will be treated similarly to other MF/ESR staff in all other respects and have no additional rights.
4	Category Z - The parties will attempt to reach consensus on the jurisdiction of the position based on all available information (which will include an organization chart showing reporting relationships, selection criteria, and description of duties) prior to the selection process. Where consensus is not reached, Management will determine the jurisdiction and the Society will have the right to grieve.
5	The rights of the Society to grieve the jurisdiction of positions are unaffected by agreements reached under this process.
6	This Letter of Understanding expires March 31, 2005.

(Signed by Steve Strome for Hydro One and Keith Rattai for the Society, January 2003)

#2 RE: EXPEDITING REDEPLOYMENT GRIEVANCES AND ARBITRATIONS
The undersigned Parties agree as follows:
Complaint and Grievance Procedure
1.	This agreement applies to grievances arising from the administration of Employment Continuity provisions of the Collective Agreement (Article 64.1.2), including the redeployment process in each Unit of Application, non-selection to positions in the mix and match and non-selection of employees entitled to priority placement in the search/notice period, and to decisions of JROTs.
2.	Except as specified in this agreement, all provisions and practices established in relation to the Complaint and/Grievance/Arbitration Procedure apply to these grievances.
3.	An employee's complaint must be submitted no later than 20 working days after completion of the Mix and Match, e.g. final approval of the JRPT Second Report or equivalent, the JROT decision, or the selection process that includes the decision he or she feels is unfair.
4.	At Step 1 of the grievance procedure, the Society will submit complaints within the scope of this agreement to the relevant JRPT, JROT, and/or line management through Labour Relations Strategy Division. Management and The Society will be given 10 working days to attempt to resolve the grievance. The Society's position on the grievance is not prejudiced by that of Society members of JRPTs or JROTs.
5.	Failing resolution at Step 1, The Society may advance the grievance to Step 2 of the grievance procedure within a further 10 working days.
6.	The Parties will appoint regular and backup members to at least one Standing Redeployment Grievance Team, which will act as a Second Step Grievance Committee according to the terms of the Collective Agreement. The Committee will meet within ten days of a grievance being filed to attempt to resolve the grievance.
7	Failing resolution at Step 2, The Society may refer the grievance to arbitration within 20 working days. The Parties will designate and retain one arbitrator for grievances under this agreement.
Arbitration
8.	The parties will review case by case the appropriateness of the following expedited arbitration process for grievances arising from the Expedited Redeployment Grievance process.
9.	Mr. Joseph W. Samuels, or another arbitrator acceptable to the parties, will be retained as arbitrator for Employment Continuity grievances and he will be asked to deal with agreed-upon cases according to the terms of point 10, below. The arbitrator shall control the proceedings and retain jurisdiction to require further submissions of fact or argument as he deems necessary to determine the matter.
10.	The expedited arbitration process will require the following: each grievance can be heard on one day, more than one grievance may be scheduled per day subject to the arbitrator's direction. the parties will prepare and sign a Joint Statement of the facts giving rise to the dispute, the facts in dispute (to the extent practicable), and any agreement as to the issues to be decided by the arbitrator. The Joint Statement must be developed prior to scheduling the hearing date. each party will present three copies of a Case Statement at the outset of the hearing. The Case Statement will state the issues to be determined, the facts on which the party relies, and a summary of the position of the party, supported by documentary exhibits and references to the Collective Agreement, jurisprudence or other authorities. witnesses may be called where the arbitrator rules that there is a material factual dispute and determines which parts of the evidence sought to be called appear relevant and material to the determination of the grievance. Witnesses will be under oath and subject to examination and cross-examination. oral argument will be limited to the position of the party set out in the Case Statement and the rebuttal of the other party's argument. the arbitrator will determine the matter as soon as possible, with a written decision issued to the parties within ten working days of the hearing date. Failure to meet a time limitation under this process will be deemed a technicality that does not invalidate the proceedings or the award.
11.	Where the parties do not agree that a case is appropriate for this procedure, it will be dealt with by the same arbitrator as a conventional referral to arbitration.

(signed by B.R. Story and M. Germani - June 13, 1995)

#3 RE: FIRST LINE MANAGEMENT SUPERVISORY POSITIONS (TMS)
The parties agree to maintain commitments with respect to the jurisdiction of First Line Management Supervisory positions (TMS) as set out in the following Letters of Understanding, which are in other respects terminated as complete:
a.	Implementation of the Retail Systems Agreement (August 16, 1995);
b.	The Implementation of the Grid System Agreement on TMS (January 30, 1996);

(Signed by Steve Strome for Hydro One and John Cameron for the Society, March 2001).

