ARTICLE EIGHT – EARNINGS SECURITY

Section A.  Employment Security

1.                  Objective

The parties agree that it is in their mutual interest to provide all Employees, with at least three (3) years of Continuous Service, with the opportunity for at least forty (40) hours of pay each week.

2.                  Layoff Minimization Plan

The Company agrees that, prior to implementing any layoffs, it shall review and discuss with the Union :

a.         documentation of a clear and compelling business need for the layoffs (Need);

b.         the impact of the layoffs on the bargaining unit, including the number of Employees to be laid off and the duration of the layoffs (Impact); and

c.         a Layoff Minimization Plan which shall contain at least the following elements:

(1)       a reduction in the use of Outside Entities;

(2)       the elimination of the purchase or use of semi-finished and hot-rolled steel from outside vendors that can be reasonably produced by the Company;

(3)       the minimization of the use of overtime;

(4)       a program of voluntary layoffs;

(5)       the use of productive alternate work assignments to reduce the number of layoffs; and

(6)       a meaningful program of shared sacrifice by management, including senior management.

3.         Employee Protections

Reference to the elements of a Layoff Minimization Plan in Paragraph 2 above shall not be construed to impair in any way any protection afforded to Employees under other provisions of this Agreement.

1.                  Union Response

The Union shall be provided with sufficient information to reach its own judgment on whether there is a Need, the appropriate Impact and to develop its own proposed Layoff Minimization Plan.

2.                  Dispute Resolution

a.         In the event the parties cannot reach agreement on whether there is a Need, the appropriate Impact and the terms of a Layoff Minimization Plan, the Company may implement its plan and the Union may submit their dispute to an expedited final offer arbitration under procedures to be developed by the parties. If the Company lays off Employees in violation of this Article, such Employees shall be made whole.

b.         The arbitrator’s ruling shall address whether the Company demonstrated a Need and if it did, whose proposed Impact and Layoff Minimization Plan are more reasonable, given all the circumstances and the objectives of the parties.

ARTICLE EIGHT – EARNINGS SECURITY

Section B.  Supplemental Unemployment Benefits

1.                  Eligibility

An Employee shall be eligible for a weekly supplemental unemployment benefit (Weekly Benefit) for any week beginning on or after the Effective Date, if s/he:

a.         has completed two (2) years of Continuous Service prior to his/her seeking weekly benefits;

b.         is and remains an Employee within the meaning of the Agreement;

c.         does not receive sickness and accident benefits under an agreement between the Company and the Union ; 

d.         is not in the military service, including training encampments;

e.         is eligible, applies for state unemployment benefits for the week and takes all reasonable steps to receive such benefits; provided, however, that this requirement will not apply if s/he has exhausted state unemployment benefits, receives other compensation in an amount that disqualifies him/her for state unemployment benefits, has insufficient employment to be covered by the state system, fails to qualify for state unemployment benefits because of a waiting week, is unable to work by reason of disability, or is participating in a federal training program; and

f.          either

(1)       is on layoff for any week in which, because of lack of work, s/he does not work at all for the Company;

(2)       is on layoff during a plant vacation shutdown and s/he is not entitled to vacation during the shutdown; or

(3)       became disabled while on layoff and is not physically able to return to work.

2.                  Amount and Duration of Benefits

a.         Weekly Benefits are equal to:

(1)       forty (40) multiplied by the Employee’s Base Rate of Pay; and

(2)       the applicable percentage shown in the following table:

Supplemental Unemployment Benefit Percentage

b.         Notwithstanding the above table, the duration of Weekly Benefits payable to an Employee who becomes disabled while on layoff and is not physically able to return to work shall be limited to fifty-two (52) weeks beginning with the week the Employee is recalled to work.

c.         The amount of a Weekly Benefit may be offset only by the amount of state unemployment benefits, Trade Adjustment Allowance and any Excess Other Compensation, but in no event will the total Weekly Benefit be less than $250.00 per week for the Duration of Benefits.

d.         Excess Other Compensation means any weekly earnings from an employer other than the Company in excess of the amount that would reduce the Employee’s state unemployment benefit to zero.  The amount to be offset shall be $1 for each $2 of Excess Other Compensation.

3.                  Company Payment

The Company shall make reasonable calculations of Weekly Benefits and pay such benefits based on the best information in its possession and obtained from the state system.

4.                  Disputes

In the event an Employee believes that his/her Weekly Benefit or eligibility determination has been made in error, the Employee may file a grievance, as outlined in the grievance procedure of the Agreement.

5.                  Administration of the Plan

Subject to and in accordance with the terms and conditions outlined in this Section, the Company shall administer the Supplemental Unemployment Benefits Plan (Plan) and may prescribe reasonable rules and regulations.  The costs of administering the Plan shall be borne by the Company.

6.                  Finality of Determination

The Company shall have the right to recover overpayments and correct underpayments to Employees. However, any benefit determination shall become final six (6) months after the date on which it is made if (a) no dispute is then pending and (b) the Company has not given notice in writing of an error.

7.                  Termination

Notwithstanding the provisions of Article One, Section B (Term of the Agreement), this Section and the Plan on which it is based shall expire 150 days after the Termination Date.

8.                  Documentation

The parties shall adopt a mutually agreed upon Plan to provide the benefits described in this Section.

