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Basic Agreement
Letter 32: Flexibility and Maximization of Operations

Item 32 - Flexibility and Maximization of Operations

  1. The current provisions with respect to hours of work, and the current schedules of work established in accordance with such provisions shall be maintained unless additional business is secured necessitating a twenty (20) or twenty-one (21) turn level of operations on all or part of plant or equipment, or unless as of August 1, 2000, the requirement for increased efficiency of operations and/or cost effectiveness requires such levels of operation.

    1. Under condition 1 above, the Hours of Work provisions as specified in Appendix "A" attached may be implemented by the Company. Prior to such implementation, the Plant Manager and the Industrial Relations representative will arrange a meeting with the Local Union Executive Committee to review and discuss the conditions necessitating such implementation including such matters as vacation scheduling, scheduling on statutory holidays and any other matters of concern. The Local Union will have the opportunity to make suggestions with respect to alternate methods of meeting operating requirements and the Company will seriously consider any such suggestions. Furthermore, the Union and the Company will discuss the proposed schedules of work, and the Company will endeavour to accommodate, where possible, the preferences of senior employees with respect to the new schedules of work. Such meetings between the parties will be arranged at least two (2) weeks prior to the implementation of the amended hours of work.

      1. The Company will not implement the provisions of this Letter for the specific purpose of workforce reductions or reducing the level of operations on the equipment not being scheduled on twenty (20) or twenty-one (21) turns.

      2. When one (1) or more units of similar equipment within a job description are scheduled in accordance with the provisions of this Letter, the level of operations of the other units within the same job description will not be reduced as a direct result of such increase. In this regard, production will not be transferred between units of similar equipment within the job description so as to justify or maintain a continuous operation.

      3. For the Cleaning, Wire Galvanizing, Annealing, Oil Temper and Wire Drawing areas Clauses 2.(b)(i) and 2(b)(ii) will only apply when an employee on the payroll of the Company as of March 31, 1996 is laid off in accordance with Clause 7.08.

  2. It is understood that with respect to the hours of work scheduled by the Company on a twenty (20) or twenty-one (21) turn schedule in accordance with Appendix "A", the Company will maintain the starting and quitting times for shifts of work as currently specified in the appropriate provision of the current Hours of Work Section pertaining to double and triple turn operations.

  3. Where Appendix "A" is implemented and additional working force is required, the Company will, subject to Section 7 of the Basic Agreement, preferentially hire laid off former employees with recall rights from other Works in accordance with the Letter of Agreement re Preferential Hiring.

    1. Any permanent employee or former employee with recall rights as of April 1, 1987, whose permanent job is scheduled under the Hours of Work provisions as specified in Appendix "A" and who is scheduled to and works such schedule, will receive a one (1) time lump sum payment of five thousand dollars ($5,000) in the pay period immediately following his commencement of work on such schedule.

    2. Any permanent employee or former employee with recall rights as of April 1, 1987 who is temporarily assigned to a job(s) which is scheduled in accordance with the provisions of Appendix "A" and who works such twenty (20) or twenty-one (21) turn schedule for a total of four hundred (400) hours of work on such job(s) in any twelve (12) consecutive month period, will receive a one (1) time lump sum payment of five thousand dollars ($5,000). Hours not worked by reason of absence on scheduled vacation and the celebration of a statutory holiday for which the employee was paid an allowance will be counted towards the four hundred (400) hour provision.

    3. An employee will only be eligible to receive one (1) of the one (1) time lump sum payments under the provisions of this section.

  4. Where the conditions necessitating the implementation of Appendix "A" cease to exist, the Company will schedule in accordance with the Hours of Work and Overtime provisions of the Basic Agreement.

  5. When an employee is temporarily transferred from a Monday to Friday schedule to a twenty (20) or twenty-one (21) turn schedule (or vice versa) established under the provisions of this letter, such employee will be paid overtime rates for work performed on the first scheduled shift of the new schedule. This premium will only be paid on the temporary transfer to the new schedule.

  6. The Company will discuss and confirm on a Local Works basis the existing schedules of work at current operating levels. Such discussion will provide for a consideration of any changes that may be mutually agreed to with respect of such existing schedules.

    In view of potential concerns or problems associated with the implementation of schedules in accordance with this Letter, it is understood that a meeting will be convened during the term of the Agreement upon the request of either the Company or the Union, to discuss any matters of concern or problems related to twenty (20) and twenty-one (21) turn operations.


    1. The normal workday for the purposes of this Section shall be eight (8) hours of work in a twenty-four (24) hour period.

    2. Subject to (2) below the normal workweek shall be any five (5) normal workdays within a workweek.

  1. The work pattern shall be five (5) consecutive workdays beginning on the first day of any seven (7) consecutive day period and may begin on any day of the calendar week and may extend into the next calendar week. The Company may increase or decrease the number of shifts or days on or during which a division may be scheduled, but all employees shall be scheduled on the basis of the work pattern except where:

    1. Such schedules regularly would require the payment of overtime;

    2. Deviations from the work pattern are necessary due to breakdowns or other conditions beyond the control of the Company;

    3. Schedules deviating from the work pattern for reasons other than (a) or (b) above are established by agreement between the Company and the Union.


The following procedure is applicable when a 20 or 21 turn level of operations is implemented under this item (Item 32):

  1. Subject to the provisions of Clause 7.06, in those instances when an incumbent employee on the job or jobs to be effected by such schedule elects to not apply for his/her job description scheduled for continuous operations, such employee shall be deemed to be displaced from the job and will be entitled to claim a job in the following order:

    1. The scheduled eight (8) hour job assignment in his/her department in the same description held by any employee junior to him/her in service, or if such job is not available to him/her;

    2. The job of the junior employee in any other scheduled eight (8) hour job in his/her department provided his service is greater than that of the employee to be displaced;

    3. Then the job of the junior employee in any other eight (8) hour scheduled job in any other department in the plant.

  2. It is agreed and understood that if an employee is unable to claim a job in point 1 above, such employee is deemed an applicant for his incumbent job scheduled for continuous operations, however, the employee shall not be bound to the provisions of Clause 7.10(c) of the Basic Agreement.

This section "Implementation of Continuous Operations" of Item 32 was previously a letter of understanding (January 12, 1999) and was incorporated into the Basic Agreement in 2012.

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