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MEMORANDUM OF AGREEMENT
BETWEEN
BP PRODUCTS NORTH AMERICA INC.,
AS THE REFINERY OPERATOR FOR
BP-HUSKY REFINING LLC
AND
UNITED STEEL WORKERS
LOCAL 1-346
It is hereby agreed by and between the parties that their existing collective bargaining agreement be amended to reflect the following:
ITEM 1. Increase Maintenance Wage
Tentative Agreement
Increase the wage rate by $0.25 per hour for all Maintenance Craft classifications, as a one-time adjustment.
ITEM 2. Increase overtime meal allowance
During these negotiations the parties had discussions regarding the current meal allowance level. To resolve this issue Management will increase the meal allowance to $9.00 and reduce the hours of service of the cafeteria. In addition, vending machines will be placed in the refinery.
ITEM 3. Reinstate Labor Department
During these negotiations the parties discussed potential uses for the “yard”. In the current collective bargaining agreement the “yard” is defined as the Labor Department. The parties discussed the benefits of working in the Labor Department.
To resolve this issue, Management will hire employees in advance of future employment requirements in Process. New employees will complete a Basic Operator Orientation Training (BOOT). After completing BOOT, successful candidates will be placed in the Labor Department until they are required in Process assignments. During this time in the Labor Department, employees will be given assignments in the various Maintenance shops and Process areas to gain experience throughout the refinery. Straight time work assignments will be assigned by Management to provide employees with a comprehensive learning experience. Overtime opportunities will be offered through the established overtime equalization process.
This yard experience will lengthen the amount of time before a new employee attains an assignment to Process. Therefore, to adequately assess a new employee’s performance, the probationary period will be extended to 12 months.
The rate of pay for employees in the yard will follow the pay scale in item #26.
ITEM 4. Union monitoring of new hires
During these negotiations the Union submitted a proposal regarding the monitoring of new hires. In response, Management will:
· Establish seniority numbers within 1 week of the New Hires employment date.
· With respect to bargaining unit seniority give no advantage to salary employees who transfer to the bargaining unit
· Management will keep the Union leadership apprised of individuals who are in jeopardy of not successfully completing the probationary period.
· Upon request the Union Chairman will be provided opportunities to interact with probationary employees.
· Management will solicit feedback from new employees who complete the basic training for ways to improve the process
ITEM 5. Accelerate repopulation of maintenance department
After many years of discussion regarding Maintenance Repopulation, the parties agreed to a Maintenance Repopulation Agreement in June 2007. This agreement was then ratified by the membership of the Union shortly thereafter. This agreement was part of the BP-USW Ten Point Plan agreed to by the USW International Union and BP.
To date, Management and the Union have made significant progress on the implementation of this agreement and remain committed to executing the many remaining, important milestones.
Management and the Union formed a local Maintenance Steering Committee shortly after ratification of the agreement to discuss issues surrounding the repopulation. To resolve this issue, Management agrees that it and the Union will continue to work Maintenance Repopulation issues through this Steering Committee, including holding meetings on a frequency of at least once per quarter until the agreement is fully implemented. Management proposes the following:
1) Accelerate the 2007 Maintenance Memorandum of Agreement (MOA) by bidding the initial 2 in-house Equipment Operator positions plus 2 additional in-house Equipment Operator positions beyond the Maintenance MOA by the end of 2009.
2) Accelerate the 2007 Maintenance Memorandum of Agreement by bidding the initial 4 in-house Electrician positions by the end of June 2010.
3) Establish a new Instrument-Analyzer Technician classification.
a) The wage rate will be $0.50 per hour higher than that of the Instrument Technician classification.
b) The training scope will include the curriculum for the Instrument Technician classification and Analyzer competencies.
c) Instrument - Analyzer Technician positions will be filled by either promoting from the current Instrument Technicians or by direct hire. When promoting from the in-house Instrument Technicians, the most qualified candidate will be selected for the classification using seniority as the tie-breaker when two candidates are deemed equal in qualifications.
d) On a one time, non-precedent setting basis, the initial implementation of the Instrument-Analyzer Technician classification will include 6 positions filled by promoting from the current Instrument Technicians.
4) Establish a new Machinist Specialist classification.
a) The wage rate will be $0.50 per hour higher than that of the Machinist classification.
b) The Machinist Specialist classification will be qualified to perform relevant machining tasks.
c) Machinist Specialist positions will be filled by either promoting from the current Machinists or by direct hire. When promoting from the in-house Machinist the most qualified candidate will be selected for the classification using seniority as the tie-breaker when two candidates are deemed equal in qualifications.
d) On a one time, non-precedent setting basis, the initial implementation of the Machinist Specialist classification will include 4 positions filled by promoting from the current Machinists.
5) Establish a new Heavy Craft Code Welder classification.
a) The wage rate will be $0.50 per hour higher than that of the Heavy Craft classification.
b) Code welder will be qualified to perform pressure piping and pressure vessel code welding.
c) Heavy Craft Code Welder positions will be filled by either promoting from the current Heavy Crafts or by direct hire. When promoting from the in-house Heavy Craft the most qualified candidate will be selected for the classification using seniority as the tie breaker when two candidates are deemed equal in qualifications.
d) On a one time, non-precedent setting basis, the initial implementation of the Heavy Craft Code Welder classification will include 4 positions filled by promoting from the current Heavy Crafts.
6) Modified paragraph 3.16 as follows: When jobs are awarded in Maintenance, the employee will be subject to a freeze on bidding on any other job in the Refinery until four (4) years after achieving 1st Class qualification.
7) Through the Local Steering Committee we commit to the need to further discuss additional Craft flexibility but as a minimum the following are agreed:
a) Instrument Technicians to remove/install instrumentation and control valves (size and rating up to and including 4”-300#).
b) Machinists to blank and perform minor pipefitting and to use small carry-deck.
c) Where appropriate, use of one-man crews to work jobs on a routine basis.
8) The Crafts will administer the scheduling of overtime within their own Craft according to daily overtime needs communicated by Management. Implementation of this process will be completed by the end of 2009.
9) Establish on-call Craft coverage. Implementation of this coverage for each Craft will begin after the initial repopulation of that specific Craft has been completed (i.e. – initial repopulation level is qualified to 1st Class).
10) Direct hire 1st Class Crafts will be paid at 2nd Trainee rate of pay through the first six (6) months of employment, at which time they will progress to 1st Class rate of pay. This pay progression will begin with direct hires who start employment in 2010.
ITEM 6. Establish walk-around time for Chairman and designee
The Union’s request for time to “walk around” and interact with employees on issues surrounding the collective bargaining agreement will be granted on a case by case basis. When the Union leadership requests “walk around” time to discuss issues with hourly employees, Management will make efforts to grant such requests. With Management’s response to the Union’s issue #10, and Management’s commitment to providing time to inform hourly employees of Union-Management topics, the current practices of allowing walk around time will stay in force.
ITEM 7. Establish hourly COW positions
During these negotiations the issue of creating hourly Control of Work (CoW) positions was raised by the Union. In response to this request Management presented an overview of the rollout of Control of Work in 2009. At this time, the need for permanent bargaining unit positions associated with Control of Work is not foreseen; however the final state of operating the refinery with CoW is not finalized. There are likely to be temporary roles associated with the implementation of CoW and Management will consider utilizing the Hourly Leader Classification to fill these roles. Management will continue to update the Union on the implementation and rollout of Control of Work. After the implementation of the Control of Work Refining Defined Practice, Management and Union will evaluate the need for full time CoW positions.
ITEM 8. Vacation eligibility for new hires to mirror salaried employees
Tentative Agreement
After discussion of the issue of vacation eligibility for hourly new hires, Management agrees to modify the existing vacation language for new hourly employees to be consistent with the BP vacation policy.
(Copy of policy attached)
ITEM 9. Unscheduled Overtime with less than 24 hours notice paid at double time
Dropped by Union
ITEM 10. Establish full-time paid Union Chairman
During these negotiations the parties discussed the proposal to have the Union Chairman be a full time position and compensated by the company. Given the current joint agenda agreed to by the National Parties (10 Point Plan) and the local parties (April 2007 offsite), there is a need to have the Union Chairman available to participate in meetings with Management. To resolve this issue Management will provide the Chairman with one (1) day per week off their regularly scheduled job, to prepare for and participate in meetings with Management. Meetings that the Union Chairman normally participates in such as, but not limited to the monthly Union-Management and Process Safety Management Review meetings will be excluded from this agreement.
