Memorandum of Settlement: 2006

• Steps for each band according to attached Wage Schedules (See Wage schedules attached in Appendices). Economic increases to be added.
• All former PIPs will be placed in MP-4 band.
• Qualifying accomplishments for former PIPs to coincide with the existing crossover points.
• Top step is equal to 103% for the 2006 schedule (See Wage schedules attached in Appendices, economic increases to be added)
• Re-earnable performance pay at management discretion. Management will furnish The Society with a list how much was paid out and to whom.
• Re-earnable supervisory incentive at management discretion. Management will furnish The Society with a list how much was paid out and to whom.
• For clarity:
  • Incentives will not be included in economic arguments at mediation/arbitration
  • Incentives are not grievable
• Eliminate TMS Schedule and formula, employees to be placed on the band January 2007 (i.e. TMS-04 to MP-4) at a rate that is closest to but not less than their current base salary inclusive of TMS allowance. Over-band TMS staff to be red-circled until such time as the new top-step rate equals or exceeds the red-circled rate. For clarity, TMS employees will receive the TMS allowance in 2006.
• Five bands
• Eliminate 04 Schedule by including training steps in standard progression.
• Make appropriate amendments to the collective agreement (e.g. delete LOU #77)
• Make appropriate amendments to collective agreement items referring to reference point (including but not limited to: Shift Premiums, Shift Differential, Article 65, Article 64) without increasing existing provisions. For example the language for Shift Premium would change to 50% of the equivalent hourly rate of Step 12 of the MP4 schedule per hour worked.
• New Job Evaluation plan implemented end of year 3, with mutual agreement, if no agreement revert to status quo.
• Retain Plan A for Jurisdiction only unless a mutually agreeable replacement can be found
• Placement on new schedule by finding closest but highest step to current base pay
• Excludes Band N (Nuclear Operations) payroll
• Year 1 provide one time lump sum non-pensionable bonus of $2,000 for staff >= 103% reference point (for clarity this applies to staff who are >= 103% reference point following the payout of 2005 Performance Pay)
• Year 2 placement on the bands effective January 4, 2007 (before salary schedules have been escalated). First incentive to be paid out (supervisory and top-step as identified above) in early 2007
• Year 3 first progressions - progression will take place annually on the date that is nearest to the start of the first pay period from their placement on the band/step. (For clarity job changes resulting in a change of step and/or band will reset the annual progression date to the effective date in the position. Hire date will be used for annual progressions for new hires).
• All employees hired on or after January 1, 2006 will be placed directly on the new wage schedules and annual progressions thereafter will be in accordance with the above bullet.
• Those employees >= 103% at time of placement on bands will be green circled.
• Movement through the band can be restricted where the employer demonstrates a performance problem. For clarity, progression restrictions are grievable.
• Movement through the band can be accelerated where management deems appropriate.

• Increase Salary Schedules by 3% effective January 5, 2006.
• Increase Salary Schedules by 3% effective January 4, 2007.
• Increase Salary Schedules by 3% effective January 3, 2008.
• Increase Salary Schedules by 3% effective January 1, 2009.
• Increase Salary Schedules by 3% effective January 7, 2010.

• A Master Agreement covering only broad items such as wages and benefits as agreed to below
• Four Subsidiary Agreements (Nuclear, Fossil, Hydroelectric, Corporate)
• All Subsidiary Agreements to be negotiated and completed by June 30, 2006. If no agreement is reached on the subsidiary agreements the default shall be to use the current language in the subsidiary agreements.
• The term of all subsidiary agreements shall coincide with the term of the Master Agreement.
• Master agreement to be negotiated centrally and ratified by the entire OPG Society membership agree
• The goal of moving items to the subsidiary agreements is to align with the business and simplify provisions

"... The VRA shall remain in effect thereafter except for sections 4.0 and 5.0 of the VRA (outlined in articles 14 and 15 of this agreement) which may be terminated by written notice by either party not less than twelve months prior to the expiry of the collective agreement in operation on January 1, 2016 or any subsequent collective agreement..."

