Tentative Agreement January 31, 2009

 

The Union and the Company have reached a tentative agreement, including the provisions outlined below:

 

  Wages

General Wage Increase, including all part-time employees, will be increased by 3.5%, retroactive to 10/1/08.  On 10/1/09, base wages will be increased by 3.5%, and on 10/1/10, base wages will be increased by 3.5%. 

 

  Premiums

Premiums will be increased by the same percentage as each General Wage Increase, retroactive to October 1, 2008, for the duration of the contract.

 

Upon contract ratification, retroactive to October 1, 2008, the Company will increase On-Call Premiums by a one-time 3%, over and above the 2008 General Wage Increase percentage.

 

Employees who are required to maintain a Class A or B driver’s license (excluding Transportation Logistics Representatives) will receive a premium of $0.25 per hour in addition to their hourly rate.

   

  Other Allowances

The existing footwear allowance will be extended to the following 18 additional classifications:

 

Facilities Helper

Facilities Mechanic

Lead Facilities Mechanic

Fleet Technician

Lead Fleet Technician

Fleet Assistant

Fabrication Shop Mechanic #1

Journey Welder

Lead Laboratory Technician

Lead Machinist

Laboratory Assistant

Laboratory Technician

Journey Sheet Metal Mechanic

Lead Repair Shop Mechanic

Repair Shop Mechanic #1

System Protection Planner

Energy Technician–Residential

Journey Machinist

 

The Travel Per Diem will be increased from $30 to $39 per day, retroactive to October 1, 2008.

 

Split Days Off –

Over the next four open selection periods, beginning in 2009, Customer Service Field will reduce split days off by at least 50% compared to 2007 system levels.

 

Medical, Dental and Vision Benefit Enhancements for Part-Time Employees

Part-time employees will be eligible for the following benefits after one calendar year of service:

 

Medical - Effective the first day of the month following ratification, medical benefits (the low-cost HMO, for employee only).

 

Dental - The first day of the month following ratification, the SafeGuard dental benefit will be extended to part-time employees (employee only).

 

Vision - Effective 1/1/09, the SafeGuard vision benefit will be extended to part-time employees (employee only).

 

Note:  Part-time employees who waive all three benefits (i.e., medical, dental and vision) will receive a stipend of $100/month.

 

 

Dental and Vision Benefit Enhancements for Full-Time Employees

 

  Dental - The first day of the month following ratification, the Delta Dental plan annual maximum benefit will be increased from $1,000 to $1,500, and the maximum orthodontic benefit will be increased from $500 to $1,000.  In addition, employee monthly costs will be fixed at the following amounts for the term of the agreement.

 

                      Employee Only:  $12.50

                      Employee + 1:  $25.00

                      Employee + 2:  $50.00

 

 Vision – Effective the first day of the month following ratification, coverage for the cost of frames under the VSP and SafeGuard vision plans will be increased as follows:

 

VSP:  After deductible, plan pays 100% for frames having wholesale cost up to $100.  Employee pays wholesale cost over $100.

 

SafeGuard:  Plan pays 100% up to $100.  Employee pays 75% of retail cost over $100.

 

Medical Cost Sharing – Effective the first day of the month following ratification, the current cost sharing structure for the low-cost HMO option will change to a 85%/15% cost-sharing ratio, where the Company pays 85% of the total premium, and the employee pays 15% of the total premium.  Cost sharing for all other HMOs will remain based on the low-cost HMO, whereby the employee pays the difference in the premium between the low-cost HMO and the selected HMO.  In addition, the emergency room co-pay will be increased from $25 to $50.  Office co-pays will remain unchanged.

 

 401K Savings Plan Enhancements 

 

Effective 1/1/09, the 401K deferral limit will be increased from 25% to 50%.

