Part XVI: Letters of Understanding

Extension of Expiry Dates for Specific Letters of Understanding

In accordance with item 3.9 of the October 26, 2004 Memorandum of Agreement, the parties have reviewed all Letters of Understanding.

The expiry date for the following Letters of Understanding has been extended for the term of the collective agreement, to December 31, 2005.

#4 Re: Pre Mix and Match Surplus Declarations

#5 Re: Society Management Function/ESR Boundary Issues

#8 Re: Shift Differential

#10 Re: Extended Health Benefits

#13 Re: Surplus Staff on Rotations

RE: COMPENSATION AND WORKING CONDITIONS - ESSENTIAL DUTY ASSIGNMENTS

It is agreed that the following provisions will govern the compensation and working conditions applicable to Society-represented staff who are assigned essential service duties.

1.0

General Provisions

1.1

All policies and practices and terms of the Collective Agreement which normally apply to Society-represented staff will continue to apply during a strike/lock-out unless modified, replaced or set aside in accordance with this Agreement.

1.2

All employees, including employees not assigned to work of another bargaining unit, will continue to receive their normal pay rate, including performance standing, for their regular job.

1.3

For those employees who normally work shifts, all existing shift schedule arrangements, including time-balanced schedules, will be suspended from the date the work stoppage commences until the work stoppage ends. Compensation treatment will be equitable for all employees assigned to essential duties during the work stoppage.

1.4

All employees assigned to essential duties will be compensated based on a 35-hour work week. As a minimum, employees will continue to receive pay equivalent to their normal base earnings. For employees whose rate is normally based on a 37.5 hour or 40 hour week, a premium of 0.5 times the hourly rate will apply after 35 hours in a week until their normal hours of work (i.e., 37.5 or 40) is reached. Overtime beyond this will be compensated at the appropriate overtime rate.

A positive time balance will be paid at the termination of the essential service assignment and a negative time balance will be written off.

1.5

For situations involving the crossing of picket lines, refer to Article 77 of the Collective Agreement ("Crossing Picket Lines of Other Unions").

2.0

Compensation - General

2.1

Scheduled Work on Weekdays

2.1.1

Employees assigned to essential work will be compensated at straight time rates for the first seven (7) hours of work. The following seven (7) hours worked shall be compensated at time-and-one-half subject to treatment for employees normally working 37.5 or 40 hours a week as outlined in Section 1.4.

2.1.2

All hours worked in excess of fourteen (14) continuous hours shall be compensated at:

double-time; or

straight time plus an hour off for each hour worked in excess of fourteen (14) hours.

2.2

Scheduled Work on Saturdays, Sundays, and Statutory Holidays

2.2.1

All employees assigned to work shifts and scheduled to work on Saturdays and Sundays will receive straight time pay for the first seven hours worked as part of a normal scheduled work week.

2.2.2

All employees assigned to work shifts will receive straight time pay for the first seven hours worked on a statutory holiday as part of their normal scheduled work week. One hour off for each hour worked up to the statutory holiday credit (seven hours) will be given at a later date acceptable to the employee and Management.

2.2.3

The appropriate shift allowances as per Article 59 ("Shift Work [M&P, TMS, TS, OSS]") and Article 60 ("Shift Work [FM&P]") will be paid to all employees required to work shifts.

2.3

Overtime Worked on Saturdays, Sundays and Statutory Holidays

2.3.1

Employees shall be compensated at time-and-one-half for the first fourteen (14) hours worked on a Saturday.

2.3.2

Employees shall be compensated at double-time for the first fourteen (14) hours worked on a Sunday.

2.3.3

Employees shall be compensated at double-time for the first fourteen (14) hours worked on a statutory holiday. In addition, one hour off for each hour worked up to the statutory holiday credit (seven hours) will be given at a later date acceptable to the employee and Management.

2.3.4

All hours worked in excess of fourteen (14) hours on a Saturday, Sunday or statutory holiday will be compensated at:

double-time; or

straight time plus an hour off for each hour worked in excess of fourteen (14) hours.

2.4

Time Off in Lieu

Employees may choose to be compensated in money, paid time off, or a combination of both for overtime worked while assigned to essential work. Scheduling of time off will be subject to agreement of the regular supervisor following the end of the work stoppage.

3.0

Travel Time

All travel time except time spent in travel when called out for any emergency overtime, will be compensated at straight time. Travel time for emergency overtime will be considered as overtime.

4.0

Expenses

4.1

Reimbursement will be made for appropriate out-of-pocket expenses incurred as a result of undertaking assignments during a strike situation. As such employees should not profit from reimbursement of expenses. Appropriate expenses include, but are not limited to, travel, meals, accommodation, cancellation of vacations, increased child care, and damage or loss of private property.

4.2

Expenses incurred during a temporary assignment will be submitted to the temporary supervisor for approval.

5.0

Essential Work Rating Scale

The Essential Work Rating Scale set out in Attachment A forms part of this Letter of Understanding and will be updated by the Joint Society-Management Committee, prior to application.

(signed by Brian Story, Co-Chair for Ontario Hydro Management and Chris Cragg, Co-Chair for Society, dated June 27, 1994.)

ATTACHMENT A

Essential Work Rating Scale

(A)

WORKING CONDITIONS

Employees who are assigned to essential work will automatically receive credit for this factor. It is assumed the individual will be subjected to pressures, demands or unfavourable/hazardous working conditions which deviate significantly from the norms of the regular position. Employees/supervisors whose work responsibility will increase significantly as a result of a work stoppage may be assigned to special duties by their respective line management.

Payment per Day: $30.00

(B)

SHIFT ASSIGNMENT

Employees who are assigned to work a shift schedule will automatically receive credit for this factor for each day they work the shift schedule.

Payment per Day: $30.00

(C)

SPECIFIC ALLOWANCES

The following allowances are to compensate for situations where employees are required to perform essential work under specific working conditions.

An employee can receive compensation for only one of the following allowances.

24- Hour Availability

An employee who is required or elects to remain at a designated place, other than home (e.g., motel) in readiness to proceed immediately to the work location on a 24-hour basis.

Hours worked by an employee are included in this 24-hour period.

Payment per Day: $46.00

Remaining at Ontario Hydro Facilities on 24-Hour Basis

An employee is required to remain/live at the work location for a 24-hour period.

Payment per Day: $120.00

On-Call Service

An employee is permitted to remain at home following his/her scheduled work but is required to be available to work outside normal working hours.

(Reference: Article 56 - "On-Call Service")

Note: Employees who are required to live at the work location on a continuing 24-hour basis and will be paid for only those hours worked plus the applicable allowances.

RE: PEAK WORK HOURS ARRANGEMENTS

This will confirm the understanding reached at negotiations with respect to Article 72 - Peak Demand Work Arrangements and Appendix XI.

Article 72 contemplates that a joint local team will develop a design for the Peak Demand Hours Arrangement in local areas using Appendix XI as a guideline. The local joint teams will also devise an implementation plan for the arrangement. That plan could involve staffing the arrangement with volunteers on a test basis. The volunteers would have to volunteer for a full 12 month cycle. The fact that an individual did not volunteer will not negatively reflect on his/her performance evaluation. The results of that test application could be reviewed by the local joint team. This review might result in revisions to the arrangement.

It is expected that ultimately the arrangement would become a local Mid-Term Agreement.

(signed by B.R. Story and C.B. Cragg - October 4, 1994 - Joint Society-Management Committee [JSMC])

RE: PRE-MIX AND MATCH SURPLUS DECLARATIONS

Intent

To provide a fair opportunity to retain employment for those employees who are at a substantial risk of being declared surplus within the Unit of Application of those JRPTs yet to conclude their mix and match.

Process

1.0

Employees who are a part of a Unit of Application that has not yet concluded its mix and match and who wish to apply for corporate vacancies may request that they be granted surplus status subject to the following:

1.1

Employees will submit their request to be accorded surplus status to their JRPT. The JRPT will only extend surplus status to those employees who are at real risk of being declared surplus or, subject to confirmation by the JROT, at real risk of not receiving a reasonable job offer. The JSMC will be advised of such employees.

1.2

Employees who are extended surplus status by their JRPT will be provided with a surplus letter as is described in the Employment Continuity provisions.

2.0

The search notice period of an employee who is extended surplus status will begin upon written receipt of his/her Declared Surplus letter.

3.0

This surplus status will be automatically removed when the employee is selected to or placed in an ongoing position. Surplus status will also be withdrawn, at the employee's request, if Management withdraws the vacancy notice in which the employee was seeking priority consideration. In such circumstances, the surplus status will be withdrawn from the date it was issued.

4.0

An employee who is provided with surplus status as described above will be entitled to the same rights as those employees who have been Declared Surplus as a result of a mix and match procedure. Such employees will also be entitled to fully participate in the mix and match process within their own Unit of Application.

5.0

JRPTs will have the responsibility to monitor and update a list of employees to whom they extended "at risk" surplus status.

6.0

This Letter of Understanding terminates on December 31, 2000.

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

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

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.

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).

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:

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.)

Category X - These positions will be filled in the MF mix and match or advertised OPGI - Nuclear-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 OPGI - Nuclear-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.

Category Y - These positions will be filled in The Society mix and match or advertised OPGI - Nuclear-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 OPGI - Nuclear-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.

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.

The rights of The Society to grieve the jurisdiction of positions are unaffected by agreements reached under this process.

This Letter of Understanding expires December 31, 2000.

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

RE: SHIFT DIFFERENTIAL

In agreement renewal negotiations the parties discussed a category of employees who met certain criteria:

they were in positions that had normal hours of work between 4:00 pm and 12:00 pm;

they were in these positions as a result of the mix and match process;

prior to the mix and match process they had normal hours of work between 7:00 am and 6:00 pm.

OPGI - Nuclear agreed that the positions would be eligible for shift differentials.

This Letter of Understanding expires December 31, 2000 unless otherwise extended by the parties.

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

RE: EXPEDITING REDEPLOYMENT GRIEVANCES AND ARBITRATIONS

The undersigned Parties agree as follows:

Complaint and Grievance Procedure

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.

Except as specified in this Agreement, all provisions and practices established in relation to the Complaint and/Grievance/Arbitration Procedure apply to these grievances.

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/she feels is unfair.

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.

Failing resolution at Step 1, The Society may advance the grievance to Step 2 of the grievance procedure within a further 10 working days.

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.

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

The parties will review case by case the appropriateness of the following expedited arbitration process for grievances arising from the Expedited Redeployment Grievance process.

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)

#10

RE: EXTENDED HEALTH BENEFITS

The undersigned parties recognize and accept the fact that OPGI - Nuclear's Extended Health Benefits (EHB) plan is a negotiated plan which can only be revised through negotiations. In an attempt, however, to overcome the inflexibility of this plan on a case by case basis, and on a "without prejudice" basis, the parties also recognize that there may be some situations where a business case can be made that an alternative/different treatment to that allowed by the strict wording of the plan may be mutually beneficial.

As such, the parties agree that where a business case supports such action, and where it is mutually agreeable between OPGI - Nuclear and The Society, OPGI - Nuclear and individual employees may enter into agreements signed by the employee and a Society Principal Officer or Society Staff Officer on a "without prejudice" basis, whereby, for a limited period of time, employees may waive their rights under the EHB Plan and opt for a different or alternative treatment as agreed to by the parties. It is the intention of both parties that this would be done infrequently and only in cases where special requests have been made by individual employees for a different type of coverage. It is further agreed that while employees have no negotiated right to such treatment, the Tripartite Health and Benefits Committee Terms of Reference [i.e. (c)] would allow it to review the experience under this Letter of Understanding when considering adding or subtracting specific entitlements under the EHB Plan in keeping with the progress of medical science. It is further agreed that this Letter of Understanding would not restrict OPGI - Nuclear from considering special treatment on an individual basis in the case of serious hardship.

The individual agreements should contain the following information:

the duration of the arrangement;

current coverage under the EHB plan;

the option chosen;

where appropriate, a clear statement to the effect that the employee is aware that they are opting out of specific items of coverage under the EHB Plan in lieu of alternative or different treatment;

that the arrangement is being entered into on a "without prejudice" basis.

As stated earlier, this Letter of Understanding does not bestow on employees any right under the Collective Agreement to special arrangements, but merely serves to allow, on a case by case basis, where there is mutual agreement, for special requests to be accommodated without increasing the cost of, or entitlements under, the EHB Plan. As such, neither the provisions within the individual agreements or a decision by any party not to enter into such an arrangement are grievable.

This Letter of Understanding expires on December 31, 2000.

J. Wilson (for The Society)

S. Strome (for OPGI - Nuclear)

#13

RE: SURPLUS STAFF ON ROTATIONS

Intent:

To allow surplus employees who are on rotation to extend their employment beyond the expiration of their search/notice period.

1.0

It is possible for employees who are on rotation to continue employment with OPGI - Nuclear beyond the expiration of their search/notice period when the expected duration of their rotational assignment goes beyond the expiry date of their search/notice period.

2.0

The decision to extend employment beyond the expiry of the search/notice period and the responsibility for the employee will be assumed by the receiving unit (i.e., the unit with the rotational assignment).

3.0

Normally, the extension will be for the expected duration of the rotational assignment. Where the line management of the receiving unit deems it necessary, a cancellation provision (minimum of 30 calendar days) can be included as one of the terms of the rotational assignment. This cancellation provision would be identified prior to the commencement of that portion of the rotation beyond the expiry of the employee's search/notice period.

4.0

For the period of employment, following the expiration of the search/notice period, employees will be considered per Clause 65.6.3(f) of the Collective Agreement and will not have priority consideration for corporate vacancies.

5.0

The extension of employment beyond the expiration of the search/notice period shall not be used for the calculation of any other entitlement (i.e., severance, notice of termination, lump sum payments and voluntary resignation) under Article 64 of the Collective Agreement.

6.0

With the exception of the limitations stated in sections 4.0 and 5.0 of this Letter of Understanding, employees whose employment has been extended beyond the expiration of their search/notice period will be treated as regular employees and will be covered by all of the other provisions of the Collective Agreement.

This Letter of Understanding terminates on December 31, 2000.

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

#14

RE: HOURS OF WORK FOR FIELD MANAGEMENT AND PROFESSIONAL (FM&P) STAFF

The undersigned Parties agree to the following changes to hours of work for Society-represented FM&P staff affected by the 1995-98 EPSCA agreements. The assignment of employees to the provisions under this Agreement will be done by Management on a project-site basis.

All relevant policies and agreements, including Article 69, which apply to employees will continue to apply unless specifically stated otherwise in this Agreement.

Normal hours of work shall consist of forty hours per week, worked between Monday and Friday, on the following terms:

(a)

Normal hours of work may be scheduled as 5 days by 8 hours/day or as 4 days by ten hours/day either Monday - Thursday or Tuesday - Friday, but not concurrently on the same project.

(b)

Each project site will notify The Society Unit Director of the hours of work that the site has elected to work (4 days by 10 ours/day or 5 days by 8 hours/day). Normal hours of work will be established for a minimum period of thirty (30) days. If a project site intends to change the normal hours of work, a minimum of fifteen (15) days written notice shall be sent to the Unit Director.