#4 RE: ALLOCATION OF SOCIETY STAFF TO ONTARIO HYDRO SUCCESSOR COMPANIES
All employees of Ontario Hydro on payroll at December 2, 1998 were allocated to the successor companies/bargaining units: OPGI Non-Nuclear, OPGI Nuclear, OHSC, IMO, ESA.
In certain cases, one successor company/bargaining unit ("service provider") continued to provide a service to one or more successor companies/bargaining units ("service recipient"), after the de-merger of Ontario Hydro (April 1, 1999). In these situations, management determined the number of FTEs required to provide the service, in consultation with the Society.
The employees allocated to positions providing the service shall be subject to the following:
1.	If the service arrangement is later terminated, a number of employees equivalent to the number of FTEs identified above shall be allocated to the service recipient on the basis of seniority and preference, subject to work unit viability and reasonableness as in paragraph 2 above.
2.	An employee who does not wish to resign employment with the service provider may remain with the company/bargaining unit subject to applicable redeployment provisions of the Society's Collective Agreement with that company/bargaining unit.
3.	An employee who is offered a position under this subsection shall be entitled, as an employee of the service recipient, to relocation assistance on such terms as it exists in the collective agreement that applies to the receiving organization at the time of reallocation under this section.

(Signed by Steve Strome for Hydro One and John Cameron for the Society, March 2001).

#5 RECLASSIFICATION OF 40-HOUR FLM JOBS THAT PRIMARILY SUPERVISE NON-TRADES
Without prejudice and without creating a precedent regarding any other matter, the undersigned parties agree as follows:

1.	This Letter of Understanding is intended to address, on an interim basis¹, the problem of appropriately evaluating First Line Manager (FLM) jobs with regularly scheduled hours of work of forty hours per week that exclusively or primarily² manage³ non-tradespersons⁴ under the Trades Management Supervisor (TMS) job evaluation plan.
2.	This agreement applies to incumbents in the Customer Service FLM, the Distribution FLM - Remote Communities Shift Manager jobs and FLM - Field Technical Services ("included jobs"). The incumbents in these jobs as of the date of signing of this agreement are listed in Appendix A. The Society and Hydro One may mutually agree to extend the application of this Letter of Understanding to other jobs consistent with the intent expressed in paragraph 1.
3.	The included jobs will be reclassified MP4 and paid off of salary schedule 01 effective the date of signing of this Letter of Understanding. While these jobs remain on salary schedule 01, incumbents will have all rights under Plan A until such time as the parties have agreed on a replacement job evaluation plan.
4.	Employees shall be given "point to point" (i.e., as if placed at the same performance standing at the MP4 salary grade) retroactive compensation for the period they were incumbents in the jobs listed in paragraph 2 between January 1, 1999 and the date of signing of the Letter of Understanding.
5.	The regularly scheduled hours of work per week for incumbents in included jobs shall be 40 hours.⁵ For the purposes of these jobs only, salary schedule 01 applies to 40 hours per week. As a result, regularly scheduled hours between 35 and 40 hours per week will not be paid on a pro-rated basis.
6.	Management shall expeditiously produce job documents for included jobs reflecting the changes agreed to in this Letter of Understanding. These documents shall provide management with the flexibility to assign incumbents to supervise different employee classifications (e.g., trades, clerical-technical, operators) as required. This provision is without prejudice to whether or not this reassignment creates an "adverse impact" within the meaning of Article 64 of the Collective Agreement.
7.	Except as expressly modified by this Letter of Understanding, all provisions of the Collective Agreement shall continue to be applicable.
8.	This Letter of Understanding shall remain in effect until the earlier of when the parties reach agreement of a new job evaluation plan (pursuant to Section 30.5 of the Collective Agreement) or December 31, 2000. If no agreement on a new job evaluation plan is reached by December 31, 2000, this Letter of Understanding shall continue in effect thereafter subject to termination by either party on 90 days' written notice.
1	"Interim" means until agreement is reached on a new job evaluation plan pursuant to Section 30.5 of the Collective Agreement.
2	"Primarily" means that normally more than 50% of time is spent managing non-tradespersons.
3	In this Letter of Understanding, "manage" is used in the context of the continuation of the jurisdictional commitments given in LOU #3.
4	"Tradespersons" means those recognized as such under the PWU-Hydro One Collective Agreement.
5	For the sake of clarity, Article 69 of the Collective Agreement ("Reduced Base Hours - 40 Hour Workers) applies to incumbents in these jobs.