ARTICLE EIGHT – EARNINGS SECURITY

Section C.  Severance Allowance

1.                  Right to Severance Allowance

Employees meeting the conditions outlined below shall, upon request, receive a Severance Allowance as described herein.

2.                  Eligibility

In order to be eligible for a Severance Allowance an Employee must:

a.         at the time s/he requests such Allowance, have accumulated three (3) or more years of Continuous Service; and

b.          be on layoff (other than voluntary layoff):

(1)       for six (6) consecutive months, or in any twelve (12) month period be offered, under the terms of the Agreement, less than 520 hours of straight time work, or

(2)       due to a Permanent Closure as defined in this Section.

3.                  Employment in Lieu of Severance

In lieu of Severance Allowance, at the time an Employee requests such Severance Allowance, the Company may offer such Employee a regular full-time job of equal earnings at the Employee’s plant or within that Plant’s Region, if:

a.                  the job is in a bargaining unit represented by the Union ;

b.                  the job is not a temporary job or a job known to be of limited duration;

c.                  the Employee is physically qualified to perform the job; and

d.                 the Employee has the ability and skills required to perform the job or has the ability to absorb such training for the job as is offered and is necessary to enable the Employee to perform the job satisfactory.

4.                  Amount and Form

a.          In the case of Paragraph 2(b)(1) a single lump sum payment equal to   one (1) week of pay at the Employee’s Vacation Rate of Pay for each year of Continuous Service or portion thereof.

b.          In the case of Paragraph 2(b)(2) above:

(1)              One (1) week of pay at the Employee’s Vacation Rate of Pay for each year of Continuous Service or portion thereof; plus

(2)              Two  (2) weeks of pay at the Employee’s Vacation Rate of Pay for each year of service over 15 years of Continuous Service or portion thereof.

c.           The total of a. and b. above may not exceed sixty thousand dollars ($60,000).

5.                  Definitions

For the purposes of this Section:

a.         Age means an Employee’s age as of their last birthday at the time of the Permanent Closure;

a.                  Service means the Employee’s Continuous Service as that term is defined in Article Five, Section E (Seniority, Paragraph 3 of the Basic Labor Agreement), at the time of the Permanent Closure;

b.                  Permanent Closure means the permanent closure of a plant or permanent discontinuance of a department of a plant or substantial portion thereof.  In addition to an announced Company decision providing therefore, a Permanent Closure shall be deemed to have occurred wherever the Company is not operating the subject plant, department, or substantial portion thereof and cannot clearly demonstrate reasonable plans or expectations for a re-start in the immediate future.

c.                  Region means the area in which a Plant is located for the purposes of this Section. The Cleveland , Lackawanna and Warren Plants are considered in Region 1. The Riverdale, Hennepin, Burns Harbor , and Indiana Harbor Plants are considered in Region 2.  The Sparrows Point, Steelton, Conshohocken, and Coatesville Plants are considered in Region 3.

6.                  Consequence of Acceptance

Any Employee who requests and accepts a Severance Allowance shall permanently terminate employment with the Company.

In lieu of Severance Allowance, at the time an Employee requests such Severance Allowance, the Company may offer such Employee a regular full-time job of equal earnings at the Employee’s plant or within that Plant’s Region.

ARTICLE EIGHT – EARNINGS SECURITY

Section D.  Interplant Job Opportunities

1.         An Employee with more than two (2) years of Continuous Service who is continuously on layoff for at least sixty (60) days and not expected to be recalled within sixty (60) days, shall be given priority over new hires and probationary Employees for permanent job vacancies at other than his/her plant as described below:

a.         The Employee must file with his/her home plant, on a form provided by the Company, a written request for such transfer specifying the other plant or plants at which s/he would accept employment.

b.         Employees who apply shall be given priority in the order of their Continuous Service (the earlier date of birth to control where such service is identical), provided the Employee has the necessary qualifications to perform the job. In determining qualifications, the Employee shall be treated as if the job were an opening at his/her home plant.

c.         An Employee laid off from his/her plant who is offered and accepts a job at another plant, will have the same obligation to report for work there as though s/he were a laid-off Employee at that plant. During his/her employment at that plant, s/he will be subject to all the rules and conditions of employment in effect at that plant. S/he will be considered as a new Employee at that plant and therefore such Employee’s Plant Service shall be defined in accordance with Article Five Section E 3a(2)c.

d.         An Employee shall be deemed to reject such job if s/he does not affirmatively respond within five (5) days of the time the offer is made, which offer shall be directed to his/her last place of residence as shown on the written request referred to in Paragraph (a) above.

e.         An Employee who accepts employment at another plant under this Section will continue to accrue Plant Service for seniority purposes at his/her home plant in accordance with the applicable seniority rules for a maximum period of six (6) months from the date of transfer. If within six (6) month period, s/he is recalled to work at his/her home plant and s/he elects to return, his/her Continuous Service for seniority purposes at the other plant will be cancelled.  If s/he elects to remain at the other plant, his/her Continuous Service for seniority purposes at his/her home plant will be cancelled.

f.          When an Employee is recalled to his/her home plant, the Company may require the Employee to remain at such other plant for the calendar week following the calendar week during which such recall occurs.

2.                  An Employee who accepts a job at another plant more than 100 miles from his/her home Plant will receive a relocation allowance of $500 promptly after the commencement of employment at the plant to which s/he is relocated.

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