Common use of Letter of Understanding – Contracting Out Clause in Contracts

Letter of Understanding – Contracting Out. The Company will notify the Union of decisions to subcontract out to third parties and consult with the Union to explore alternatives to such subcontracting out. When it is possible to do so, such notification will be in advance of the actual subcontracting. The Union will be afforded the opportunity to comment on the Company’s plans through the Joint Subcontracting Out Committee. Every reasonable effort will be made to retain work currently performed by qualified bargaining unit employees provided the following criteria is met; cost objectives, capacity to do the work, and delivery requirements for customers. The Joint Subcontracting Out Committee shall be made up of up to three members from Management and up to three members of the Union. This Committee will meet after the end of each calendar quarter, or as requested by either party. When the Company finds it necessary to lay off Bargaining Unit employees, both parties will meet to discuss any Bargaining Unit work outsourced to third parties for the purpose of evaluating whether it is efficient and meets the company’s cost objectives, capacity to do the work and customer delivery requirements. The Company will make every effort to return certain work in order to minimize permanent job losses. This policy shall have no application to work subcontracted in the fulfillment of warranty obligations nor work which a vendor performs to prove out equipment.

Letter of Understanding – Contracting Out. The Company will notify the Union of decisions to subcontract out to third parties and consult with the Union to explore alternatives to such subcontracting out. When it is possible to do so, such notification will be in advance of the actual subcontracting. The Union will be afforded the opportunity to comment on the Company’s plans through the Joint Subcontracting Out Committee. Every reasonable effort will be made to retain work currently performed by qualified bargaining unit employees provided the following criteria is met; cost objectives, capacity to do the work, and delivery requirements for customers. The Joint Subcontracting Out Committee shall be made up of up to three members from Management and up to three members of the Union. This Committee will meet after the end of each calendar quarter, or as requested by either party. When the Company finds it necessary to lay off Bargaining Unit employees, both parties will meet to discuss any Bargaining Unit work outsourced to third parties for the purpose of evaluating whether it is efficient and meets the company’s cost objectives, capacity to do the work and customer delivery requirements. The Company will make every effort to return certain work in order to minimize permanent job losses. This policy shall have no application to work subcontracted in the fulfillment of warranty obligations nor work which a vendor performs to prove out equipment.

Letter of Understanding – Contracting Out. The Company will notify the Union of decisions to subcontract out to third parties and consult with the Union to explore alternatives to such subcontracting out. When it is possible to do so, such notification will be in advance of the actual subcontracting. The Union will be afforded the opportunity to comment on the Company’s plans through the Joint Subcontracting Out Committee. Every reasonable effort will be made to retain work currently performed by qualified bargaining unit employees provided the following criteria is met; cost objectives, capacity to do the work, and delivery requirements for customers. The Joint Subcontracting Out Committee shall be made up of up to three members from Management and up to three members of the Union. This Committee will meet after the end of each calendar quarter, or as requested by either party. When the Company finds it necessary to lay off Bargaining Unit employees, both parties will meet to discuss any Bargaining Unit work outsourced to third parties for the purpose of evaluating whether it is efficient and meets the company’s cost objectives, capacity to do the work and customer delivery requirements. The Company will make every effort to return certain work in order to minimize permanent job losses. This policy shall have no application to work subcontracted in the fulfillment of warranty obligations nor work which a vendor performs to prove out equipment.. July 7, 1995