APPENDIX K
MEMORANDUM OF UNDERSTANDING JOB SECURITY (JOBS) PROGRAM
The Corporation and the Union are committed to enhancing the job security of General Motors employees. The Parties also recognize that such job security can only be realized within a work environment which promotes operational effectiveness, continuous improvement and competitiveness.
Accordingly, the parties have agreed to this JOBS Program and have pledged to work together, consistent with this Program and other provisions of the National Agreement to enhance the Corporation’s competitive position.
The cornerstone of the JOBS Program is a commitment to pre-determined Secured Employment Levels (SELs), a series of SEL Benchmark Minimums, and protection against indefinite layoff for eligible employees as expressly provided herein.
I. SCOPE OF THE PROGRAM - The Corporation and the Union agree that:
(A) The secured employment levels (SELs) (i.e., numbers of eligible employees or positions covered by this Program as defined herein) initially shall be established as of the Effective Date of the Agreement at each bargaining unit for skilled and non-skilled employees. The transfer of an employee between skilled and non-skilled will cause the SEL for the group receiving the employee to increase and the other group from which the movement occurred to decrease unless the movement occurred to satisfy the SEL, in which case the SEL will remain the same in each group.
SEL groups are set forth in Attachment C. The total of the SELs for each Group will equal the sum of their respective Unit SELs.
(B) The initial Secured Employment Levels for each Unit shall be equal to the sum of: (1) the number of active employees with one or more years seniority at work and on roll in the Unit on the Effective Date; (2) the number of active employees with less than one year of seniority occupying SEL slots in the Unit on the Effective Date; and (3) the number of unfilled new hire obligations in the Unit as of the Effective Date due to the application of the outsourcing/newhire provisions of the 1996 - 99 Agreement, Appendix K (Article II(O)(2)b.3.). Such active employees will be SEL eligible and shall include employees not at work who are:
on vacation,
receiving bereavement pay,
on jury duty,
on any leave of absence of 90 days duration or less,
on temporary layoff, and
(6) any other employee having a direct attachment to the active workforce.
(C). A series of SEL Benchmark Minimums will be established for each Unit on the Effective Date, representing projected SEL-eligible employment minimums as of the close of each calendar quarter beginning with the quarter ending December 31, 1999 through the quarter ending June 30, 2003. Each quarterly Benchmark shall be determined by subtracting from the immediately preceding SEL Benchmark an amount equal to .333% of the Unit’s Initial SEL, so that the June 30, 2003 Benchmark shall equal 95% of the initial SEL. (If this calculation results in something other than a whole number, sequential rounding adjustments may be made to even out the calculations over the term of the Agreement).
(D) No employee will be laid off for any reason, other than described in I(D), if such layoff would cause the number of active employees in the unit to fall below the then current SEL or otherwise result in the layoff of one or more SEL eligible employees.
(E) Paragraph I(D) notwithstanding, an employee protected from layoff by the SEL may be laid off for any of the following reasons:
volume related declines attributable to market related conditions as described in Document No. 10, JOBS Program - Volume Related Layoffs - SEL, not to exceed 42 weeks (inclusive of vacation shutdown weeks) over the life of the Agreement;
acts of God or other such reasons beyond the control of the Corporation;
the sale of a part of the Corporation’s operations as an ongoing business;
the layoff of an employee recalled or reassigned to fill an opening known in advance to be temporary; or
(5) model change or plant rearrangement until the employee otherwise would have been recalled.
An employee impacted by any of the above reasons is, if otherwise eligible, covered by the appropriate Supplemental Agreements which are attached to the National Agreement as Exhibits.
(F) The number of employees protected by this JOBS Program will be the equivalent of the employees within the SEL who would otherwise have been laid off as a result of any event other than those described in Paragraph I(E).
II. ADJUSTMENTS TO THE SEL AND SEL ELIGIBILITY - Following the initial determination of the SEL, it will be adjusted as follows:
.