(c)

Day Work

The standard start-time for the day work shall be 8:00 am with a possible one hour variance either way.

(d)

Shift Work

Shift work assignments shall be in accordance with Article 60.

Collective Agreement provisions for time off shall apply except as modified for the following Special Circumstances:

On 10 hour day/shifts the following items will be credited for pay purposes on an hour-for-hour basis:

Vacation

ii.

Floating Holidays

iii.

Sick Leave

iv.

Leave of Absence/Unpaid Time Off

Travel Time

vi.

Medical and Dental Consultations - Periods of less than four hours shall not be deducted from sick leave credits

(a)

In the application of the above-noted items (I), (ii) and (iii), a "day's" entitlement will mean eight hours, i.e., a 10-hour day/shift will constitute one day and two hours deducted from credits.

(b)

When an employee is scheduled to work a 10-hour day/shift and one of the under-noted conditions occurs, a "day" will be considered to be 10 hours.

Jury duty and attendance at court

ii.

Funerals

iii.

Moving Day

iv.

Time Charges for Attendance at Delegates' Council and meetings of The Society's Board of Directors

(c)

On a 10-hour day/shift, basic statutory holiday and special time off provisions remain unchanged in that time off and pay entitlements will continue to be calculated on an eight-hour basis. Staff shall be given the opportunity to recover two hours when a statutory holiday falls on a scheduled 10-hour day/shift and the employee is not given the opportunity to work. Such hours shall be worked at straight time and shall be scheduled by mutual agreement between the employee and his/her supervisor.

(d)

On a 10-hour day/shift, authorized overtime beyond 10 hours work on scheduled workdays and all hours worked on scheduled days off shall be compensated in accordance with the overtime provisions of the Collective Agreement (Article 57).

Any local modification to the conditions surrounding the scheduling of normal hours of work shall be by mutual agreement according to the terms of Article 70.

General Foremen, Supervising Field Technicians, and Field Engineers who are redeployed as a result of Article 64 will do so on the following terms:

(a)

the Unit of Application shall be OPG-wide

(b)

the Parties agree to formation of a standing JRPT to expedite occasional or ongoing redeployment of the above.

This Agreement operates until December 31, 2000 and shall continue thereafter subject to 90 days written notice of cancellation by either party not before October 1, 2000.

This Agreement is without prejudice to either Party's position, and does not create a precedent, in respect of the fairness or appropriateness of any future unit of application, rights relating to hours of work, or any other matter.

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

#15

RE: ARTICLE 20.1(B) PERFORMANCE PAY GRIEVANCE PROCESS

This process applies to individual Complaints and Grievances arising under Article 20.1(b) of the Collective Agreement. Except as modified by this Agreement, the provisions of Article 16 of the Collective Agreement continue to apply.

Time limits for filing a Society Complaint under Article 20.1(b) expire 30 working days from the later of

January 1 of the year for which the pay increase is sought, or

The date on which the employee should reasonably be aware of performance pay standing for the year in which the pay increase is sought.

At Step 1, line management and The Society advocate for each grievor should undertake a fact-finding review and attempt to resolve the Complaint, in accordance with the principles of the Performance Pay Plan.

The Society may advance unresolved Complaints to Step 2 as grievances in accordance with Article 16. The parties shall appoint a corporate Step 2 Committee consisting of a Management representative and a Society representative, to review and attempt to resolve grievances based on the criteria in paragraph 3 and the submissions of line management and The Society advocate, with support from HR Client Services and Society Staff. It is intended that the Committee will schedule multiple grievances to be heard at each meeting. A consensus decision of the Team shall be final and binding.

If the Team cannot reach consensus, The Society may advance the grievance to arbitration as per Article 16.

Unless otherwise agreed to, the payment of any performance increase approved under this process shall be retroactive to January 1 of the year for which the performance increase is being sought.

(signed by Lorraine Irvine for Ontario Hydro and Edik Zwarenstein for The Society, July 15, 1996)

#19

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 Letter of Understanding, which is in other respects terminated as complete:

(a)

Implementation of the Retail Systems Agreement (August 16, 1995);

(b)

Interim agreement on the Reclassification of Hydroelectric BU TMS's (January 30, 1996);

(c)

The Implementation of the Grid System Agreement on TMS (January 30, 1996);

(d)

The Reclassification of the Heavy Water & Support Services Division (HWSSD) Trades Management Supervisors (TMS's) and Trades Supervisors (TS's) (December 3, 1997);

(e)

Fossil Business Unit Local Agreement on Implementation of Requisite Organization (November 19, 1996).

J. Wilson
for The Society

S. Strome
for OPGI - Nuclear

#23

RE: REDEPLOYMENT OF SOCIETY-REPRESENTED EMPLOYEES IN OHN DURING NAOP

The undersigned Parties agree to the following Letter of Understanding without prejudice and without establishing a precedent in respect of any other matter:

Conditions for Expedited Nuclear Redeployment

Attachment 1 shall be the process for redeployment of Society-represented employees (as per Article 3.1 and 3.2) in the Nuclear Unit of Application for the duration o this Letter of Understanding, subject to the following:

(a)

Unplaced employees shall be bridged to future workload through productive or developmental work assignments in functional Nuclear work units, and no employee is to be declared surplus;

(b)

Demoted employees shall be entitled to consideration for any position at or below their previous salary grade in the next Mix and Match;

(c)

Priority selection status for corporately posted vacancies under Article 65.6.3(e) shall not apply for the purposes of the process contemplated under Attachment 1;

(d)

Attachment 1 shall be locally agreed and subject to incorporation in this Letter of Understanding, and further changes shall be subject to approval as Business Unit Mid-Term Agreements (Article 7).

Unit of Application

For the duration of this Letter of Understanding the default Unit of Application:

(a)

for any redeployment under Attachment 1 shall be Nuclear; or

(b)

for any redeployment under Article 64 shall be according to the Business Unit Mid-Term Agreement "Re: Nuclear Unit of Application - Future Downsizing" dated November 17, 1993;

(c)

the Unit of Application shall not include employees who are identified as members of a different Unit of Application pursuant to provisions of the Collective Agreement in effect at the time.

Joint Redeployment and Planning Team

Nuclear shall form a standing Joint Redeployment Planning Team (JRPT) which shall be activated from time-to-time for purposes of redeploying staff under either Attachment 1 or Article 64 on the following basis:

(a)

Management shall provide timely notice of a planned reduction or downgrade of positions at any location; and

whenever Management confirms the conditions set out in Paragraph 1 will be met, the JRPT shall apply the redeployment process in Attachment 1, or

ii.

if any conditions of Paragraph 1 is not met the JRPT shall plan and implement the redeployment process under the provisions of Article 64.

(b)

an employee who has been matched through the operation of Attachment 1 or Article 64 and whose position is subsequently downgraded prior to December 31, 1999 shall be subject to redeployment at the previously matched level under either Attachment 1 or Article 64, as applicable in the circumstances;

(c)

the JRPT shall have a continuing responsibility to review and match surplus or unplaced employees on the basis of seniority and qualifications to any lateral or lower rated Nuclear Society vacancy posting.

(d)

where Attachment 1 is being implemented, the JRPT shall operate by consensus and provide a consensus Report including all currently planned redeployment outcomes, which shall be subject to approval of the Chief Nuclear Officer or designate.

Dispute Resolution

Where the JRPT reaches impasse in implementing Attachment 1 or does not agree whether Attachment 1 applies in the circumstances, the impasse shall be resolved as follows and the JRPT shall continue with the redeployment thereafter:

(a)

after giving 48 hours written notice of any issues it considers in dispute, either Party may refer these issues for final and binding resolution to the arbitrator designated under the Letter of Understanding "re: Expediting Redeployment Grievances and Arbitrations", who shall rule within 24 hours of hearing, with written reasons to follow;

(b)

the arbitrator shall have the powers of an arbitrator under the Labour Relations Act, with jurisdiction to determine procedure and make such orders as required to resolve disputed issues consistent with this Letter of Understanding and the Collective Agreement;

(c)

this procedure does not apply to complaints regarding qualifications or reasonable offer challenges of individual employees or positions, which if not resolved by the JRPT shall be dealt with by the grievance procedure;

(d)

individual employees and The Society reserve Article 64.1 grievance rights with regard to the outcome of the process in Attachment 1, but the decision of the arbitrator under this section shall not be the subject of a grievance.

Relocation Assistance

⁹An employee who owns a home and who is selected or transferred from the Bruce site to either Darlington, Pickering or Nuclear Head Office under the terms of this Letter of Understanding, will be eligible for the following additional incentive to compensate for the decline in real estate value at the Bruce site.

A forgivable advance equal to the greater of $24,000 or twenty-five percent (25%) of the approved current value of your principal residence minus appropriate statutory deductions.

This advance will be forgivable at the rate of 1/24th per month over a period of twenty-four (24) months for each month the employee remains in the employ of OHN. Unforgiven amounts must be repaid to OHN within 60 days of the employee's termination.

The above advance would be paid when the employee is actually transferred to the new location under this Letter of Understanding.

For employees receiving living expenses, rather than commuting, during the transition period of a relocation or while on a relief or rotational assignment, OHN shall pay mileage expenses for a weekly trip home if the employee utilizes it.

Related Agreements

The provisions of the Letter of Understanding "re: Expediting Redeployment Grievances and Arbitrations (June 13, 1995) shall apply to any grievances arising under this Letter of Understanding.

Except as expressly modified by this Letter of Understanding or Attachment 1, all provisions of the Collective Agreement shall continue to be applicable.

Operation and Future Consideration

This Letter of Understanding and Attachment 1 shall operate within Nuclear or a successor thereof, effective the date of signature, until December 31, 2002 and shall continue thereafter subject to 90 days written notice of cancellation by either Party.

10.

Employees from the Bruce site selected to regular positions in Nuclear on or after September 1, 1997 to the date of signing this Letter of Understanding shall have the retroactive benefit of paragraph 5.

11.

Agreement on this Letter of Understanding is subject to ratification by The Society's Board of Directors.

⁹ Note: Per LOU#158 Item 5 of this agreement is no longer in effect.

J. Wilson for The Society		G.M. McTavish for Ontario Hydro
	June 19, 1998

Letter

June 19, 1998

John Wilson
President
The Society of Ontario Hydro
Professional and Administrative Employees
525 University Avenue Suite 630
Toronto, Ontario M5G 2L3

Dear John

Bruce Nuclear Redeployment

This will confirm certain agreements reached during Framework Negotiations regarding the application of paragraph 5 of the Letter of Understanding regarding Redeployment of Society-Represented Employees in Nuclear during NAOP, and Part XI of the Collective Agreement:

(a)

Subject to (b), all other applicable relocation assistance (Part XI) provisions as stated in the current Collective Agreement shall apply;

(b)

notwithstanding (a), an employee who is entitled to the benefit of paragraph 5 of the Letter of Understanding, and who also has entitlement under the Housing Evaluation and Guarantee Plan, shall receive the greater of the two benefits, but not both;

(c)

paragraph 5 of the Letter shall apply to employees who are redeployed or accept a job offer from Bruce site to the Nuclear locations referred to;

(d)

it is understood that all Nuclear work locations shall be considered to be adjuncts of one of the locations referred to in paragraph 5 for the purpose of that paragraph;

(e)

the "approved current value" shall mean the Purchase Guarantee price under 51.2 of the Collective Agreement;

(f)

the incentive shall be forgiven for each month the employee remains an employee of Ontario Hydro or a successor thereof;

(g)

the repayment obligation shall apply only in the event of voluntary resignation from Ontario Hydro or a successor thereof, or termination for cause, but not to al termination pursuant to "voluntary surplus" under Articles 64.4.4, 64.6.4.2 or 64.9.2;

(h)

the date the employee is "actually transferred" refers to the date the employee is required to report for duty at the new work location for employees electing $24,000 and the earlier of date of payment under the Purchase Guarantee or closing date for employees electing 25%;

(i)

the $24,000 commitment shall apply to persons transferred from the Bruce site who do not sell their homes, and they shall be entitled to transitional costs where applicable;

(j)

the $24,000 commitment and applicable transitional costs shall apply to a person who owns a principal residence as described in Section 1.2 Note 5 of the "Relocation Assistance Benefits" Brochure 1995, and is transferred from the Bruce site as contemplated in paragraph 5 of the Letter of Understanding;

(k)

the above is entered into on Management's undertaking that relativity is being maintained with the PWU in respect of relocation assistance during NAOP, and paragraph 5 shall be interpreted to result in an entitlement of Society-represented employees that is not in any respect less than exists under the PWU Mid-Term "Agreement on Lateral Transfer" (May 29, 1998), the related joint Question and Answer document dated June 12, 1998 or the 1998 PWU contract renewal process.

This letter has the status of an agreement pursuant to the Collective Agreement, effective for the duration of the above cited Letter of Understanding.

Yours truly,

G.M. McTavish
Vice President - Labour Relations
Corporate Human Resources

ONTARIO HYDRO NUCLEAR REDEPLOYMENT PROCESS

Submitted by: JRPT Team:

Management Representatives:	Society Representatives:
Brien Stewart	"Andrew Muller"
Doris Myers	"Andrew Muller" for Bob Wells
Gary Gough	"Andrew Muller" for Dave Tomlinson
Bob Morrison	"Robin Manley"
Ivars Starasts	"Trevor Gibbs"
	"Blaine Donais"

(signed by Ontario Hydro by G.M. McTavish and L. McRae June 19, 1998)

Approved by:

Chief Nuclear Officer
G. Carl Andognini

Introduction

The redeployment of employees from the old organization to the new organization requires the full cooperation of everyone involved. The JRPT has designed this process on the assumption that employees will be able to provide sufficient details on their qualifications that will allow the JRPT and ultimately Management to make objective decisions with respect to the employee's suitability for positions.

Employees are responsible for completing the required forms and submitting forms to the JRPT.

Management will be responsible for:

Developing job documents for the purposes of assessing qualifications
Assessing qualifications for given positions and determining who is qualified for a given position under consideration by the JRPT.

The Joint Redeployment Planning Team will:

Manage the process described below.
Ensure conformance with the process and deal with exceptional matters as they arise.
Match the employees to available positions as set out in the below process.
Communicate relevant information at appropriate milestones.
Prepare a report describing the outcome of the mix and match process.
Prepare a list of the names of all employees and their respective placements.

The JRPT will review critical positions (as described by Management) for advance posting and filling. These positions will be subject to 2.2.10.

Redeployment Process

1.1

Pre-Steps (steps taken prior to the Mix and Match process)

2.1.1

Ontario Hydro Nuclear Management will provide details on the new organizational structure at a detail level that will indicate the classification, location, number of positions in the new organization and priority of staffing the position. A listing of existing staff by category and location will be provided. Management will provide an up-to-date OHN employee database. Management will identify (in writing) the qualifications and selection criteria for positions without incumbents.

2.1.2

The redeployment team will consider promotions on the basis of Article 64.6.3, 2nd paragraph. Groups and salary grades to be determined by the JRPT.

