Common use of Reduction of Force Clause in Contracts

Reduction of Force. 1. The Employer shall have the right to reduce its workforce (a) due to economic hardship or (b) in the following circumstances, provided that in the case of either (a) or (b) it can establish that the changes listed below eliminate an amount of work similar to the proposed reduction in worker hours: (i) A change in work specifications or work assignment which results in a reduction of work (ii) Elimination of all or part of specified work (iii) Vacancies in building (iv) Reconstruction of all or part of building (v) The tenant performing the work himself (vi) Introduction of technological advances (vii) Change in the nature or type of occupancy. 2. If the Employer desires to reduce its work force it is required, in addition to their accrued vacation credits and termination pay, if any, to give employees employed for one (1) year or more one (1) week’s notice of layoff or discharge, or in lieu thereof, an additional week’s pay. The Employer shall give four (4) weeks written notification to the Union and the RAB. The Employer shall include in such notification the following: (a) Reason for reduction, specifying whether the reduction is being made pursuant to one or more of the reasons set forth in Section 1 or Section 5 of this Article. (b) Notification should include the precise work to be eliminated, setting forth the work hours spent on each task to be eliminated and the change in schedules and duties of remaining employees resulting from the reduction in force. (c) If the reduction is due to technological advances, the notice shall describe the technological advance; how it will reduce the work, the number of work hours or reduced work and the change in schedules and duties of remaining employees resulting from the reduction in force. (d) If the reduction in force is proposed to be implemented pursuant to Section 5 of this Article, the notice shall so state. It shall include a detailed description of the work being performed by those allegedly working at an unusually slow pace or having idle time; a description of additional work that such employees should be performing within their normal working hours; the proposed reduction of force in work hours; change in schedules and duties of remaining employees resulting from the reduction in force. The notice shall include both present and proposed work specifications and schedules. 3. In the event that a reduction in the work force is effected and the reason for the reduction in the work force ceases to exist, then the Employer shall reinstate the work force that existed prior to the reduction in force. 4. If the Union grieves or arbitrates a dispute pursuant to this provision, the following shall apply: (a) The arbitration shall be expedited and in no event shall be scheduled and heard later than seven (7) calendar days after the Union’s request for arbitration. (b) The Employer shall affirmatively demon- strate that it has eliminated an amount of work similar to the reduction in worker hours. (c) The arbitrator shall issue an award within seven (7) calendar days after the close of the hearings. (d) There shall be no adjournments granted without mutual consent. 5. In addition to the reasons provided for in paragraph 1 above, the Employer shall have the right to reduce the work force where in those exceptional cases it can demonstrate to a Special Committee consisting of the President of the Union or his designee and the President of the RAB or his designee, that an employee has idle time or is working at an unusually slow pace. In the event the Employer claims such an exceptional case, it shall give the notice required pursuant to this provision and the date required by paragraph 2 hereof. At the conclusion of the four (4) week notice period provided for in paragraph 2, the matter shall be referred to the Special Committee. Such Committee shall act within four (4) weeks after the Employer has given notice to the Committee. If the Committee deadlocks or if the Committee fails to act within said four (4) week period, the Employer may refer the matter to arbitration pursuant to the arbitration provisions of the contract. The matter shall be heard within four (4) weeks after it is submitted, and a decision shall be rendered within four (4) weeks of the close of the hearing. No adjournments shall be granted without mutual consent. The Employer may not reduce the work force as proposed prior to the arbitrator’s award, provided, however, that if the arbitrator fails to issue his award within the prescribed period, the Employer may reduce the work force as proposed, subject, however, to the ultimate determination of the arbitrator. 6. In the event that the four (4) weeks notice provided for herein is not given and the Employer lays off employees pursuant to this provision, the Employer shall pay an amount equal to the laid off employees’ wages and fringe benefits (including, but not limited to Pension, Health, Training, Legal and SRSP Fund Contributions, Holidays, Vacation, Sick Pay and Premium Pay) for the period beginning with the layoff until four (4) weeks after the Employer notifies the Union or the issuance of a final arbitration award, whichever is sooner, but in no event less than four (4) weeks even if the layoff is upheld by the arbitrator. The fact that payment of employees’ wages and fringe benefits are provided for herein shall in no way be construed as a limitation of the arbitrator’s power and authority under other provisions of this Agreement. Where an Employer has more than one (1) case under subparagraph 5, in a building, it may consolidate such cases for purposes of proceeding before the Special Committee and/or the Arbitrator. 7. The parties renew their commitment to expeditious utilization of the Agreement process to address staffing issues and to communicate on a regular basis on this subject. To that end, the Special Committee shall meet, unless the parties agree otherwise, on a date certain on each month, to be determined by the parties, with respect to issues that arise under Article VII, Sections 1 and/or 5, or such other items as the parties shall determine.