(A) An employee shall become SEL-eligible for any of the following reasons at which point the SEL will be increased by one position for each such employee: (1) an employee in the active workforce, as defined by Paragraph I(B) who had less than one year seniority on the Effective Date of the Agreement who subsequently attains one year of seniority; (2) an employee with one or more years seniority is recalled, except if recalled to satisfy the SEL, and is actively at work, on vacation or receives pay in at least 26 weeks during any consecutive 52-week period ending after the effective date of the Agreement; (3) an employee with less than one years seniority is recalled, except if recalled to satisfy the SEL, who subsequently attains one years seniority and is actively at work, on vacation or receives pay in at least 26 weeks during any consecutive 52-week period ending after the effective date of the Agreement; (4) an employee rehired pursuant to Paragraph (64)(e), except if rehired to satisfy a SEL, who subsequently attains one years seniority and is actively at work, on vacation or receives pay in at least 26 weeks during any consecutive 52-week period ending after the effective date of the Agreement; (5) an employee newly hired after the effective date of the Agreement who attains three years seniority; (6) an employee deemed to be eligible, recalled or newly hired in order to satisfy a SEL Benchmark Minimum. Notwithstanding the above, the National JOBS Committee is authorized to establish special mechanisms, including SEL eligibility provisions, for the purpose of attracting new work.
(B) The SEL will be reduced for the attrition of eligible employees who quit, retire, or die.
(C) The Group SELs established pursuant to Section I(A) will continue to equal the sum of their respective Unit SELs and will be adjusted in accordance with the addition or deletion of Units to the extent such transactions affect the sum of the respective Unit SELs.
(D) Unit SELs will be adjusted in the event of transfers of operations or consolidations between Units. The Unit SEL will be decreased by one at the transferring location and increased by one at the receiving location by the corresponding number of jobs involved in the transaction, unless otherwise agreed to by the National parties. Similarly corresponding adjustments will also be made to the SEL Benchmark Minimums of each affected unit.
(E) Each employee who leaves the bargaining unit for a permanent salaried position will be replaced immediately with no effect on the SEL by recalling an employee from layoff or from the Area Hire List, or by hiring a new employee if no such laid off employee is available. For each regular salaried employee returning to the bargaining unit, the SEL will be increased by one.
(F) SEL eligible employees off roll will maintain their eligibility upon reinstatement.
(G) (1) Following the last day of each month and within 15 days of the following month (SEL Benchmark Review), the number of SEL-eligible employees in each Unit shall be compared to the Unit’s corresponding SEL Benchmark Minimum. Adjustments will be made consistent with the provisions of this Memorandum, and attrition replacement obligations will be fulfilled as set forth below.
(2) When the number of SEL-eligible employees exceeds the Benchmark Minimum, attrition will be replaced on a one-for-two basis by recalling employees on layoff in accordance with the procedure described in Section (3)(b) below.
(3) When the number of SEL-eligible employees would otherwise fall below the Benchmark Minimum, attrition will be replaced on a one-for-one basis by the following actions in order to maintain eligible employment at the Benchmark Minimum:
(a) First, by allowing an ineligible active seniority employee at the affected facility to become eligible.
(b) Second, by recalling a seniority employee from layoff from the facility, or rehiring an employee with a Paragraph (64)(e) rehire right, or from the Area Hire list.
(c) Or third, by hiring new employees up to the net number of jobs outsourced minus those insourced (as defined in Appendix L of the Agreement and determined by the National Committee) subsequent to the Effective Date. Such positions will be filled on a SEL Group basis (or Unit if applicable) no later than ninety (90) days following the SEL Benchmark Review, except when the affected Unit is encountering market-driven, volume-related layoffs.
(4) Notwithstanding the above, the net outsourcing/new hire obligation provided in Section (3)(c) above shall be activated earlier than required therein if and when the number of SEL-eligible employees is less than the greater of: (1) the SEL Benchmark Minimum for the quarter; or (2) 95% of the Unit’s Baseline SEL under the 1996 Agreement.
(5) If, after fulfilling the above requirements, subsequent attritions would cause the number of SEL-eligible employees to fall below the Unit’s Benchmark Minimum, attrition will be replaced on the following basis:
(a) When the number of SEL-eligible employees is greater than 90% but less than 100% of the Benchmark Minimum, one (1) new employee will be hired for each three (3) attritions.
