vcc contract 2005-10 - uwua Local 105, consumers energy

WORKING AGREEMENT Consumers Energy Company and Utility Workers Union of America Affiliated with the AFL-CIO and its Michigan State Utility Workers Council Covering Customer Service Employees in the Virtual Call Center Facilities <div style="text-align: center;">Effective: August 1, 2010– August 1, 2015 INDEX Page Article Section Absences 25-27 XIX Arbitration 9-10 VII 1-5 Attendance Improvement Incentive Program Appendix Letter #7 Bargaining Unit Continuous Service 15 XIV 1 Benefits by Choice 40 XXVIII 1 Bulletin Boards 11 IX 1 Call out 32 XXI 1 (a) Conflicts 40 XXVI 1 Continuous Service 15 XIV 2 Death in Family 25 XIX 3 Discharge/Discipline 7-9 VI 1-2 Letters of Discipline 7 VI 1 (a) (b) Presidential Hearings 7-8 VI 1 (d) Notice to Union 7 VI 1 (c) Employment Security/Wage Protection 23 XVIII 3 Exhibit A 47 FMLA Appendix Letter #5 Full Time Employee 15 XIV 1 Gender 2 I 2 Grievance Procedure 4-7 V 1-7 By-pass 6 V 5 Final Conference 6 V 6 Informal 4 V 2 Investigation 5-6 V 4 Pay for Attendance 4-5 V 2-3 Step I 4 V 2 Step II 4 V 2 Health and Safety 40 XXV 1 Holidays 15 XIII 1 Rate of Pay - Holiday 15 XIII 3 Job Classifications 17 XV 1 Joint Responsibility 3-4 III 1-2 Jury Duty 25 XIX 2 Layoff 20-21 XVII 3 Leaves of Absence 26-27 XIX 4, 6-7 Personal 26 XIX 4 Union Business (30 day or less) 26 XIX 6 Union Business (More than 30 days) 26-27 XIX 7 Management Rights 4 IV 1 Medical Appointment 37 XXIII 8 Medical and Emergency Bank 30 XX 10 Medical Information Requests Appendix Letter #10 Memorandum of Agreement 1 Moving Expenses 22 XVII 7 Notifications to Union 10 VIII 1 Occupational Group 38 XXIV 2 Outside Contractors 22 XVIII 1 Overtime 32 XXI 1 Time and one half 32 XXI 1 (a-b) Double-time 32 XXI 2 Paid Personal Absence 27-32 XX Pay in lieu 28 XX 5 Scheduling Process Appendix Letter #6 Pall Bearer 27 XIX 8 Part Time Employee 15 XIV 1 Pay Checks 40 XXVII 1 Pregnancy Policy Appendix Letter #5 Probationary Employee 38 XXIV 3 Promotions/Transfers 18-19 XVI 1-6 To Supervisor 18 XVI 3 Recall Rights 21 XVII 4 Recognition Clause 2 I 1 Request for Transfer 19 XVI 6 Retirement Plan 41 XXIX 1-4 RSPA Policy – FFD Appendix Letter #3 Saturday Premium 34 XXII 3 Schedule Change Premium 14 XII 6 Seniority 37-38 XXIV 1 Seniority Lists 39 XXIV 5 Separation Allowance 21-22 XVII 5 Shift Premium 34 XXII 1 Sick Leave 35-37 XXIII Stand-by 32-33 XXI 3 Sunday Premium 34 XXII 2 Temporary Assignments 43 XXXI 1 Temporary Upgrades 18-19 XVI 4 Tokens 30-31 XX 10 Union Dues 2-3 II 1-2 Union Security 2 II 1 Vehicles & Company Equipment 11 X 1 WAHA Appendix Letter #4 Work Limitations 12 XI 1 Exceptions 12 XI 2 Wage Schedule 41-43 XXX Work Schedules 12-14 XII 1-7 College Students Appendix Letter #8 Selection Process Appendix Letter #9 MEMORANDUM OF AGREEMENT THIS AGREEMENT made and entered into by and between Consumers Energy Company, hereinafter referred to as the "Company," and the Utility Workers Union of America, AFL-CIO, and its Michigan State Utility Workers Council, representing the local unions among the Employees of the Company's Virtual Call Center, through its duly accredited officers and representatives, hereinafter individually and collectively referred to as the "Union," WITNESSETH that: WHEREAS, the very existence of the Company is conditioned and dependent upon the faithful carrying out of its obligations and responsibilities in serving the public, and WHEREAS, this responsibility to the public is the responsibility of both the employees and the Company, and requires that any dispute arising between the employees and the management be adjusted and settled in an orderly manner without interruption of service to the public, and WHEREAS, both parties hereto recognize this responsibility of service to the public, and WHEREAS, both parties hereto desire to enter into an Agreement which will eliminate any reason for strikes, stoppages of work or lockouts during the term of such Agreement and during any period while negotiations are in progress between them for any change or renewal of this Agreement. NOW, THEREFORE, for and in consideration of the premises and promises and Agreements hereinafter contained, it is agreed that: </div> ARTICLE I & II ARTICLE I RECOGNITION Section 1. The Union has been certified by Order of the National Labor Relations Board dated July 5, 2002 (Case No. 7-RC-22022) as the exclusive representative of the following employees: All full-time and regular part-time customer service employees, including senior customer service representatives (CSRs), CSRs I, CSRs II, CSRs III, and home CSR agents, employed by the Employer at or out of its “virtual call center” facilities in Alma, Saginaw, Grand Rapids, Royal Oak, and Lansing, Michigan; but excluding all other non-exempt employees, all exempt employees, all operating, maintenance and construction employees, and guards and supervisors as defined in the Act. Section 2. Wherever the feminine pronoun is used in this Working Agreement it shall mean or include the masculine pronoun where applicable. ARTICLE II UNION SECURITY Section 1. The Company will deduct from the wages of those employees who authorize it to do so in writing in the form agreed to by the Company and the Executive Board of the Michigan State Utility Workers Council, reasonable weekly dues, uniformly applied, as Union dues for the duration of such authorization. Dues deductions shall be made from the wages payable each Friday and the accumulated amount shall be remitted to the Michigan State Utility Workers Council on or about the tenth of each month. If an employee has no earnings during a week, the dues which would have been deducted that week shall be deducted in the next week during which she has earnings, except that at the end of a six-week period of no earnings the Executive Board of the Michigan State Utility Workers Council shall be notified and the Company will not deduct from subsequent earnings the accumulated unpaid dues. Dues deduc-tions shall commence in the second week next succeeding the week during which the Company is given written authorization. Section 2. All regular full-time and regular part-time employees who are, upon the execution of this Agreement included within the Bargaining Unit, and those who later become members of the Union, shall meet their financial obligations to the Union, uniformly required, until the expiration of this Agreement, or until they cease to be members of the Bargaining Unit. (a) Each new employee for whom the Union has been designated as the exclusive bargaining representative shall, as a condition of employment, become a member of the Union and pay to the local union the initiation fee it has established prior to the effective date hereof within 30 days from her first day of employment. (b) Any member who shall become more than one month in arrears in the payment of her Union dues shall be subjected to such disciplinary action as may be agreed upon by the Company and the Union. The Union agrees not to discriminate against an employee on any grounds other than failure to pay the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership. Section 3. The provisions of this Agreement shall be binding not only upon the Company, but upon its successors and assigns. The Company shall make it a condition of the sale or transfer that the successors or assigns shall be bound by the terms of this Agreement. A copy of such a sale or transfer agreement shall be provided to the Union after its execution. ARTICLE III JOINT RESPONSIBILITIES Section 1. There shall be no picketing, strikes, sympathy strikes, concerted failure to report for work, slowdowns or stoppages of work, nor any lockouts, during the terms of this contract, or during any period of time while negotiations are in progress between the parties hereto for the amendment or renewal of this Agreement. Section 2. The Company agrees, as part of the consideration of this Agreement, that neither the Union, its officers or official representatives, shall be liable for damages for unauthorized picketing, strikes, sympathy strikes, concerted failure to report for work, slowdowns or stoppages of work, if: (a) The Union gives written notice to the Company and the employees involved within twenty-four (24) hours of such action, that it has not authorized the stoppage, strike, sympathy strike, slowdown or suspension of work and such written notice directs the employees involved to return promptly to their jobs and cease any further violation of this Agreement; and if (b) The Union at the same time authorizes the Company to give such further publication of such notice as in the sole judgment of the Company appears desirable. It is recognized that the Company has the right to take disciplinary action, including discharge, against any employee who is responsible for or participates in a breach of a provision in Section 1 hereof, whether or not the Union gives the notice provided in this Section. ARTICLE IV RIGHTS AND RESPONSIBILITIES OF MANAGEMENT Section 1. It is agreed that the management of the Company, the supervision of all operations, the control of the property, and the composition, assignment, direction and determination of the size of the working forces belong to and are vested in the Company, except as they may be otherwise specifically limited in this Agreement. ARTICLE V GRIEVANCE PROCEDURE Section 1. A “grievance” as defined herein is a difference between any employee or employees and the Company as to the meaning or application of the terms and provisions of this Agreement. Section 2. Informal Resolution. It is the desire of the Company and the Union that such grievances should normally be resolved between the employee or employees and her or their immediate supervisor. Therefore, the employee will meet informally with the supervisor in an effort to resolve the grievance. If not so settled, it may be formally disposed of in the following manner: Step 1. The grievance shall be promptly placed in writing by the authorized representative of the Local Union and submitted to the designated VCC management representative within 30 calendar days after the informal meeting between the employee and her immediate supervisor, but not later than 45 calendar days of its occurrence, or it will be understood that it no longer exists. The grievance shall set forth: the facts giving rise to the grievance; the provision(s) of the Agreement alleged to have been violated; the name(s) of the aggrieved employee(s); and the remedy sought. The grievance shall be signed and dated by the Local Union representative. The designated VCC management representative and the Local Union representative shall thereupon agree to discuss the grievance at the earliest agreeable time not later than 14 calendar days after the receipt of the grievance. However, no claim for retroactive adjustment shall be made prior to 30 calendar days immediately preceding the first submission of such grievance. It is the desire of all parties to keep representation at Step 1 of Section 2 at a minimum, and the number of VCC employees who shall suffer no loss of their straight-time pay while attending such meeting(s) will be limited to the employee on whose behalf the grievance was filed and her Local Union representative, but only if such Union representative is an employee of the VCC. Step 2. If the grievance is not settled in Step 1, the Local Union representative shall, within 10 calendar days after the completion of Step 1, submit the grievance to the designated VCC management representative who shall, as promptly as possible, but within 14 calendar days after the grievance is submitted, meet with the Local Union representative and endeavor to settle the grievance. If a grievance is not submitted to the designated VCC management representative