Suspension of Step Increases. (a) In the event PPCW’s Unrestricted Net Results of Operations falls below negative 5% in two consecutive calendar quarters and the Employer believes that suspension of its obligation to pay step increases will help to improve its financial condition, the Employer may reopen the step program by providing written notice to the Union. The notice shall include information regarding the Employer’s financial condition and its efforts to reduce its expenses and otherwise improve its financial condition. In the event of such notice, the parties will meet within fifteen (15) days to discuss suspension of the step program as well as potential alternatives to the suspension of step increases. (Note: Unrestricted Net Results of Operations excludes capital releases, investment income and income in Board Designated funds.) The Employer will release up to three (3) employees selected by the Union to serve on its bargaining team to participate in these discussions on work time. This is not intended to limit the number of employees who may participate on the Union bargaining team on their own time. If the parties are unable to reach agreement within sixty (60) days after reopening, the step program may be suspended by PPCW and Article 29 of the collective bargaining agreement will be suspended. PPCW agrees that it will not suspend step increases for bargaining unit employees without also suspending all increases for non-bargaining unit employees.
(b) In the event PPCW experiences acute financial distress, then the steps will be immediately suspended. “Acute financial distress” under this paragraph shall be defined as PPCW not being able to meet its Loan covenants. In the event step increases are suspended under either (a) or (b) of this paragraph, the Employer will immediately disclose information regarding the Employer’s financial condition and its efforts to reduce its expenses and otherwise improve its financial condition. The parties will meet promptly to establish a timeline and process for resuming step increases in the event the Employer’s financial condition improves so that the measures that triggered the suspension of step increases are no longer present and to consider a means to compensate employees for the impact resulting from a suspension. During the suspension period, the parties will meet at least quarterly to review the Employer’s financial condition.