(b) When the number of SEL-eligible employees is greater than 80% but less than 90% of the Benchmark Minimum, one (1) new employee will be hired for each two (2) attritions.
(c) When the number of SEL-eligible employees is below 80% of the Benchmark Minimum, one (1) new employee will be hired for each one (1) attrition.
(d) Such positions will be filled on a SEL Group basis (or Unit if applicable) no later than ninety (90) days following the SEL Benchmark Review, except when the affected unit is encountering market-driven, volume-related layoffs.
(6) Employees recalled, hired, or rehired to fulfill the above obligations may be assigned within their Unit at Management’s discretion, subject to applicable seniority provisions of the Agreement.
(7) In the event new hire obligations required in Subsection (3)(c) above are fulfilled through the placement of new employees at a Unit within the Group other than the one at which the obligations were created, the SEL for the respective Units will be adjusted on a one-for-one basis, by reducing the SEL at the Unit where the openings occurred by the number of new hire fulfillments and correspondingly increasing the SEL(s) at the Unit(s) where the new hires were placed. Similarly, offsetting adjustments will also be made to the SEL Benchmark Minimums of each affected Unit.
(H) If on the evaluation date the SEL number results in less than a whole number, the Engineering Method of Rounding will be used to determine the SEL
(I) Notwithstanding the above, SEL Benchmarking Minimums will not be established for a facility determined to be closing.
III. JOB SECURITY AND OPERATIONAL EFFECTIVENESS - In recognition of the fact that job security can only result from joint efforts to improve operational effectiveness, the Corporation and the Union agree that:
(A) For a period commencing with the Effective Date of this Memorandum of Understanding and for the life of the current Agreement, no employee within the SEL will be laid off as a result of any event other than those described in Paragraph I(E).
(B) An employee whose regular job is eliminated will be placed pursuant to the applicable provisions of the National Agreement and Local Seniority Agreement,
(C) The number of employees protected from layoff due to the JOBS program will be that determined in Paragraph I(F). Each Protected employee will be identified by application of the Local Seniority Agreement provisions as if such job security were not provided.
(D) If an event, other than those described in I(E), would otherwise cause the number of active employees in a unit to fall below the then current SEL, the employees so protected, as provided for in I(D), will be placed on Protected employee status. The Parties recognize that events, other than those described in I(E), may occur during the course of this Agreement that will cause the number of SEL eligible employees to exceed the Corporation’s production requirements. The parties further recognize that the scope of this program requires flexibility with regard to the assignment of such Protected employees and the selection of employees for training. In this regard, the Local JOBS Committee (described in Section IV, below) will insure that assignments are made on a basis consistent with the seniority provisions of the Collective Bargaining Agreement and Local Seniority Agreement while meeting plant needs, minimizing work force disruption and enhancing the personal growth and development of employees. After a decision by the Local JOBS Committee a Protected employee may be (1) placed in a training program, (2) used as a replacement to facilitate the training of another employee, (3) placed in a job opening at another GM plant provided there is no employee on layoff from that plant with a seniority recall or Paragraph (64)(e) rehire right or an Area Hire applicant who has not been offered a job at that plant, (4) given a job assignment within or outside the bargaining unit which may be non-traditional, (5) placed in an existing opening or (6) given other assignments consistent with the purposes of this Memorandum of Understanding.
(E) (1) Notwithstanding the above, an available Protected employee may be placed on the Area Hire list by Management for selection to an available opening at another location within the area. The number of such Protected employees made available for placement cannot exceed the number of Protected employees who have been laid off for the duration of the 42 week volume-related layoff limit (inclusive of vacation shutdown weeks). Protected employees will be made available for Area Hire placement in inverse seniority order.
(2) A location that has no one on layoff with a seniority recall or Paragraph (64)(e) rehire right may fill a job opening with an available Protected employee from another location within the Area Hire Area pursuant to Paragraphs M(1) and (2), or an Area Hire applicant who has not been offered a job in the Area Hire Area.
