Converting Owner Operator to Hourly. In the event that the Company decides to convert any Owner Operator route(s) to hourly, the following shall apply:
1) The Company will provide at least 90 days notice of the conversion to the Union and the affected Owner-Operator(s).
2) The Company will meet with the Union, and the affected Owner Operator(s) to discuss any issues of mutual concern relating to the conversion.
3) The affected Owner Operator(s) will be given the first opportunity to accept any hourly route(s) resulting from the conversion or may exercise their seniority to any junior owner operator route or may elect to resign and accept a severance payment equivalent to one (1) week per year of service at the prevailing hourly driver rate. These options will also be available to any Owner Operator who is bumped by another Owner Operator as a direct result of the conversion. An Owner Operator who, by accepting an hourly route or otherwise exercising their seniority rights to bump into an hourly position, will be given credit for all continuous service since their original date of service for the purposes of the collective agreement.
4) If the Owner Operator requests, the Company will either assume responsibility for the vehicle leases of affected Owner Operator(s), or, if the Owner Operator(s) owns their vehicle, the Company will purchase it at fair market value, established by a reputable dealer selected and agreed to by the Company and the Owner Operator, provided the vehicle was acquired or committed to by the Owner Operator prior the date of notice under paragraph 1 above. If the vehicle is leased and there remains residual equity in the lease, the Owner Operator will be compensated accordingly.
5) The Company will indemnify the affected Owner Operator(s) for any reasonable and customary business expenses already incurred or committed to for the current year which are not otherwise recoverable by the Owner Operator, including insurance, benefits, permits and cancellation fees, provided such costs were incurred prior to the date of notice under paragraph 1 above.
6) The Company will indemnify the affected Owner Operator(s) for any legal or accounting fees reasonably incurred as a result of the conversion, to a maximum of $1000. per Owner Operator.
7) If, as a result of conversion, an Owner Operator incurs an unexpected income tax liability because of the inability to claim a reserve under the Income Tax Act with respect to the deferred income, the company will provide the Owner Operator wi...