 

To facilitate employees saving for retirement, in addition to the current auto enrollment program, the Company may implement an auto increase feature whereby new employees could automatically have their pre-tax contribution percentage increased by 1% per year, to a maximum of 6%, so that these employees receive the maximum Company matching contribution.  Consistent with the current auto enrollment program, employees would be able to opt out of the auto escalation feature. 

 

 Restructure the Current Sickness Allowance Benefit

 

Beginning 1/1/09, restructure the current sickness allowance benefit as outlined below.  The key changes are that employees will be able to carry over all unused current, extended and bonus sick time from 2009, receive new annual sick time allowances beginning in 2010, and be able to carry over an unlimited amount of unused sick time from year to year.

 

·         The re-structured sickness allowance design will be phased in, as opposed to changing immediately. 

 

·         Short-term Annual Accrued Sickness Allowance will be modified to provide five days of sickness allowance for employees with more than six months and less than a year of active service, and ten days for employees with one year or more of active service. 

 

·         Active employees, regardless of sick time previously used, will receive a transition allotment of their Extended-term Paid Sickness Allowance based on sick time that would otherwise be afforded in 2009.  For example, employees with more than ten years of service will receive seven weeks in their starting Extended–term Paid Sickness Allowance bucket plus their two weeks of Short-term Annual Accrued Sickness Allowance, for a total of nine weeks.

 

·         The 2009 transition allotment of Extended-term Sickness Allowance will include Bonus Sick if an employee is eligible.

 

·         At the end of each calendar year, employees will be able to carry over all unused Extended-term Paid Sickness Leave, including any unused 2009 transition-year allotments, and the amount that can be carried over each year will be unlimited.  In addition, any unused Short-term Accrued Sickness Allowance will be transferred to the Extended-term Paid Sickness leave bucket. 

 

·         Because long-service employees will not have as much time as short-term employees to accumulate a lot of unused sick leave, employees with 20 or more years of service, as of January 1, 2009, will receive two weeks of Short-term Annual Accrued Sickness Allowance, plus one week of Extended-term Sickness Leave, for a total of three weeks, beginning January 1, 2010 and annually thereafter. 

 

·         To address Union concerns about instances in which an employee may exhaust his or her sick time in one year and then incur a catastrophic illness or injury in a following year, the company will provide an annual catastrophic sickness allowance, as outlined in this proposal.

 

·         Employees will be able to use their Short-term Annual Accrued Sickness Allowances for their own medical and dental appointments of which will not be counted against them under the absentee policy as an occurrence.

 

·         The same-calendar-year restriction for the State Disability Insurance (SDI) bucket will be removed, providing employees with greater flexibility in the use of their SDI bucket.

 

·         Employees on long-term disability as of January 1, 2009, and who return from disability after January 1, 2009 and beyond, will receive the same one-time allotment of Extended-term Paid Sickness Leave.  Upon returning to full-time work for 180 days, this allotment can be used for unrelated disabilities within the 180 days of returning to work and for any disability after 180 days.  The one-time allotment will be based on the amount of Extended–Term Paid Sickness Leave the employee would have been afforded in 2009 had they been at work.

 

·         Employees will only be required to exhaust their current Short-term Sickness Allowance and 50% of their Extended-term Sickness Allowance before moving to the Long Term Disability (LTD) plan.  Employees who want to exhaust more than 50% of their accumulated, Extended-Term Sickness Allowance will need to notify the Company.  The Company will notify the employee of this option when they approach the 50% threshold.

 

·         The company will establish an employee recognition program for full-time regular employees with good attendance.  Employees who have perfect attendance for a full calendar year will receive a $100 gift card.  Employees who are absent three days or less during a calendar year will receive a $50 gift card.