2.1.3

All employees will be required to submit a Fact Sheet and a list of irrevocable location and job preferences. The template will be provided by the JRPT.

2.2

Redeployment Process Steps

The Redeployment process will take the following steps:

2.2.1

Determine Incumbents/Non Incumbents/Vacancies

Management to prepare list of employees, list of positions, designate incumbents, review with Site Joint Implementation Team (JIT). The JIT's will consist of equal numbers of Society and Hydro representatives and shall make decisions on a consensus basis as defined in The Society Collective Agreement. The incumbency rules will be as follows:

Incumbency Rules

Salary Grade (same)
Similar Job Duties (Majority of duties and responsibilities that you were doing in your base position).
Hours of Work (same)
Work Location Unchanged

i.e.	Headquarters Bruce Site Pickering Site Darlington Site

2.2.2

Confirm Incumbents (NO JROT)

The JRPT will confirm all incumbency decisions made by the Site Joint Implementation Teams. The Main Team will review all issues brought to it by the JIT's and make final decisions with regard to who is an incumbent. Incumbents will not be allowed a JROT although the decision to make them incumbent is subject to grievance under The Society Collective Agreement

2.2.4

Notify Incumbents/Non Incumbents (Appeal Process to Main Team after review by Site JIT)

The incumbents and non-incumbents will be notified of their status. They must appeal within 24 hours. Appeal based upon ensuring the job meets the definition of incumbency rules in 2.2.1 and to ensure suitability of the person for the duties and responsibilities.

2.2.4

Match Non Incumbents to Lateral Same Site Vacancy (Senior Qualified)

As a first step all non-incumbents will be matched to lateral vacancies in their home site organizations at their base location (i.e. Bruce, Darlington, Pickering, and Headquarters).

Matching Rules

In addition to the rules set out in the Collective Agreement, the following rules will apply to matching for same site vacancies:

Location (same)
Hours of work (same, then different)
Equal Salary Grade (e.g. TMS3/MP2/OSS9)
Possibly different duties but qualified
Start with MP6 (Most Senior)

2.2.5

Work Unit Viability* Check - All Locations

Determine viability needs of non-Bruce sites. Check to determine if staff who volunteered to relocate from Bruce site can be released to off-site positions.

2.2.6

Match Releasable Bruce site Volunteers to Off-site Lateral Vacancy

Those on the Bruce site who have volunteered to transfer off-site will be matched to off-site vacancies on a senior and qualified basis.

2.2.7

Match Releasable Bruce site volunteer demotions to off-site vacancies.

Those volunteers who have not been matched to lateral off-site vacancies and who volunteered to take a demotion to move off-site will be matched to demotional vacancies.

2.2.8

Match Unmatched Bruce to Bruce Lateral Vacancy (Senior Qualified)

After the releasable volunteers have been matched, remaining unmatched employees will be matched to positions vacated by the releasable volunteers in the Bruce on a senior and qualified basis.

2.2.9

East Unit Viability Check

Determine if the volunteer matches from above, have resolved any of the viability concerns identified in 2.2.5.

2.2.10

Forced Matching

Force match unmatched non volunteers Bruce site staff to off-site lateral vacancies on a junior basis.

The most junior employees who remain unmatched to positions at the Bruce will be matched to lateral vacancies off-site.

Force match remaining unmatched staff at all locations into demotion vacancies. This will be done on a reverse order of seniority (junior) basis.

Parts a and b will be run concurrently. The JRPT will have to ensure the outcome of this step respects Seniority and Qualifications.

2.2.11

Viability Check* - Bruce Site

*Viability Check as defined in Article 64.6.3(a) of the Collective Agreement. Requires detailed written explanation by line management as to why they are making the request of the Joint Team.

The JRPT will agree on how to meet viability requirements and will act to do so. If a viability concern continues to exist after the Mix and Match process is complete, the JRPT will then attempt to address the concern using one or more of the following options prior to forced matches: call for specific volunteers; Corporate-wide vacancies; hiring externally; forced rotations and/or relief assignments in order to bridge for training; external contractors.

Those employees who are force matched from the Bruce Site and are eligible for assistance under Article 52 will not be force matched again through this work unit viability process in a way that would make them eligible for Article 52, for the duration of the Letter of Understanding.

Those employees who are on forced rotation for viability reasons from or to the Bruce during this LOU will be allowed to work the equivalent of 10 days in a 9 day period.

In the event of an unresolved dispute the JPRT will utilize the expedited dispute resolution process to determine the viability issue and to meet viability based on a balance of fairness to affected employees and business needs of OHN.

2.2.12

Employment Equity Check

As in Article 64.6.3(b) of the Collective Agreement.

2.2.13

Issue Letters to staff identifying placement

After the process is complete staff will be issued letters identifying their placement.

3.0

Joint Reasonable Offer Team Process (Art. 64.7.3)

A Joint Reasonable Offer process will be established so that employees have an avenue to appeal offers made during the mix-and-match process. The JROT will meet to render a decision within 3 working days of receipt of the appeal (Art. 64.7.3) There will be no surplus entitlements if an offer is found to be unreasonable. Instead, offers determined to be unreasonable will be substituted with a reasonable position by the JIT.

4.0

Schedule

Both parties will make their best efforts to complete the redeployment process as expeditiously as possible. The following schedule consists of target dates for completion of the process. It is recognized that many variables may affect the completion dates and the team will amend the target dates where it considers it necessary. Failure to meet these target dates are not to be construed as justification for invoking the defaults under Article 64.

4.1

Report #1 completed by the JRPT Members

June 18, 1998

4.2

Report #1 reviewed and accepted by C.N.O.

June 18, 1998

4.3

Incumbency Process Complete

July 6, 1998

4.4

Mix and Match Process Complete

August 6, 1998

4.5

JROT Complete

August 14, 1998

4.6

Report #2 Signed by JRPT

August 21, 1998

4.7

Report #2 Approved

August 28, 1998

#24

RE: REIMBURSEMENT FOR BNPD HOME EQUITY LOSS

Without prejudice and without establishing a precedent in respect of any other matter, the undersigned Parties agree to the following regarding Paragraph 5 of the Letter of Understanding "re: Redeployment of Society-Represented Employees in OHN during NAOP" ("NAOP Benefit"):

In order to qualify as a "housing loss" in this Letter of Understanding:

(a)

the loss must be realized by selling the residence to an "arm's length" person;

(b)

the loss is equal to the employee's purchase cost of his/her residence plus applicable capital improvements minus the sale proceeds;

(c)

the employee must provide appropriate documentation of his loss to Ontario Hydro;

(d)

the employee must start work at a new Ontario Hydro location;

(e)

the employee's new domicile must be 40 kilometers closer to the new OPGI - Nuclear work location than the former residence.

Where an employee is entitled to a reimbursement under the HEGP in the Collective Agreement in force at that time:

(a)

reimbursement under the HEGP will be considered before any entitlement is determined under the NAOP Benefit;

(b)

the employee's entitlement under the NAOP Benefit will be reduced by any reimbursement made under HEGP;

Any amount paid under the HEGP that meets the criteria in paragraph 1 above, will be subject to statutory withholding as a "housing loss", on the following terms:

(a)

where the amount reimbursed under the existing HEGP is more than or equal to the benefit calculated under the NAOP Benefit, the employee will not be entitled to any payment under the NAOP Benefit;

(b)

where the amount reimbursed under the HEGP is less than the benefit calculated under the NAOP Benefit, the employee will be entitled to an amount equal to the difference between the benefit calculated under the NAOP Benefit and the amount reimbursed under the HEGP< hereinafter the "difference";

The entitlement to the "difference" in paragraph 3, above, will be satisfied under either (a) or (b) below, as applicable:

(a)

where an employee has realized a "housing loss" greater than the amount reimbursed under the HEGP,

the employee has an "excess housing loss" which is equal to the lesser of either (1) the amount by which the "housing loss" exceeds the amount reimbursed under the HEGP or (2) the "difference";

ii.

the employee may request reimbursement of this "excess housing loss" which will be subject to statutory withholding as a "housing loss", and if the reimbursement of "excess housing loss" is less than the "difference", the balance of the "difference" will be paid to the employee subject to full statutory deductions;

(b)

where the employee has not incurred an "excess housing loss" as under (a) above, the amount of the "difference" will be paid to the employee subject to full statutory deductions.

Where an employee is not entitled to a reimbursement under the existing HEGP in the Collective Agreement, payment shall be as follows:

(a)

if the employee has incurred a "housing loss" as defined in paragraph 1, above, the employee can claim a reimbursement of the "housing loss" not to exceed the entitlement allowed under the NAOP Benefit, which will be subject to statutory withholding as a "housing loss";

(b)

if the "housing loss" in (a) above is less than the full amount of the entitlement under the NAOP Benefit, the balance will be paid to the employee subject to full statutory deductions;

(c)

if the employee has not incurred a "housing loss", the entitlement allowed under the NAOP Benefit will be paid to the employee subject to full statutory deductions.

Any payment or reimbursement by the employer is subject to the Income Tax Act and each Party will bear its own costs related to any redetermination.

This Letter of Understanding operates for the duration of the LOU "re: Redeployment of Society-Represented Employees in OHN during NAOP" and G.M. McTavish's letter dated June 19, 1998, all provisions of which remain in force unless expressly modified herein.

(signed by Steve Strome for Ontario Hydro and John Wilson for The Society on November 4, 1998)

#30

RE: PROCESS FOR UPDATING THE DRUG FORMULARY TO DECEMBER 31, 2000

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 automatically be added to the Formulary as the need arises.

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 be deleted from the Formulary effective the date federal approval is withdrawn.

OVER-THE-COUNTER (OTC) PRODUCTS

A new OTC product (excluding Vitamins and Minerals) that has been approved for use in Canada, that falls into the following categories.

(a)

for allergies

(b)

for chronic illness

(c)

considered life sustaining

(d)

previously "requiring a prescription by law' and already on the Formulary

(e)

different strengths or repackaging of products already on the Formulary (same product/same company)

(f)

products already on the Formulary whose DINs may have changes 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.

Vitamins and Minerals which have been approved for use in Canada and which have the same chemical base as items currently on the Formulary will be added to the Formulary effective the date Best Available Pricing information is made available to the Carrier (ie. Manufacturers' wholesale price).

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.

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

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

#68

RE: CENTRALIZATION OF THE ORGANIZATION REPORTING TO THE CHIEF INFORMATION OFFICER

Purpose/Scope

1.1

To transfer identified employees (see section 3 below) to the organization reporting to the Chief Information Officer (CIO) and to deal with matters related to those transfers.

1.2

Except as expressly modified in this Letter of Understanding, all provisions of the Collective Agreement shall continue to be applicable.

Preamble

2.1

The vision for the CIO's organization is to:

provide the most reliable and cost effective information technology systems to Ontario Power Generation Inc. (OPG);
plan to support all current OPG and new generation assets in North America;
understand that in a competitive energy environment "joint operating agreements" are common and that the best Information Technology (IT) organization will support a generation asset, regardless of who owns the electricity output;
ideally, perform work internally where employees can perform it well and effectively.

1.2

OPG and The Society of Ontario Hydro Professional and Administrative Employees (The Society) agree that the CIO's vision shall be pursued having due regard for the need to:

treat Society represented employees in a fair and equitable manner;
protect, to the greatest extent possible, the employment security of Society represented employees;
vigorously pursue training and career development for Society represented employees so that they remain a valuable asset of the CIO organization.

Organization Transfers

Employees identified in the attached organization charts and lists, which charts and lists shall form part of this Letter of Understanding, will be transferred to the CIO organization and the OPG (non- Nuclear) bargaining unit effective the date of approval of this Letter of Understanding. Society represented IT employees in what is currently known as Ontario Power Technologies (OPT) will have the opportunity to be transferred to the CIO organization.

3.1

Transferring Employees After the Implementation of the CIO Organization

All Society represented employees dedicated fully to Information Technology (IT), including employees currently assigned to Y2K projects, will be transferred to the CIO organization effective the date of approval of this Letter of Understanding. Should other Society represented IT employees be identified after the date of approval of this Letter of Understanding, they will be transferred to the CIO organization following discussions with and the agreement of the Society.

3.2

The CIO Organization

The CIO organization includes employees involved in Information Technology (IT) as described below.

Definition

Information Technology is any business solution that supports an organization to achieve its business objectives; for example:

business applications development and support;
call centre support;
centralized computer system configuration and management;
mainframe data centre configuration and support;
distributed computing (e.g., desktop, LAN shared services and peripherals);
database technology;
voice technology and network.

Unit of Application

For the duration of this Letter of Understanding, there will be one unit of application for all employees reporting to the CIO.

Other Commitments

Management shall complete the commitments set out below in 5.1 and 5.2.

5.1

Review of Job Documents

Rewrite job documents to move toward more generic job documents.
Rationalize pay grades.
Review internal relativity and make changes/improvements where necessary.
Develop a limited set of job descriptions.
Review and revise, as necessary, the Promotion in Place (PIP) documents that are currently in operation in the CIO organization.
Where PIPs are not in place, management will identify advancement criteria from one pay grade to another and integrate those advancement criteria with the Personal Development Plans (PDPs - see 5.2 below) of Society represented employees. The identification of advancement criteria and their integration with PDPs will not guarantee advancement/promotion, but will identify for employees what is required of them to be advanced/promoted.

It is expected that the commitments in 5.1 will be completed by August 31, 1999.

5.2

Employee Training and Development

It is important to keep employees' skills current.
On average, every employee will receive a minimum of 20 hours of IT specific technical training per year. Over a three-year period, an employee will be provided with, on average, 120 hours of technical training. This commitment does not provide a guarantee for any specific employee, but is an average for the CIO organization that will be maintained. These commitments to provide training become effective June 1, 1999.
Non-technical training will be provided to employees where it is required for their career development. The commitment to provide non-technical training is separate from and in addition to the required amount of technical training.
Training will be linked to, and integrated with, both the employees' Personal Development Plans (PDPs) and the CIO organization's business plans.
Management will begin the process of developing Personal Development Plans for all employees.
Every Society represented employee in IT will have a PDP and his/her training needs identified no later than October 1, 1999.
A joint review of training will take place in January, 2000. The purpose of the review is to ensure that training has taken place and is scheduled to take place in accordance with the commitments set out in 5.2.

Article 64

Article 64 will not be invoked in the CIO organization until:

the commitments in 5.1 have been met; and,
the commitments in 5.2 have been demonstrated to be in place or satisfactorily in progress*; or,
the expiration of the 1999-2000 Collective Agreement.

* The three-year training commitment set out in 5.2 will be deemed to be "satisfactorily in progress" and this management commitment to have been satisfied if by December 31, 1999 Society represented employees in the CIO organization have been provided, on average, with 10 hours of technical training.

Purchased Services

7.1

Management will identify all contractors performing work in the CIO organization. All current contracts will be jointly examined no later than June 30, 1999 to determine the extent of the use of purchased services in the CIO organization.

7.2

A new purchased services implementation plan will be jointly developed for the CIO organization (pursuant to subsection 67.6.1 of the collective agreement) that will guide management and Society decision-makers. The new implementation plan will be developed in keeping with the CIO's perspective on the appropriate use of purchased services.

