Database Highlights - Contracting Out

Local 13173 Cameco Ltd.

ARTICLE 21 - CONTRACTING OUT

2l.0lThe Company will not employ outside contractors where in its judgement, existing Facility employees are available and capable of performing the work, or where present employees may be laid off or the re-hire of laid-off employees prevented.

Local 3696 Norton Canada Inc.

LETTER OF UNDERSTANDING - Contracting Out

The Company shall utilize its qualified bargaining unit employees whenever possible. Our first consideration for all maintenance work will be the availability and expertise of each of our bargaining unit employees. Payment for time spent on such maintenance work shall be a skilled trades Class "E" rate.

Local 1005 Hilton Works

LETTER OF AGREEMENT RE: CONTRACTING OUT

The Company and the Union are committed to the productive utilization of bargaining unit employees so as to minimize the requirement for the contracting out of work both inside and outside Hilton Works and have accordingly agreed as follows:

A. BASIC CONCEPT

In determining whether work should be contracted out or accomplished by the employees the guiding principle is that work the employees can do, or can be reasonably trained to do, shall be performed by the employees.

Accordingly, the Company shall not contract out work for performance inside or outside Hilton Works unless it demonstrates that such work meets one of the following exceptions.

B. EXCEPTIONS:

1. Work in the Plant:

1. Production, service, all maintenance and repair work, all installation, replacement and reconstruction of equipment and productive facilities, other than that listed in Sub-paragraph B-1-(b) below, may be contracted out if (i) the consistent practice has been to have such work performed by employees of contractors or (ii) it is more reasonable (within the meaning of paragraph C below) for the Company to contract out such work than to use its own employees.
2. Major new construction including major installation, major demolition, major replacement of equipment and productive facilities of Hilton Works may be contracted out. As regards the term "major", above, this means a project exceeding $500,000 Canadian on any single and discrete project.
3. Notwithstanding the provisions of sub-paragraphs (a) and (b) of this section 1, the Company will undertake to continue past practice with regard to construction and peripheral work in order to minimize the likelihood of layoffs for employees and maximize the opportunities for work for existing employees and former employees with entitlement to recall.
4. Major projects which have been initiated prior to August 1, 1990. The Company will provide Union members of the Contracting Out Committee with a letter listing the major projects covered under this Section within sixty (60) days of the effective date of this agreement.

2. Work Outside the Plant:

1. Should the Company contend that maintenance or repair work to be performed outside the plant or work associated with the fabricating of goods, materials or equipment purchased or leased from a vendor or supplier should be exempted from this Item, the Company must demonstrate that it is more reasonable (within the meaning of paragraph (c) below) for the Company to contract for such work (including the purchase or lease of the item) than to use its employees to perform the work or to fabricate the item. Notwithstanding the above, the Company may purchase standard components or parts or supply items produced for sale generally, termed for purposes of this agreement "Standard Purchased Items". It is agreed that Standard Purchased Items includes all components or parts or supply items purchased by the Company prior to July 31, 1990.

3. Capital Expenditures:

It is understood that the application and/or interpretation of the provisions of this Item shall not obligate the Company to commit to any capital expenditures other than as it deems necessary.

4. Mutual Agreement:

Work contracted out by mutual agreement of the parties pursuant to paragraph (F) below.

C. REASONABLENESS:

In determining whether it is more reasonable for the Company to contract out work than use its own employees, the following factors shall be considered:

(1) Whether the employees will be adversely impacted as a result of a decision to contract out or not contract out any work. In this regard, the Company will not contract out work that will result in employees losing a shift(s) of work, or in the discharge or layoff of employees. In addition, in the event that an employee is laid off work in accordance with the provisions of the Basic Agreement, the Company will not contract out, subsequent to his/her layoff, and during his/her period of entitlement to recall, the work that such employee previously performed or is qualified to perform in accordance with Clause 7.06.

It is further agreed that the Company shall not contract out any work in any department that has experienced a reduction in manpower by attrition, retirement, layoff or otherwise (i.e. W.C.B., L.T.D., etc.) so long as there are any bargaining unit members with recall rights at Hilton Works, subject to the other provisions of this Section C.

(2) Desirability of recalling former employees with entitlement to recall.

(3) Availability of qualified employees (whether active or former employees with entitlement to recall) for a duration long enough to complete the work.

(4) Availability of required equipment on hand or by lease or purchase, provided that either the capital outlay of the purchase of such equipment or the expense of leasing such equipment, is not an unreasonable expenditure in all the circumstances at the time the proposed decision is made, subject to Item C(5).

(5) The expected duration of the work and the time constraints associated with the work.

(6) Whether the decision to contract out the work is made to avoid any obligation under the collective bargaining agreement or benefits agreements associated therewith.

(7) Whether the work is covered by a warranty necessary to protect the Company's investment. For purposes of this subparagraph, warranties are intended to include work performed for the limited time necessary to make effective the following seller guarantees:

1. Manufacturer guarantees that new or rehabilitated equipment or systems are free of errors in quality, workmanship or design.
2. Manufacturer guarantees that new or rehabilitated equipment or systems will perform at stated levels of performance and/or efficiency subsequent to installation.
3. Warranties are commitments associated with a particular product or service in order to assure that seller representations will be honoured at no additional cost of the Company.

(8) In the case of work associated with leased equipment, whether such equipment is available without a commitment to use the employees of outside contractors or lessors for its operation and maintenance.

(9) Whether, in connection with the subject work or generally, the Union is willing to waive or has waived restrictive working conditions, practices or jurisdictional rules.

HOME | DATABASE | WORK ENVIRONMENT | SCHOOLNET | CONTACT US