 

Effective January 1, 2010, employees in active service, including existing part-time employees who subsequently move to full-time positions, who have completed three or more years of regular employment shall receive the following Catastrophic Sickness allowance, in addition to all their other sick leave.  The employee’s catastrophic sickness allowance will be replenished at the beginning of each year as follows:

 

 Years of Service   Catastrophic Sickness Allowance

                           in Hours

          3                40

          4                40

          5                80

          6               120

          7               160

          8               200

          9               240

          10             280

 

Criteria for accessing Catastrophic Sickness Allowance are as follows:

 

All available sick time must be exhausted (including all Short-term Annual Sickness Allowance, Extended-term Paid Sickness Leave and Bonus Sickness Allowance) before the Catastrophic Sickness Allowance. 

 

The employee must wait 14 continuous calendar days following the exhaustion of all available sick time before accessing the Catastrophic Sickness Allowance.  This 14-day waiting period will be without pay unless the employee chooses to use vacation or holiday credits.

 

The Catastrophic Sickness Allowance can only be used to carry the employee through the long-term disability elimination period.

 

The Catastrophic Sickness Allowance will be available for a disabling situation that lasts more than 14 continuous days.  An employee who returns to work after accessing the Catastrophic Sickness allowance, but then must leave work within 14 days for reasons related to the original disability, will be allowed to immediately access any unused Catastrophic Sickness Allowance, without a new waiting period.

 

Access to available Catastrophic Sickness Allowance hours will be facilitated through Disability Management Services, in conjunction with the employee’s healthcare provider.

 

Use of the Catastrophic Sickness Allowance will be governed by existing provisions contained in Section 4.4 (B) of the collective bargaining agreement.

 

The Catastrophic Sickness Allowance is not eligible for Health Reimbursement Arrangement (HRA) funding.

 

Summary of the restructured Sickness Allowance available to employees each year beginning in 2010, is as follows:

 

Short-Term Sickness           Extended-Term Sickness           Catastrophic Sickness

    Allowance                    Allowance                       Allowance

 

    80 Hours                 All unused sick time            An amount equivalent to

                              carried over from the           the employee’s Extended-

                              prior year, plus one            Term Sickness Allowance

                              additional week for                                                        

                              employees with 20 or

                              more years of service

                              as of 1/1/09.

 

·  Employees will only be required to exhaust their current sick time and 50% of their extended sick time before moving to the LTD plan.  Employees who want to exhaust more than 50% of their accumulated, Extended-Term Sickness Allowance will need to notify the Company.  The Company will notify the employee of this option when they approach the 50% threshold.

 

Establish Health Reimbursement Accounts at Retirement to Enable Employees to:  (a) Benefit from Unused Sick Time, (b) Leverage Pre-Tax Advantages and (c) Offset Retiree Medical Costs.

 

·         The post-retirement medical benefit structure will continue. 

 

·         At the Company’s expense, the Company will establish a Health Reimbursement Account (HRA), at the date of retirement, for all regular, full-time employees retiring on or after December 1, 2009.  The opening balance of the account will be determined based on the aggregate value of the following components:

 

The aggregate value of a percentage of the employee’s total unused Sickness Allowance (including Extended-term Paid Sickness Leave, Short-term Annual Accrued Sickness Allowance and Bonus Sick time) at the date of retirement, based on the employee’s straight-time wage rate at the date of retirement.  The percentage of unused Sickness Allowance to be credited to the employee’s HRA will be based on years of service as of January 1, 2009, as follows:

·        40+ years              (30%);

·        30 – 39 years          (25%);

·        20 – 29 years          (20%);

·        Less than 20 years     (10%); 

 

and 100% of all unused vacation, at the date of retirement, based on the employee’s straight-time wage rate at the date of retirement.  There will no longer be any cash payouts for unused vacation at the date of retirement. However, vacation can still be used up to and prior to retirement.  The value of unused vacation payouts at retirement is currently taxed, whereas there will be no tax withholding when converted to the HRA.

 

Consistent with IRS regulations, the HRA may be used by retirees for reimbursement of health-related expenses, such as the retiree’s share of premiums, health plan co-payments and other out of pocket, health-related expenses as permitted by IRS regulations and guidelines.