Relocation Assistance

All of the entitlements described in paragraphs 5 and 6 of the Letter of Understanding "Redeployment of Society Represented Employees in OPGIN During NAOP" shall continue to apply to employees at the Bruce site. The letter dated June 19, 1998 from the Vice President - Labour Relations (Corporate Human Resources) to John Wilson, President of The Society of Ontario Hydro Professional and Administrative Employees and captioned "Bruce Nuclear Redeployment" shall also continue to apply to employees located at the Bruce site.

Duration

This Letter of Understanding shall operate until December 31, 2000 and shall continue thereafter subject to 90 days' written notice of cancellation by either Party.

Brian Story For Ontario Power Generation Inc.	John Wilson For The Society
May 18/99	May 18/99
John Mather EVP Chief Information Officer	Gary Knowles Society Unit Director (CIO)
May 19/99	May 18/99

#73

RE: EXPEDITING SOCIETY/OPG JURISDICTIONAL ARBITRATIONS (NUCLEAR)

Without prejudice and without creating a precedent in respect of any other matter, the undersigned Parties agree to the following:

This Agreement applies to jurisdictional grievances advanced by the Society pursuant to Articles 2 and 16.3 and other relevant provisions of the Nuclear Collective Agreement which do not involve the interests of any intervening trade union.

The referral to arbitration shall be made by the Society delivering a brief to OPG setting out the facts and evidence on which it relies. OPG shall deliver a responding brief within 20 business days thereafter, and the Society may file a reply brief within a further 10 business days after receipt of the responding brief.

If a party does not deliver a brief within the above time lines it may only file a brief and lead evidence at arbitration with leave of the arbitrator, on such terms as the arbitrator may impose.

Arbitrations will be held in an expedited med./arb. format. The arbitrators will be selected from the following group:

Jules Bloch

William Kaplan

George Surdykowski

This roster of arbitrators will be reviewed by the parties every year that this agreement continues. Prehearing issues may be referred to Jules Bloch or his designate for resolution

Arbitrations will be based primarily on written briefs, which are prima facie evidence of the truth of their contents. Oral evidence will be limited to matters on which the arbitrator so directs, and no party shall introduce oral evidence of matters that are not contained in their brief, except with leave of the arbitrator. Prior settlements made without prejudice and without precedent shall not be determinative of any grievance.

In addition to jurisdiction under the collective agreement under which the dispute was filed, the arbitrator shall have the jurisdiction set out in s. 99 of the Ontario Labour Relations Act, 1995, except that the arbitrator shall not have power to alter a Society bargaining unit as determined in a certificate and/or defined in the Voluntary Recognition Agreement or an applicable collective agreement.

Arbitration awards will be precedent setting.

The parties agree that arbitrator George Adams shall decide the issues raised in the "Referral to Arbitration - Policy Grievance re Excluded 'Individual Contributor' Positions" (December 10, 1997) at a hearing scheduled [SUBJECT TO CONFIRMATION - February 29, 2000] or his first available date thereafter, and shall issue a pattern-setting award on the following terms:

On or before November 15, 1999 the Society will identify up to four reference positions to provide a factual foundation and by November 26, 1999 OPG will provide all current and predecessor job documentation (including TIRRs and TARRs where applicable), current organization charts, and any other current documentation of the nature and function of the work organization relevant to these positions;

The Society will file its Primary Brief by the later of December 10, 1999 or within 15 business days of receiving the complete reference material; OPG will file a Responding Brief by the later of January 28 or within 30 business days of receiving the Society's Primary Brief, and the Society will file its Reply Brief by the later of February 15 or within 10 business days of receipt of the Responding Brief;

Arbitrator Adams will have jurisdiction as set out in other provisions of this Agreement except that either party, on request, shall have the fight to oral evidence including proof of documents and cross-examination;

If either party intends to call oral evidence it will provide the other party with a will-say statement of all such evidence not less than ten days prior to the hearing;

Any individual contributor grievances which are not expressly decided by arbitrator Adams award may be referred by the Society to another arbitrator under the provisions of this Agreement.

Except as expressly modified herein, all relevant provisions of the Society's Collective Agreement shall continue to apply.

10.

Either party may withdraw from this agreement on six months written notice to the other party.

John Wilson On behalf of the Society		Brian Story On behalf of OPGI
	Nov. 9/99

#73
GEN

RE: EXPEDITING SOCIETY/OPG JURISDICTIONAL ARBITRATIONS (NON- Nuclear)

Without prejudice and without creating a precedent in respect of any other matter, the undersigned Parties agree to the following:

This Agreement applies to jurisdictional grievances advanced by the Society pursuant to Articles 2 and 16.3 and other relevant provisions of the Non- Nuclear Collective Agreement which do not involve the interests of any intervening trade union.

If a party does not deliver a brief within the above time lines it may only file a brief and lead evidence at arbitration with leave of the arbitrator, on such terms as the arbitrator may impose.

Arbitrations will be held in an expedited med./arb. format. The arbitrators will be selected from the following group:

Jules Bloch

William Kaplan

George Surdykowski

This roster of arbitrators will be reviewed by the parties every year that this agreement continues. Prehearing issues may be referred to Jules Bloch or his designate for resolution

Arbitration awards will be precedent setting.

If either party intends to call oral evidence it will provide the other party with a will-say statement of all such evidence not less than ten days prior to the hearing;

Any individual contributor grievances which are not expressly decided by arbitrator Adams award may be referred by the Society to another arbitrator under the provisions of this Agreement.

Except as expressly modified herein, all relevant provisions of the Society's Collective Agreement shall continue to apply.

10.

Either party may withdraw from this agreement on six months written notice to the other party.

John Wilson On behalf of the Society		Brian Story On behalf of OPGI
	Nov. 9/99

#77

RE: SETTLEMENT OF PPM POLICY GRIEVANCE (DECEMBER 3, 1996) AND NEGOTIATION OF NEW PERFORMANCE PAY PLAN AND JOB EVALUATION PLAN

Without prejudice and without establishing a precedent in any other matter, the undersigned Parties agree to the following in full and final settlement of the above-referenced grievance:

The parties agree to "freeze" the current administration of the Performance Pay Plan during the year 2000 while they negotiate and, if necessary, arbitrate a new performance pay plan.

Interim (i.e. for performance pay year 2000, and thereafter if necessary)

The following constitute the Society's Performance Pay Plan in OPG and cannot be altered except by mutual agreement:

(a)

all current negotiated agreements*;

(b)

the Performance Pay Plan 1978 (revised 1987).

In addition, in the OPG - Nuclear Bargaining Unit, the existing OHN Procedure "Performance Planning and Review" ( N-PROC-HR-0014-R00), including forms and worksheets ("PPR") will be frozen until a new plan is implemented.

Disputes regarding the Annual Review of Performance shall continue to be subject to Article 20.3 of the OPG/Society Collective Agreements.

Reductions in Performance Pay Standing for Society represented employees shall continue to be treated according to Article 21 of the OPG/Society Collective Agreements.

Any disputes regarding the administration of the Performance Pay Plan or this settlement agreement shall be first referred to the OPG/Society JSMC for resolution. In the absence of resolution, either party may refer the dispute to arbitrator Jane Devlin for full and binding resolution.

*For clarify, this is the 1999-2000 collective agreement and any other grievance or arbitration settlements which have on-going commitments during the term of the 1999-2000 agreement. This does not include the size of the performance pay-out amount beyond the amount agreed to in the 1999-2000 collective agreement.

New Plan for the Nuclear and Non- Nuclear Collective Agreements.

The Parties undertake to immediately enter into good faith negotiation of a new performance pay plan consistent with Article 94.1(a) of the Collective Agreement, which shall include negotiation of design, mechanics of application, administration, documentation and pay-out process. The parties further agree to enter into good faith negotiation of a new job evaluation plan in accordance with Letter of Understanding #27.

Any new performance pay plan and/or job evaluation plan agreed to in negotiation can only be changed by joint agreement.

If agreement on a new performance pay plan and/or job evaluation plan, save for implementation aspects, is not reached by October 1, 2000 either party may refer unresolved issues to arbitrator Devlin to facilitate or for final and binding arbitration. The parties may extend this time limit by mutual agreement. Implementation disputes, if any, will be subject to the mediation-arbitration process in renewal negotiations.

This agreement shall operate until there is written agreement that a new performance pay plan and job evaluation plan supercedes the existing performance pay plan and job evaluation plan.

Jim Blair On behalf of the Society	Gary Knowles On behalf of the Society	Brian Story On behalf of OPGI
	Date: April 6, 2000

#84

RE: COMPENSATION FOR CRSSs, CRSOSs AND SSITs

OPG and the Society agree to the following changes to the compensation of Control Room Shift Supervisors (CRSSs), Control Room Shift Operating Supervisors (CRSOSs) and Shift Supervisors In Training (SSITs).

CRSSs will move point-to-point from MP 5 to MP 6 and will be entitled to a $1000 monthly, non-pensionable bonus. CRSSs will not be eligible for Reduced Workweek Entitlement (RWE) as per Article 69 from the date of signing this agreement. Any incremental RWE time taken before the date of signing of this LOU, but earned after the date of signing, will be re-couped by OPG from the monthly bonus, from the employee's remaining vacation entitlement or in any way that is acceptable to the employee and the supervisor. The CRSSs shall receive retroactive pay back to January 1, 2000 for both the point-to-point increase and the $1000 monthly bonus.

CRSOSs will move point-to-point from MP 4 to MP 5 and will be entitled to a $1000 monthly, non-pensionable bonus. CRSOSs will not be eligible for Reduced Workweek Entitlement (RWE) as per Article 69 from the date of signing this agreement. Any incremental RWE time taken before the date of signing of this LOU, but earned after the date of signing, will be re-couped by OPG from the monthly bonus, from the employee's remaining vacation entitlement or in any way that is acceptable to the employee and the supervisor. The CRSOSs shall receive retroactive pay back to January 1, 2000 for both the point-to-point increase and the $1000 monthly bonus. *SEE ATTACHED NOTE.

Control Room SSITs would move through the training program on the following basis and subject to the caps set out below. Their RWE will remain unchanged as a result of this LOU.

(a)

Upon successful completion of the Generals, SSITs would move to MP 5 and receive a 3% promotional increase. For those who are already at MP 5, they will be given a 3% performance pay increase. This increase will be capped at 98% of MP 6.

(b)

Upon successful completion of the Written Specifics, SSITs will receive a 3% performance pay increase. This increase will be capped at 98% of MP 6.

(c)

When authorized by the AECB, SSITs will be moved to MP6 with a promotional increase and receive a one-time, non-pensionable incentive payment of $7,000 in accordance with Article 63 of the Collective Agreement. This increase will be capped at 98% of MP 6.

SSITs will receive retroactive pay back to January 1, 2000 for any promotional and/or performance pay increases arising out of this agreement.

There will be no disputes where Shift Managers are only performing SAVH coverage for CRSSs.

NOTE:

There is a recent SOS at Pickering who is at 109% of MP 4. This person will move to the MP 5 scale on a dollar-for-dollar basis.

Brian Story
For: OPG

Jim Blair
For The Society

00 07 10
Date

#91

RE: POLICY #04-03-04 - "REHABILITATION AND REEMPLOYMENT" (NUCLEAR)

Employees in receipt of LTD benefits, who are determined to be medically able to return to work, shall be provided with appropriate rehabilitation services. Such services shall be set out in a rehabilitation plan developed in accordance with the LTD and Rehabilitation and Re-employment policy. It is understood that a six-month period of rehabilitation employment may be insufficient for an LTD benefit recipient returning to work and that, therefore, the rehabilitation plan may provide for a period of rehabilitation employment that is reasonable in the circumstances. The ultimate goal of the rehabilitation plan is continuing employment in a full-time position. However, it is recognized that some employees have medical disabilities that may not be supportive of working full time.

Where the rehabilitation process identified reduced hours (minimum of 14 hours, maximum of 28 hours) as a permanent medical restriction (as supported by medical evidence), the employee will be re-employed, and accommodated, in an available and suitable on-going position while retaining his/her LTD status. This re-employment will be in accordance with the terms set out in article 45 of the Collective Agreement.

Employees under this arrangement (as set out above) shall:

(a)

In accordance with their LTD status, continue to receive full (ie full-time) service credit during this period and have full coverage (ie in accordance with the Pension Plan; with no pro-rating) maintained in, but will not be required to contribute to, the Ontario Hydro Pension Plan and the Ontario Hydro Group Life Insurance Plan;

(b)

Receive the greater of; the appropriate salary level for hours worked; or LTD benefit entitlement; and,

(c)

Be eligible for performance pay increases and the performance appraisal process, where medical restrictions do not preclude its application, shall take into account medical restrictions with respect to establishing goals and measuring achievements. For clarity, article 43.4.1 of the collective agreement continues to apply to employees covered by this consent award.

This Letter of Understanding satisfies the commitment of the parties as set out in the "Joint Society-Hydro Report to Mediator-Arbitrator Justice Adams on Consensed Items reached to Date during 1997 Collective Agreement Renewal Negotiations," dated April 14, 1997.

Tim English
For Ontario Power Generation

Jim Blair
For The Society

Lanny Totton
For The Society

#92

RE: POLICY #04-03-04 - "REHABILITATION AND REEMPLOYMENT" (NON- Nuclear)

Employees under this arrangement (as set out above) shall:

(a)

In accordance with their LTD status, continue to receive full (ie full-time) service credit during this period and have full coverage (i.e. in accordance with the Pension Plan; with no pro-rating) maintained in, but will not be required to contribute to, the Ontario Hydro Pension Plan and the Ontario Hydro Group Life Insurance Plan;

(b)

Receive the greater of; the appropriate salary level for hours worked; or LTD benefit entitlement; and,

(c)

Tim English
For Ontario Power Generation

Jim Blair
For The Society

Lanny Totton
For The Society

#99

RE: TSSD AUTHORIZATION TRAINING SUPERVISORS (ATS'S) AND DISCUSSION OF THE TRAINING SUPERVISOR - SIMULATOR BASED TRAINING (U0 TS'S) POSITIONS FOR THE PURPOSE OF CONDUCTING SIMULATOR-BASED TRAINING COURSES ON SHIFT

OPG and the Society agree to the following changes to the compensation and working conditions of TSSD Authorization Training Supervisors (ATS's). It is also agreed that the Parties will meet to discuss the compensation of the Training Supervisor - Simulator Based Training (U0 TS's).

The policy grievance filed by the Society will be withdrawn.

The ATS position will receive a struck rate of MP5, without prejudice to the Plan A Job Evaluation scheme.

Current ATS staff will receive a 4% increase from MP 4 to MP 5 effective January 4, 2001.

An initial one-time, non-pensionable payment of $4,500 will be made for all current ATS employees who have been in the position prior to January 1, 2000.

All ATS employees who were formerly ANO's will receive a yearly payment, to be input for payment on December 1 of the calendar year as a retention bonus. Such payment shall be equal to $1,000.00 per completed year of service in the ATS position, to a maximum of $3,000 per year. The first of these payments will be payable in December 2001. Such payment shall be pro-rated, based on months of employment in the ATS position, and shall be non-pensionable.