ITEM 11. Grievances
We have a collective bargaining agreement process to handle grievances and we will continue to follow that process in regards to any outstanding open grievances
ITEM 12. Modify Emergency Vacation Language
Dropped by Union
ITEM 13. Modify Article IV Section 5 Heading
Tentative Agreement
After discussing this issue, Management will modify Article IV Section 5 to read as follows:
Overtime and Premium Pay, Maintenance Workers
ITEM 14. Modify Article IV Section 6 Heading
Tentative Agreement
After discussing this issue, Management will modify Article IV Section 6 to read as follows:
Overtime and Premium Pay, Shift Workers
ITEM 15. Modify Pay language 4.20
Dropped by Union
ITEM 16. Modify minimum training C-63
During these discussions, modified training times have been discussed with the Union. Management believes that this issue will be addressed in items #26 and #28.
ITEM 17. Remove Unfair Advantage language 6.24
In discussion of this issue, the Union requested that progressive discipline be applied in cases involving employees taking unfair advantage of the company benefit programs in lieu of discharge. While certain circumstances lend themselves to progressive discipline this case does not. Management reviews the facts of each case and based on those facts renders a decision appropriate for the infraction. Management cannot accept the proposal contained in the Union’s Item #17.
ITEM 18. Revisit Recent OM&S Agreement
During these discussions, the parties discussed the OM&S Realignment MOA with respect to transition timelines and vacancy fill. As a result, the following is agreed to:
· OM&S #2 transition will conclude by 2/28/09
o Post 2/28/09, any vacancy will be filled per the agreement
· OM&S #1 transition will conclude by 09/30/09
o Management understands the impact of moving employees to different shifts for over two weekers and will strive to minimize this during transition
o Post 09/30/09, any vacancy will be filled per the agreement
· Vacancy Fill for OM&S #2 will be the same as Vacancy Fill for OM&S #1
· Vacancy Fill for the Blender position will be filled the same as that used for IGO’s (See Attachment)
· For OM&S #1 and OM&S #2, there will be an A, B, C, D shift and a Monday through Friday Day shift.
ITEM 19. Modify Temporary Supervisor language 3.32
After discussion of the issues raised by the Union regarding, Article III, Section 4, paragraph 3.32., this paragraph will be modified to read as follows:
“Any employee in this bargaining unit temporarily promoted to a supervisory capacity as defined in Article II, Section I, shall retain job rights on the job he left in this bargaining unit provided he is relieved of his supervisory duties within six (6) months.”
ITEM 20. Add schedule language Article IV Section 1 4.6F
After discussing this with the Union and reviewing such, Management respectfully rejects the Unions suggested modification.
ITEM 21. Modify MOA vacancy Fill language
After discussing this with the Union and reviewing such, Management respectfully rejects the Union’s suggested modification.
ITEM 22. Establish Hourly Leader position
In resolution of this issue presented by the Union, Management agrees to establish an Hourly Leader Position. This position will not supervise bargaining unit personnel, but may be involved in activities associated with BP employees, vendors, contractors, and other 3rd parties. The leader classification will focus on activities where bargaining unit employees experience and knowledge can benefit a specific task or activity which would have otherwise been performed by non-bargaining unit individuals.
Management will inform the Union of any activity being considered for an Hourly Leader Position as far in advance as is practicable. The activity under consideration for Hourly Leader will specify the following:
· Work to be accomplished including roles and responsibilities
· Estimated duration of the assignment (for assignments anticipated lasting longer than six (6) months Management will provide updates to the Chairman on quarterly intervals as to the completion)
· Skills required for the assignment (such as a specific process unit experience, computer skills, etc.)
· Hours of work
· Who this person will report to during the assignment
With respect to the selection of candidates for Leader Positions the Union Chairman can provide input to the Company for the Leader Position. The most appropriate candidate will be selected for the role by Management.
Pay and Overtime Issues:
· Employees selected for a Leader Position will receive a 5% premium above their classification while in the role
· Overtime for the Leader Position will be exclusive to the assignment
· Overtime in the classification vacated will be filled according to the current procedures
· Participants from the Maintenance Department will be charged for overtime worked on the overtime equalization list
ITEM 23. Establish Hourly Trainer position
After the parties discussed the Hourly Trainer role, Management agrees that hourly participation in training activities is a benefit to the refinery. While it is expected that on the job training and mentoring of employees is everyone’s responsibility, there may be specific training activities where the use of the Hourly Leader role can be utilized. Management will consider these specific training activities to be one use of the Hourly Leader role.