The SEL will be reduced by one at the plant from which the employee is transferred and increased by one at the plant to which the employee is transferred, unless the transfer satisfied the SEL, in which case the SEL will remain the same at both plants.
An available Protected employee transferred permanently to another location may remain at the secondary location until at the employee’s home location (1) there is an available opening in the regular active workforce to which the employee is entitled, or (2) the employee is recalled to Protected employee status, or (3) the employee is laid off from the secondary plant, at which time the employee will return, seniority permitting, to the active workforce.
(F) Efforts of the local parties to improve operational effectiveness will be encouraged and supported by the national parties including, as may be appropriate, approval of requests to waive, modify or change the National Agreement.
(G) A Protected employee will continue to receive their regular straight time hourly rate of pay. In the event a Protected employee is assigned to another classification, the employee will receive the rate of pay as provided by the Local Wage Agreement.
(H) Protected employees’ assignments will be considered temporary and not subject to provisions governing permanent filling of vacancies or the application of shift preference, except for assignments to fill openings resulting from volume increases. Experience gained from these temporary assignments will not be used to advantage such Protected employee over other employees for selection to fill permanent vacancies, nor will the Protected employee gain seniority under Paragraph (62) of the National Agreement from such assignments.
(I) An employee replaced by a Protected employee will receive their regular straight time hourly rate of pay, and will be returned to the same classification and job assignment upon completion of the replaced employee’s assignment. In the event the employee has insufficient seniority to return to the formerly held classification, the employee will be placed pursuant to the applicable provisions of the Local Seniority Agreement.
(J) If an employee would have been transferred pursuant to Paragraphs (63)(a)(1), (63)(a)(2), (63)(b) or (153) of the National Agreement or placed in an Apprentice program were it not for participation in a training assignment provided by this program, the employee will be transferred to this classification upon completion of the training assignment. In the event the employee would have been selected for an E.I.T. or Apprentice assignment the employee’s date of entry will be adjusted as if the employee’s assignment had not been delayed.
(K) A replaced employee returned to a job assignment under this Program will be credited with all overtime hours the employee worked while out of the equalization group, but not with the overtime hours the employee would otherwise have worked in the group had the employee not have been replaced by the protected employee.
(L) A training assignment will be voluntary on the part of an employee being replaced by a protected employee, unless such training is to develop or improve technical skills relevant to the employee’s current job assignment or anticipated future job needs.
(M) No Protected employee will be temporarily assigned to a job outside of the bargaining unit except on a voluntary basis, subject to the direction of the National Committee. Permanent transfers of Protected employees outside the bargaining unit to other GM-UAW represented plants within the Area Hire Area will be handled as follows:
(1) Management may place a Protected employee’s name on the Area Hire list. The number of names so placed may not exceed the number of employees who have been laid off for the duration of the 42 week volume-related layoff limit (inclusive of vacation shutdown). Protected employees will be made available for Area Hire placement in inverse seniority order. Thereafter, such employees may be selected in seniority order to available jobs at other locations. The Seniority used by a skilled trades employee in administering these provisions will be the employee’s date of entry or Journeyman/woman date.
(2) A Protected employee who is transferred permanently out of the Area Hire Area in accordance with this paragraph, or if so transferred later accepts a recall or rehire at a former location, will be eligible to receive a relocation allowance and other relocation services as provided in Paragraphs (96a) (1), (2), (3), (4), (5) and (6) of the National Agreement. A Protected employee temporarily transferred out of the Area Hire Area who does not change permanent residence as a result of the transfer will receive reasonable transportation and living expenses for the duration of the assignment. Any problems connected with the above may be raised with the National Committee.
(N) In the event there is an opening due to a volume increase, the available Protected employee with the highest seniority will be placed in this opening, unless the Local Committee determines the employee should first complete the employee’s current assignment. If seniority employees are on layoff from that plant, a number of such employees, equivalent to the number of Protected employees placed in openings due to volume increases will be recalled from layoff. A protected employee transferred to another GM plant due to a volume increase who is subsequently laid off from the secondary plant due to a volume decrease will be returned to available opening at the employee’s home plant, seniority permitting.
(O) A layoff caused by an event described in Paragraph I(E) will have no impact on the number of Protected employees except for an employee who is protected from a layoff attributable to a market related volume decline in excess of 42 weeks (inclusive of vacation shutdown weeks). In those instances, Protected employees, having the least seniority, will be laid-off and replaced by an equivalent number of greater seniority employees who would otherwise have insufficient seniority to remain in the plant.
(P) In the event the Local or National Committee determines that the number of Protected employees exceeds the number of expected openings at the plant or in the Area within the next succeeding 12 months, special programs as set forth in Attachment A may be triggered upon prior approval of the National Committee. Thereafter, to the extent the number of Protected employees is still in excess of expected openings, such employees, under the direction of the National Committee, may be transferred out of the area pursuant to Paragraph (M). The National Committee may also explore the extension of Attachment A to other locations to create job opportunities for excess Protected employees within the Area Hire area.
(Q) Earnings, including wages and wage related payments, received by employees while on Protected employee assignments, will be charged against the maximum liability amount. The cost of benefits and other payments made or incurred on behalf of Protected employees, specifically, health care (including dental and vision), group insurance, pensions, legal services, training fund contributions, and FICA will be charged against the maximum liability amount. Moving allowance payments and the cost of benefits provided under Attachment A of this Memorandum of Understanding will not be charged against this liability. Earnings received and the cost of benefits and other payments made on behalf of Protected employees while assigned to fill permanent job openings resulting from volume increases or assigned to other regular and productive work (e.g., absentee replacements) will not be charged against this liability.
(R) Charges against the Corporation’s liability will commence with the first payments made to Protected employees and will continue until the maximum liability is reached or the expiration of the Program as provided in this Memorandum of Understanding, whichever occurs first. The records of such charges will be maintained by the Corporation and will be available to the Union at appropriate times.
IV. ADMINISTRATION OF THE JOBS PROGRAM - The Corporation and Union agree that:
(A) At each bargaining unit covered by the current GM-UAW National Agreement, a Local JOBS Committee will be established to administer the Program.
(B) The membership of the Committee will consist of the local Plant Manager, and other representatives selected by management; the local Union President, if a General Motors employee, and the Shop Committee.
(C) The duties of the Local Committee will be:
(1) Review local accessions and separations relative to the Unit Secured Employment Level (SEL) and the number of Protected employees.
(2) Review the number and status of the available Protected employees on a monthly basis, specifically noting the impact on this group of attrition, volume and future manpower requirements.
(3) Monitor the initial placement of an employee who is within the SEL and who returns to work following an event covered in Paragraphs I(B) and I(E).
(4) Monitor the placement of Protected employees. In this regard consideration should be given to both the nature and duration of the assignment following the guidelines contained in Section III of this Memorandum of Understanding. Coordinate with the National Committee the placement of an employee outside the Area Hire as defined in Appendix A Memorandum of Understanding Employee Placement.
(5) Monitor permanent layoffs caused by the events described in I(E).
(6) Participate in discussions regarding sourcing decisions as outlined in Appendix L of the current GM-UAW National Agreement on the subject of Sourcing.
(7) Participate in discussions regarding the introduction of new or advanced technology as provided in the Statement on Technological Progress contained in the current GM-UAW National Agreement.
(8) Review attrition and changes in the workplace. As required, develop plans to replace attrition, including the use of hires or rehires, to meet operational needs when other appropriate placement sources have been exhausted. Consistent with guidelines regarding SEL Program Administration, the local parties are required to report monthly that appropriate communications have taken place; upon the request of the National Committee, the local parties may be required to provide detailed information to support their monthly joint reports.
(9) Review the manpower requirements of forward product, facility and business plans, maintaining the confidentiality of the material being evaluated.
(10) Plan and coordinate the assignment of Protected employees in their home plant, the relocation of Protected employees to other plants in the area and the application of special programs to Protected employees and active work force employees as described in Attachment A to this Memorandum of Understanding.
(11) Authorize non-traditional work assignments for Protected employees where practicable both within or outside the bargaining unit.