(Signed by Steve Strome for Hydro One and John Wilson for the Society, July 14, 1999).

#6 RE: PROCESS FOR UPDATING THE HYDRO ONE DRUG FORMULARY TO DECEMBER 31, 2000

A. New Drugs Requiring a Prescription By Law

New "generic substitutes" for "name brand drugs" already listed on the Formulary will automatically be added to the Formulary as soon as they are approved for use in Canada.

New "strengths/dosages/forms" for drugs listed on the Formulary will automatically be added to the Formulary as soon as they are approved for use in Canada.

Out-of-country drugs with the same chemical base as drugs listed on the Formulary will be covered on the same basis as their Formulary equivalent.

The Chief Physician (or other employer-designated decision-maker) shall review all drugs that have been newly approved for use in Canada and advise the employer whether the drug is commonly and customarily recognized throughout the physician's profession as appropriate in the treatment of a patient's diagnosed sickness, injury or condition. The employer will make all reasonable efforts to make this determination as soon as possible after the drug has been approved for use in Canada. When a drug is deemed by the Chief Physician (or other employer-designated decision-maker) to meet this criteria, the drug shall be added to the Formulary.

Any drug on the Formulary that is no longer approved for use in Canada will automatically by deleted from the Formulary effective the date federal approval is withdrawn.

B Over-The-Counter (OTC) Products

A new OTC product that falls into the following categories:

(a)	considered life sustaining;
(b)	different strengths or repackaging of life sustaining products already on the Formulary (same product/same company);
	(a)	products already on the Formulary whose DINs may have changed as a result of a company takeover or reorganization shall be reviewed by the Chief Physician (or other employer-designated decision-maker). The Chief Physician (or other employer-designated decision-maker) will advise the employer whether: a) the OTC product is commonly and customarily recognized throughout the physician's profession as appropriate in the treatment of a patient's diagnosed sickness, injury or condition; and, b) Best Average Pricing (ie. Manufacturer's wholesale price to the carrier) is available for the product. When the OTC product is deemed by the Chief Physician (or other employer-designated decision-maker) to meet this criteria, the product shall be added to the formulary.
		When Best Average Pricing information is not available for an OTC product, a paper claim will be reimbursed subject to determination by the Chief Physician (or other) employer-designated decision maker) that there is no reasonable alternative product on the existing formulary and that the product is commonly and customarily recognized throughout the physician's profession as appropriate in the treatment of a patient's diagnosed sickness, injury or condition.

C. MISCELLANEOUS

The Corporation agrees to provide the following to The Society: a full and complete copy of the list of new drugs approved for use in Canada, as received from the Carrier (usually monthly); a list of (prescription and OTC) items added to the Formulary (including, where applicable, what country it applies to); and, upon written request from The Society, a written rationale for not including a drug on the formulary

Notification of the employer's decision to not add a drug to the Formulary, and any ensuing discussion with respect to the employer's rationale for not doing so:

Shall not be deemed to trigger timelines under Article 16 of the Collective Agreement;
Shall be without prejudice to The Society's position with respect to whether the drug meets the "reasonable and customary" standard; and,
Shall not prejudice The Society's entitlement, or the entitlement of any Society-represented employee(s), to grieve the employer's decision at a later date.

Where a timely grievance is successful, reimbursement for a denied claim shall be limited to the date of claim and retroactive additions to the Formulary shall be limited to the date of claim denial.

The Corporation agrees to provide The Society with an electronic copy of the complete Drug Formulary on a regular basis (calendar year).

The Corporation agrees to install, and update on a regular basis, the complete Drug Formulary on the Intranet.

(Signed by Steve Strome for Hydro One and John Cameron for the Society, July 11, 2000).

#7 RE: HYDRO ONE ACQUISITIONS

Without prejudice and without creating a precedent regarding any other matter, the undersigned agree as follows:

Hydro One Inc. is engaged in the acquisition of various Utility businesses. In most cases, Hydro One Inc. intends to integrate the work force of the Utility with the Hydro One Inc. work force. This Letter of Understanding will apply to all employees the Society represents after the acquisition of the Utility or part thereof.