 

The balance of the employee’s HRA will earn interest at the 30-year Treasury Bond Rate and contributed to the HRA by the Company, based on the November average of the preceding year, as the rate changes from year to year.

 

Changes to Long-Term Disability (LTD) Plan

a.   For employees who become eligible for the Long-Term Disability Plan on or after January 1, 2010: the benefit will be increased from 60% to 65%, for the first year of disability benefits, for employees who have 25 or more years of service;   and increased from 60% to 70%, for the first year of disability benefits, for employees who have 30 or more years of service.  This modification does not apply to employees who are already on the disability payroll.

 

b.   Effective the first of the month following ratification, employees who have been offered a job more than 50 miles (versus the current 75 miles) from their last work location may elect termination wages equal to one week of pay for each year of service up to 25 weeks (versus the current 20 weeks) in lieu of accepting the job.

 

c.   The Company’s C-89 proposal is accepted, excluding the portion of the Company’s proposal pertaining to social security overpayments, as well as the portion regarding job displacement vouchers (i.e., the proposed Disability Plan strikethrough language in Item C under Vocational Rehabilitation regarding terminating disability benefits one year from reimbursement of vocational rehabilitation tuition or other related expense under the provisions of the supplement job displacement voucher). 

 

Use of Contractors – Two classifications will be added to the “fenced-in” list:  the System Protection Planner and the System Protection Technician.

 

New Positions – Two new positions will be created:  Senior Cathodic Protection Specialist and Cathodic Protection Technician.  Pipeline Technicians will have bid priority to the CP Technician position.  The first two Senior CP Specialist positions will be filled from within Transmission.

 

Position Opportunity System

 

a.   A real-time bidding process will be implemented by July 31, 2009.  Should system programming, development or testing cause an unforeseen delay the Company will keep the Union fully informed.  The current pre-qualification process will remain as is. 

 

b.   The Company will post the name and seniority date of the employee who is the successful bidder within 5 days.

 

c.   Employee test results will be posted online so that employees may access their own results.

 

d.   The Union and the Company will encourage employees to cancel test sessions within 5 business days if they are not able to attend.

 

e.   Employees will be required to submit bids for promotional opportunities until a real-time bidding process is established.  While employees are not restricted for promotional opportunities at the work location after accepting a job, bids will no longer remain active, and employees will be required to re-submit bids for promotion.

 

Temporary Relief Assignments - Provisions regarding temporary relief assignments will be modified to address Union concerns. Clarifies duration and under what conditions V and RV assignments are used.

 

Energy Technician Residential

 

·         Beginning with the next open schedule selection process, for bases that have at least 24 ETRs, the most senior employee will be allowed to be excluded from off-hour shifts or night work assignments.

 

·         The Company will pilot 4-10 hour shifts among the ETR classification, with one pilot base per region, for one year.  If the pilot is deemed by the Company to be successful, it may be expanded.

 

·         The Energy Technician Residential Apprentice (ETR-A) letter agreement on pages 203-204 of the agreement will be eliminated, and the Company will revert back to the pre-2005 progression, including Field Service Assistant, Field Technician and Energy Technician-Residential.  Existing ETR-As will continue to progress to ETR, pursuant to a new letter agreement that will be added to the contract.

 

Administrative Support Positions – All jobs in Administrative Support job progressions will have progression bid rights to all other Administrative Support progressions.

 

Transmission and Storage Specialists – Employees in Specialist positions within Transmission and Storage will have progression bid rights when bidding to the same job title in either transmission and/or Storage.

 

 Roving Main Gangs – A subcommittee will be formed (three union and three management employees) to explore adding more roving main gangs.

 

 Training – The Western States Utility Workers Industry Apprenticeship and Training Trust or the ICWUC Center for Worker Health and Safety Education may provide training to employees without regard to Union affiliation, to the extent such training is proposed to be conducted on Company time and premises, such opportunities will require advance discussion with the Company and Company’s consent.