within the time specified above, it will be understood that it no longer exists. In the event the designated VCC management representative cannot meet with the Local Union representative at the time and place desired, there shall be present a representative designated by the VCC management representative with full power and authority to settle the grievance. Section 3. It is the desire of all parties to keep representation at Step 2 of Section 2 at a minimum, and the number of VCC employees who shall suffer no loss of their straight-time pay while attending such meeting(s) will be limited to the employee on whose behalf the grievance was filed, another VCC employee from the same headquarters and her l Local Union representative, but only if such local Union representative is an employee of the VCC. Reasonable time shall be set aside for the holding of such grievance meetings. In the event the attendance at any meeting referred to in Section 2 hereof does not require an employee or the local Union representative, if she is an employee of the VCC, to leave the VCC headquarters at which they work, they shall suffer no loss of straight-time pay. Section 4. Only one local Union representative shall investigate a particular grievance and, if the local Union representative is an employee of the VCC, she shall not leave her job without prior consent of the appropriate VCC management representative. The local Union representative shall make arrangements with the appropriate VCC management representative prior to conducting investigations involving other VCC employees. Time for such investigation without loss of straight- time pay shall not exceed an aggregate of one hour. Further, an employee shall not leave her job without prior consent of the VCC management representative to attend a grievance meeting(s) or investigation. Section 5. Should a grievance arise between the Local Union and the Company that cannot be resolved through normal grievance procedure as provided for in this Article, because such grievance involves matters that affect other employees as a group, or matters concerning Company policy, the designated VCC management representative and the local Union representative may, by agreement, bypass Steps 1 and 2 of the Grievance Procedure as provided for in Section 2 of this Article and submit the grievance or grievances directly to a final conference as provided for in Section 6 of this Article. Whenever grievances are pending at different locations of the Company but involving the same complaint, the Executive Board of the Michigan State Utility Workers Council, by written notice to the Company, may consolidate such grievances for the purpose of processing through Steps 1 and 2 of the Grievance Procedure, whereupon the processing of such consolidated grievances through Steps 1 and 2 at any one location of the Company shall suffice for all the grievances so consolidated. Section 6. In case of final disagreement between the representatives of the local Union and the Company in relation to any grievance, as provided in Section 2 hereof, the same may be referred by either party within 30 calendar days of the completion of the meeting referred to in Step 2 to a final conference between the Executive Board of the Michigan State Utility Workers Council, and the Director of Labor Relations, or a person delegated to represent the Director. If such a conference is requested on or before the first day of any calendar month, the conference will be held not later than the last day of the same month and if the request for a conference is made subsequent to the first day of the month, the conference will be held not later than the last day of the next succeeding month. The Company will advise the Executive Board of the Michigan State Utility Workers Council of its decision with respect to each grievance referred to such conference for discussion by written notification mailed within 14 calendar days after such conference. The Executive Board of the Michigan State Utility Workers Council may thereafter refer the grievance to arbitration by written notification to the Company. A grievance filed during the term of this Agreement for which a Final Conference answer is received by the Union between January 1 and June 30 will be understood to no longer exist unless written notification to the American Arbitration Association or to the Director of Labor Relations referring the grievance to arbitration is received by the Company by December 1 of the same year. A grievance filed during the term of this Agreement for which a Final Conference answer is received by the Union between July 1 and December 31 will be understood to no longer exist unless written notification to the American Arbitration Association or to the Director of Labor Relations referring the grievance to arbitration is received by the Company by June 1 of the ensuing year. Section 7. For the duration of this Agreement, the President of the Michigan State Utility Workers Council and the Director of Labor Relations, in an effort to improve operation of the Grievance Procedure, by mutual agreement in writing, may make trial changes in the Grievance Procedure. Such changes will have the effect of amending the Grievance Procedure provisions of this Agreement during the time such changes are in effect. The Company or the Union may terminate any such trial changes through written notice of such termination effective upon receipt of such notice by the other party. Such termination will not affect the validity of anything which occurs as a result of the trial procedure during the period it is in effect. ARTICLE VI DISCHARGE, DISCIPLINE AND SUSPENSION OF EMPLOYEES Section 1. The Company reserves the right at all times to discipline, discharge and suspend employees and to remove them from their jobs. (a) In disciplining employees the Company shall disregard letters of discipline which were issued two or more years prior to the latest occurrence of disciplinary action. (b) Letters of discipline dated more than two years prior to the latest disciplinary action will be permanently removed from the employee's personnel file prior to its release by the Human Resource Department. (c) The Company will advise the local Union representative of the circumstances which led to the suspension for investigation or disciplinary action within a reasonable period of time and will discuss the matter with a local Union representative upon request. If practicable, the Company will advise the local Union representative prior to the imposition of the disciplinary action. (d) If an employee is demoted, discharged or given a long-term disciplinary layoff, the Executive Board of the Michigan State Utility Workers Council may file a grievance with the Company within 30 calendar days of the date the employee is demoted, discharged or has received a long-term disciplinary layoff. If an employee has been suspended for investigation for seven days, the Executive Board may at any time thereafter for the duration of such suspension for investigation, file a grievance alleging that the Company did not have, or no longer has, reasonable grounds for such suspension for investigation. It is recognized by both parties that such grievances should be settled at the earliest possible time and should take precedence over grievances of a different nature. Therefore, if requested by the Executive Board, an employee who has been demoted, discharged or has received a long-term disciplinary layoff or suspended for investigation shall have the right to a prompt hearing on such charges before the President of the Company, or someone delegated by the President, and, except as set forth in Subsection (f) of this Section, may not utilize the procedure outlined in Article V for resolving other grievances. In the event the investigation of any such grievance, or attendance at a discussion provided in this Section, does not require an employee to leave the Virtual Call Center in which she works, she shall suffer no loss of her straight-time pay. If the President of the Company or the representative of the President sustains the grievance in whole or in part, the employee or employees involved shall sustain no loss of contract benefits other than loss of pay, and as to loss of pay the President of the Company or the representative of the President shall be free to make such decision as the President shall deem justified under the circumstances. Likewise, if an employee is thus found to have been unjustly demoted and is placed in a higher rated job than the one to which she was demoted, she shall be compensated for the difference between the straight-time pay for the two jobs. The decision of the President of the Company or the representative of the President, if accepted by the Union, shall be final and binding and shall not be subject to arbitration. (e) If the Executive Board submits a grievance on behalf of any employee who has been discharged, it may at that time notify the Company in writing that arbitration of the grievance is desired. In such event there will be no hearing before the President of the Company or the representative of the President. (f) Notwithstanding the provisions of Section (d) above, an employee who has been demoted, has received a long-term disciplinary layoff or suspended for investigation, instead of following such procedure, may, with the consent of her local union, process a grievance concerning such demotion, long-term disciplinary layoff or suspension for investigation in accordance with the provisions of Article V; except that if such a grievance is referred to arbitration by the Executive Board of the Michigan State Utility Workers Council, it will be treated in accordance with the arbitration provisions of the Working Agreement and the written notification of the decision of the Company after final conference will be treated as the decision of the President or the representative of the President for purposes of this Article. (g) If no settlement of the grievance can be obtained by the method set forth in Section (d) or (f) above, the Union (through the Executive Board of the Michigan State Utility Workers Council) may, within 30 calendar days of the date of mailing of the decision of the President or the representative of the President, notify the Company in writing that arbitration of the grievance is desired. If such notice is not received by the Company within that period of time, it will be understood that the grievance no longer exists. Section 2. If the Company discharges a probationary employee, it will advise the local Union representative of the circumstances which led to the discharge by the end of the next workday of the affected employee. The discharged employee may, within 7 calendar days of her discharge, file a written request through the local Union representative, for a hearing before the Director of Customer Services or someone delegated by such Company representative. It is recognized by both parties that such grievances should be processed at the earliest possible time and take precedence over grievances of a different nature. A maximum of two authorized local Union representatives, designated by the local union through its President, and, if they are employees of the Virtual Call Center, shall suffer no loss of their straight-time pay while attending such a hearing, providing attendance does not require either of such employees to leave the Virtual Call Center. Action by the Company representative or the delegate shall not be subject to dispute by the Union or to arbitration. ARTICLE VII ARBITRATION Section 1. If any grievance or grievances cannot be settled under the provisions of Article V hereof, either the Company (through the Director of Labor Relations) or the Union (through the Executive Board of the