Carewest Collective Agreement 2020-2024

LETTER OF UNDERSTANDING #3

BETWEEN

CAREWEST

- and -

HEALTH SCIENCES ASSOCIATION OF ALBERTA
(hereinafter referred to as the Union)

RE:  QUALITY OF LIFE OPTION
 

Purpose

1. The Parties agree that the primary purpose of the Quality of Life Option is to facilitate where operationally feasible, the work reduction as a personal lifestyle choice for longer term Employees and preserve, at the same time, the employment for the new workforce.  This option is at the sole discretion of the Employer and is intended to recognize the contributions of long service Employees who may wish to choose work reduction rather than lay off or displacement.  The Quality of Life Option is one of the many human resources management tools that Carewest may use.  If this option is used to downsize the workforce, it could be either the only option utilized or be in combination with other provisions of the Collective Agreement.

   Definitions

2.  

   1. Actual Hours Worked means all regular and casual hours worked.

   2. Regular Employees means an Employee who is actively working in a regular position at the time of the workforce reduction.

   3. Quality of Life Option means an option where the long service Employee chooses to permanently reduce their regularly scheduled hours of work in their position (FTE reduction) as a personal lifestyle choice and is paid for their FTE reduction by the Employer.

   4. Workforce reduction means a permanent net reduction by occupation in the overall site workforce due to organizational restructuring of at least twenty (20%) percent of regularly scheduled hours of work.

   Eligibility

3. Active Regular Employees currently at work with minimum fifteen (15) years or more service with the Employer. Employees are only eligible for the Quality of Life Option if they are regularly employed in the same job classification in which permanent reductions are required.

4. The Option, when offered by the Employer, will be open to all eligible full-time and part-time Employees employed and working in a regular position as at the date of the offering.

   Application of the Option

5. Carewest will determine the scope and magnitude of the workforce reduction.

6. Carewest will determine the methodology to reduce the workforce, for example, attrition, layoff, buy-down, and other methods it deems appropriate.

7. Carewest will assess the impact based on: operational requirements, budget restraints, timing, workforce stability, Employee choice, and other factors that the Employer deems appropriate at the time.

8. An approved Quality of Life Option will be calculated as follows:
   
   - Step 1: Actual hours worked over the past 12 months X basic rate of pay = annual net income.
   - Step 2:  Calculate the annual net income of the Employee's new reduced F.T.E. position/rotation by multiplying the regularly scheduled hours of work in the new position X basic hourly rate of pay = new annual net income.
   - Step 3: Step 1 amount minus Step 2 amount divided by 2 (6 months) - Quality of Life Option buy-down to be paid to the Employee.

   Quality of Life Offering Process

9. Quality of Life Option buy-down may, at the Employer's sole discretion, be utilized in combination with attrition and lay off during a permanent workforce reduction due to organizational changes that result in the permanent reduction in the number of regularly scheduled hours of work in the bargaining unit.

10. The Employer will determine the number of positions eligible for consideration for the Quality of Life Option buy-down.

11. A list of Employees in the job classification who meet the eligibility criteria will be notified in writing by the Employer of the Quality of Life Option buy-down prior to the layoff process commencing under the Lay Off and Recall Article of the Collective Agreement.

12. A Regular Employee who is eligible will be notified in writing of the Quality of Life Option buy-down and will be required to respond in writing to indicate their interest.

13. The Employer will review the responses of eligible regular Employees who have expressed an interest in applying for the Option and approve, based on operational requirements and seniority, the predetermined number of buy-down options.
14. Once approved, the Employer will meet with each Employee individually to confirm their approval and finalize the Employee's selection of a position in their job classification on the new rotation corresponding to their new reduced FTE.
15. Once approved by the Employer, the Employee must:
    1. remain in the new reduced FTE position for a period of twelve (12) months effective from the date of commencement in the new position. The Employee cannot apply for other positions in the organization during the twelve (12) month period;
    2. agree to waive their right to lay off and recall for their previous position for which they were paid the buy-down amount.
16. The Union agrees to exempt the reduced FTE Quality of Life Option Position from the bumping process under the Lay Off and Recall Article of the Collective Agreement during the twelve (12) month period in which the Employee must remain in the new position of choice.  The exemption will be void should the Employee no longer occupy the reduced FTE position or at the end of the twelve (12) month period, whichever occurs first.
17. The selection of the reduced FTE. Quality of Life Option position and the Employee placement into the new position shall not violate the terms of the Collective Agreement.
18. The selection of the reduced FTE. Quality of Life Option position and the Employee placement into the new position shall not violate the terms of the Collective Agreement.