 

Position Analysis Questionnaire (PAQ) Study Process

 

The Union and the Company agree to conduct the following job evaluations under the proposed, revised job evaluation process, (no Union or Company involvement) for the following classifications:

 

District Operations Clerk-4

Gas Measurement Analyst-5

 

 The parties will develop a mutually acceptable kick off process before beginning the PAQ.

 

 Union Dues – Effective January 1, 2009, part-time employees will begin paying dues after 520 hours of cumulative employment.

 

 Union Business

 Union leaves of absence will be expanded to include conferences.

 

a.   Requests for Union leaves of absence may be submitted electronically, at any time, provided they are properly completed and Labor Relations has been given 48 hours (two business days) to process.

 

b.   The current ten-day cap on Union leaves of absence for administrative work will be eliminated during contract negotiations, when mutually agreed to.

 

c.   The Union will provide the Company with 48 hours notice for requested absences for union business, as well as minimize the number of employees on leave from the same work group/department so as not to unduly burden the operations of a location.

 

d.   The Union will provide 48-hours notice prior to the beginning of a requested absence for Union activity on Company property.

 

 Emergency Postponement of Lunch Periods – Existing and outdated language will be replaced indicating the Company will comply with applicable federal and state laws.

 

 Vacation

a.   Modify current language to change “convenience of the company” to “operating necessity as determined by the Company”

 

b.   Clarify language to indicate that sold vacation less than 40 hours is paid in one lump sum

 

c.   Clarify language to indicate that employees who sell 40 hours of vacation will have the option of receiving the payment in a lump sum or over 24 pay periods.

 

d. The Company will increase holiday vacation slots in the CCC (for Christmas and New Years), for the term of this agreement, for classifications that have more than 25 incumbents.  The regular and bi-lingual slots will be kept separate, with one additional slot afforded to each.  These additional vacation slots will be communicated to employees through the local shop committees. 

 

e.   In addition to the CCC, one additional holiday vacation slot (for Thanksgiving, Christmas and New Years) will be added at each base for Distribution Field for the term of this agreement.  This change will be communicated through the local shop committee.

 

Use of Personal Vehicles for Company Business - Add language clarifying that the Company will use the IRS standard mileage rate to reimburse employees for Company business miles.

 

Coveralls - Coveralls will be provided to three additional classifications:  the Laboratory Assistant, Laboratory Technician and the Lead Laboratory Technician.

 

Military Service

 

a.   The Veteran’s Seniority Credit will be extended to employees who served in active duty in the U.S. Armed Forces or National Guard in the Afghanistan/Iraq conflicts which resulted from the events of September 11, 2001.

b.   A new letter agreement will be added to the contract outlining military leave of absence benefits afforded to full-time employees called to serve in the Afghanistan/Iraq conflicts.

c.    A new letter agreement will be added to the contract outlining military leave of absence benefits afforded to part-time employees called to serve in the Afghanistan/Iraq conflicts.

 

Alternative Dispute Resolution – A new letter agreement will be added to the contract outlining changes to the ADR process (e.g., in cases where ADR is being used for discipline and the Company contemplates discipline greater than two days off, the Local union president or their designee must approve the ADR resolution).

 

Arbitration – The arbitrator panel will be expanded, and if a selected arbitrator is not available within six months, the parties may mutually agree to use the very next arbitrator on the list if available within six months.

 

The parties agree to remove the following letter agreements from the contract:

 

a.   The Energy Technician Distribution letter agreement on page 194, as it is no longer applicable.

b.   The letter agreement on page 199 regarding direct deposit of reimbursable expenses, as this has already been implemented.

c.   The letter agreement on page 205 regarding Field Technicians, as it is no longer applicable.

d.   The letter agreement on page 206, as implementation of an on-line bidding system has been completed.

 

Term of Agreement - The term of the agreement will be three years, from February 1, 2009 to and including September 30, 2011.