ITEM 24. Clean up contract language
Tentative Agreement
The parties agree to update the local agreement with modifications since 2002. This will also resolve Item #37.
ITEM 25. Select GOQ trainees by plant seniority, not team seniority
After discussing this with the Union and reviewing such, Management respectfully rejects the Union’s suggested modification.
ITEM 26. Institute a “Pay for Knowledge” for new hires while in training
Proposal:
Progression for Operations New Hires
Applicable for all new hourly operators commencing employment after the ratification of this agreement or the effective date of the contract, whichever is later.
- As is current practice today, new hourly operators begin Basic Operations Operator Training (BOOT), which is 8-10 weeks in duration at the present time. Management can change the duration of the BOOT based on future training requirements.
- After successful completion of BOOT, new hourly operators will go into the labor classification (see item 3).
- As operators are required in the process areas they will be assigned from the labor classification to a zone extraboard classification.
- After a new hourly operator qualifies on two jobs (matched jobs where applicable), he/she will go on shift to work those jobs and will be eligible for overtime on those jobs.
- After the operator qualifies on the initial two jobs, the employee will work the jobs to embed the learning for six months prior to learning subsequent jobs.
- Training, qualifying and working on each additional job within the zone will occur in a similar fashion. The embed time for each subsequent job will be three (3) months per job.
- While embedding on subsequent jobs, the operator will remain on shift, stay current on jobs previously qualified, and is eligible to work any job qualified.
- An employee is considered eligible to work at straight time or over time on any job for which they are qualified.
- An employee is considered eligible for an over two week vacancy upon qualifying and embedding on all jobs in a zone.
- Management retains the authority to assign employees to jobs they are qualified on in order to maintain efficiency of the operations.
- An extraboard who completes this training and progression process and receives a bid to an operator role within the zone will be required to maintain his/her qualification in his/her previous jobs.
- New hourly operators will not have the opportunity to bid on jobs while in training. After a newly hired employee qualifies on all jobs in his/her job classification in his/her zone, the employee will be subject to a two (2) year freeze on bidding out of their zone.
- If an employee fails to qualify on a job he/she will be subject to termination
Pay increases will be modified under the following progression:
- New hire wage rate ($23.87)
- Upon successful completion of BOOT 75%
- After qualifying on job 1-80%
- After qualifying on job 2-85%
- After qualifying on job 3-90%
- After qualifying on job 4-95%
- After being qualified on all jobs in the zone Full Rate
ITEM 27. New Hires will remain in their respective zone for two years after qualifying on all jobs in the zone.
This item has been incorporated into item #26
ITEM 28. Existing employees who transfer via cross bid will progress through training in the new position in the same progression as a new hire going into the new position
This will be effective 1/1/2010
Proposal:
· After being awarded a bid into either an operator or extra board position in a different zone:
o The employee will qualify on all jobs within the zone
o Training will progress in a similar fashion for a new hire
§ Train, qualify, and then embed the learning
§ Minimum 3 months to embed learning per job
o Operators will maintain their qualifications and stay current on all jobs in the zone
o After qualifying on all jobs in the zone the employee will not be able to bid out of their zone for 2 years
ITEM 29. Extend probation period to 12 months:
a. Paragraph 3 .3 modified
Proposal:
Definition of Seniority - Seniority shall start twelve (12) months after date of employment in the Labor Department, with the understanding that should a new employee continue in service longer than twelve (12) months, his seniority will date back to the date of his employment (the first twelve (12) months of employment being considered as a probation period). It is understood that in the event a new employee is hired into the Labor Department for temporary work and is laid off prior to the expiration of the twelve (12) months probation period, but is later rehired within 365 days, his prior service will be accumulated as to seniority.
ITEM 30.A. Modified Lab Proposal:
Add the following language under Exhibit B, B-13
Laboratory Vacancy:
When there is a vacancy in the Laboratory, the vacancy will be posted as:
· Laboratory Technician – Days
· Laboratory Technician - Rotating Days
· Laboratory Technician - Shift
Laboratory Technician position job assignments are determined as follows:
· Laboratory Technician - Shift – Preference of Schedule
· Laboratory Technician – Rotating Days – Preference of Schedule
· Laboratory Technician – Days – Supervision will determine assignments after input from the Day Technicians
ITEM 30.B. Modified Extra Board Assignment Proposal
Modify Exhibit B, B-11, 3.
It is understood that extra board positions not filled by bidding will be filled by assignment or reallocation. When assigning newly hired operators, the extra board positions will not be offered to the refinery at large. Positions filled in this way will not be considered original vacancies.
ITEM 31. Modify Contractual Letter S to allow OGOQ’s to opt out of OGOQ role earlier than 7 years contingent on becoming a qualified IGOQ
Withdrawn
Proposal:
The only exception to paragraph 8 is the following:
Employees classified as OGOQ’s may request to opt out of their Q status at any time in order to become an IGOQ in their primary zone. Management will review these requests and retains the authority to make a determination based on the needs of the business. If a request is granted, once the employee qualifies as an IGOQ, he may not opt out of the IGOQ classification for seven (7) years
ITEM 32. Eliminate Attendance Incentive Program
Withdrawn
Proposal:
After reviewing the Union’s response to Management’s proposal regarding eliminating the current attendance incentive with the Union; Management agrees to withdraw this proposal. The parties annually renew the Attendance Incentive for the upcoming year and will have the opportunity to discuss modifications to this program in the future. Attached find a copy of the agreement for the 2008 Attendance Incentive as a reference.
ITEM 33. Extend the length of time for Temporary Supervisor assignments
Revised Guidelines:
Temporary Supervisor Guidelines
(a) Management will inform Union of the anticipated length of assignment; however, Management maintains the flexibility to change the length of the assignment as needed
(b) Management will inform Union who has accepted the assignment
(c) Management will keep track of how long the assignment lasts
(d) Management will inform Union of the scope of the assignment; however, Management maintains the flexibility to modify
(e) Whenever an hourly person moves to a temporary supervisory role, a new slip will be issued for the vacancy created
(f) Asset Superintendents hold the authority and responsibility for Temporary Supervisor assignments
(g) The same method of compensation for hours worked will be used for all Temporary Supervisors
(h) No employee can serve as a Temporary Supervisor for more than 18 months (cumulative) during the term of the Contract
ITEM 34. Language to allow holdover beyond 2 hours
Withdrawn
ITEM 35. Ability to move Operator GOQ’s to another crew to cover vacancy for over 2 weekers on a voluntary basis
Withdrawn
Proposal:
Modify paragraph C-42-2.
· When filling G.O. Temporary Vacancies of over two weeks’ duration, the most senior eligible Operator GOQ on the shift where the vacancy occurs is the most eligible.
o If no one accepts the vacancy and there are no eligible Operator Q's on the remaining shifts or eligible extra board Q's, the least senior eligible Operator Q on the shift where the vacancy occurs is assigned the vacancy. The Operator Q vacancy is then offered to the most senior eligible extra board by seniority. In the event, there is no eligible extra board available, the GO vacancy is filled by overtime.
o If no one accepts the vacancy and there are eligible Operator Q's on the remaining shifts or eligible extra board Q's, the vacancy is then offered by seniority to those eligible Q's. If no one accepts the vacancy, the least senior eligible extra board Q is assigned the vacancy. If no eligible extra board Q is available, the vacancy will be filled by the least senior eligible Operator Q on the shift where the vacancy occurs. An Operator Q would only be considered eligible to fill the vacancy if there is an eligible extra board available to fill the Operator Q vacancy. If no eligible Operator Q on shift is available, the vacancy is filled by overtime.
ITEM 36. Modify paragraph J-2 for Administrative Procedures for Maintenance Overtime
Current language:
When it is necessary to work past the normal maintenance quitting time, the man working the job will continue working on the job if it is judged at the time the work will not continue over two additional hours. If it is judged the work will continue over two additional hours the employees in the needed classifications with the least amount of overtime will be offered the opportunity to work the overtime.
Proposed Language:
This will be effective 1/1/2010
When it is necessary to work past the normal maintenance quitting time, the person working the job will continue working on the job if it is judged at the time the work will not continue over four additional hours. If it is judged the work will continue over four additional hours the employees in the needed classifications
with the least amount of overtime will be offered the opportunity to work the overtime.
ITEM 37. Update local agreement for contractual changes since the 2002 contract
Tentative Agreement
Proposal:
The parties will identify agreements and/or settlements to be included in the local collective bargaining agreement reached since 2002. This will also include modifying both parties’ names. The intent is to reflect as accurately and concisely as possible those agreements between the parties.
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