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Statement of Settlement 2006

Statement of Settlement to Settle All Outstanding Issues Related to the Implementation of the OPG/Society Memorandum of Settlement

This settlement is not in collective agreement language. Upon signing, the parties will amend all relevant sections of the collective agreement to reflect the concepts contained in the settlement.

  1. Use of Steps 1 and 2 on the MP-2, MP-3 and MP-4 bands
    • Steps 1 and 2 are not just for trainees but can be used for all other employees on those bands
  2. Above Band Issue
    • The top of the band is the cap for all employees except for grandfathered employees
    • Grandfathered employees will continue to receive economic increases
  3. Promotion Rules
    • Definitions for promotion, lateral and demotion as follows:

      "Promotion":

      This occurs when an employee is appointed to a position in a higher band

      "Lateral Transfer":

      This occurs when an employee is appointed to a position in the same band

      "Demotion":

      This occurs when an employee is appointed to a position in a lower band.

      • The parties recognize that employees in PIP positions accepting positions outside of their present PIP family will receive the equivalent treatment in so far as promotions, lateral transfer and demotions as if their status in their PIP (MP 2, MP 3 or MP 4) was on the corresponding band. The parties further agree that progression in a PIP will not be considered a promotion.
      • For further clarity, here is an example of the above language as applied to a PIP position:
        • An employee in a PIP on the MP-4 band who has met the qualifying accomplishments for the MP-3 job document applies for an MP-4 non-PIP position. This is defined as a promotion.
        • An employee in a PIP on the MP-4 band who has met the qualifying accomplishments for the MP-3 job document applies for an MP-3 non-PIP position. This is defined as a lateral.
        • An employee in a PIP on the MP-4 band who has met the qualifying accomplishments for the MP-3 job document applies for an MP-2 non-PIP position. This is defined as demotion.
        • An employee in a non-PIP on the MP-3 band applies for a PIP position on the MP-4 band, they meet the qualifying accomplishments for the MP-3 job document. This is defined as a lateral.
        • An employee in a non-PIP on the MP-3 band applies for a PIP position on the MP-4 band, they meet the qualifying accomplishments for the MP-4 job document. This is defined as a promotion.
        • An employee in a non-PIP on the MP-3 band applies for a PIP position on the MP-4 band, they meet the qualifying accomplishments for the MP-2 job document. This is defined as a demotion.
  4. Replace Article 66.2 with:

    Promotion

    It is normally expected that an employee will receive a salary increase upon promotion to compensate for the greater demands and responsibilities of the new, or revised job.

  5. A grandfathered employee may receive a promotional increases to a higher band, and this increase may result in the employee being still above the band in the new position.

    • Reclassification

      Reclassification as a Result of a Job Re-evaluation

      Reclassification may occur under several circumstances:

      1. when the salary band for a job increases with no change in the employee's actual job duties/responsibilities;
      2. when the employee has been and will continue to perform additional job duties/responsibilities;
      3. when additional job duties/responsibilities are to be added to the job.
      4. Reclassification as a result of (a) or (b) above will result in the employee being placed in the step nearest to a 6.6% increase in the higher salary band.
      5. Reclassification as a result of (c) above will be considered a promotion.

        However, at his/her next automatic annual progression the employee will be eligible to be placed at the appropriate step as before the reclassification, that represents a salary increase at the step nearest to a 6.6% increase in the higher salary band.

      6. A grandfathered employee shall receive the reclassification increases in points d) and e) above, these increases may result in the employee being still above the band in the reclassified position.
      7. Positions reclassified under this article shall retain their previous automatic progression date.
    • Status of TMS and FM&P Job Evaluation Plans and FM&P Shift Premiums
      • Agree that the TMS Plan is gone, however recognize that TMS are now struck rates, and neither party will seek to re-evaluate these positions under the current Plan A, and cannot be used as benchmarks for M&P jobs
      • Keep FM&P plan, employees will be moved to Schedule 09 except as identified in item #15 below
    • $2,000 Bonus
      • Staff who were on LTD (see item #7 below)
      • TMS and red circled employees as of January 2006 whose compensation inclusive of the relativity allowance is at or above 103% will receive the $2,000 bonus
      • *The Society's position is that Band N employees whose end rate is at or above $120,000, following the payout of the 2005 performance pay, shall receive the $2,000 bonus. Management's position is that they do not. This issue will be dealt with through Subsidiary bargaining or arbitration.
    • LTD Employees

      It is Management's position that:

      • Staff who were on LTD as of January 1, 2006, and were at or above 103% when they started LTD, will receive the $2,000 bonus upon return to work
      • No change to current compensation rules for staff who are, or will be, on LTD
      • Annual progressions do not apply to staff who are on LTD.
      • Staff who were on LTD as of January 1, 2006 will be placed on the bands upon return to work, annual progression dates will be as of the date of return to work

      The Society believes that the above treatment is in violation of the applicable Human Rights Act and the Society Collective Agreement. The parties agree to refer this issue to their legal counsel, and if necessary to arbitration.