The parties to this agreement acknowledge that the Unit 0 Training Specialist U-0TS position is part of the authorized training job family, and that these employees are responsible for training PWU represented Unit 0 Control Room Supervising Nuclear Operators (CR-SNO's). The parties acknowledge that there is an ongoing process before arbitrator Teplitsky with respect to the compensation of the CR-SNO position. The parties agree that within 30 days of the issuance of a final award or negotiated agreement of the CR-SNO matter, the parties will meet to discuss issues related to internal compensation relativities between the CR-SNO and U-0TS positions.

Shift work provisions for OPG-N TSSD Authorization Training Specialists

Intent

The position of Authorization Training specialist will be classified as a "shift position".

OPGI - Nuclear will propose shift arrangements for employees and seek The Society's input on proposed shift arrangements.
Assignment of TSSD Authorization Training Specialists to shift will normally be on a voluntary basis. However, in the absence of any qualified volunteers, OPGI - Nuclear reserves the right to appoint specific individuals to perform the work.
An employee who has volunteered to work a scheduled series of shifts may request a change in work assignment. Management will consider such a request.
Except in an emergency situation at least seven days' notice will be given with respect to shift change notices.
There are no posting or voting requirements with respect to shift scheduled.
Normal Days
Monday to Friday
7:45 to 4:15
Proposed Shifts will be as follows:

10 Hour Shifts - Days
Monday to Thursday:
8:00 to 6:00
Tuesday to Friday
8:00 to 6:00
10 Hour Shifts - Afternoons
Monday to Thursday
2:00 to 12:00
Tuesday to Friday
2:00 to 12:00
8 Hour Shifts - Afternoons
Monday to Friday
4:00 to 12:00
Monday to Friday
2:00 to 10:00

There will be no shifts other than those set out above without the prior agreement of the Society.

Shift Differentials

Scheduled shift hours-worked shall have the following shift differential apply:

(a) two shift coverage.

Shift Differentials:

For work on an 8 hour afternoon shift (1400 - 2400 hours) - $0.80 cents per hour worked
For work on a 10 hour afternoon shift (1400 - 2400 hours) $0.80 cents per hour worked

Overtime

Authorized overtime beyond the normal scheduled shift hours shall be compensated in accordance with the overtime provisions of this Agreement.

(signed by T. English for OPG, and J. Blair for the Society - 2000/12/11)

#112

RE: NEW PROCESS FOR EMPLOYEE INITIATED JOB REVIEWS

The Parties agree as follows:

Letters of Understanding #3 (Re: Expedited Job Review Process), #11 (Re: Expedited Job Challenge/Review Grievance Process) and #12 (Re: Terms of Reference for Job Challenge Grievance Fact-Finding Teams) are replaced with the following procedure.

An employee or group of employees may request a job review through The Society, indicating a desired rating for the position(s) in question along with a justification for the new rating.

Management has 30 days from the date of the request to decide whether to perform a job review. If management agrees to perform a job review then it must complete the job review within 60 days of the date of agreement.

If management decides not to perform the job review, or the job review results in a classification unsatisfactory to the employees involved, the Society may file a grievance within 10 working days of the communication of the decision. All such grievances will be filed at Step 2 of the Society/OPG grievance procedure contained in Article 16 of the Collective Agreement.

In the case where a grievance is filed, the parties commit to have a fact-finding pre-meeting to share information and discuss possible resolutions. A standing Pre-Step 2 meeting will be scheduled on a bi-monthly basis to meet one month before the regularly scheduled Step 2 meetings (as specified in Article 16 of the Collective Agreement). The parties, with the aid of job evaluation experts, will exchange information on out-standing job challenges.

If there is no resolution of the grievance, a Step 2 meeting will be held on the next regularly scheduled standing Step 2 meeting (as specified in the new Article 16 of the Collective Agreement.)

Any unresolved issues will proceed through the grievance/arbitration process in Article 16 of the Collective Agreement at Step 2.

Julie Mitchell For OPG	Jim Blair For The Society	Lanny Totton For The Society
	5 June 2001

#119

CRSS, CRSOS, ATS, AND UOTS AND SSIT COMPENSATION

(on Behalf of the Nuclear Bargaining Unit)

Recognizing both the need for flexibility and appropriate compensation for the CRSS, CRSOS, ATS, and UOTS, and SSIT, the parties agree to the following:

Effective January 1, 2002, all the above classifications will be eligible to receive an annual non-pensionable results based payment not to exceed 7% (2002) and 7.75% (2003). Details of the payment are as follows:

(i)

The payment will be a lump sum payment based on meeting / exceeding targets and is not guaranteed.

(ii)

The payment will be paid as soon as practicable in January each year starting in 2003.

(iii)

The maximum payment will be calculated as follows: 7% (2002) and 7.75% (2003) (base weekly salary times 52.1786 weeks). The bonus will be pro-rated for any period less than a full calendar year based on full months completed.

(iv)

The targets will be measured from January 1 through to December 31 of each performance year.

(v)

Targets, measures and assignment of values to each performance area will be discussed and agreed to by local joint teams (members to be appointed by Society and Management) for each of the classifications. In the event that a joint team is unable to agree the matter will be referred to the appropriate Director of Ops and Maintenance (CRSS & CRSOS) or the appropriate Director of Training (ATS & U0TS) and the appropriate Society Unit Director who will endeavor to resolve the matter. Failing a joint resolution the matter will be referred to the appropriate OPG Senior Vice-President for a final decision.

(vi)

The results based payment is not subject to the grievance procedure.

(vii)

It is understood that CRSS, CRSOS, UOTS and ATS employees will not be eligible for any "Re-earnable Results-Based" pay in the Society Collective agreement.

(viii)

In addition to the above there shall be an annual skills/competency payout of 1% of base payroll. The payout shall be made in the first payroll period in the year following the performance year. The skills/competency payout is based on individual performance. This payout takes the place of any skills/competency payout in the

Society Collective agreement. In the absence of any mutually agreed to alternative, the currentpractice for administering the competency pay out will continue.

Effective January 3, 2002, the monthly bonus paid to CRSSs and CRSOSs under LOU #84) will be increased to 14% of base annual pay (based on 52.1786 weeks per calendar year) and made pensionable. This amount will be increased by 2% for each of the 3 years prior to an undiscounted pension, to a maximum of 20% when the employee is within 1 year of an undiscounted pension and for all years until retirement. Employees selected to the CRSS and CRSOS positions during a calendar year will receive the monthly bonus in the month they commence work in these classifications, pro-rated to the nearest full week worked. No CRSS or CRSOS shall be required to surrender their authorized status unless they fail to maintain their license or voluntarily elect to surrender their license or they voluntarily move to a position where management does not agree to maintaining of authorization status.

Effective January 3, 2002, the bonus paid to ATS who were formerly authorized (see LOU #99) will be replaced by a Past Authorization Bonus (PAB). Current ATS and formerly authorized staff selected into an ATS position will receive an annual pensionable PAB of 7% of base weekly salary (based on 52.1786 weeks per calendar year) and made pensionable. This amount will be increased by 1% for each of the 3 years before an undiscounted pension, to a maximum of 10% when the employee is within 1 year of an undiscounted pension and for all years until retirement. Employees selected to the ATS position during a calendar year will have their bonus pro-rated to the nearest full week worked. As per LOU #99, this bonus will be paid on the first pay period in December of each year.

A pensionable bonus will be paid to U0TS's who were formerly certified as Unit 0 CRO's in the amount equal to 4.25% of base weekly salary (based on 52.1786 weeks per calendar year) and made pensionable. This amount will be pensionable and will increase by .5% for each of the three years prior to an undiscounted pension, to a maximum of 5.75% when the employee is within 1 year of an undiscounted pension and for all years until retirement. Employees selected to the U0TS position during a calendar year will have their bonus pro-rated to the nearest full week worked. As per LOU #99, this bonus will be paid on the first pay period in December of each year.

Employees covered by this LOU shall only be entitled to one of the bonuses detailed in #2, 3 and 4 above.

All PNGSA CRSOSs, CRSSs will receive a one-time $4000 lump sum non-pensionable payment for the completion of PARTS training and the removal of the U4 GSS. An employee will receive the bonus if at the removal of the GSS they have not completed the training through no fault of their own.

Effective the date of signing of this LOU, the 98% of MP6 cap on SSIT salaries (see paragraph 3, LOU #84) will be deleted. A one time, non-pensionable signing bonus of $1,000, less statutory deductions, shall be paid to the attached list of SSIT's currently on the program. This signing bonus will be paid within 60 days of ratification.

In recognition of the unique nature of these positions, an additional band will be added to the "New Society Compensation Plan". The Band will range from $75K to $125K ($130K in 2003). The band will be used exclusively for CRSSs, CRSOSs, UOTS, and the ATS. Each CRSS, CRSOS, and ATS will have their base salary increased by 5% effective January 3, 2002. Following this increase they will be moved onto the new band on a dollar for dollar basis. There will be an additional 5% base salary increase for all incumbents in the CRSS, CRSOS and ATS positions effective January 2, 2003. This will be a non compounded increase in addition to the salary schedule increase in Article 23 - Salary Schedules. Any performance pay increase received will be compounded upon the above rates.

In consideration of the compensation changes made above, it is agreed that:

The CRSS, CRSOS, UOTS and ATS classifications will not be eligible to payments under Article 65 - Relief;

Article 67 - Purchased Services Agreement - is suspended with respect to work performed by the CRSS, CRSOS, UOTS and ATS classifications;

The requirement to obtain agreement for rotations by ANOs within the Society's jurisdiction for CRSS, CRSOS, UOTS and ATS classifications ( see Business Unit Mid-Term #14) is suspended;

In the event that overtime cannot be filled on a voluntary basis, OPG will require individual CRSSs, CRSOSs, UOTS or ATSs to work overtime up to 60 hours per week. The Society agrees on behalf of CRSSs, CRSOSs, UOTS or ATSs that notwithstanding an employee's regular hours of work, they may be required to work up to 60 hours per week in accordance with the Employment Standards Act. Such forced overtime will be limited to 3 non-consecutive weeks per employee per calendar year. Forced overtime will be equitably rotated.

CRSSs and CRSOSs may be rotated into training positions. Management will first seek volunteers to fill these rotations. In addition, management positions such as Shift Managers may be rotated into the ATS position in order to provide a mentoring, testing and evaluation role for shift managers.

Letter of Understanding # 99 will be amended to include the following proposed shift: "8 or 10 hour shifts which start at or after 12 noon and finish at or before 12 midnight". When shift coverage is not required UOTS/ATS may revert to normal day shift hours (8:00 a.m. - 4:00 p.m.).

10.

All outstanding grievances with respect to PSAs for ATS relief, or ATS rotations which have already been filed including one dated April 10, 2002, and grievances related to CRSS on the JKL shift schedules and Shift Managers backfilling on A-E for CRSSs are withdrawn.

11.

In an effort to attract more authorized staff to regular full-time ATS positions, the parties agree to form a joint team comprised of two members appointed by the Society and two members appointed by Management. Commencing no later than September 30, 2002, the joint team will meet on a quarterly basis to discuss issues relating to the delivery of authorized training, including regular staffing levels and rotations into the ATS position. By September 30, 2003 the joint team will issue a report to the Vice-President of TSSD and the Society Vice-President of the Nuclear Bargaining Group.

12.

Except as expressly modified herein, all relevant provisions of the Society's Collective Agreement shall continue to apply.

13.

This LOU operates until July 1, 2004 and shall continue thereafter on a bi-annual basis, subject to 90 days cancellation by either party not before April 1, 2004.

14.

Both parties agree to recommend ratification of this letter of understanding to their respective principals. Such ratification will occur as soon as practicable.

Julie Mitchell		Rod Sheppard
	September 5, 2002

#122

RE: THE IMPLEMENTATION OF THE PSA AGREEMENTS

A review has been completed of the level of augmented staff, managed task PSAs and the current regular staff levels in OPG. In the event of a significant change in the level of augmented or managed task, the parties will meet to update the dues level.

The following is an amount that represents a dues replacement formula:

The Society will receive $750,000 per year in lieu of dues for all augmented staff contingent upon reaching agreement for the respective business planning year. The amount for 2003 will be paid out in March 2003. Subsequent payments will be paid in each September following the completion of the Business Planning review. For clarity the 2004 payment would be due following the completion of the business planning process in September 2003.

Failure to reach an initial agreement or expiration of any of the three LOUs will lead to a proportional adjustment (the proportions to be determined prior to signing the final agreement) of the amount in #1 above.

This agreement will automatically expire when all of the three (OPG-N; OPG-EP; OPG Corporate Groups) LOUs expire.

John Murphy Ontario Power Generation		Rodney Sheppard, Lanny Totton The Society
	February 12, 2003

#124

RE: ARTICLE 67 PURCHASED SERVICES AGREEMENT (PSA) NUCLEAR (INCLUDING NUCLEAR WASTE AND NUCLEAR REGULATORY AFFAIRS)

For the term of this Letter of Understanding the PSA is suspended.

The parties agree to meet during the annual business planning process to review the business plan and the work that is to be contracted out for the years 2003 and 2004.

During this process Management will consult with the Society regarding the regular and temporary staff levels for Society - represented staff. Management will also identify the level of proposed contracting out. The parties will attempt to reach agreement on the appropriate level of regular and temporary staff and the work to be contracted out for the business planning years. The 2004 levels shall be agreed to, based upon the business plan forecast for 2004 with an agreed upon monetary total for contracted work for 2004. There will be a +7.5% contingency for contract work for the 2003 business planning year and a +12.5% contingency for the 2004 business planning year.

Management agrees to provide the Society with reasonable access to available information (with appropriate consideration for confidentiality) on a regular basis in order to monitor the agreed level of contracted work in paragraphs #3 and #6.

Failure to reach an agreement on the levels as outlined in paragraph #3 above shall not be subject to arbitration as such failure shall result in the LOU being null and void and the parties reverting back to Article 67.

In the event of major projects, new and emergent work that may alter the agreed to level of contracted work, including the contingency, the parties will attempt to reach agreement on the impact of this change, including the exclusion of some or all of this work from the agreed to levels. The parties may also agree as to the amount, if any, of this work that should not be contracted out. If the parties fail to reach an agreement on the major projects, new and emergent work, the default shall be the Article 67 process, including arbitration, for the resolution of any disputes related to this unplanned for work.

The parties will meet on a regular basis to review the regular and temporary staff levels and the levels of contracted work. At the end of the business planning year there will be a final review of the outcome compared to the initial agreement.

In the event that the level of contracting out (including the contingency amount) at the end of the business planning year exceeds the agreed level, the parties will discuss and attempt to reach agreement on the impact of this change and any remedy if appropriate. If the parties fail to reach an agreement, the portion of contracted work that exceeds the agreed level may be referred to arbitration. The arbitrator may fashion any remedy he/she may deem appropriate, including an order to hire Society- represented staff. It is understood that the work which is contracted to spin off companies (where the work is being performed by Society-represented employees) is excluded from this arbitration process.