• Collective Agreement Term January 1, 2006 - December 31, 2010 AGREED

• Delete Article 9.4 and remove reference to Article 9.4 in Article 4 (Service Credit Definitions) effective December 31, 2010. AGREED

• Add to subsection 16.7 (a):
  
  Where resolution is not achieved at Step 2, the Society may refer a grievance will automatically advance to Step 3A (expedited arbitration) or Step 3B (regular arbitration) within 30 working days unless withdrawn by The Society.
  
  Grievances not referred within the time limits above shall be considered to be withdrawn. AGREED
  
  
• Arbitrator list (Article 16.10)
  
  • Delete P. Picher AGREED
    
    
  • Add the following language:
    
    
    • The following are agreed to arbitrators under Article 16. With mutual agreement the parties may use other arbitrators who are not found on these lists. AGREED

• Add to 38.5:
  
  In the year in which the employee is first eligible for 25 working days' vacation, he/she shall be granted it in one continuous period if he/she so requests. AGREED

• Add PSA test provided unless covered by OHIP AGREED

• Add the following dental codes as class "B" coverage 25731, 25732 and 25733 AGREED

At any time during the period that this collective agreement is in effect and that either OPG or the PWU members stop their contributions to the pension plan, the Society will be given the opportunity to stop contributions by Society represented pension plan members for an equivalent period.

• buyback of temporary service Subrule 16c(1);
• leaves of absences - Subrule 11(2) leave of absence WITH pay, Subrule 11(6) leave without pay, 11(7) covers sick leave without pay not leading to LTD, 11(7a) covers any leave without pay of less than 15 days in a calendar year and 11(8) covers off sick leave leading to LTD and LTD.
• pregnancy/parental leave - Subrule 11(5)
• broken service - rule 26

• Amend Article 52.3.3(a): the person must travel farther than their previous commute and will receive the mileage to the new work location minus the mileage to the old work location. AGREED
  
  
• Employees are entitled to only one move per household per redeployment or transfer. AGREED
  
  
• Re: Article 53 - Financial Assistance Plan amend brochure to delete paragraphs which reference taxable treatment of "Home Relocation Loan Deduction". AGREED
  
  
• Change the definition of 40 kms to say "Distances on which calculations will be made are land distances by the most direct route." AGREED

• Increase the periodic time on shift to 21 weeks in 2006, 17 weeks in 2007 and 13 weeks per year thereafter in article 59.6 and 59.7

• Extend the current LOUs, as amended below, (122, 124, 125, 126) for five additional years beyond 2006.
  
  
• Delete LOU 153 save and except that Parts 2 and 3 will be maintained for the purposes of establishing a definition of base/non-base work and augmented staff.
  
  
• During the term of this collective agreement (January 1, 2006 to December 31, 2010) no employee will be declared surplus as a direct result of contracting out.
  
  
• Remove payment of $750,000.
  
  
  • Notwithstanding the suspension of Article 67, item 67.6.2 still applies. Management will provide the Society with a list of work being contracted to business organizations under 67.6.2. For further clarity Article 67.6.2 is:
    
    Where a service is obtained for a business organization corresponding to one OPG bargaining unit from another business organization corresponding to another OPG bargaining unit, or a business which has Society-represented employees who are providing the service, The Society will agree to waive the application of Article 67 (Purchased Services Agreement - PSA) provided that such purchased service does not directly result in a surplus of Society-represented staff in OPG. Article 67 shall be applied in the service provider bargaining unit or business where the service provider wishes to purchase external services in order to provide service to another OPG bargaining unit.
  
  
• Notwithstanding paragraph #3 in each LOU #124, #125 and #126, the parties agree to the fixed dollar envelopes as outlined below.
  
