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Basic Agreement
Letter 9: Contracting Out

Item 9 - Contracting Out

The parties recognize the seriousness of the problems associated with Contracting Out of work both inside and outside, and have accordingly agreed as follows:

The following provisions shall be applicable to all Contracting Out issues subject to, and arising on or after the effective date of this Agreement.

The Company and the Union agree to establish a Contracting-Out Committee which will meet quarterly, or more often if required, to discuss issues of mutual concern relative to contract work. This Committee will consist of the Union Contracting-Out Committee Chairman or delegate, the Manager - Operations or delegate, the Master Mechanic or delegate, the General Supervisor Engineering or delegate, and equal representation from the Company and the Union to a maximum of six (6) members. The purpose of these meetings will be to discuss and review the utilization of contract work with a view to ensuring that any change beyond current and/or traditional contract work for the existing facilities in the plant is reviewed by the Committee. Time spent by the Union Contracting-Out Committee in the performance of the functions set out in this item will be deemed to be timed worked and will be paid in accordance with the provisions of the Basic Agreement.

In the event that the Company intends to let a new contract for production, service, any maintenance or repair work, any installation, replacement and reconstruction of equipment and productive facilities, the Master Mechanic or his delegate will advise, using a notification form, the Chairman of the Union Contracting Out Committee sixty (60) days or more in advance of the awarding of any such contract and, if so requested, convene a meeting of the Contracting Out Committee. The purpose of such meeting will be to discuss and review with the Union Contracting-Out Committee the particulars of the contracting out situation as follows:

  1. Location of the contract work.

  2. Type of contract work.

  3. Estimated duration of work.

  4. Trades or occupations to be involved.

  5. Anticipated utilization of Bargaining Unit forces either in conjunction with or peripheral to the contract work to be performed.

  6. The Company's reasons for contracting the work, including but not limited to such considerations as:

    1. Effect on operations if construction or maintenance work is not completed on time;

    2. Economic and financial rationale;

    3. Minimizing potential fluctuations in the levels of the bargaining unit work force;

    4. The building of and start-up of a new production facility or operation.

    The Union Committee may make recommendations with respect to the above matters and any such suggestions will be considered by the Company. Following such consideration, the Company will review its decision regarding the awarding of the contract with the Chairman of the Union Committee.

    In addition to the above, the Chairman of the Union Contracting-Out Committee may, at any time, discuss as necessary with the Manager - Operations questions relative to contract work for the purpose of clarification.

    In the event that an employee is laid off work in accordance with the provisions of the Basic Agreement, the Company will not contract out, subsequent to his layoff, and during his period of entitlement to recall, the work that such former employee previously performed, is qualified to perform or can be trained in a reasonable period of time to perform.

    The parties' primary objective shall be to minimize contract work through the use of the bargaining unit workforce.

    None of the provisions of this Item commit the Company to any capital expenditure other than as it deems necessary (i.e. Buildings, machinery, mobile equipment).

    In instances where the consistent practice has been to have work performed by contractors, the Committee may review the situations and recommend change.

    Cost considerations will be a factor in reviewing contracting out.

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