The Company will establish a Layoff Benefit Plan
to provide for lump sum or income continuation benefits as set forth in this
Article. Such Plan will apply to
employees who are laid off with an effective date on or after September 29,
2005.
All bargaining unit employees who have at least
one (1) year of Company service and who are involuntarily laid off from the
Company (other than a temporary layoff under Section 22.8, but including
employees laid off because of declining a downgrade offer as allowed under
Section 22.6) are eligible to receive the benefit described in Section 23.3;
provided, however, the following employees shall not be eligible for the
benefit: employees who upon their layoff
become employed by a subsidiary or affiliate of the Company; employees who are
laid off from the Company because of a merger, sale or similar transfer of
assets and are offered employment with the new employer; employees who are laid
off because of an act of God, natural disaster or national emergency; employees
who are laid off because of a strike, picketing of the Company's premises, work
stoppage or any similar action which would interrupt or interfere with any
operation of the Company; and employees who terminate employment for any reason
other than layoff, including, but not limited to, resignation, dismissal,
retirement, death, or leave of absence.
An eligible employee's total lump sum or income
continuation benefit shall equal one (1) week of pay (i.e. forty (40) hours at
the employee's base rate plus cost of living adjustment in effect on the date
of layoff, but excluding any shift differentials or other premiums) for each
full year of Company service as of the employee's layoff date, subject to a
maximum benefit of twenty-six (26) weeks of pay. Eligible employees may elect either of the
following:
23.3(a) Benefits will be paid as a lump sum following the
effective date of layoff. Employees who
elect this option will have all seniority under Article 14 and all recall
rights under Article 22 canceled.
23.3(a)(i) Income continuation
benefits will be paid in eighty (80)-hour increments, subject to an employee's
total benefit, on regular paydays beginning with the second payday following
the effective date of layoff. Income
continuation benefits shall immediately cease upon the earlier of any of the
following events: exhaustion of the
employee's total income continuation benefit; re-employment with the Company or
any of its subsidiaries or affiliates; failure to respond with his/her
acceptance within seven (7) regular workdays after dispatch by certified mail
of a notice of recall from layoff; failure to report to work on the date
designated by the Company; or change in the employee's employment status from
layoff to resignation, dismissal, retirement, death, or leave of absence. Employees who elect this option will retain
seniority as described in Article 14 and will retain recall rights as described
in Article 22.
23.3(a)(ii) Subject to continuation of the Plan, no
employee shall be paid income continuation benefits more than once during any
three (3)-year period; provided, however, if an employee is re-employed by the
Company before payment of the employee's total income continuation benefit and
is subsequently laid off in such three (3)-year period under conditions which
make the employee eligible for a benefit, any unused benefit will be payable to
the employee under the procedures established by this Article.
Periods for which an employee receives income
continuation benefits shall not be considered as compensation or service under
any employee benefit plan or program and shall not be counted toward Company
service. Benefits under this Article may
not be deferred into the Voluntary Investment Plan and shall be excluded from
bargaining unit gross earnings for purposes of Letter of Understanding No. 34
of this Agreement.
In the event of layoff, medical coverage for
employees and dependents will continue until the employee is covered by any
other group medical plan either as an employee or as a dependent, but in no
event beyond six (6) months after
the date of layoff. Required
contributions, if any, must be paid during any period of such continuation of
coverage.