Michigan State Utility Workers Council) may, within the time permitted by Article V, Section 6 or Article VI, Section 1(g), whichever is applicable, give the other notice that arbitration of such grievance or grievances is desired by filing a demand for arbitration with the American Arbitration Association. Section 2. No arbitrator shall have the power to change any of the provisions of this Agreement. Section 3. Unless provided otherwise in this Agreement, the arbitration and the arbitration hearings will be conducted in accordance with the then existing rules of the American Arbitration Association. Each of the parties hereto shall bear the expense of preparing and presenting its own case. The compensation and expenses of the arbitrator and the incidental arbitration expenses shall be borne equally by the parties. Hearings will be held in Jackson, Michigan, except that the parties may agree upon a different meeting place. If the parties mutually agree to hold the hearing in a place other than Jackson, Michigan, the parties will share equally the expenses of the arbitrator and any incidental expense. However, the Company may designate the place of hearing within the State of Michigan by bearing: (a) The expense of such meeting place. (b) The expenses incurred by the arbitrator as the case may be, for meals, lodging and travel while attending the place of hearing so designated by the Company. (c) The amount by which the reasonable expenses for meals, lodging and travel of members of the Executive Board of the Michigan State Utility Workers Council attending such a hearing exceed the expenses which would have been reasonably incurred by them for such purposes if the hearing had been held in Jackson, Michigan. Section 4. If the arbitrator, in a case involving the discipline or discharge of an employee or employees, sustains the grievance in whole or in part, the employee or employees involved shall sustain no loss of contract benefits, other than loss of pay, and as to loss of pay the arbitrator shall be free to make such decision as the arbitrator deems justified under the circumstances. Section 5. The parties, by agreement, may choose to utilize some procedure other than that set forth in this Article for a specific case or cases. In such event any procedure agreed upon by the parties in writing for such case or cases will prevail. ARTICLE VIII NOTIFICATION TO UNION Section 1. The Human Resource Representative will advise the appropriate Local Union Secretary: (a) Within 15 days, of the name and address, job title, date employed, department and reporting headquarters of each employee added to the payroll. (b) The name and address, job title, date released, department and reporting headquarters of each employee leaving the Company, and (c) Once each month those address changes provided to the Human Resource Representative by employees during the preceding calendar month. ARTICLE IX USE OF BULLETIN BOARDS Section 1. The local union is granted permission to post notices concerning Virtual Call Center employees on electronic and regular bulletin boards designated by the Company, and in a place accessible to employees, without prior approval, provided that such notices are confined to: (a) Regular notices of meetings as to time, place and agenda. (b) Notices of elections of officers and the results of elections. (c) Notices of appointments to office. (d) Seniority lists of each occupational group. Notices may be posted concerning other than those items specifically described above, but only after receiving prior written approval from the Director of Customer Services or the person designated by the Director. ARTICLE X USE OF VEHICLES AND COMPANY EQUIPMENT Section 1. If, at the Company's request, an employee agrees to use her automobile on Company business, she will be paid for the use of her automobile at the rate equal to the maximum allowed by the Internal Revenue Service. If an employee with seniority no longer wishes to drive her automobile on Company business, she must give the Company not less than 30 days' written notice. Moreover, an employee who gives the Company notice that she no longer wishes to drive her automobile on Company business will continue to drive her own automobile until the Company is able to offer alternative transportation to the employee. Section 2. The Company agrees to furnish all materials, supplies and equipment that it requires an employee to use. In consideration of this, an employee will replace any of those which are lost or broken through her own personal negligence with materials, supplies and equipment of like quality and at her own expense. ARTICLE XI WORK LIMITATIONS Section 1. No supervisor or other employee outside of the bargaining unit will do the work of employees covered by this Agreement, except to assist, instruct or train employees, or to protect life, limb or property or in emergency situations. Section 2. Notwithstanding the foregoing, up to seven non-bargaining unit employees regularly involved in coaching will be permitted to take calls for not more than 4 hours each week to maintain proficiency. ARTICLE XII WORK SCHEDULES Section 1. The Company is committed to serving its customers 24 hours a day and 7 days a week. The Company will therefore set a regular work schedule for each employee, including requiring employees to work extended hours, as required to meet the needs of the service. The Company may temporarily (up to 14 calendar days) change such work schedules to meet the needs of the service without regard to the provisions of Section 7 of this Article. The Company may ask an employee working a specific shift, as provided for above, to temporarily extend her work schedule for up to an additional 14 calendar days. An employee who agrees to extend her work schedule will be paid a schedule change premium, if applicable, as provided for in Section 6 of this Article. The Company