LETTER OF UNDERSTANDING Re: Inverse Seniority Layoffs This letter will clarify the intention of the Parties with respect to the Layoff and Recall provisions set out in Article 11, Section 1, Paragraph 1 of the National Collective Bargaining Agreement (CBA), with respect to temporary layoffs and the application of the Inverse Seniority Provision. The parties agree that in situations of temporary short term layoffs covered under Article 11 of the CBA, seniority employees on the affected shift will be offered the first opportunity for short term layoff, notwithstanding the layoff procedure set out in Article 13 of the Collective Agreement. When applying the Inverse Seniority Provision for temporary short term layoffs, it is agreed that the Company will canvas seniority employees on the affected shift who are willing to be temporarily laid off for the duration of the short term layoff, prior to implementing any involuntary seniority based layoffs under Article 13 of the CBA. Any seniority employees who elect to be placed on short term layoff will be selected on the basis of inverse seniority, meaning that the most senior employee will be provided the layoff opportunity first, the second most senior employee next, and so on, following the seniority list. Those employees who volunteer for the inverse seniority layoff will be committed to accepting the temporary layoff for full duration of the short term layoff announced by the Company. Should the temporary layoff extend beyond three (3) weeks in duration, seniority employees who first elected an inverse seniority layoff will have the option of either exercising their seniority rights for the purposes of being recalled to active employment, or with the mutual agreement of all parties, continuing their temporary layoff for an agreed upon period of time. It is understood that the Company reserves the right to deny requests for inverse seniority layoff, where an individual’s particular skill and ability are considered necessary to operational requirements. Before any such request is denied, the Company and the Union will meet to review the circumstances of each case. The Parties agree that the Company shall bear no liability associated with inverse seniority layoffs, and that any decisions regarding the availability of Employment Insurance (EI) benefits is the exclusive responsibility of Human Resources and Services Development Canada (HRDSC).
Statement of Understanding By executing this Agreement, Employee acknowledges that (a) Employee has had at least twenty-one (21) or forty-five (45) days, as applicable in accordance with the Age Discrimination in Employment Act, as amended, (the “ADEA”) to consider the terms of this Agreement [and any attachment necessary or desirable in accordance with the ADEA] and has considered its terms for such a period of time or has knowingly and voluntarily waived Employee’s right to do so by executing this Agreement and returning it to Company; (b) Employee has been advised by Company to consult with an attorney regarding the terms of this Agreement; (c) Employee has consulted with, or has had sufficient opportunity to consult with, an attorney of Employee’s own choosing regarding the terms of this Agreement; (d) any and all questions regarding the terms of this Agreement have been asked and answered to Employee’s complete satisfaction; (e) Employee has read this Agreement and fully understands its terms and their import; (f) except as provided by this Agreement, Employee has no contractual right or claim to the benefits and payments described herein; (g) the consideration provided for herein is good and valuable; and (h) Employee is entering into this Agreement voluntarily, of Employee’s own free will, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever. HAVING READ AND UNDERSTOOD THIS AGREEMENT, CONSULTED COUNSEL OR VOLUNTARILY ELECTED NOT TO CONSULT COUNSEL, AND HAVING HAD SUFFICIENT TIME TO CONSIDER WHETHER TO ENTER INTO THIS AGREEMENT, THE UNDERSIGNED HEREBY EXECUTE THIS AGREEMENT ON THE DATES SET FORTH BELOW. EMPLOYEE JDA SOFTWARE GROUP, INC. By: Date: Date:
