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Summary of Memorandum of Settlement

Between
Ontario Power Generation and the
Power Workers Union
Overview
The Power Workers Union (PWU) entered into the bargaining process with Ontario Power
Generation on January 12, 2015, to negotiate a renewal Collective Agreement.
The bargaining process began in April of 2014 when membership input was sought via the
bargaining submission process.
Your Bargaining Committee is pleased to announce the completion of that process. A
Tentative Memorandum of Settlement was reached on April 12, 2015. The PWU will be holding
ratification meetings starting the week of April 27, 2015, to provide members the opportunity
to attend, review the settlement, and receive a ballot to cast their vote.
The ballots will be counted in the Union Office on May 28, 2015. Members must attend a
ratification meeting to receive a ballot.

Bargaining Committee Recommendation


Your Bargaining Committee unanimously recommends that the membership
vote to accept the Memorandum of Settlement

CS Recommendation
The Bargaining Committee met with the OPG Chief Stewards on April 15, 2015 to review the
tentative agreement. The Chief Stewards also voted unanimously to recommend acceptance.

The following summarizes the 2015 Memorandum of Settlement:

Duration
3 years, April 1, 2015 March 31, 2018

Wage Increase
1% (April 1, 2015)
1% (April 1, 2016)
1% (April 1, 2017)
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ARTICLES
Employment Security
Article 11 Surplus Staff Procedure
No employee will be involuntarily laid off during the term of the Collective Agreement.
Article 11 with the exception of Article 11.0 will be suspended for the term of the Collective
Agreement.
The company will still have the right to redeploy employees within a worksite/location and between
locations as per 11.0.
During the term of this agreement if a surplus cannot be accommodated through re-deployment, or a
Voluntary Separation Package under the applicable mid-term agreements, the treatment of
employees who are adversely affected by such an event will be subject for discussion between the
parties. These discussions will occur in the context of a commitment by the Company to employment
security. If an agreement cannot be reached all unresolved issues may be referred to the Chief
Arbitrator for resolution.
Article 11 Alternative NUC-PW-1001-5 and GEN-PW-1001-6 Amended
GEN-PW-10018
Non-Nuclear Article 11 Alternative Mid-Term for voluntary separation is amended to reflect changes
to organizational structures of the company and the expiry date is removed from the Mid-Term
Agreement.
NUC-PW-1001-6
Nuclear Article 11 Alternative Mid-Term for voluntary separation is extended for the term of the
collective agreement
Letter of Understanding - Caretaker Staff at Nanticoke and Lambton Stations
Should OPG officially announce the closure of one or both of the sites, employees will have the
option to elect a voluntary separation package under GEN-PW-1101-7 as amended or to accept a
position within Thermal, Hydroelectric, and Corporate Functions identical to the now expired Coal
Closure Mid-Term.
Use of Term employees, financial assistance arrangements and opportunities for Thermal Operators
will be identical to the expired Coal Closure Mid-Term.
Management will not use Article 11 to involuntary reduce staff at Thermal and Hydroelectric sites as a
direct result of that site receiving staff from a Thermal station that closed as a result of the
government off coal strategy. Further management will not consider the positions received as a result
of a thermal station being closed in determining any over compliment in a given classification for the
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purposes of article 11.0 (2). This commitment ends when the number of employees received within a
given classification have attrited through other means.
This LOU expires at the end of the term of the Collective Agreement.
Article 12 Purchased Services Agreement
The Purchased Services Agreement remains in effect and the current negotiated 250 hour threshold
is extended for the term of the collective agreement.

PART A - GENERAL ITEMS


Part A, Item 13.0 Health Insurance Plans

Eliminate Paper Claim Submissions Window.


Paramedical Services Effective April 1, 2017, $775 per person per calendar year. In the
event that the Hydro One IPO does not occur by December 31, 2015, the effective date
amended to January 1, 2016.
Out of Country Coverage OPG will provide coverage at existing levels for the term of
the collective agreement.
OPGs obligation in respect of retirees shall remain $35 per retiree per year.

Part A, Item 14 Pension and Insurance

Amend language to reflect pension contribution increases as follows:

Employee pension contributions, effective April 1, 2015, - 1.0% below YMPE / 1.0% above YMPE

Employee pension contributions, effective April 1, 2016, - 1.0% below YMPE / 1.0% above YMPE

Employee pension contributions, effective April 1, 2017, - 0.5% below YMPE / 1.0% above YMPE

Amend language to reflect pension benefits changes as follows:

Effective March 31, 2025 for future service benefit accruals for current employees and new hires:
i.

Adjust the number of years for final average earnings to 5 years from 3 years

ii.