may also staff any of its VCC facilities 24 hours a day and 7 days a week, and each headquarters may include a variety of day, evening and weekend work shifts. The Company may also establish bilingual work schedules by classification in each VCC work location for the purpose of serving bilingual and other customers. CSRs with bilingual qualifications hired on or after August 1, 2005 will be required to staff such work schedules. Such shifts will not be used to displace non-bilingual CSRs from their shifts or prevent current bilingual employees from filling these shifts. Section 2. The regular daily work period may consist of up to 12 hours of work, excluding the time taken out for a lunch period, and the workweek may consist of up to 5 daily scheduled work periods in 7 consecutive days, commencing at midnight on Sunday. However, if one of an employee’s regular daily work period begins on Sunday and ends on Monday, her workweek shall commence at the time such regular daily work period begins. Section 3. If the needs of the service permit, alternative work schedules may be established for employees who request to work such schedules. Such alternative work schedules may include, but are not limited to, part-time, work at home, split shift, irregular daily work periods and alternative work headquarters, if approved by the Company. Such schedules will be granted in accordance with the provisions of Section 7 of this Article. Section 4. Effective with the first shift after January 1, 2011, a regular employee may be allowed to delay her regular starting time by up to 15 minutes on one day per calendar month. In such case such employee will be required to extend her workday by the same amount of time that the starting time was delayed, unless otherwise approved by management. . In addition to the above, an employee, other than an employee that has been placed in an Attendance Control Group under the Virtual Call Center Attendance Policy, or with no paid or unpaid sick leave or unauthorized absences or leave of absence due to illness, and including FMLA absences, for the 3 prior consecutive months (subsequent to January 1, 2011) will be awarded a bonus flex opportunity (one monthly plus one bonus opportunity) for the following calendar month. An employee with no absences as specified above for the 6 prior consecutive months (subsequent to January 1, 2011) will be awarded an additional bonus flex opportunity to a maximum of three flex opportunities (one monthly plus two bonus opportunities) for the following calendar month. An employee awarded bonus flex opportunities may choose to either advance or delay her regular starting time by up to 15 minutes when using a monthly or bonus flex opportunity for the month. An employee choosing to delay her regular work time will be required to extend her workday by the same amount of time that the starting time was delayed, unless otherwise approved by management. An employee choosing to advance the start time by up to 15 minutes will reduce her work day by the same amount of time. Only one flex opportunity may be used per day. The use of monthly or bonus flex opportunities shall not apply during the time employees are in training, unless the delay does not impact the training, or to probationary employees. Each flex opportunity is effective only for the current month and may not be carried over or accumulated for future use. Any provisions of this section may be suspended by the Company with 24 hours notice if one or more of the following occurs: (a) the month-to-date ASA exceeds 80 seconds (or a proportionate level in the event the ASA standards are changed by the Michigan Public Service Commission or other regulatory requirement); (b) there is an anticipated storm or storm restoration is in process; or (c) there is a technical difficulty with the equipment or applications including but not limited to IVR, SAP, and OMS. Section 5. Employees who desire to temporarily swap their shift with other employees of the same job classification will make such desire known to other employees. Such shift swaps must be for an entire shift whether or not such shifts are of equal hours. The Company may grant or deny such swap requests based upon any one of the following factors: (a) cost, (b) level of employee training or experience, (c) needs of the service. An employee who is involved in a voluntary shift swap will be paid the shift premium set forth in Article XXII, if applicable. Upon granting of a shift swap request, if either employee has approved PPA during any part of the shift associated with the swap, management will automatically cancel the PPA. Section 6. Should it become necessary to change an employee’s work schedule by 4 or more hours, the employee shall be paid a schedule change premium equal to time and one half for the first daily work period, that is not a holiday, on such schedule. The employee shall not be paid a schedule change premium if the employee’s former schedule is re-established within 90 calendar days. The Company will not pay such a premium when such change of schedule is at the request of the employee. Section 7. When shifts and/or work schedules become available, they will be offered to employees possessing the qualifications required for the shifts and/or work schedules available by seniority. Such shifts and/or work schedules will be published when they become available. The information that is published will include the starting date of the shift, all scheduled days and the scheduled hours of each day, including the start and end times and the time of the lunch period. Each CSR will also be provided with an opportunity to select a shift and will be provided with a 14-calendar day notice of her selection of her shift. ARTICLE XIII HOLIDAYS Section 1. Holidays, within the meaning of this Agreement, shall be New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, December 