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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
Tentative Agreement
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
Tentative Agreement
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) Revise the 2007 Maintenance Memorandum of Agreement (MOA) to increase the initial repopulation of Equipment Operators to 6 in-house. On a one-time, non-precedent setting basis, no direct hire Equipment Operators will be included in this initial repopulation. These in-house bids will be accelerated by bidding the Equipment Operators by 12/31/09.
2) Revise the 2007 Maintenance MOA to increase the initial repopulation of Electricians to 6 in-house and 6 direct hires. The in-house bids will be accelerated by bidding the 6 in-house Electrician positions by 6/30/10.
3) Revise the 2007 Maintenance MOA to increase the initial repopulation of Heavy Crafts to 10 in-house and 8 direct hires.
4) 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 population who are in the shop at the time of bidding.
5) 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 Machinists, 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 6 positions filled by promoting from the population who are in the shop at the time of bidding.
6) 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 Crafts, 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 population who are in the shop at the time of bidding.
7) For employees who bid to Craft positions after 2/01/09, modify 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.
8) For future bids of existing hourly employees into Craft positions, double the opt out time in paragraph 3.25 to provide for a 60 day return provision.
9) 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#). Implement this item beginning 6/30/10.
b) Machinists to blank rotating equipment for isolation and perform minor pipefitting (eg. auxiliary piping/tubing) associated with rotating equipment. Implement this item beginning 6/30/10.
c) All Crafts to use small carry-deck. Implement this item beginning 12/31/10.
d) Where appropriate, use of one-man crews to work jobs on a routine basis. Implement this beginning 1/01/10.
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 beginning 1/01/10.
11) Due to the acceleration and increase of the Maintenance repopulation and other changes in Item 18 along with existing demographic changes, there may be situations where unacceptably high levels of turnover may occur in one or more Operating crews, increasing the risk of a process safety incident. The intent of this agreement by both parties is not to inadvertently introduce an unforeseen safety risk. Both parties reserve the right to regularly revisit the pace of this agreement as part of the already established Maintenance Steering Committee.
ITEM 6. Establish walk-around time for Chairman and designee
Tentative Agreement
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
Tentative Agreement
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
Tentative Agreement
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
Withdrawn
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
Tentative Agreement
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
Tentative Agreement
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
Tentative Agreement
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 trainees 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 trainees will go into the labor classification (see item 3).
- As extraboard are required in the process areas, employees in the Labor Classification will chose from the available opportunities by seniority.
- Training will include classroom and field training on job number one and its match job. Then the trainee will work along side the operators to reinforce the learning. This total process should take four months and culminates with a field test in both jobs.
- After the trainee qualifies on the first two jobs, he/she will go on shift for a period of two months to embed the learning. At this time he/she will be eligible to work vacancies on straight time or overtime on those two jobs.
- Training, qualifying and working on each additional job within the zone will occur in a similar fashion.
- During the embedding process on subsequent jobs, the extraboard will remain on shift, stay current on jobs previously qualified, and is eligible to work straight time and overtime vacancies in 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.
- Upon qualifying on all jobs in a zone, extraboards will maintain their qualifications in all jobs through any combination of working straight time, overtime and/or brush up opportunities at least once per quarter per job.
- New hourly trainees 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 one (1) 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 80%
- After qualifying on job 1-85%
- After qualifying on job 2-90%
- After qualifying on job 3-95%
- After qualifying on job 4-100%
ITEM 27. New Hires will remain in their respective zone for two years after qualifying on all jobs in the zone.
Withdrawn as this item has been incorporated into item #26
ITEM 28. Effective 1/1/2010 operators and/or extraboards who bid into a different zone will train and qualify as follows:
· After being awarded a bid into either an operator or extra board position in a different zone:
o Operators and/or extraboards will qualify on all jobs within the zone.
o Training for each job in a zone or area will take 1 to 2 months.
o Training will include classroom, field training, time to embed the learning and qualifying via field test.
o Operators will maintain their qualifications in jobs, other than their bid and match job, through any combination of working overtime and/or brush up opportunities at least once per quarter per job.
o Operators are eligible for overtime opportunities for any job in which they are qualified.
o Extraboards will maintain their qualifications in all jobs through any combination of working straight time, overtime and/or brush up opportunities at least once per quarter per job.
o An extraboard is considered eligible to work at straight time or over time on any job for which they are qualified.
o An extraboard is considered eligible for an over two week vacancy upon qualifying on all jobs in a zone.
o When bidding occurs out of the section to an operator job the trainee will receive operator rate of pay after qualifying on the first 2 jobs.
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:
Tentative Agreement
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
ITEM 32. Eliminate Attendance Incentive Program
Withdrawn
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
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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