The Society may also arbitrate failure to meet under paragraph #2. The arbitrator may fashion any remedy he/she deems appropriate.

10.

The final agreement of this LOU is contingent upon the parties reviewing the business plans and reaching agreement on the level of work to be contracted out during 2003 and 2004. This will be completed by February 21, 2003 or as soon as possible thereafter. Final agreement of the LOU resolves all outstanding PSA grievances under the collective agreement.

11.

This LOU shall expire on December 31, 2004 unless there is agreement to renew this LOU for the business planning year 2005 by September 30, 2004. In the event that there is no agreement to renew, Article 67 will apply for work to be contracted out in 2005.

12.

All discussions and/or attempts to reach agreement as defined above shall be without prejudice and without precedent to any position either party may take before an arbitrator under the Article 67 process, should no final agreement be arrived under this LOU.

Julie Mitchell Ontario Power Generation		Rodney Sheppard The Society
	February 12, 2003

#125

RE: ARTICLE 67 PURCHASED SERVICES AGREEMENT (PSA) IN ELECTRICITY PRODUCTION

For the term of this Letter of Understanding the PSA is suspended.

The parties agree to meet during the annual business planning process to review the business plan and the work that is to be contracted out for the years 2003 and 2004.

During this process Management will consult with the Society in each Plant Group regarding the regular and temporary staff levels for Society - represented staff. Management will also identify the level of proposed contracting out. The parties will attempt to reach agreement on the appropriate level of regular and temporary staff and the work to be contracted out for the business planning years. The 2004 levels shall be agreed to, based upon the business plan forecast for 2004 with an agreed upon monetary total for contracted work for 2004. There will be a +7.5% contingency for contract work for the 2003 business planning year and a +12.5% contingency across Electricity Production for the 2004 business planning year.

The parties will meet in each plant group on a regular basis to review the regular and temporary staff levels and the levels of contracted work. At the end of the business planning year there will be a final review of the outcome compared to the initial agreement.

The Society may also arbitrate failure to meet under paragraph #2. The arbitrator may fashion any remedy he/she deems appropriate.

10.

11.

12.

Julie Mitchell Ontario Power Generation		Lanny Totton The Society
	February 12, 2003

#126

RE: ARTICLE 67 PURCHASED SERVICES AGREEMENT (PSA) IN THE CORPORATE GROUPS (FINANCE, HUMAN RESOURCES, CORPORATE & ENVIRONMENTAL AFFAIRS, LAW & CORPORATE DEVELOPMENT, ENERGY MARKETS-INCLUDING EVERGREEN ENERGY, CIO)

For the term of this Letter of Understanding the PSA is suspended.

The parties agree to meet in each of the Business Units listed above during the annual business planning process to review the business plan and the work that is to be contracted out for the years 2003 and 2004.

During this process Management in each of the Business Units will consult with the Society regarding the regular and temporary staff levels for Society - represented staff. Management will also identify the level of proposed contracting out. The parties will attempt to reach agreement on the appropriate level of regular and temporary staff and the work to be contracted out for the business planning years. The 2004 levels shall be agreed to, based upon the business plan forecast for 2004 with an agreed upon monetary total for contracted work for 2004. There will be a +7.5% contingency for contract work for the 2003 business planning year and a +12.5% contingency for the 2004 business planning year.

The parties will meet, in each of the business units, on a regular basis to review the regular and temporary staff levels and the levels of contracted work. At the end of the business planning year there will be a final review of the outcome compared to the initial agreement.

The Society may also arbitrate failure to meet under paragraph #2. The arbitrator may fashion any remedy he/she deems appropriate.

10.

The final agreement of this LOU is contingent upon the parties reviewing the business plans and reaching agreement on the level of work to be contracted out in each of the business units above during 2003 and 2004. This will be completed by February 21, 2003 or as soon as possible thereafter. Final agreement of the LOU resolves all outstanding PSA grievances under the collective agreement.

11.

12.

Julie Mitchell Ontario Power Generation		Lanny Totton The Society
	February 12, 2003

#133

RE: AUTHORITY TO STOP WORK AND JOINT HEALTH AND SAFETY COMMITTEE TRAINING

Changes to this Agreement must be approved by OPG, and The Society. The Joint Health and Safety Working Committee will make recommendations on changes to this agreement to the Tripartite Health and Safety Policy Committee.

Authority to Stop Work

Where a workplace is unsafe, a certified worker and management member of the local Joint Health and Safety Committee (JHSC) can jointly prevent the start of the work or stop the work.

Where there is a disagreement between the certified worker or certified management member of the local JHSC that the workplace is unsafe, the issue shall be immediately presented to the local JHSC for review and resolution.

Where "dangerous circumstances"* exist, a certified worker or management member of the local JHSC can stop the work. After calling the work stoppage the certified worker or management member must contact the respective counterpart immediately and seek to obtain joint agreement on the stoppage as soon as possible. If joint agreement cannot be reached the issue shall be presented to the local JHSC for review and resolution.

In cases where the JHSC cannot resolve issues arising from 2 or 3 above, the Ministry of Labour Inspector shall be called in for resolution. Where necessary, the Ministry of Labour may call the Canadian Nuclear Safety Commission (CNSC).

* Dangerous Circumstances: as defined by the Occupational Health and Safety Act, Section 44.

Training/Certification

The Joint Health and Safety Working Committee shall fully participate in and approve the development of any specialized training program for all members of the Joint Health and Safety Committees (JHSCs).

The Joint Health and Safety Working Committee shall fully participate in and approve the development, implementation and administration of testing and re-testing standards for all members of the JHSCs.

The Joint Health and Safety Working Committee shall fully participate in and approve the establishment of a specific Training/Certification program for members of the JHSCs.

The Joint Health and Safety Advisory Working Committee shall fully participate in and approve the development, implementation and administration of testing and re-testing standards for accrediting JHSC members into the Certification program. Such standards shall be equal to or greater than those established by regulatory standards.

Responsibility and Accountability

There shall be a shared responsibility and accountability by the unions and Management for the actions of the certified members of the JHSCs.

Compensation and Discipline

It is understood that employees directly or indirectly affected by the application of this policy will not suffer any loss of wages or disciplinary action.

Decertification

Should a certified member fail to act in good faith, the Joint Health and Safety Working Committee shall review the representative's action and make appropriate decisions.

Where there is disagreement regarding the action of the certified member at the Joint Health and Safety Working Committee, the issue shall be taken to the Tripartite Health and Safety Policy Committee for resolution.

Assessment

The Tripartite Health and Safety Policy Committee shall authorize the assessment of the effectiveness of this agreement from time to time.

Julie Mitchell Ontario Power Generation Inc.		Matthew Kellway for Rod Sheppard The Society
	June 24, 2003

#134

RE: INCIDENT RATING AND INVESTIGATIONS

The parties agree as follows:

Incident Rating

The union representatives on the Joint Health and Safety Committee shall be provided with the opportunity for input into incident Maximum Reasonable Potential for Harm (MRPH) ratings.

Where the rating of an incident is in dispute, line management or Joint Health and Safety Committee members can seek timely resolution of the dispute through adjudication by the Director, Corporate Safety.

Incident Investigation

All incidents shall be investigated. Whenever a team is appointed to investigate an incident, the affected bargaining units shall be invited to participate on the investigation team, and shall select their representative.

Julie Mitchell Ontario Power Generation Inc.		Matthew Kellway for Rod Sheppard The Society
	June 24, 2003

#135

RE: ARTICLE 72.2- PROJECT CREWS

The parties agree that this LOU while in effect replaces the provisions found in Appendix VI - Project Crew Arrangements- in the 2000-2003 OPG / Society Nuclear collective agreement.

To the extent possible, project crews will be staffed on a voluntary basis. The sequence for staffing will be as follows:

(a)

Posted vacancy -senior best-qualified consideration of Society -represented applicants - OPGN;

(b)

Posted vacancy - senior best-qualified consideration of Society-represented applicants - OPGI;

(c)

Posted vacancy - best-qualified consideration of all other applicants;

(d)

Failing (a), (b) and (c) above and after consultation with the Society, OPG may force the junior qualified Society-represented employee on the site.

Employees on project crews are considered to be regular employees with all the terms and conditions and benefits as per the collective agreement, except as noted in these provisions.

Management will review the proposed use of the project crews with the Society and solicit input on the project crew(s) size, composition, source of staff for crew(s), proposed peak work times, etc.

Employees on the project crews will be entitled to the same number of yearly hours as a regular employee and be paid for those hours at straight time on the same pay basis as a non project crew regular employee.

Each employee on the project crew may have a different number of hours available to work, due to the application of vacation rights, floating holidays, and statutory holidays. (e.g. 2080 hrs minus statutory holidays 80 hrs, minus 3 floating holidays 24 hrs, and appropriate vacation 2/3/4/5/6 weeks).

Employees may be required to work days or shift work on 8/10/12 hour schedules up to 60 hours per week and a minimum of 40 hours per week. Any overtime required will be paid at the appropriate premium rate.

Shift differential and payment for scheduled work on weekends and statutory holidays will be paid out on an as worked basis.

Management will post the project crew work schedule a minimum of 30 days in advance of its commencement for the year 2003. For each year after 2003 the schedule for the following year will be posted by September 1st. This schedule will illustrate the blocks of time when and where employees will be required to work. The work schedule may be changed by providing affected employees with a minimum of 7 days notice in advance of the change. The adjustment can be no more than 14 days in either direction. Adjustments beyond 14 days may be made with either another notice or with Society agreement to the original notice. Failure to provide this notice will result in premium rates for only those days within the notice period that the employee had not been previously expected to work.

Employees will be entitled to establish blocks of time, up to vacation allowance, when they will be unavailable for work assignment(s). This time off cannot conflict with the likely periods required for them to work.

The classifications required for project crews will be determined by the Company.

10.

2003 hires to project crews are incremental to current base numbers and in addition to any other incremental hires previously agreed to between the Society and OPG including, but not limited to hiring commitments under the PSA LOU. Any future hires to project crews beyond 2003 will be discussed with the Society prior to their implementation.

11.

This LOU may expire with 5 months notice by either party prior to the end of each calendar year. In the event that notice is not given, the LOU will be in effect for the subsequent calendar year. In the event that notice is given, the parties will revert to Appendix VI at the end of the calendar year save for paragraphs 8 and 10 of Appendix VI which will be in effect on the date of notice.

Julie Mitchell		Olaf Heilandt
	July 17, 2003

#136

RE: ELECTRICITY PRODUCTION SOCIETY-REPRESENTED STAFF RELOCATING TO NANTICOKE/NIAGARA

This Letter of Understanding applies to existing Society-represented employees in Electricity Production who have been relocated to Niagara or Nanticoke and meet the current criteria in the Collective Agreement for a company-paid relocation.

For the first 12 weeks from the date of reporting to work in the new location ("Transfer Date") the employee are eligible for reimbursement of transfer expenses as set out in Article 52.3.3(a) save for the last sentence.

Beyond 12 weeks and up to 9 months thereafter the employee is eligible for a special allowance of $750.00 per month less any required statutory deductions as long as the employee is commuting to new headquarters or continuing maintaining interim accommodations close to the new work headquarters. These payments are not pensionable. Employees may choose to move their household at any time during this period and will then be treated as per the Collective Agreement under Article 52.3.3(b).

As of the one year anniversary of the Transfer Date, employees must confirm in writing their intent to move or not move. If the employee indicates he/she is moving, then the employee is eligible for reimbursement of transfer expenses as set out in Article 52.3.3(b) provided that the employee demonstrates to Management's satisfaction that arrangements to move to the new location are being made as quickly as possible.

All terms of the Collective Agreement apply except as amended above.

Julie Mitchell Ontario Power Generation		Lanny Totton The Society
	August 8, 2003

#141

GRIEVANCE BACKLOG RESOLUTION PROCESS

The parties hereby agrees to the following:

The Society and OPG agree to enter into a Grievance Backlog Resolution Process with the intent of reviewing and attempting to resolve all of the currently outstanding Society Grievances at OPG.

The above mentioned process will involve the following steps:

The Society shall provide a list of outstanding grievances to OPG no later than October 31, 2003. The list is to include grievances already scheduled for or referred to arbitration.
OPG shall review and respond within 30 days on receipt of the list from the Society in order to produce an agreed upon list constituting all outstanding grievances.
Both parties shall identify grievances which should not be referred to Expedited Arbitration in accordance with this LOU but will be dealt with through regular arbitration.
Nothing in this process shall prevent the parties from meeting to resolve all outstanding grievances.
All grievances referred to Expedited Arbitration shall be dealt with on a non-precedental or prejudicial basis.
All outstanding grievances will be referred to either expedited or regular arbitration pursuant to Article 16 of the collective agreement. The parties may by mutual agreement refer any grievance to Expedited Arbitration as set out in this agreement. For grievances referred to Expedited Arbitration the parties will exchange written briefs 7 days in advance of the hearing, with a copy to the arbitrator. The briefs will contain each parties respective facts, arguments and proposed resolution. Each party bears its own costs of the arbitration proceedings. The arbitrators' costs are to be equally shared.
Any grievance filed up to December 31st, 2003 shall be dealt with under this process.
The Expedited Arbitrations will be scheduled at a minimum of 2 per week, 6 grievances per hearing commencing the 2nd week of January 2004. This process will continue until the backlog of grievances filed up to December 31st, 2003 is eliminated.

The parties agree that the time limits, as identified in the collective agreement, for progression of complaints to Step 2 of the Grievance Process or to Arbitration shall be suspended for the period commencing September 15, 2003 though to December 31, 2003, unless otherwise agreed upon.

The parties agree to adjourn the Arbitration Dates of October 6, 2003 and October 20, 2003 before Arbitrator Kenneth Swan (VSP). It should be noted that the parties agree that if the ISD -VSP Denial cases, which are currently in progress before the arbitrator, are not concluded on the September 30, 2003 arbitration date, then the October 6, 2003 date shall be utilized for the purpose of finishing the case.

For the purposes of the Expedited Arbitration process identified in Point #2 above, the parties agree to engage the services of Jules Bloch, William Kaplan, Gerald Carney, and Michel Picher to act as Arbitrators.

For grievances continuing in the regular arbitration process, the parties shall make every reasonable attempt to shorten the hearing process through cooperation, agreeing to facts, use of witness statements in place of witnesses or other reasonable means.

Signed on this the 22th day of September, 2003 in the City of Toronto

Julie Mitchell Ontario Power Generation Inc.		Pat Ramcharitar The Society
	September 22, 2003

#142

RE: AMENDMENTS TO LOU #119

The Parties agree to the following:

Paragraph of the LOU #119 will be amended in accordance with the bolded changes below:

"In recognition of the unique nature of these positions, an additional band will be added to the "New Society Compensation Plan". The Band will range from $75K to $125K ($132K cap in 2003)....."