24, Christmas and December 31. Section 2. All regular full-time employees scheduled to work on holidays, but whose services are not essential on such days, will be allowed to be absent from duty without loss of their straight-time pay. Employees may volunteer to work on such a holiday and will be selected by job classification and seniority at the headquarter(s) selected by the Company. Regular part-time employees scheduled to work on holidays are eligible for 4 hours of pay for each designated holiday if they are allowed to be absent on such a day. To become eligible for such pay, the employee must be at work (or absent with pay) on the scheduled workday before or after the holiday. Section 3. When a full-time or part-time employee works on a Company-observed holiday, the rate of pay for such work shall be limited to a maximum of two times her regular straight-time rate. ARTICLE XIV BARGAINING UNIT CONTINUOUS SERVICE/ CONTINUOUS SERVICE Section 1. “Regular full-time” employees are defined as employees who are at work or on Company-paid absence and who normally work 35 or more hours per week. “Regular part-time” employees are defined as employees who are at work or on Company-paid absence and who work, on average in a full calendar year, 25 hours or less per week. The term "bargaining unit continuous service" means time in the Company as a member of the bargaining unit recognized in this Agreement. Section 2. The term "continuous service" means time in the employ of the Company and shall consist of the entire period of an employee's employment, including the aggregate of separate periods of service and the aggregate of full- and part-time service with periods of part-time status given credit on a two-for-one basis (e.g., two years of part-time service is equal to one year of full-time service). The following rules will govern continuous service: (a) Any time lost from work in excess of 30 days on each occasion shall be deducted from an employee's continuous service, unless: (1) She is absent from work because of sickness or personal injury (nonoccupational) and she is receiving benefits in accordance with the provisions of Article XXIII, Section 1, or (2) She has completed her probationary period and she is unable to work as a result of an injury arising out of and in the course of her employment with the Company and covered by the Michigan Workers' Disability Compensation Act, or (3) She is on an extended leave of absence in accordance with the provisions of subsection (d) of this Section, or (4) She is on leave of absence in accordance with the provisions of Article XIX, Section 7, or (5) She is on leave of absence to perform military service, or (6) She is absent from work on paid personal absence in accordance with the provisions of Article XX, Section 1. (b) In addition to any other cause for the termination of an employee's continuous service, such service shall be terminated by her: (1) Resignation, or (2) Discharge, or (3) Retirement, or (4) Failure to return to work within the time limits of a leave of absence, an extended leave of absence or for the restoration of seniority. (However, during the period that an employee is unable to work as a result of an injury arising out of and in the course of her employment with the Company and she is receiving weekly Workers' Disability Compensation payments from the Company because of that condition, her continuous service will not be terminated pursuant to the provisions of this subsection (b)(4)), or (5) Absence from work for any reason for more than 30 days on any one occasion and she is a probationary employee. (c) Termination of continuous service terminates all of an employee's rights, except rights, if any, under the Group Insurance Plans, Pension Plan, or the Employee Stock Ownership Plan. If an employee's continuous service is terminated and the employee is subsequently reemployed by the Company, the employee will be considered a new employee in all other respects. (d) An employee, except a probationary employee, who is unable to work as a result of a nonoccupational sickness or personal injury shall be granted an extended leave of absence for a period not to exceed two years from and after the last day worked or day for which the employee received sick leave benefits in accordance with the provisions of Article XXIII, Section 1. Likewise, an employee who is unable to work as a result of an injury arising out of and in the course of her employment with the Company, and covered by the Michigan Workers' Disability Compensation Act, shall be granted an extended leave of absence for a period not to exceed two years from and after the last day worked. The Company will attempt to return the employee to her former job or to a comparable job. ARTICLE XV JOB CLASSIFICATIONS Section 1. Changes in the job duties and wage rates may only be made in accordance with the following procedure: (a) The Company will provide 30 days notice to the Union prior to the proposed effective date of such changes, and, upon request, enter into negotiations during such period in an attempt to reach agreement respecting such changes. (b) Failing to reach agreement as provided for above, either of the parties may submit the matter to arbitration within 30 days after the failure to reach agreement for the purpose of determining whether the contemplated changes are arbitrary or capricious or to determine the accuracy of the revised job descriptions as well as the proper rates of pay therefore. Either party may submit wage and benefit data to the Arbitration Board/arbitrator that it deems appropriate. If the Arbitration Board determines that the changes are not arbitrary or capricious but that the changes would adversely affect any employee or employees, the Arbitration Board may make such award respecting seniority, promotional opportunities and job security of the employees affected thereby as will minimize