    • *Band N
      • The new compensation plan excludes Band N (Nuclear Operations) payroll
      • It is the Society's position that the Management incentive plan applies to Band N. It is Management's position that it does not. This issue will be dealt with through Subsidiary bargaining or arbitration.
    • PIPs
      • Consistent application of PIP's throughout the collective agreement
      • Separate MP-2, MP-3 and MP-4 designation/Job Documents for all purposes under the collective agreement but on the MP 4 Band
      • There is no promotion rule when an employee is PIPed
      • It is recognized that annual progressions are not accelerated nor are steps skipped, when an employee achieves their Qualifying Accomplishments
      • Employees may be either promoted or hired into a PIP at any step
    • Incentive Language
      • Establishment of Management Incentive Plan referenced in the collective agreement as follows:

        The Company shall develop and implement a re-earnable incentive scheme for the life of the collective agreement. The Company reserves the right to change the terms of the re-earnable incentive scheme at any time. It is understood that the terms and conditions of the re-earnable incentive scheme and any decisions made under the re-earnable incentive scheme, including decisions to pay or not pay certain employees and amounts of payment, do not form a part of the collective agreement and are not incorporated into the collective agreement. For greater clarity, decisions made under the re-earnable incentive scheme are not grievable and do not constitute a difference for purposes of the grievance and arbitration provisions of the collective agreement. Further, incentives will not be included in economic arguments at mediation/arbitration.

        The Company agrees to furnish the Society with a list of amounts paid out to each Society employee pursuant to the re-earnable incentive scheme.

    • Performance Pay Articles
      • Retain 20.1 a) and 21.1 (Principles)
      • Article 21.4 amended as follows:

        If an employee's performance level may result in a reduction in step on the band performance pay standing, the employee will be given written notice at least six (6) months in advance of any contemplated action, setting out as precisely as possible:

        • the unsatisfactory performance;
        • what is required to rectify the unsatisfactory performance;
          • the actions that may be taken if improvement does not occur.
    • Retain 20.3, 21.2 and 21.3, for the purposes of any complaint/dispute under these sections any remedy will be limited to wording changes to the performance appraisal, i.e. there will be no monetary remedies.
      • Hours of Work Reduction
        • Applies to all Voluntary and Involuntary movements
      • Salary Schedules
        • Publish weekly rates
        • For clarity weekly rates are calculated by dividing annual rates by 52.17857
      • Temporary Employees
        • Temporary employees are entitled to annual progressions.
      • Employees with base 37.5 hours
        • Will be on Schedule 03 and will have their salary prorated from Schedule 03 (35 hour schedule)
      • Provision dealing with the status of Supply Chain

        Those employees who were in Supply Chain as of December 21, 2005 are in the Nuclear Subsidiary agreement.

        1. Article 64

          For the term of this collective agreement (January 1, 2005
          December 31, 2009) All employees performing Supply Chain Functions within the Fossil, Corporate, Hydroelectric and Nuclear subsidiary agreements are their own Unit of Application for all purposes under Article 64.

          For further clarity:

          • Management has the right under Article 64.4.4 to offer the VSP to Supply Chain employees within the affected work group in the case of a downsizing within the function.
        2. Article 65

          Employees performing Supply Chain Functions within the Fossil, Corporate, Hydroelectric and Nuclear1 subsidiary agreements will be entitled to apply to vacancies when they occur in positions on the above mentioned list in the Nuclear Business Organization with equal selection priority rights as all other Nuclear Business Organization Society represented employees and vice versa.

          For further clarity:

          • For the purposes of Article 65 employees on the above Nuclear list shall be afforded the right to apply for vacancies within the Nuclear Business Organization with equal selection priority rights as all other Nuclear Business Organization Society represented employees.
      • Purchased Services Agreement - Nuclear
        • See attached LOU
      • Purchased Services Agreement - All Businesses
        • The envelopes have been set for all businesses through to 2010
        • There is no requirement for agreement on staffing levels
        • Disputes for amounts outside of the envelopes are subject to the expedited arbitration process outlined in the Memorandum of Agreement
        • LOU's 124, 125, 126 and 153, as modified by the MoS, are still in place.
      • Post Retirement Spouses, amend language as follows:

        When a married pensioner plan member dies and his or her spouse* remarries:

        1. The new spouse will not be entitled to Health and Dental benefits.
        2. ny dependant children of the surviving spouse would be entitled to Health and Dental Benefits.
        3. These changes will not be applied retroactively.
        4. It is recognized that an amendment to the pension plan document will be required to enact these changes.

