Section 1: Objective
The Company and Union recognize that technological change, while necessary to the industry, may have an impact on employees. It is the purpose of the following provisions to assist employees in adjusting to the effects of such change.
Section 2: Definition
Technological change, which term shall include automation, mechanization, and process change, means the introduction of equipment or material of a different nature or kind than that previously utilized, or a change in the operation that is directly related to the introduction of that equipment or material.
Section 3: Joint Committee
A joint committee on automation will be established, which will consist of three (3) persons representing Management and three (3) persons representing the Union. It shall be the function of the Committee to study the effect of technological changes on employment in the mill, and to make such recommendations as are agreed upon, to the Mill Manager, to ensure that the interests of the Company and of the employees is fairly and effectively protected.
Section 4: Required Notice
The Company will advise the appropriate committee or committees as soon as possible, and in any case, not less than one hundred and eighty (180) days before the introduction thereof, of mechanization, technological changes and/or automation which the Company has decided to introduce and which will result in terminations or other significant changes in the employment status of employees.
The Company will advise the appropriate committee or committees as soon as possible and in any case not less than thirty (30) days before the expected date of the change of the anticipated time sequence of final installation and production start-up, and the anticipated effect on the job status of individual employees.
Section 5: Seniority Status
(a) In the event that it is necessary, crews will be reduced in accordance with the seniority section of this Agreement.
(b) An employee who is set back to a lower paid job because of mechanization, technological change or automation will receive the rate of their regular job at the time of the set-back for a period of six (6) months, and for a further period of six (6) months, they will be paid an adjusted rate which will be midway between the rate of their regular job at the time of the set-back and the rate of their new regular job. At the end of this twelve (12) month period, the rate of their new regular job will apply. However, such employee will have the option of terminating their employment and accepting severance pay as outlined in Section 6 (a) below, provided they exercise this option within the initial six (6) month period referred to above.
(c) An employee assigned to an equal or higher rated job because of mechanization, technological change or automation, will have the option of terminating their employment and accepting severance pay as outlined in Section 6 (a) below if that job should prove to be unsuitable, provided they exercise this option within six (6) months of starting on the job.
In case of a dispute concerning suitability of the job, the employee may process a grievance.
Section 6: Severance Allowance
- An employee with one (1) or more years of continuous service for whom no job is available because of mechanization, technological change or automation will, upon termination, receive a severance allowance calculated by one of the two following methods based on their last period of continuous service, it being the choice of the effected employee as to which of such methods of calculation is used.
|
Years of Employment |
Severance Allowance | |
| Weeks per year of service | % of earnings | |
| 1st Twenty (20) Years | 2 | 4% |
| Subsequent Years | 1 | 2% |
| Maximum Severance
Allowance |
52 Weeks * | 2080 Hrs |
* Computed on the basis of forty (40) straight time hours at the employee’s regular rate.
For employees with a minimum of one (1) year’s employment during their last period of continuous service, severance allowance shall not be less than four (4) weeks’ pay.
No payment will be made under this Section in cases where the employee has already qualified under Article XX – Job Elimination or under Article XXII, Section 2 – Permanent Mill Closure.
(b) Such employees from whom no employment is available will be given at least thirty (30) days notice separation.
At the time of separation, the employee shall have the option of receiving their severance allowance on termination, or they may elect to have their severance allowance held in abeyance for up to one year from the date of termination. The employee may apply in writing at any time during the year, at which time their full severance allowance will be paid forthwith.
Where the employee renounces the right of recall during this period, the employee will be terminated and their severance allowance paid forthwith with all seniority and recall rights being forfeited. Employees will have their welfare coverage continued for the current month plus two (2) additional months from their date of termination.
Section 7: Training
The Company agrees to participate in a program of training or retraining for another job within the operation, those employees who are displaced under the circumstances set forth in this section.
Section 8: Voluntary Lay-off
If an employee wishes, they may elect to take a temporary lay-off (s) provided a trained replacement is available, in order to keep a junior employee working.
The time frame of the lay-off to be determined by the Department Head and Union Department Representative.
Management maintains the right to recall the employee at any time who elected this option. The employee must be available for recall unless a bona fide reason is provided.