Section 1: Definition
Job elimination means permanent loss of employment as the result of company decisions to eliminate positions, excluding those in Section 2 below.
Section 2: Exclusions
No payment will be made under Section 5 in cases:
(a) of curtailments of a temporary or indefinite duration, however curtailments in excess of one (1) year will allow employees the option of taking severance.
(b) of employees hired for work of known or temporary duration.
(c) where the employee has already qualified under technological change or permanent mill closure provisions.
Section 3: Notice
The company will advise the Standing Committee at least forty-five (45) days prior to such job elimination. Crew reduction will be in accordance with Article XIX – Seniority.
Section 4: Elimination Options
An employee who qualifies under paragraph 1 above may elect one of the following options:
(a) Recall and seniority retention as per Article XIX Seniority, or
(b) Severance allowance as per Section 5 below.
Such employee must elect their option within thirty (30) days of notification that their loss of employment is permanent. If Option (b) is selected, the employee will be deemed to have terminated effective the last day worked. Where a temporary curtailment becomes permanent, severance eligibility will be determined by the status of the employee at the time of the temporary curtailment.
Section 5: Severance Allowance
Severance allowance will be calculated by one of the two following methods based on the last period of continuous service, it being the choice of the affected 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 of the employee’s regular rate.
For employees with a minimum of (1) year’s employment during their last period of continuous service, 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.
The severance allowance will not be more than the employee would normally receive if they remained at work at forty (40) hours per week to their normal retirement date.
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 (1) 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 right of recall and seniority retention under Article XX is elected, the employee’s severance allowance will be held in abeyance for the duration of their recall rights at which time the employee will be terminated and their severance allowance 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 being forfeited.