        * Spouse at the moment of death.

        1For further clarity the Supply Chain functions in Nuclear does not include positions which were within the OPG-N bargaining unit on or before December 21, 2005.

      • $5 Dispensing Fee
        • It is agreed that there is an exemption to the $5 dispensing fee per the brochure wording with respect to special mixtures
      • Business Unit Midterms
        • Delete Business Unit Midterms language, existing Business Unit Midterms will be converted to Letters of Understanding.
      • JGRC Format
        • One JGRC for all OPG, management will schedule their appropriate voting members
      • JSMC Format
        • 1 Main JSMC Quarterly, 1 Subsidiary Quarterly
      • Process for Future Negotiations
        • Recognize that there is a dispute about the sequence of master and subsidiary agreements negotiations and mediation/arbitration and agree to convene in January 2010 to resolve.
      • Nuclear Lateral Transfer Language
        • OPG will inform the Society prior to initiating a transfer. The Society may provide input into the process. Management will make the final decision.
      • Restricting Annual Progressions

        17.11 Movement through the band can be restricted where:

        1. a) the employer demonstrates a performance problem. For clarity progression restrictions are grievable;
        2. b) for employees who are in a PIP they will not be able to progress beyond the Qualifying Accomplishment Step unless they have met the Qualifying Accomplishments;
      • Pension Language

        Plan Formula

        Effective January 1, 2006 the employee's contributions will be increased to 7% below and above the YMPE.


        For: OPG

        For: The Society

        For: The Society

        Date

      # NEW-LOU Re: Purchased Services Agreement (PSA) Nuclear (including Nuclear Waste and Nuclear Regulatory Affairs)

      1. For the term of this Letter of Understanding the PSA (Article 46 of the Master Agreement) is suspended.
      2. 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.
      3. 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.
      4. 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 2006 to 2010.
      5. The fixed dollar envelope for Nuclear, including Nuclear Waste and Nuclear Regulatory Affairs, will be the dollar amounts agreed to for 2006. The proportion of this fixed dollar envelope that represents base work will not exceed 10%. The fixed dollar envelopes will each have a 5% contingency for each year.

        For further clarity, parties agree to the following amounts for contracting out of Society work, including all AECL work not specifically excluded by Appendix IV:

        Total Contracting out Envelope by Year

        Year 2006 2007 2008 2009 2010
        Total $125M $125M $125M $125M $125M
        Base Work Maximum $12.5M $12.5M $12.5M $12.5M $12.5M
        Contingency $6.25M $6.25M $6.25M $6.25M $6.25M
      6. Amounts from each year cannot be carried forward from one year to the next.
      7. The contingency amounts can be used for base work but cannot be used to increase the "base work maximum
        beyond the $12.5M maximum for each year. The term "base work
        is defined in paragraph 2 above.
      8. In accordance with the side letter attached to LOU 153, all BOM work will cease to be contracted out upon signing of this agreement. If base P.E. staff from elsewhere in Nuclear are assigned to perform work that is considered to be BOM work, then OPG may backfill those base P.E. staff with augmented staff or managed task.
      9. 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 agreement on the major projects, new and emergent work, the default shall be the Article 67 process, excluding arbitration, for the resolution of any disputes related to this unplanned for work.

      10. Arbitrations for disputes over amounts above the envelope will be expedited, i.e.
        • Business case briefs no longer than 10 pages;
        • No witnesses;
        • No lawyers (save and except LR and Society staff);
        • Multiple cases per day if possible;
        • Expanded list of arbitrators;

        Agreed to arbitrator(s)** will be used who will hear cases on short notice and will give a verbal ruling on the day of the hearing or as soon as possible thereafter.

      11. The company will report on an annual basis on the status of expenditures on the envelopes above. Further, management will also report on an annual basis the dollar expenditures of work performed by NSS, Kinetrics, AECL and other Society Represented companies. For further clarity the dollar expenditures of work includes all work done (e.g. MG, PWU and Society work) and not solely Society work.
      12. This LOU shall expire on December 31, 2010 unless there is agreement to renew this LOU for the business planning year 2011 by September 30, 2010. In the event that there is no agreement to renew, Article 67 will apply for work to be contracted out in 2011.

      ** The parties need to discuss the list of agreed to arbitrators