  
  • The fixed dollar envelope for Nuclear including Nuclear Waste and Nuclear Regulatory Affairs will be the dollar amounts agreed to for 2006. The proportion of this fixed dollar envelope that represents base work will not exceed 10%. The fixed dollar envelopes will each have a 5% contingency for each year.
    
    
  • The fixed dollar envelope for Electricity Production and each of the Corporate Groups other than Business Development and Energy Markets will be the dollar amounts agreed to for 2005. The fixed dollar envelopes will each have a 7.5% contingency for each year.
    
    
  • The fixed dollar envelope for Business Development and Energy Markets for each year will be $5.5M. For clarity there is a separate agreed to PSA for the Niagara Tunnel which is not included in the envelope. The fixed dollar envelopes will each have a 7.5% contingency for each year.
  
  
• The company will report on an annual basis on the status of its expenditures on the envelopes above.
  
  
• Arbitrations for disputes over amounts above the envelope will be expedited, i.e.
  • Business case briefs no longer than 10 pages;
  • No witnesses;
  • No lawyers (save and except LR and Society staff);
  • Multiple cases per day if possible;
  • Expanded list of arbitrators;
  Agreed to arbitrator(s) will be used who will hear cases on short notice and will give a verbal ruling on the day of the hearing or as soon as possible thereafter.
  
  
• For clarity the intent of these provisions is to reduce the administration associated with the LOU's.

• Delete this Article. AGREED

• Delete Article 80.2. AGREED

• Amend the Article to define reasonable costs as registration/tuition fees and costs for textbooks. AGREED

• Delete items (b) Benefits and (c) Total Compensation. AGREED

• In accordance with Article 99 review all Letters of Understanding and Mid-terms (not otherwise referenced in Management's agenda) for either deletion or renewal. - AGREED

• As of the date of ratification employees working in the Nuclear Business organization will all be part of that organization. AGREED
• JSMC to allocate corporate staff to the Subsidiary Business organizations as appropriate. AGREED
• On an annual basis, the parties will meet to discuss any changes to the organization and realignments as necessary. AGREED

• Transition pay to be repaid to OPG deducting $20 per pay period, commencing as soon as practical in 2006, from the gross pay of each employee until the transition week is fully repaid. If the employee's employment terminates prior to full repayment, any balance owing will be deducted from the employee's final pay. AGREED

• Add language to Article 68 to clarify that schedules 01 and 11 are lateral pay schedules for all purposes under the collective agreement. AGREED

• Amend LOU #119 to "The payment will be made as soon as practical each year." By end of 1st quarter - AGREED
  
  
• Change point 8 to reflect $140,080 cap in 2005 escalated by the regular negotiated annual economic increases. AGREED

• Will be discussed post bargaining with Nuclear Business organization AGREED

• Pursuant to the Shime Award re: Jurisdictional Issues dated September 10, 2004, the Society submitted a list of positions they were challenging in November 2004. Any of the outstanding cases that are not pursued by the submission of a written brief in accordance with the award within 180 days of the signing of the memorandum of agreement are considered withdrawn. AGREED

• In practice the documentation provided under 1(a) and 1(b) have proven to be the same in most circumstances, therefore management proposes that the documentation be provided at Step 1(a) at Step 1(b) management will either send revised documentation or notify the Society that there are no revisions. AGREED

• Refinement and simplification of pre-retirement benefits - the current rules show inconsistencies between single and married plan members - which are not justifiable.
  
  
• Change the membership date to first day of probationary service this requires a Pay System change plus several hundred calculations. The effective date will be January 5, 2006 (which coincides with a biweekly pay cycle). Effective April 1, 2002 - we provided for counting service in days. For anybody who became a member since April 1, 2002 and who had completed a buyback under the existing rule which we interpreted as only providing for purchases in whole calendar months, they would be allowed to purchase the missing days from April 1, 2002 on - to a maximum of 183 days - at the same unit cost as the original purchase. This rule is NOT supposed to open up a new window for those who missed the old window. For anybody who had become a member prior to January 5, 2006 and who had submitted a request under the old rule for an estimate, then they would be provided with a cost and allowed to elect to purchase the requested service in days (ie. they don't have to re elect and there wouldn't be an extension in the deadline just because of this rule change). For anybody who became a member on January 5, 2006 because of this rule change, then they would have the 3 months to complete the process.
  