Reduction of Force. 1. The Employer shall have the right to reduce its workforce (a) due to economic hardship or (b) in the following circumstances, provided that in the case of either (a) or (b) it can establish that the changes listed below eliminate an amount of work similar to the proposed reduction in worker hours: (i) A change in work specifications or work assignment which results in a reduction of work (ii) Elimination of all or part of specified work (iii) Vacancies in building (iv) Reconstruction of all or part of building (v) The tenant performing the work himself (vi) Introduction of technological advances (vii) Change in the nature or type of occupancy. 2. If the Employer desires to reduce its work force it is required, in addition to their accrued vacation credits and termination pay, if any, to give employees employed for one (1) year or more one (1) week’s notice of layoff or discharge, or in lieu thereof, an additional week’s pay. The Employer shall give four (4) weeks written notification to the Union and the RAB. The Employer shall include in such notification the following: (a) Reason for reduction, specifying whether the reduction is being made pursuant to one or more of the reasons set forth in Section 1 or Section 5 of this Article. (b) Notification should include the precise work to be eliminated, setting forth the work hours spent on each task to be eliminated and the change in schedules and duties of remaining employees resulting from the reduction in force. (c) If the reduction is due to technological advances, the notice shall describe the technological advance; how it will reduce the work, the number of work hours or reduced work and the change in schedules and duties of remaining employees resulting from the reduction in force. (d) If the reduction in force is proposed to be implemented pursuant to Section 5 of this Article, the notice shall so state. It shall include a detailed description of the work being performed by those allegedly working at an unusually slow pace or having idle time; a description of additional work that such employees should be performing within their normal working hours; the proposed reduction of force in work hours; change in schedules and duties of remaining employees resulting from the reduction in force. The notice shall include both present and proposed work specifications and schedules. 3. In the event that a reduction in the work force is effected and the reason for the reduction in the work force ceases to exist, then the Employer shall reinstate the work force that existed prior to the reduction in force. 4. If the Union grieves or arbitrates a dispute pursuant to this provision, the following shall apply: (a) The arbitration shall be expedited and in no event shall be scheduled and heard later than seven (7) calendar days after the Union’s request for arbitration. (b) The Employer shall affirmatively demon- strate that it has eliminated an amount of work similar to the reduction in worker hours. (c) The arbitrator shall issue an award within seven (7) calendar days after the close of the hearings. (d) There shall be no adjournments granted without mutual consent. 5. In addition to the reasons provided for in paragraph 1 above, the Employer shall have the right to reduce the work force where in those exceptional cases it can demonstrate to a Special Committee consisting of the President of the Union or his designee and the President of the RAB or his designee, that an employee has idle time or is working at an unusually slow pace. In the event the Employer claims such an exceptional case, it shall give the notice required pursuant to this provision and the date required by paragraph 2 hereof. At the conclusion of the four (4) week notice period provided for in paragraph 2, the matter shall be referred to the Special Committee. Such Committee shall act within four (4) weeks after the Employer has given notice to the Committee. If the Committee deadlocks or if the Committee fails to act within said four (4) week period, the Employer may refer the matter to arbitration pursuant to the arbitration provisions of the contract. The matter shall be heard within four (4) weeks after it is submitted, and a decision shall be rendered within four (4) weeks of the close of the hearing. No adjournments shall be granted without mutual consent. The Employer may not reduce the work force as proposed prior to the arbitrator’s award, provided, however, that if the arbitrator fails to issue his award within the prescribed period, the Employer may reduce the work force as proposed, subject, however, to the ultimate determination of the arbitrator. 6. In the event that the four (4) weeks notice provided for herein is not given and the Employer lays off employees pursuant to this provision, the Employer shall pay an amount equal to the laid off employees’ wages and fringe benefits (including, but not limited to Pension, Health, Training, Legal and SRSP Fund Contributions, Holidays, Vacation, Sick Pay and Premium Pay) for the period beginning with the layoff until four (4) weeks after the Employer notifies the Union or the issuance of a final arbitration award, whichever is sooner, but in no event less than four (4) weeks even if the layoff is upheld by the arbitrator. The fact that payment of employees’ wages and fringe benefits are provided for herein shall in no way be construed as a limitation of the arbitrator’s power and authority under other provisions of this Agreement. Where an Employer has more than one (1) case under subparagraph 5, in a building, it may consolidate such cases for purposes of proceeding before the Special Committee and/or the Arbitrator. 7. The parties renew their commitment to expeditious utilization of the Agreement process to address staffing issues and to communicate on a regular basis on this subject. To that end, the Special Committee shall meet, unless the parties agree otherwise, on a date certain on each month, to be determined by the parties, with respect to issues that arise under Article VII, Sections 1 and/or 5, or such other items as the parties shall determine.