Section 1: Notice
An employee terminated as a result of permanent planned closure of the mill shall be given a minimum of sixty (60) days notice of the closure.
Section 2: Severance Allowance
Such employees shall be entitled to a severance allowance of two (2) weeks per year of service to a maximum of sixty (60) weeks based on the employee’s years of employment during the employee’s last period of continuous service computed on the basis of forty (40) straight time hours per week at the employee’s regular rate.
For employees with a minimum of one (1) year’s employment during their last period of continuous service, the severance allowance shall not be less than four (4) weeks pay.
Employees will have their welfare coverage continued for the current month plus two (2) additional months from their date of termination.
Section 3: Indefinite Mill Closure
The Company and the Union agree to provide employees on temporary layoff with an option to sever their employment under certain circumstances.The option for severance would be available if: Employee has 1 or more years of continuous service at the start of the layoff, and
- Employee has been on layoff for 12 months, and
- There is no definitive plan for reemploying the individual within the following 3 months.
For the purposes of this proposal, a layoff is defined as having the opportunity to work less than 900 hours from the date of layoff for indefinite mli closure through the following 12-month period.
If the above conditions are met, the employee will have the option of accepting a severance payment. The severance will be calculated according to the formula in Article XXIV – Job Elimination.