Early retirement rule of 85 (from rule of 82)

The above changes will be incorporated into the 2015-2018 Collective Agreement, pension brochure
and will require pension amendments

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Explanatory Note on Pension Changes:


Rule of 85
o
The 85-point rule would become effective for future service beginning March 31, 2025
o
Members with 82 or more points on March 31, 2025 would retain eligibility for an unreduced
pension for all service
o
For all other members with service prior to March 31, 2025, pension benefits earned for
service prior to March 31, 2025 would remain subject to the 82-point rule for an unreduced pension
Final Average Earnings
o
Pension benefits earned for future service beginning March 31, 2025 would be based on a
high five-year average instead of a high three-year average; the high three-year average would
continue to apply to pension benefits earned for service prior to March 31, 2025.
Part A, New Item
Lump-Sum Payments
PWU employees contributing to the Pension Plan as of April 1, 2015 will receive the following:
--Lump sum payment of 1% of base salary as of April 1, 2015 (adjusted if less than 12 months until
employee no longer makes pension contributions)
--Lump sum payment of 2% of base salary as of April 1, 2016 (adjusted if less than 12 months until
employee no longer makes pension contributions) provided the individual is still an employee of OPG
as of April 1, 2016 and contributing to the Pension Plan
Share Performance Bonus Plan
PWU employees contributing to the Pension Plan as of April 1, 2015 will participate in a Share
Performance Plan related to the Hydro One IPO, as follows:
--Share awards will be made on April 1st of each year starting April 1, 2017 and continuing up to and
including April 1, 2031 (i.e., maximum of 15 share awards) provided the individual is still an active
employee of OPG as of the award date and has less than 35 years of pensionable service, with the
number of shares awarded to each individual each year calculated as 2.75% of Salary as of April 1,
2015/Initial Share Price:
-- Value of share award at each award date will equal number of shares awarded x Hydro One share
price at date of award
-- Share award will be made in Hydro One shares with the employee having the option to take 50%
of award in cash to pay the taxes since the value of the share award is a taxable event. As per
current tax rules, the employee may direct the payment of shares into an RRSP, providing the
employee has room within their contribution limits.
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Example if an employee has a base salary on April 1, 2015 of $88,000, and the initial share price is
$20.00, the employee will get a share award of 121 shares (2.75% x $88,000/$20.00) each year. If
the share price is $30.00 at the time of the award, the share award value will be 121 shares x $30.00
per share or $3,630.
Part A, Item 39 Escalator Clause
Suspended for the duration of the collective agreement.
Part A, Item 43.0 Wage Structure
Effective April 1, 2015 1% general wage increase to all PWU employees
Effective April 1, 2016 1% general wage increase to all PWU employees
Effective April 1, 2017 1% general wage increase to all PWU employees
These increases also apply to Appendix A and janitor wage schedules
Default Agreement in the Event the Hydro One IPO does not occur
In the event that the Hydro One IPO does not occur by December 31 st, 2015, the following shall
apply:
o
o
o
o
o

1 year term
1% in wages
1% increase in pension contributions
1% cash lump sum payment
All other terms continue as amended

PART C
Part C, Item 1.1.2 Time Balance
Subject to a transition period, amend language as follows:
1. The master work schedule shall have the time balance adjusted for each operator to zero on
April June 30 and October December 31.
Part C, Item 1.3.6 Floating Statutory Holiday
Subject to a transition period, amend language as follows:
A floating holiday may be interchanged with a supernumerary day or with a day where step-up relief
can be provided. Floating holidays may be taken in the 12 month period from May January 1st to
April December 30th.
Part C, Item 5.0 Vacations
Subject to a transition period, amend language as follows:
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Vacations for operators will be governed by the following:


1.

The 12-month period in which vacation is actually taken shall be from May January 1st to April
30th December 31st of the following year rather than the calendar year.

PART E
NEW Project Technician Mid-Term
The Project Technician Mid-Term makes provision for staffing options related completion of work
programs that responds to the peaks and eventual reduction of those programs. It provides for the
use of term employees and contractors to supplement the regular workforce. It also provides for
secondments of regular staff to contractors to manage work programs and existing regular staff.

PART G
Part G, New Item
The following terms shall be applied to incumbents in the Commercial Inspection and Maintenance
Diver and Commercial Inspection and Maintenance Diver FLMa classifications:
1. Incumbents will be considered day workers, working 40 hours per week, consisting of either:
(a) Five (5) days of eight (8) hours (not before 7 am and not later than 6 pm) Monday to
Friday inclusive; or
(b) Four (4) days of ten (10) hours (not before 6 am and not later than 6 pm) Monday to
Friday inclusive.
(c) In the event that shift work is required, the provisions in Part G, Item 2.1.2 will apply.
However, no employee will be scheduled to work more than 3 months per calendar year
on shift.
2. The company will insure the life of an employee required to dive in the amount of $10,000
during diving operations.

APPENDIX A
Item 5.2 Wages
Effective April 1, 2015
Effective April 1, 2016
Effective April 1, 2017

1% general wage increase


1% general wage increase
1% general wage increase

Item 5.11 All daily Travel Allowances will be increased by 1% on April 1st of each year of the
Collective Agreement.
Item 5.12 All Room and Board Allowances (Subsistence) will be increased by 1% on April 1st
of each year of the Collective Agreement.