  
• Commuted values - termination options - there was a problem in that the commuted value for a terminating employee who is age 55 with 15 to 25 years of service did NOT reflect the preferred discount rate. In cleaning up this language, would also maintain the current number of termination options available to avoid the IESO issue (eliminating commuted value options).
  
  
• Family Medical leave and Emergency leave provision - We need an addition to rule 11 to cover off these new leave provisions provided under the Employment Standards Act - otherwise they fall under the ordinary " leave of absence without pay" that isn't sufficient for ESA purposes. Where the Corporation grants leave of absence without pay with respect to family medical leave and emergency leave under the Employment Standards Act, such leave shall be included in the member's continuous employment and upon termination of the leave of absence, the member must contribute to the fund within 6 weeks of being notified by the Corporation of the amount and subject to CRA approvals, the amount the member would have contributed at the member's base earnings if the member wants the period of leave of absence to be included in calculating established service or else forfeit this forever. 11(6) should have deadlines.

• for clarity, does not include 2006 economic increase

• for clarity, does not include 2006 economic increase

• In the case of a partial closure, management will identify employees whose experience skills and qualifications are necessary for the on-going operation of the station based on Unit viability and employee choice (senior choice/ junior force). Management will discuss the foregoing with the Society Vice-President of the OPGI Society local. All other employees not identified, with the exception of those who have accepted a vacancy outside of the station, will elect either A, B or C below.
  
  
• In the case of a full closure, all employees within the affected station, with the exception of those who have accepted a vacancy outside the station, will elect either A, B or C below.
  
  Option A: Voluntary surplus in accordance with the collective agreement. The termination date will be determined by management, however, such termination date cannot be extended beyond 21 months from the date that the employee's application is confirmed and finalized, unless the employee agrees otherwise.
  
  Employees will be allowed to delay their termination dates for a period not to exceed twenty one (21) months in order to achieve the earliest of the following pension milestones:
  
  
  • Twenty-Five (25) years service
  • Rule of 82
  • Or age 65
    
    
  Employees who avail themselves of this option will have their severance reduced by the amount of time elapsed between the date the employee's application is approved and finalized and their actual termination date.
  
  Consideration of voluntary surplus will be based on seniority. Voluntary surplus may be denied in order to maintain the skills and qualifications required to operate the affected plant.
  
  Option B: Employees will rank all of the available EP locations, in order of preference. Placements will be made on a seniority and qualification basis.
  
  Where Option B is elected, the employee must return their rankings within 14 days or they will be deemed to have elected Option A.
  
  Option C: Employees who cannot elect either Option A or Option B because of compelling personal circumstances will identify themselves to management.
  
  

  (i)

  If management agrees that the employee has a compelling personal circumstance the employee will be declared surplus and may use his/her full search notice period as a surplus employee, as of the date of closure, to search for another acceptable position: If located at Atikokan or Thunder Bay, within NW Fossil or NW Plant Group; If at another affected station, within the local community of the affected station.

  (ii)

  If management does not agree that the employee has a compelling personal circumstance, management will meet with the Local Society Vice-President and attempt to resolve the issue. If the issue cannot be resolved the parties agree to expedited arbitration in accordance with paragraph (7) below. If the arbitrator agrees that he/she has compelling personal circumstances, then he/she will be declared surplus in accordance with Option C (i) above. If the arbitrator does not agree that he/she has compelling personal circumstances, then he/she shall have the option of accepting the position under Option B above within two (2) working days or terminating with 75% of lump sum payments as per Article 64.9.2(a).