The parties acknowledge that the band cap may have to be re-visited for 2004. Discussion of the band cap is a fit matter for discussion at renewal bargainin for the 2000 - 2003 collective agreement

Julie Mitchell Ontario Power Generation Inc.		Rodney Sheppard The Society
	October 16, 2003

#143

RE: CORPORATE FINANCE- CONTROLLER SOCIETY-REPRESENTED STAFF RELOCATING TO NANTICOKE / NIAGARA

This Letter of Understanding applies to existing Society-represented employees in Corporate Finance- Controller who have been relocated to Niagara or Nanticoke and meet the current criteria in the Collective Agreement for a company-paid relocation.

For the first 12 weeks from the date of reporting to work in the new location ("Transfer Date") the employee is eligible for reimbursement of transfer expenses as set out in Article 52.3.3(a) save for the last sentence.

All terms of the Collective Agreement apply except as amended above.

Julie Mitchell Ontario Power Generation		Lanny Totton The Society
	October 16, 2003

#146

RE: AMENDMENTS TO LOU #141 - GRIEVANCE BACKLOG RESOLUTION PROCESS

The Parties agreed to extend the timelines of LOU #141 such that grievances filed between January 1, 2004 and March 15, 2004 are now to be included in the process.

The parties further agree that grievance # OPGI-2004-2357, concerning Articles 64 and 102, is not included in the above process. This is without prejudice to the position of either party regarding arbitrability.

All other timelines will be adjusted accordingly.

Julie Mitchell Ontario Power Generation Inc.		Andrew Muller The Society
	March 5, 2004

#149

RE: AMENDMENTS TO LOU #119

The Parties agree to the following:

Paragraph of the LOU #119 as amended by LOU #142 will be amended in accordance with the bolded changes below:

"In recognition of the unique nature of these positions, an additional band will be added to the "New Society Compensation Plan". The Band will range from $75K to $125K ($132K cap in 2003, $136K cap in 2004)....."

The parties acknowledge that the band cap may have to be re-visited for 2005. Discussion of the band cap is a fit matter for discussion at renewal bargaining for the 2004 collective agreement

Julie Mitchell Ontario Power Generation Inc.		Olaf Heilandt The Society
	May 11, 2004

#151

RE: EARLY HOUSEHOLD RELOCATION FOR NUCLEAR STAFF TRANSFERRING TO DURHAM HEADQUARTERS

The parties enter into this Letter of Understanding with the intent of enabling those employees, who wish to volunteer to relocate their residence as a result of the imminent move from 700 University, to do so in advance of the actual move occurring.

This Letter of Understanding is agreed to by the parties without prejudice and without precedent to any position either party may take in future matters of a similar or identical nature.

Employees who are scheduled to be moved may apply to relocate, according to current collective agreement provisions.

Such early moves will only be approved upon Joint Society/Management agreement that the employee will be placed in a position at Durham Headquarters and will be contained as part of the list of staff identified for movement to Durham Headquarters.

Employees who avail themselves of this option will not be eligible for transfer expenses under Article 52.3.3 items (a) through (d).

Such employees will not be eligible for compensation under Article 55 for travel to Head Office until the date that they are transferred to Durham Headquarters. For further clarity, the employee will be considered a Head Office employee until the date of transfer to Durham Headquarters.

Such staff identified will neither increase, nor decrease, the number of staff that management identifies to move to Durham Headquarters.

All approvals of applications under this LOU shall be conducted through consultation and agreement with the designated Society representative.

Julie Mitchell Ontario Power Generation Inc.		Olaf Heilandt The Society
	June 29, 2004

#152

RE: MOVE OF EMPLOYEES REPRESENTED BY THE SOCIETY TO DURHAM HEADQUARTERS

The parties agree that Durham Headquarters shall be defined as 777 Brock Road, 813 Brock Road and 889 Brock Road.

For the purposes of this agreement, the relocation to the Durham Headquarters shall be defined as any change in physical location that has resulted from the relocation of Society-represented Regular Full-Time and Regular Part-Time employees from 700 University Ave. (Head Office) or through the consolidation of satellite locations in Durham Region. These relocations will occur between Q4 2004 and Q2 2005.

Regular employees who are on extended leaves, including but not limited to, Pregnancy/Parental Leaves, extended sick leave, Long Term Disability and personal Leaves of Absence shall have the application of Parts 2 through 4 of this letter of understanding suspended until the employee returns to work.

REDEPLOYMENT PROCESS

1.1.

The move to the Durham Headquarters is an expedited redeployment for certain employees of OPG, who work for organizations including but not limited to, the following groups: Nuclear, Human Resources, CIO, Corporate Finance, Corporate Real Estate-Business Services and Supply Chain; and who are currently located at Head Office and various offices in Durham Region. For further clarity this relocation involves staff from both the OPGI and OPG-N bargaining units.

1.2.

For the purposes of this LOU, the process will be considered as a relocation not a reorganization.

1.3.

Management will prepare a list of employees and positions to move and review with the Society a minimum of 90 days prior to the relocation to the Durham Headquarters.

1.4.

All employees will be relocated in positions on the following basis:

Same Salary Grade
Similar Job Duties (Majority of duties and responsibilities are the same)
Hours of Work (same)

1.5.

Where there are more staff in a work group, in a location, who all have positions which meet the following criteria:

Same Salary Grade
Similar Job Duties (Majority of duties and responsibilities are the same)
Same Hours of Work

And not all of the positions are being relocated; identification of the staff to be relocated will be according to senior choice/junior force.

1.6.

Employees will receive a minimum of 60 days notice of relocation to the Durham Headquarters.

1.7.

Any disputes with respect to the application of items 1.4 and 1.5 above will be subject to expedited arbitration within 10 working days of notice of relocation.

1.8.

For clarity, the list of staff identified under item 1.4 above will include staff covered by LOU #147, that is PINO staff who are relocated to 889 Brock Road, Pickering through the application of LOU #23 in the PINO reorganization.

1.9.

Employees will be included in the list of staff under item 1.4 if they meet the following criteria:

(i)

They are selected to a vacancies within the workgroups affected under items 1.4 and 1.5 above; and

(ii)

The position be located at Durham work headquarters; and

(iii)

The employee accepts the offered position on or before the notice of relocation per item 1.6 above;

1.10.

Employees in receipt of notice of relocation in accordance with the above process, including those identified in item 1.8 above, will be the only employees eligible for the provisions in Parts 2.through 4 of this Letter of Understanding.

RELOCATION PROVISIONS

2.1.

Employees Greater than or equal to 40 Radius Km

2.1.1.

Coincident with the notice of relocation in Part 1 above, employees will be notified if they are eligible for Relocation Assistance based being able to move a minimum of 40 radius kilometres closer to the building they are being relocated to.

2.1.2.

Within one month of the notice of transfer date, employees who are eligible (identified in 2.1.1 above) must make an irrevocable election to:

Relocate their family to the new location in accordance with Part XI - Relocation Assistance-of the collective agreement as amended by this LOU.

Receive a travel allowance as outlined in Part 3. Employees who elect an allowance will commence receiving such allowance effective the date of relocation to Durham Headquarters, at which time the employee will forgo any entitlements under Part XI - Relocation Assistance - of the collective agreement. For further clarity, the employee will cease receiving interim expenses and will forgo all other sections of the Relocation Assistance Program. Notwithstanding this, the employee will be eligible for Article 55 should they be on temporarily assigned to work headquarters outside of Durham Headquarters.

2.2.

Employees Less Than 40 Radius Km and Greater Than or Equal to 40 Road Km

2.2.1.

Coincident with the notice of relocation in Part 1 above, employees, exclusive of those identified in 2.1.1 above, will be notified if they are potentially eligible to for Relocation Assistance or Travel Allowance, subject to approval by the Joint Review Team, based on being able to move a minimum of 40 road kilometres closer to the building they are being relocated to.

2.2.2.

A Joint Review Team will be established to consider eligibility of staff as identified in 2.2.1 above and who apply. Employees must identify whether they are applying for travel allowance as outlined in Part 3 or relocation in accordance with Part XI - Relocation Assistance - of the collective agreement as amended by this LOU. To be eligible to apply employees must meet all of the following criteria:

Are being transferred to Durham Headquarters from a regular work headquarters outside of Durham Headquarters; and
Must live at least 40 road kilometres (via the most direct route) from the building they are being relocated to; and
If relocating must relocate to an area bounded by Morningside Road/9th Line on the west, Regional Road 14 (Newcastle) on the east and Regional Road 21 (Port Perry) on the north; and
the Durham Headquarters must be further from their home than their present work location

2.3.

Employees with Health and/or Physical Limitations

Employees may also apply to the Joint Review Team for consideration for relocation or travel allowance based on health and/or physical limitations.

2.4.

Joint Review Team

Staff wishing consideration by the Joint Review Team, in accordance with items 2.2 and 2.3 above, must self identify no later than one month after receipt of notice of relocation. The Joint Review Team will consider all such applications and render a decision for all applications two weeks following the deadline for submissions. Consideration by the team will be guided by the following:

Increased commute time
Increased distance
Reasonable access to public transit
Personal family considerations
- Recognition that OPG is not responsible for upgrading the individual's standard of living
Increased travel cost
Other considerations such as Health or Physical limitations

2.5.

Subsequent Relocation

An employee, who receives a travel allowance or relocation in accordance with this letter of understanding, would not be eligible for relocation or any change to the travel allowance upon a subsequent change of work headquarters within a five kilometre radius of the Durham Headquarters.

TRAVEL ALLOWANCE

3.1.

Staff identified to receive the travel allowance in accordance with Part 2 above will receive such an allowance for up to three years from the date they report to the new Durham Headquarters, as follows:

Radius Km Home to Durham Headquarters	Allowance per Month
< 40 km	$300
> or = 40 km	$600

Payment of the travel allowance will cease the earlier of three years from the date of first payment or upon the employee ceasing to be employed at the Durham Headquarters. When commencing or ceasing, travel allowance will be prorated to the nearest week for partial months. Notwithstanding the above, in the event that an employee in receipt of the travel allowance transfers/is transferred to a new work location beyond the Durham Work Headquarters and the employee would normally be eligible for relocation assistance as per 52.2.1, the employee may make an irrevocable election no later than the date of transfer to the new work location to continue receiving the travel allowance or to discontinue the travel allowance and relocate according to current collective agreement provisions.

In the event that an employee in receipt of a travel allowance commences an extended leave of greater than one month, including but not limited to, Pregnancy/Parental Leaves, extended sick leave, Long Term Disability and personal Leaves of Absence, the travel allowance shall be suspended until the employees return to work.

Effective upon commencement of receipt of the Travel Allowance, the employee will forgo any entitlements under Part XI - Relocation Assistance, save and except that they will continue to be entitled to Article 55 if and when assigned to temporary work headquarters.

ALTERNATE HOURS DURING TRANSITION

Staff who live a minimum of 40 road kilometres from the Durham Headquarters and who do not take relocation assistance, will be eligible to apply for alternate working arrangement for a transitional period of twelve months from the date of transfer. Management will strongly consider alternate working arrangements for the first twelve months at the Durham Headquarters.

Such alternate working arrangements will include:

Start times as early as 6:30 a.m. and end times as late as 6:30 p.m.
Compressed Work Weeks

Management will determine acceptance/rejection of such requests on the basis of the following criteria:

customer needs
business needs
maximum/minimum hours that can be worked daily
overtime/premium provisions
employee needs
health and safety considerations
legal and contractual considerations
an understanding that the employee must be prepared to report to work for emergent conditions upon short notice, or for meetings upon reasonable advance notice during hours which would normally have been considered regular working hours

Employees may appeal to the Management decision directly to the Steering Team for full and final resolution.

STEERING TEAM

5.1

The decision of the Joint Review Team in Part 2.4 is final and binding. If the review team is unable to reach consensus, the matter will be referred to a Steering Team comprised of two (2) senior representatives, or their delegates, for each management and the Society. The senior representatives have been identified as: Pierre Charlebois, John Murphy, Olaf Heilandt, and Lanny Totton.

The Steering Team will have the authority to make a decision or to have the issue resolved as they see fit without prejudice.

5.2

In the event of a disagreement and at the request of either party, the Steering Team will elicit the help of the OPG Ombudsman, as a Non-voting member, with the desired wish of reaching a mutually acceptable resolution to the disagreement.

Issues referred to the Steering Team will not be subject to the Grievance/Arbitration process.

This Letter of Understanding is agreed to by the parties without prejudice and without precedent to any position either party may take in future matters of a similar or identical nature.

The Letter of Understanding will expire upon the last payment of travel allowance per Item 3.1.

John Murphy Ontario Power Generation Inc.	Chir-Hsin Tien The Society - OPGN	Lanny Totton The Society - OPGI
	August 17, 2004

#153

RE: PURCHASED SERVICE FOR OPG AND SOCIETY INVOLVEMENT IN THE OPG BUSINESS PLANNING PROCESS

Consistent with the Letter of Understanding regarding Article 67, Purchased Services Agreement (PSA) dated February 12, 2003, The Society and OPGN have agreed to the following as an addendum to the February 12, 2003 Letter of Understanding:

The Society has agreed to a list of proposed purchased services for 2005. The list is attached to this Letter of Understanding. Status of the 2005 PSAs will be reported quarterly by management to the Society PSA SPOC. PSAs to companies with Society-represented employees performing work for OPG along with Purchase Order Numbers will be provided to the Society on a monthly basis. For further clarity, the OPGN Society Local can only agree to OPGN PSAs and any other contracted work represented by the OPGI Society Local must have the agreement of the OPGI Society Local.

Without prejudice or precedent, for the purpose of this agreement only, "base work" shall be defined as OM&A work of an on going nature typically executed by Society-represented staff. This work would include, but not be limited to, items such as stress analysis, preparing bills of materials, equipment performance monitoring, addressing outage and non outage AAA holds or elimination of backlogs. It does not include OM&A or capital modification projects. (see 4(b) and 4(c) below).

For the purposes of this agreement, "Augmented Staff" shall be defined as staff hired either directly by OPG, or through a managed task contract, that perform work regularly performed by Society-represented employees and are taking work direction from OPG.

The list of purchased services for 2005 has a contingency of 5% save and except as follows:

The Pickering A Restart Project will be shown as a separate item on the project list and have its own contingency of 7.5% for 2005.

Under this agreement it is permissible without Society agreement to:

Use Contingency or move the dollar amounts from one non-base project to another non-base project; or

ii)

Use Contingency or move the dollar amounts from a base project to non-base projects; or

iii)

Move dollar amounts from a base project, a non-base project or contingency to another base project to cover overages on the original scope of that base project

Under this agreement it is not permissible without Society agreement to increase the scope of a base project or create a new base project.

Expenditures in excess of the contingency for 2005 will be dealt with under paragraph #6 of the February 12, 2003 Letter of Understanding. The purchased services levels and contingencies are intended to be used in 2005 and not to be carried over to 2006. New and emergent work that does not cause the amount of the purchased service level plus the contingency to be exceeded does not require Society approval. New and emergent work covers only non-base work. Any base work not on the list requires Society approval.

