Common use of Total Plant Closure Clause in Contracts

Total Plant Closure. The Company will advise the Union Standing Committee as soon as possible and in any case not less than sixty (60) days prior to a planned permanent plant closure. An employee terminated as a result of planned permanent plant closure shall be given a minimum of sixty (60) days’ notice of the closure. Employees affected by total plant closure shall be entitled to a severance allowance based on his years of employment during his/her last period of continuous service computed on the basis of forty (40) straight time hours at the employee’s regular rate on the following basis: Two (2) weeks' pay per year of service to a maximum of sixty (60) weeks. For employees with a minimum of one (1) year’s employment during their last period of continuous service, severance allowance shall not be less than four (4) weeks’ pay. Employees will have their welfare coverage continued for the current month plus two (2) additional months from their date of termination. No payment will be made under this section in cases where the employee has already qualified under Section 21, 5., a. - Job Security, or under Section 22, 3., c. - Permanent Job Category Elimination for Reasons Other Than Mechanization, Technological Changes and Automation.