(12) Review any complaint regarding the administration of the JOBS Program. Refer unresolved complaints to the National Committee. The National Parties will limit the review of complaints to those raised, in writing, within 60 days of the SEL Benchmark Review or other event giving rise to the complaint unless the time limit is waived by the National Committee. Only those matters governing the size of the SEL-eligible population, the number of Protected employees, the SEL; or the treatment of a Protected employee as set forth in Section III of this Memorandum of Understanding will be subject to the Grievance Procedure. Such grievances will be filed at the Second Step of the grievance procedure. All other unresolved complaints will be settled expeditiously between the parties at the National level.
Disputes arising from the following matters may be submitted within fifteen (15) days of a SEL Benchmark Review to the Vice President and Director of the UAW General Motors Department and the Group Vice President-Labor Relations, General Motors Corporation: (1) market-driven, volume-related layoffs; and (2) new hire obligations required pursuant to Section II(G). If unresolved, the dispute must be appealed to the Umpire within thirty (30) days of receipt of the appeal. The Umpire’s decision shall be final and binding on the parties, and the Umpire shall have the authority to enforce such decision, including the authority to order the Corporation to hire new employees required under Section II(G).
(13) Jointly coordinate appropriate local training activities, working closely with the Local Joint Activities Committee and the UAW-GM Center for Human Resources National Office to ensure that quality, cost efficient training is provided and appropriate funds are secured from both within GM and from external sources.
(14) Jointly develop and initiate proposals to improve operational effectiveness to secure existing jobs, and to attract customers and additional business thus providing additional job opportunities. When required, secure necessary approvals from the bargaining unit membership and the national parties.
(15) Make recommendations to the National JOBS Committees, as appropriate, regarding any aspect of the JOBS Program. This may include any aspect of the contractual relationship between the Corporation and the Union that is relevant to the duties of the Local JOBS Committee; e.g., Appendix A, Appendix L, and Paragraphs (59), (69), (95) and (96) of the current GM-UAW National Agreement.
(16) Ensure that SEL funds are used solely for the purposes for which the Program provides protections, as specified in Section I (C) of this Memorandum of Understanding.
(D) A National JOBS Committee will be established at the Corporation-International Union level consisting of three (3) representatives selected from the Corporation and three (3) representatives selected by the Vice President, Director of the GM Department, UAW.
(E) The National Committee will be responsible to the Executive Board-Joint Activities and will meet periodically as required to:
(1) Monitor the efforts of the Local Committees.
(2) Maintain liaison with the Joint Skill Development and Training Committee to coordinate: (a) placement efforts for protected employees, (b) assessment and training programs and (c) funding through the Joint Skill Development and Training Committee.
(3) Approve Local Committee efforts to improve operational effectiveness and coordinate these actions when appropriate.
(4) Coordinate, where applicable, the execution of Special Programs described in Attachment A as well as the placement of Protected employees. For example, where a permanent loss of jobs has occurred or is scheduled for a location, the parties may discuss transfer of employees to another location; such a transfer could be in advance of the scheduled job loss, if it could be accomplished without adversely affecting quality and operating efficiency.
(5) Act on requests from Local Committees to waive, modify or change National Agreement provisions when such action would result in the preservation or increase of job opportunities. Such requests will be presented to the Executive Board - Joint Activities for approval and will be countersigned by the Vice President and Director of the GM Department of the International Union and the Group Vice President - Labor Relations, General Motors Corporation.
(6) Make quarterly reports to the Executive Board-Joint Activities and periodically to Union and Corporate leadership regarding the operation of the Program.
(F) The National JOBS Committee is specifically empowered to periodically review and evaluate the operation of this Memorandum of Understanding and make mutually satisfactory adjustments to its provisions during the term of this Memorandum.
V. FUNDING - The Corporation and International Union agree that:
Notwithstanding the commitments set forth in this Memorandum of Understanding, the Corporation’s total financial liability for the cost of the JOBS Program, to be calculated as agreed between the parties, shall not exceed $2.107 billion during the term of this Memorandum of Understanding, adjusted by any amounts shifted between the JOBS and SUB funds. In the event this liability is reached, Protected employees will be subject to layoff. Thereafter, to the extent that layoffs of such employees are required, the provisions of the Local Seniority Agreements will apply and eligible employees will receive benefit treatment in accordance with the Supplemental Agreements attached to the GM-UAW National Agreement then in effect.
VI. EFFECTIVE DATE - TERMINATION DATE The Corporation and International Union agree that:
(A) This Memorandum of Understanding will become effective at each bargaining unit covered by the current GM-UAW National Agreement, on the Effective Date of this Agreement.
(B) This Memorandum of Understanding shall expire with the expiration of the current National Agreement.
[See Par. (33), (65), (66)(a), (153)]
[See Doc. 10, 12, 15]
[See Statement on Technological Progress]
Appendix K
ATTACHMENT A
MEMORANDUM OF UNDERSTANDING
The National JOBS Committee may, from time to time and for specified periods, authorize the following Special Programs for designated eligible employees or may approve requests from Local JOBS Committees for implementation of such Programs. Employees must apply within the application period determined by the local parties and approved by the National JOBS Committee.
SPECIAL PROGRAM #1
JOBS VOLUNTARY TERMINATION OF
EMPLOYMENT PROGRAM
The JOBS Voluntary Termination of Employment Program (VTEP) provides a guaranteed lump-sum benefit payment subject to the conditions and limitations contained herein. This Program is applicable to an employee with at least one year of seniority who is at work or is a Protected employee on or after the effective date of the Agreement.
Description of Program Benefits
The maximum gross amount of the benefit payable under this Program is $72,000 for employees with 25 or more years of seniority.
In no event, however, shall the amount of a VTEP payment provided under this Program exceed such amount permissible under the Employee Retirement Income Security Act of 1974 (ERISA).
An employee who accepts a VTEP payment shall be provided with basic health care coverage for a period of 6 months dating from the end of the month following the month in which the employee last worked.
An employee eligible for an immediate pension benefit under the Hourly Rate Employees Pension Plan, at the time of his/her break in service (due to participation in a VTEP), shall upon completion of the Allocation Period and application for a pension benefit under the Hourly Rate Employees Pension Plan become eligible for post retirement health care and life insurance on the same basis as other retirees. For purposes of applying the terms of the Hourly Rate Employees Pension Plan, such employees shall not be treated as deferred vested by reason of their participation in a VTEP.
VTEP Payment Offsets
Any VTEP payment to an eligible employee will be reduced by the employee’s outstanding debts to the Corporation or to the Trustees of any Corporation benefit plan or program, including any unrepaid overpayments to the employee under the SUB Plan or GIS Program, Exhibits D and E, respectively, to the Collective Bargaining Agreement.
Effect of Receiving VTEP Payment
An employee who accepts a VTEP payment shall (i) cease to be an employee and shall have his/her seniority broken at any and all of the Corporation’s Plants or other locations as of the last day worked subsequent to the date his/her application for a VTEP payment is received (termination date), (ii) shall have cancelled any eligibility the employee would otherwise have had for a Separation Payment and/or Redemption Payment under Exhibits D-1 and E-1, respectively, to the Collective Bargaining Agreement, (iii) shall not be eligible to receive a mutual satisfactory retirement benefit under the Hourly Rate Employees Pension Plan, and (iv) shall not be permitted to retire under the Hourly Rate Employees Pension Plan for the number of months of the allocation period following the termination date.
An employee who receives a VTEP payment, and who is subsequently reemployed by General Motors, will not be eligible for any future VTEP payments until the employee has 5 or more years seniority following such reemployment. No seniority used to determine the amount of a previous VTEP payment shall be used in determining a subsequent VTEP payment.
SPECIAL PROGRAM #2
JOBS PENSION PROGRAM
General
The JOBS Pension Program provides pension benefits unreduced for age, payable under the Hourly-Rate Employees Pension Plan (Exhibit A to the Collective Bargaining Agreement) subject to the eligibility terms and conditions contained in such Pension Plan, and further subject to such terms and conditions contained herein. This Program is applicable to employees who are at work or is a Protected employee, on or after the effective date of the Agreement.