Upon acquisition of the Utility, or part thereof, and where the Society represents the employees, Hydro One Inc. shall employ in the bargaining unit all employees of the Utility (the "employees") who would typically fit within the Society's recognition clause and shall intermingle such employees and the business of the Utility with its own employees and business. Hydro One Inc. shall provide the Society with Notification of the intent to transfer employees from the Utility to the Society's jurisdiction within Hydro One. A joint review of the employees' classifications shall be conducted to assess how they fit in the bargaining unit as soon as possible and before the transfer of these employees to Hydro One Inc.

Where employment or location protection has been provided as part of the sale agreement, these employees ("protected employees") shall have a protected period which is the period of time beginning when the protected employee commences employment with Hydro One Inc. and ending when the first of any of the following events occurs:

The number of years of protection noted in the purchase agreement, to a maximum of 5 years, have elapsed since the date the protected employee commenced employment with Hydro One Inc.

The protected employee voluntarily obtains another position within Hydro One Inc. in accordance with paragraph 5 below.

The protected employee voluntarily retires or leaves the employ of Hydro One Inc.

The protected employee voluntarily notifies Hydro One Inc. and the Society in writing that he/she wishes to terminate his/her protected period. No such notice shall be served during any period of time when Hydro One Inc. is redeploying other members of the bargaining unit pursuant to Article 64 of the Collective Agreement or any other negotiated redeployment arrangements.

During the protected period, the protected employees shall not be subject to permanent transfer, displacement or any part of Article 64 of the current Society Collective Agreement.

Employees shall carry forward their seniority and service credit from the Utility. Employees shall accrue seniority and service credit under the Collective Agreement for all purposes under the Collective Agreement.

Protected employees shall be eligible to apply for vacancies pursuant to Article 65 and shall be considered at selection priority level (f) for vacancies filled in accordance with Subsection 65.6.3 of the Collective Agreement. Protected employees shall not be given preference or priority consideration over other Society-represented employees in the filling of vacancies other than on the basis of the selection criteria set out in Article 65.

Any positions that are vacant prior to the acquisition and which Management intends to fill shall be advertised in accordance with the applicable section of Article 65 of the Collective Agreement.

No regular Society-represented employee shall be subject to Article 64 as a direct result of protected employees performing their work during the protected period.

Each acquisition, and a list of the associated protected employees, shall be documented on an attachment to this Letter of Agreement.

(Signed by Steve Strome for Hydro One and John Cameron for the Society, September 26, 2000).

#8 RE: CAREER EDGE

Career Edge is a non-profit organization which connects university and college graduates with employers to develop marketable career-related skills to help the individual succeed in today's market place.

Society-represented employees may be utilized to mentor, train and to oversee training related assignments of Career Edge participants. It is expected that any investment of time by Society-represented employees in training and mentoring will be offset by the contributions of Career Edge participants.

Hydro One and the Society support the goal of the Career Edge program. To assist with its objectives, the parties agree to the following:

Participants may have an internship program of either 6, 9, 12 or 18 months.

Hydro One will advise the Society Office of each potential Career Edge opportunity that is within the Society's jurisdiction prior to finalizing an agreement with Career Edge.

Career Edge participants will not become employees of Hydro One.

Career Edge is the legal employer of the participants so all payroll administration and associated liabilities reside with Career Edge.

In order to make the internship as beneficial as possible, participants may be assigned training exercises consisting of work within the Society's jurisdiction.

Participants will not be represented by the Society.

There will be no adverse impact within the meaning of Articles 64 and/or 18 on a Society-represented employee or the Society, including no reduction in Society-represented positions (and associated hiring requirements) nor any displacement of Society-represented employees from their positions, as a result of the Career Edge program.

(Signed by Steve Strome for Hydro One and John Cameron for the Society, September 21, 2000).

#9 RE: IMPLEMENTATION OF BI-WEEKLY PAY

Without prejudice and without creating a precedent regarding any other matter, pursuant to and in full completion of the commitment set out in Article 76, the undersigned parties agree to introduce bi-weekly pay for Society-represented employees in Hydro One on the following basis:

Bi-weekly pay will be introduced the later of January 2002 or when bi-weekly pay is implemented for PWU-represented staff in Hydro One.

In order to facilitate the transition to a bi-weekly pay cycle, Hydro One will advance the equivalent of one (1) week's net pay on the last weekly-pay pay date to all employees except those who elect not to receive this payment in accordance with paragraph 3 below.

