Employees of MSA LLC with one (1) or more years of continuous service, as defined in Article XV, will, in accordance with the provisions hereinafter set forth, have available a separation pay allowance for use in event of layoff for lack of work.
- Computation of Separation Pay Allowance
The allowance for all SPOs will be computed on the basis of one (1) week's pay forty (40) hours at the appropriate base rate, excluding shift differential and overtime for each of the employee's full years of continuous service plus one-quarter (1/4) of a week's pay for each additional three (3) months of continuous service at time of layoff.
- Accrual of Separation Pay Credits
- Employees who have "Terminated for Transfer" to MSA LLC or who join MSA LLC through other procedures that allow them to bring their prior service (with another Hanford Contractor) with them, and who have less than twenty (20) weeks total of separation pay credits, will continue to accrue separation pay credits as a MSA LLC employee up to a maximum of twenty (20) weeks.
- All other employees will begin accruing separation pay credits upon completion of one (1) year of continuous service. Upon completion of this minimum service period, separation pay credits will accrue on the same basis as set forth in Section 2. above, up to a maximum of twenty (20) weeks total separation pay credits which includes credit for the one (1) year minimum service period.
- Eligibility for separation pay allowance will automatically expire for employees at any time service is broken. Should continuity of service be restored, prior eligibility for separation pay allowance will likewise be restored.
- Conditions of Payment
Eligible employees laid off for lack of work by the Company will be paid the separation pay allowances for which they are eligible subject to the following conditions:
- A permanent layoff will be considered as one (1), which the Company determines at the time of separation, will exceed six (6) months.
- At the time of permanent layoff, employees will be given the option of
- ) Receiving their separation pay allowance in a lump sum or
- ) Delaying receipt of the separation pay allowance until six (6) months have elapsed, after which time the allowance will be paid them in a lump sum.
- Where the layoff period has not been determined or has been determined to be six (6) months or less, SPOs may elect
- ) To receive, after one (1) month in layoff status, one-sixth (1/6th) of the separation pay allowance for which they are eligible, and one-sixth (1/6th) each month thereafter until they have been offered re- employment in their former job classification or until the full allowance has been paid or
- ) To delay receipt of the separation pay allowance until six (6) months have elapsed, after which time the total allowance will be paid in a lump sum.
- In the event SPOs elect option 1) in Section 4.B. or 4.C. above, and are offered re-employment in their former job classification within six (6) months after layoff, they will be expected to repay to the Company within one (1) year from the date of the offer or the date of re-employment, the total amount of the separation allowance paid them. If the employee fails to repay the total allowance during the specified time period,
- ) All service and seniority credits previously accumulated and continuity of service (excluding pension credited service) will be extinguished,
- ) The SPOs will not be eligible to accrue new separation pay credits until they will have worked for the Company from the date of their re-employment for a period equal to the period they had previously worked to accumulate the separation pay credits for which they were eligible at the time of their layoff and
- ) Will otherwise be considered newly hired employees.
- SPOs who have received the total separation pay allowance for which they were eligible in accordance with Section 4.B. or 4.C. above, and who are re-employed in their former job classification after having been in layoff status in excess of six (6) months will be afforded seniority and service credits as provided in Articles XIV and XV of this Agreement, will not be required to repay the separation pay allowance, and will be eligible to accrue new separation pay credits upon completion of one (1) year of continuous service from the date of their re-employment. Upon completion of this minimum service period, new separation pay credits will accrue on the same basis as set forth in Section 2. above, up to a maximum of twenty (20) weeks total separation pay credits which includes credit for the one (1) year minimum service period, but (unless the employee repays the separation pay allowance received) excludes credits accumulated prior to such layoff.
- In the event that MSA LLC’s responsibility for operation of part or all of the Government-owned facilities (including standby, protection and maintenance functions) is assumed by another contractor or Government agency employees who are transferred to the employ of, or who are offered employment within their same classification or at positions of comparable responsibility by such contractor or Government Agency, which employment will commence within thirty (30) days after being terminated by the Company, will not be paid any separation pay allowance.
The provisions of this plan will not be applicable where the Company decides to close a plant or layoff an employee because of the Company's inability to secure production or carry on its operations, as a consequence of a strike, slowdown or other interference with or interruption with work participated in by employees. However, the operation of this Section will not affect the rights or benefits already provided hereunder to an employee laid off for lack of work prior to the commencement of any such strike, interference or interruption.
- A grievance arising under this Article will be processed in accordance with the grievance procedure set forth in Article XIX. However, no matter or controversy concerning the provisions of this Article or the interpretation or application thereof will be subject to arbitration under the provisions of Article XX hereof, except by mutual agreement.