Description of Program Benefit
An offer of Mutually Satisfactory retirement may be extended under this JOBS Pension Program to an eligible employee between the ages of 55 and 61 who has 10 or more years of credited service under the Hourly-Rate Employees Pension Plan. Such retirement would provide unreduced basic benefits for the life of the retiree, temporary benefits payable until age 62 and one month (or if earlier, receipt of Social Security disability benefits), and any supplements they may be entitled to based on the provisions of the Hourly-Rate Employees Pension Plan and the employees’ age and credited service. The annual earnings limitation provisions of the supplements shall not be applicable to any mutually satisfactory retirement.
[See Doc. 10, 12, 117]
Appendix K
ATTACHMENT B
MEMORANDUM OF UNDERSTANDING
GOALS AND
OBJECTIVES OF JOB SECURITY AND
OPERATIONAL EFFECTIVENESS
The Corporation and the Union recognize that quality and operating efficiency are inextricably wed to job security, and that a high level of quality and operating efficiency requires mutual respect and recognition of each other’s problems and concerns. Accordingly, in addition to the Local JOBS Committee’s responsibilities for the JOBS Program and participation in discussions provided in related Letters of Understanding, each committee will focus on cooperative efforts toward our common goal to improve the effectiveness of operations and remove barriers to improvements, increase job opportunities and fully utilize the workforce. The local committees will jointly develop a plan through an exhaustive analysis of the location’s operational efficiency.
Within six months of the effective date of the Agreement, each Local JOBS Committee will review with Divisional/Group Management and the International Union the overall competitiveness of the location’s products and their plans indicating actions, and/or changes needed to improve quality and efficiency at their location and to stimulate job security of the existing workforce and attract new work. Such plans must then be approved by the established National Job Security and Operational Effectiveness Committee.
At the national level, the Committee will have an equal number of Union and Corporate representatives designated by the General Motors Group Vice President Labor Relations and by the Vice President and Director of the GM Department, International Union, UAW.
The National Committee will oversee implementation and administration of these Job Security and Operational Effectiveness Plans. Members of the National Committee will meet jointly with Local Committees to discuss the importance of job preservation and job creation, the reasons for the commitment to increase operational efficiency, suggest possible topics for consideration, and encourage good-faith efforts to develop and implement meaningful local plans.
The National Committee will be available on an ongoing basis as a resource to Local Committees and will review progress at the local level at least on an annual basis.
In these efforts, it is recognized that a great deal of initiative and imagination will be required by the local parties. While not intended to limit such innovation, the following are examples of appropriate areas the local parties may address:
1) identification of investments in the facility or equipment necessary to improve product quality or operational effectiveness;
2) the establishment of a team concept and/or pay-for-knowledge wage structure;
3) the identification of non-labor cost savings and efficiencies;
4) procedures and plans to review past outsourcing and outside contracting decisions, and identify opportunities for insourcing and new business;
5) the examination of new forms of work organization, such as job assignments relating to Just-in-Time or other quality enhancement systems;
6) procedures to review supervisory staffing and support for the initiatives in this Job Security and Operational Effectiveness section of the JOBS Program;
7) a realignment in skilled classifications to a number of appropriate basic trades to support the needs of the operation or location;
8) the implementation of skilled trades team concepts;
9) initiatives to reduce chronic absenteeism;
10) procedures for improved access by the Local Joint Committee to product plans and other information affecting employment security and operational effectiveness, assuring confidential treatment of such information;
11) the establishment of work standards on operations that fully utilize employees;
12) the examination of alternative work schedules which provide greater employment opportunities.
Efforts of the local parties to improve operational effectiveness may require change or waiver of certain agreements or practices. It is understood that any such waivers, modifications or changes would not be effective unless agreed to by the local parties involved and approved in writing by the GM Labor Relations Staff and the General Motors Department of the Union. Such changes would be effective only at the location(s) specifically designated.
[See Par. (82)]
[See CSA #11]
Appendix K
ATTACHMENT C
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