Employees will be canvassed to determine whether they wish to receive the advancement described in paragraph 2 above. Failure to respond within two (2) weeks of receiving the option form will result in the employee deemed to wish to receive the advancement.

Employees who receive the advancement will be required to pay it back in equal instalments over six months. Such deductions will be taken directly off the employee's bi-weekly pay deposit. If an employee's net pay is insufficient to cover the required repayment amount, the employee will provide a cheque for the required amount payable to Hydro One.

In the event an employee terminates from Hydro One before repaying the advancement in full, any money owed will be deducted from outstanding monies owed to the employee.

No regular employee will be laid off as a direct result of moving to the bi-weekly pay cycle.

This agreement is conditional upon finalization of an agreement between the PWU and Hydro One on the implementation of bi-weekly pay for PWU-represented staff. In the event that Hydro One and the PWU agree to more provident terms than those contained in this agreement, the Society will have the choice of accepting this agreement or the PWU agreement.

(Signed by Steve Strome for Hydro One and John Cameron for the Society, October 30, 2001).

#10 RE: SOCIETY PERFORMANCE PAY PLAN

Without prejudice and without creating a precedent regarding any other matter, the undersigned parties agree as follows:

The Society Performance Pay Plan (1978, revised 1987) is amended to allow for the payment of one percent increases for employees who are currently at or above 100 percent of the reference point for their salary grade.

All other terms and conditions of the Society Performance Pay Plan and Article 31 of the Collective Agreement remain unchanged.

#11 RE: BIOMETRICS INFORMATION AT THE BARRIE HONOC

It is acknowledged that the introduction of and requirement to provide biometrics information is a condition of employment at the Barrie HONOC.

The collection and use and disclosure of the personal information provided will be restricted to the stated purpose of using biometric templates, which is to secure verification of the identity of individuals for access to the Barrie HONOC facility. The biometric template is not a fingerprint as used in law enforcement.

This LOU does not set a precedent for either party regarding security access requirements at other locations, currently or in the future.

#12 RETURN OF EMPLOYEES FROM INERGI TO HYDRO ONE WAREHOUSE OPERATIONS

Without prejudice and without creating a precedent regarding this or any other matter, the undersigned parties agree to the following:

The purpose of this Letter of Understanding is to identify the employees who are returning from Inergi to Hydro One as a result of the repatriation of the warehouse operations.

The following employees will be transferred from Inergi to Hydro One:

T. Crawford (617911) - Warehouse Operations Supervisor
E. Kapitan (676774) - Warehouse Operations Supervisor
P. Martin (107681) - Warehouse Operations Supervisor

Effective the date of transfer, the above named employees shall transfer all accumulated service, vacation, seniority, sick leave and subject to the agreement of Inergi, pension credits as set out in Articles 4 and 64 for all Inergi and previous Hydro One service to Hydro One. For the sake of clarity, these employees shall be considered employees hired before January 1, 2002 for the purposes of Article 44.

#13 RE: CAREER BRIDGE

Career Bridge is a non profit organization which connects internationally Qualified (foreign trained) Professionals with employers to gain Canadian work experience to help the individual succeed in today's market place.

Society represented employees may be utilized to mentor, train and to oversee training related assignments of Career Bridge participants. It is expected that any investment of time by Society represented employees in training and mentoring will be offset by the contributions of Career Bridge participants.

Hydro One and the Society support the goal of the Career Bridge program. To assist with its objectives, the parties agree to the following:

Internship lengths are of at least 4 months and can be extended to a maximum of 12 months at the discretion of Hydro One.

Hydro One will advise the Society Office of each potential Career Bridge opportunity that is within the Society's jurisdiction prior to finalizing an agreement with Career Bridge.

Career Bridge participants will not become employees of Hydro One.

Career Bridge is the legal employer of the participants so all payroll administration and associated liabilities reside with Career Bridge.

In order to make the internship as beneficial as possible, participants may be assigned training exercises consisting of work within the Society's jurisdiction.

Participants will not be represented by the Society.

There will be no adverse impact within the meaning of Articles 64 and/or 18 on a Society represented employee or the Society, including no reduction in Society represented positions (and associated hiring requirements) nor any displacement of Society represented employees from their positions, as a result of the Career Bridge program.

Hydro One Collective Agreement

Part XVI: Letters of Understanding