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. 4, 2008.
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. However, if the layoff occurs during or after a
leave of absence, the maximum total period of continued coverage is thirty (30)
months in the case of medical leave or twenty-four (24) months in the case of
non-medical leave, measured from the end of the month in
which the leave of absence began, irrespective of the date of termination. Required contributions, if any, must be paid
during any period of such continuation of coverage.