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Radiation Protection II Appendix A Pilot


The pilot Appendix A arrangement for Rad Protection II Technicians is incorporated into a MidTerm Agreement without an expiry date
NEW - Pickering End of Commercial Operations (PECO) Mid-Term
OPG has announced an intention to cease commercial operations at the Pickering Nuclear
Generating Station (PNGS). The current projection for plant shutdown is December 31, 2020, and
will result in significant job loss.
Objectives
Mitigate the number of involuntary layoffs;

Ensure that an adequate number of qualified employees are available to facilitate the
continued safe operation of PNGS until the plant is placed into a safe shutdown state; and
ensure the continued safe operation of the Darlington Nuclear Generating Station (DNGS) and
minimize operational impacts to DNGS when PNGS is safely shutdown;

Minimize external hiring into regular PWU bargaining unit positions so as to minimize the
requirement for staff turnover and/or involuntary layoffs when PNGS ceases commercial
operations;

Use Term employees to minimize the requirement for staff turnover and involuntary
terminations when PNGS ceases commercial operations;

Facilitate the release of qualified PNGS employees, and qualified employees supporting
PNGS, to work at or supporting DNGS, OPGs Nuclear Waste Organization, or vacancies at
other OPG locations.

Ensure that staff surplus to OPGs operational requirements are provided with reasonable
voluntary and involuntary severance options upon termination of employment.

Term Employees
Term Employees may be hired to avoid adding regular staff in circumstances where additional regular
employees are likely to be laid off as a result of Pickerings shut down.
Term Employees may be used to backfill positions at or supporting Pickering, or hold positions at or
supporting other OPG-N locations until regular employees are available.
Where an employee cannot be released to a position, they will be selected on paper and a Term
Employee may be hired to hold that position until they can be released.
Term Employees that are former OPG employees in receipt of a pension who are hired into the same
classification they occupied prior to leaving OPG will be placed at the band and step at which they
left.

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Vacation pay is included in the wage package and dues to be remitted in the amounts prescribed by
the PWU. These Term employees will be entitled to Statutory Holiday pay as per Part A, Item 7 of
the collective agreement.
Term Employees will be jointly recruited and paid as per the following Wage Schedule. Wage
packages are subject to negotiated increases in the 2015-2018 Collective Agreement.

Band 1
(Term)
Band 2
(Term)
Band 3
(Term)

Step 0
$28.24
Step 0
$31.11
Step 0
$40.37

Step 1
$32.87
Step 1
$35.40
Step 1
$45.74

Step 2
----------Step 2
$40.02
Step 2
$51.46

Progressions from step to step will be annual. Deductions from this wage rate for dues, benefit and
retirement fund to be remitted in the amounts prescribed by the PWU.
Trades classifications recruited from the BTUs for a period of greater than two (2) years will be paid
Appendix A rates and classified as Term Employees. Trades employees who are anticipated to be
employed for a period of less than two (2) years, will continue to be recruited through the CPAA
process and paid at Appendix A rates.
Staffing Process
OPG acknowledges that the Unions interest in obtaining the details of staffing plans leading into and
associated with PECO.
To ensure the continued safe and efficient operation of OPGs Nuclear fleet
until such time as PNGS is placed in safe shutdown state, OPG will have discretion to deploy staff, as
outlined below, within a job classification to worksites within Geographic Area 5/Location 2.
With the exception of supervisory vacancies, the deployment process would replace moves that
would normally take place under Article 10 and 11.0 and should not to be used for short-term peaking
work demands.
Vacancies that are not filled through the deployment process above shall continue to be advertised as
per Article 10. Vacancies in supervisory positions shall continue to be advertised as per Article 10.
Deployments will be initiated via request for volunteers and will be based on seniority, skills and
qualifications required (senior choice/junior force).
Employees at Location 2, worksite 3 (Pickering and buildings) who elect to be deployed or are
selected to positions outside Location 2, worksite 3 waive their right to accept a voluntary severance
option under the Alternative to Article 11 Mid-Term related to PECO.
All regular PWU represented employees may continue to apply to vacancies outside of the Nuclear
organization in accordance with the collective agreement. Based on requirements at the affected
station, management will determine the release date for employees as per Article 10.1.3 (b)(2). If the
new position is a promotion, the employee shall be paid the rate for the new position 90 days
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following the acceptance of the offer. Term employees can be used to facilitate release of nuclear
employees.
For the term of this agreement, NUC-PW-1026-1 and Part G, Item 27 will be suspended.
Training for External Opportunities
In recognition of the anticipated involuntary job loss associated with PECO, OPG is prepared to
provide financial assistance to eligible employees for external training for employment opportunities
outside of OPG.
Voluntary Severance Options
During the term of the collective agreement OPG retains the right to utilize the Alternative to Article 11
Mid-Terms to reduce staff where OPG determines such reduction is appropriate.
If OPG elects to run the Alternative to Article 11 midterms as a direct result of the shutdown of unit(s)
at PNGS, OPG will offer the VSP to eligible employees at both PNGS and surrounding buildings and
DNGS and surrounding buildings and may consider a broader application where OPG deems
necessary.
Duration
This Mid-Term agreement expires upon the end of the term of the current collective agreement.

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