A report showing current and planned staff numbers for Operations and Maintenance, including the status of the obligation under the 2004 LOU, will be provided to the Society by January 15, 2005. OPGN will complete the filling of all vacancies in the base Operations and Maintenance organization by May 31, 2005. If OPGN cannot meet this hiring target in 2005, OPGN will meet with The Society to discuss the reasons for the delay. At this time a new date will be fixed by the parties that is not later than August 31, 2005.

In addition to filling the vacancies above, OPGN agrees that 150 new regular Society OPGN staff will be hired prior to December 31, 2005. 50% of the new regular Society represented staff will be hired by September 1, 2005. All employees hired after November 1, 2004 will count towards the 2005 commitment. Society-represented new hires from the other OPG bargaining unit can be counted towards the new hire number. The hiring commitment may be met with new experienced hires but they will not be hired above the MP4 100% reference point unless approved by the CNO. No new hires will be placed into any Society-represented MP5/6 positions without conducting the internal hiring process. If no qualified applicants are available external hires may be brought into these positions.

Information on all new hires will be provided to the Society by management as follows:

Name of individual
Employee number of individual
Hiring rate of individual
Initial placement of individual, i.e., position placed in, location and their
Strat III/IVManager.

Management will consider requests from regular Society represented members who show interest in working in new and/or emerging base work areas.

10.

It is understood that the commitments made under LOU #122, will be completed upon the execution of this Letter of Understanding.

11.

In the event there is a significant change in business direction in one or more of the following areas

the business plan for base workload;
the project portfolio;
approval of Pickering A Units 2 and 3 Return to Service Project;

the parties agree to reconvene to revise the above noted commitments.

12.

This agreement expires with the expiration of the February 12, 2003 Letter of Understanding.

Glenn Gurba Ontario Power Generation Inc.		Olaf Heilandt The Society
	January 13, 2005

#154

RE: LAKEVIEW CLOSURE

In consideration of the impending closure of the Lakeview Station, the parties agree to extend the following treatment to staff working at Lakeview as named and identified in Attachment A to this Letter of Understanding.

Without prejudice to either parties position with respect to the Arbitration Award dated March 22, 2004 OPG shall offer voluntary termination in accordance with 64.4.4, and the calculation shall be in accordance with Article 64 to a maximum of 120 weeks.

All applications for voluntary termination per Item #1 shall be approved by management as follows:

The normal termination date for receipt of Voluntary Surplus payments may be delayed by OPGI up to March 31, 2006. This date is the scheduled termination date. OPGI delays beyond March 31, 2006 would require the agreement of The Society and the employee. Employees in rotations in another organizational unit with duration beyond March 31, 2006 may be required to complete their rotation prior to termination.

Employees will be allowed to defer their termination up to March 31, 2006 in order to achieve the earliest of one of the following pension milestones:

Twenty five years of service

ii.

Rule of 82

iii.

Age of 65

The time period up to the deferred termination date will be a non-working bridge. Employees who avail themselves of this option will use their Voluntary Surplus amount to maintain their base salary during the bridge. The Voluntary Surplus payment will be reduced by the amount used to maintain salary during the period between the start of the bridge and the deferred termination date ( i.e. the date the pension milestone is reached). The balance of Voluntary Surplus monies will be paid out in accordance with paragraph 6 below upon reaching the deferred termination date. Where the Voluntary Surplus amount is not sufficient to maintain base salary for the duration of the non-working bridge, the Surplus amount will be equally split across the number of weeks required for the bridge. [i.e. in this instance the salary paid will be less than normal base salary.]

During the non-working bridge, an employee will be eligible for health and dental benefits and group life insurance coverage equal to one times annual base salary pay (plus any optional life). An employee on a non-working bridge will not be eligible for sick leave or LTD benefits, vacation accruals or accruals under incentive plans.

Voluntary Surplus moneys will be calculated as per the date of termination [normal termination in the case of deferred termination for a non-working bridge].

In the offer, OPGI will specify the normal termination date, allowing for a three (3) week period for employees to apply. Employees whose applications are accepted will be made an offer indicating their scheduled termination date if different than the normal termination date. Employees must make an irrevocable decision to accept or reject the offer within one week.

An employee may direct all or a portion of their payment into an RRSP, up to the amount permitted by law. The employee shall provide OPGI with the appropriate form directing payment into their RRSP.

An employee may elect to take a lump sum payment or it may be divided into two (2) equal installments; the first on the date of termination and the second on or about January 15th of the following year.

The parties further agree to establish a Joint Working Team comprised of two (2) Society representatives designated by the Society and up to two (2) management representatives designated by OPG in order to discuss issues arising out of the shutdown of Lakeview, including any staff unplaced at the completion of this process.

This Letter of Understanding is reached without prejudice and without precedent to any position either party may take in any future cases of a similar or identical nature.

Under no circumstance shall this LOU be raised or referred to in any future arbitration proceeding.

Glenn Gurba Ontario Power Generation Inc.		Lanny Totton The Society
	November 12, 2004

#155

RE: HOURS OF WORK REDUCTION (ON BEHALF OF THE NUCLEAR BARGAINING UNIT)

Without prejudice and without establishing a precedent in any other, The Society and OPGI agree to the following with respect to positions in the OPGI Nuclear Bargaining Unit:

For vacancy selections made on or after January 1, 2004 and on or before December 31, 2004.

This Letter of Understanding expires on December 31, 2004.

The JRPT reached an agreement under Article 64.8.2.2 to cover matches that involve a reduction in hours of work. The "freeze and reduction" decision involved freezing an employee's salary and reducing their hours of work until 35 hours is reached.

Voluntariness of Application

Employees who wish to immediately work a 35 hour work week can do so. Their rate would be reduced immediately to the 35 hour rate upon starting the 35 hour work week position.

Employees within 3 Years of Undiscounted Pension

On the day of reporting to the new position an employee who is within 3 years of an undiscounted pension will not have normal hours of work reduced for 3 years or until such time as the employee is eligible for an undiscounted pension, if earlier. The employee will continue to receive economic pay adjustments. If the employee does not retire upon qualifying for an undiscounted pension, then the hours of work and base rate will be immediately reduced to the hours and rate of the position.

Start Date of Freeze and Reduction

All employees impacted by the freeze and reduction decision will be treated as follows:

Employees previously working 40 hours:

Employees reporting to new positions after January 1, 2004 will have their pay frozen according to the 2004 salary schedule. Their hours of work will be reduced to 39 hours on December 31, 2004. In all subsequent years, hours of work will be reduced by 1 hour per week, effective the first day of the fiscal year. The employee will be unfrozen after reaching 35 hours, or when their pay equates to the performance standing for 35 hours.

Employees previously working 37.5 hours:

Employees reporting to their new positions after January 1, 2004 will have their pay frozen according to the 2004 salary schedule. Their hours of work will be reduced to 36.5 hours on the first fiscal day of 2005 and finally to 35 hours on the first fiscal day of 2006

Promotions, Demotions, and Laterals

This agreement covers Promotions and Laterals only. Promoted employees will have promotional increases, if any, applied to their frozen rate and PAR. There will be no demotions into positions that result in reduced hours of work.

Performance Assessed Rate

The performance assessed rate (PAR) is the salary rate in the 35 hour/week schedule. This is determined by applying the person's existing rate to the new schedule (i.e. a person with a 98% MP-4 on a 40 hour week/schedule will have a PAR of 98% MP4 on the 35 hour/week schedule).

Completion of Process

When the salary rate becomes unfrozen the person is eligible for economic and performance pay increases to their actual pay rate.

Hours of work will be reduced until either the ramp period has expired or the person's PAR is reached. If after the ramp period has expired, the employee's PAR has not reached their frozen level, the frozen dollars shall be applied to the new salary schedule to determine an equivalent performance level which becomes the employees new unfrozen performance standing. The employee will then be eligible for future performance and economic increases.

Definition of "Day"

During the reduction of hours process employees will have daily hours of work that vary between 7 and 8 hours per day. For the purposes of vacation, sick leave, floating holidays and leave of absence/unpaid time off, a "day" will mean any work day between 7 and 8 hours in the work week.

The above Letter of Understanding replaces LOU #148.

Glenn Gurba Ontario Power Generation Inc.		Olaf Heilandt The Society
	December 20, 2004

#156

WORKPLACE HARASSMENT AND HUMAN RIGHTS COMPLAINT PROCESS

OPG and The Society agree to the following Letter of Understanding which replaces LOU #22:

(a)

If an employee engages this procedure, he/she shall not be able to engage the grievance procedure until such a time as the steps of this procedure have been exhausted and an acceptable resolution has not been arrived at.

(b)

A complaint may be filed with either Human Resources or Line Management. In either event, there will be mutual notification of the complaint within two (2) working days. An exchange of all the particulars of the complaint including documentation necessary to formulate a response will be exchanged between the parties within ten (10) working days of notification.

(c)

Within five (5) working days following receipt of the particulars, the Manager and the Society Unit Director's) shall meet in order to determine if there is any method of resolving the complaint through discussion between the complainant and the respondent.

(d)

If there is no resolution in (c) above, the parties will meet within five (5) working days and attempt to agree on the terms for a Step 1A before the Complaint is advanced to Step 2 of the Complaint and Grievance/Arbitration Procedure.

(e)

At Step 1A the parties will first attempt to agree on a third party investigation process that may include:

The use of a neutral investigator agreeable to both parties. The Investigator shall be empowered with the authority to interview any and all witnesses he/she may deem appropriate in order to conduct a full investigation;

ii.

Consideration of reports from preceding investigations;

iii.

Interviews with affected employees.

With the consent of the affected employees and the parties, mediation may be appropriate in the circumstances. Failing agreement on a third party investigation process, the Society may advance a grievance directly to Step 2 or use the process in (f) below.

(f)

If the parties are unable to agree to a third party investigation, within five (5) working days of disagreement at Step 1A the parties will exchange written briefs with all particulars regarding their respective positions. A third party mediator will hold a hearing within three (3) days of the brief exchange and will recommend/not recommend the use of an external investigator based on the merits presented.

(g)

The Society and OPG will attempt to agree upon a list of neutral investigators for use at Step 1A where required. The third-party mediator, drawn from the agreed to Tripartite list of investigators, will not be used as a neutral investigator in any case that they hear under step (f).

(h)

Where a Step 1A process is agreed to or recommended the parties will attempt to agree on a statement of facts based on the findings of the investigation. If there is no third-party recommendation to use an investigator the complaint will be considered settled for all purposes under this LOU and Article 16, unless the complaint deals with allegations of breaches under the Ontario Human Rights Act prohibited grounds or the imposition of discipline.

(i)

Based on the third-party investigation at Step 1A, Management will consult with The Society prior to determining the course of action it will take and will inform The Society of its decision in a timely manner. If The Society does not agree with Management's decision, it may advance a grievance directly to Step 2.

(j)

Where the parties agree on a statement of facts at Step 1A, it may be relied upon by either party at Step 2 and subsequent arbitration. Both parties retain the right to introduce additional facts and issues at Step 2. There will also be an attempt to consolidate at Step 2 any other grievance issues that may be related to the human rights or harassment allegations and to balance the interests of affected employees.

(k)

These provisions shall remain in effect until December 31, 2005 and continue thereafter subject to termination by either party on 90 days' written notice.

Glenn Gurba Ontario Power Generation Inc.		Joe Fierro & Olaf Heilandt The Society
	March 4, 2005

#157

COMPENSATION SYSTEMS

OPG and The Society agree to the following Letter of Understanding which replaces LOU #110:

A joint team (two OPG Management, two Society) will be formed to explore and make recommendations regarding issues of concern regarding compensation including pay relativity. This team will meet for regularly scheduled meetings from the date of the team being formed until an agreement is reached or it is concluded that no joint agreement can be reached. The team will have available to it all relevant documentation for it to review the issue and develop recommendations for resolving the matter.

Recommendations will be presented no later than the May 23, 2005 JSMC meeting. A joint presentation will be made on all items agreed to by the team and individual presentations to the JSMC will be made by each party on matters where no joint agreement could be reached.

Notwithstanding the above, the parties may agree to longer timeframes for the team as may be appropriate.

Glenn Gurba Ontario Power Generation Inc.		Lanny Totton & Olaf Heilandt The Society
	January 24, 2005

#158

BRUCE RELOCATION ASSISTANCE

Preamble:

As per the Memorandum of Settlement of October 26, 2004, the parties agreed to remove the appropriate sections of LOU #23 and LOU #24 that refer to the $24,000 relocation assistance.

OPG and The Society agree to the following Letter of Understanding effective January 1, 2005:

Item 5 of LOU #23 re Redeployment of Society-Represented Employees in OHN during NAOP is no longer in effect.

The letter to John Wilson from Gordon McTavish, dated June 19, 1998 and titled "Bruce Nuclear Redeployment", and LOU #24 re Reimbursement for BNPD Home Equity Loss must be applied with the understanding that paragraph 5 of LOU #23 ceased to be in effect as of January 1, 2005

Glenn Gurba Ontario Power Generation Inc.		Olaf Heilandt The Society
	January 24, 2005

#159

HOURS OF WORK REDUCTION (ON BEHALF OF THE NUCLEAR BARGAINING UNIT)

Without prejudice and without establishing a precedent in any other, The Society and OPGI agree to the following with respect to positions in the OPGI Nuclear Bargaining Unit:

For vacancy selections made on or after January 1, 2005 and on or before December 31, 2005.

This Letter of Understanding expires on December 31, 2005.

Voluntariness of Application

Employees who wish to immediately work a 35 hour work week can do so. Their rate would be reduced immediately to the 35 hour rate upon starting the 35 hour work week position.

Employees within 3 Years of Undiscounted Pension

Start Date of Freeze and Reduction

All employees impacted by the freeze and reduction decision will be treated as follows:

Employees previously working 40 hours:

Employees reporting to new positions after January 1, 2005 will have their pay frozen according to the 2005 salary schedule. Their hours of work will be reduced to 39 hours the first fiscal day of 2006. In all subsequent years, hours of work will be reduced by 1 hour per week, effective the first day of the fiscal year. The employee will be unfrozen after reaching 35 hours, or when their pay equates to the performance standing for 35 hours.

Employees previously working 37.5 hours:

Employees reporting to their new positions after January 1, 2005 will have their pay frozen according to the 2005 salary schedule. Their hours of work will be reduced to 36.5 hours on the first fiscal day of 2006 and finally to 35 hours on the first fiscal day of 2007

Promotions, Demotions, and Laterals

Performance Assessed Rate

Completion of Process

When the salary rate becomes unfrozen the person is eligible for economic and performance pay increases to their actual pay rate.

Definition of "Day"

Glenn Gurba Ontario Power Generation Inc.		Olaf Heilandt The Society
	January 24, 2005

#160

RE: AMENDMENTS TO LOU #119

The Parties agree to the following:

Paragraph of the LOU #119 as amended by LOU #142 and LOU #149 will be amended in accordance with the bolded changes below:

The parties acknowledge that the band cap may have to be re-visited for 2006. Discussion of the band cap is a fit matter for discussion at renewal bargaining for the 2005 collective agreement.

Glenn Gurba Ontario Power Generation Inc.		Olaf Heilandt The Society
January 24, 2005

OPG Collective Agreement

Part XVI: Letters of Understanding