such adverse effects, but the Arbitration Board shall not rule that the changes may not be placed into effect unless it determines that the change would be arbitrary or capricious. In making an award to minimize adverse effects, the Arbitration Board shall not be limited by the first sentence of Section 2 of Article VII. Section 2. Nothing in this Agreement shall prohibit the Company from introducing new technology, equipment or methods in an existing job description, or preclude the Company from establishing an entirely new job description, the Union having only the right in such cases to negotiate and arbitrate the accuracy of the job description and the proper wages and rate ranges. ARTICLE XVI PROMOTIONS AND TRANSFERS Section 1. The Company will promote employees within each occupational group who possess the job qualifications, by seniority, as follows: the employee must meet or exceed the objective performance standards established by management for the previous 520 hours worked at the time of the promotion. Section 2. An employee who is unable to perform the job to which she was promoted to the satisfaction of the Company within 90 calendar days from the date of promotion shall be returned to her previous job. The employee shall not be eligible for a promotion for a period of 18 months. Section 3. An employee may be promoted or transferred to a supervisory or other position not covered by this Agreement on a temporary or other than a temporary basis and she shall continue to accrue seniority in the occupational group from which she is promoted or transferred. If an employee is so promoted or transferred for more than 120 regular daily work periods (excluding full days of sick leave or vacation) in any twelve month period, the seniority of the employee shall terminate. If, however, she returns to her former occupational group before her seniority is terminated, she shall be reinstated to her former job and the regular rules of seniority will prevail for employees below her on the seniority list. Once each month, the appropriate Human Resource Representative will provide the Local Union President a list of employees who have been temporarily promoted or transferred as provided in this Section. Section 4. The Company may, during any shift, temporarily assign an employee on the shift to a higher level job by seniority; provided however, the employee must meet the objective performance standards established by management at the time of the temporary assignment and is trained to perform the higher level duties. The employee so assigned shall be paid a premium of 5 % of her current straight-time rate or $1.00 per hour, or the starting rate of the job to which she is temporarily promoted, whichever is greater, for all hours worked in the higher level job. The Company will not use such temporary promotions to avoid filling permanent positions, except that the Company may, during any such shift where the majority of the hours fall between the hours of 11:00PM and 7:00AM, temporarily assign an employee on the shift as a Senior Customer Service Representative by seniority. Such employee must meet the objective performance standards established by management at the time of the temporary assignment and is trained to perform the higher level duties. The employee so assigned shall be paid a premium of 5 % of her current straight-time rate or $1.00 per hour, or the starting rate of the job to which she is temporarily promoted, whichever is greater, for all hours worked in the higher level job. Section 5. An employee may file an application for reassignment to a specific lower rated job with the appropriate Human Resource Representatives. Such a request may be granted provided such reassignment will not adversely affect the ability of the Company to meet the needs of the service. If such employee is reassigned to a lower rated job, she shall be paid the Standard Rate of the lower rated job or her current rate, whichever is lower. Further, the honoring of such a request by the Company shall not constitute grounds for a grievance by an employee in a lower rated job in the occupational group. Section 6. A request from an employee, other than a probationary employee, to voluntarily transfer to another VCC headquarters may be granted by the Company if the needs of the service permit. The employee must meet the objective performance standards established by management at the time of the request for a voluntary transfer. ARTICLE XVII WORKFORCE Section 1. All regular full-time and part-time employees will receive full-time or part- time employment, provided they report for duty on their assigned schedules, in accordance with the terms and conditions of this Agreement, and are in condition to perform their work. This section is not to be interpreted as meaning, however, that the Company does not have the right to lay off or release employees at any time on account of lack of work, or for other valid reasons, with reasonable advance notice. It is, therefore, agreed that regular full- and part-time employees may be laid off or released at any time, on not less than 14 calendar days’ notice. The Company will notify the local Union representative as to the approximate date of contemplated layoffs. It is also agreed that employees shall give the Company at least 7 calendar days’ notice before quitting their jobs. Section 2. If otherwise qualified and the needs of the service permit, the Company will grant a request by a part-time employee to become a full-time employee by seniority in the headquarters where a full-time opening exists. Section 3. When the Company reduces or otherwise rearranges its forces, employees, whether regular full-time or part-time, shall be released or reduced in rank as provided in this Section, provided that each such employee so released or reduced can be replaced by a qualified employee if such replacement is necessary. (a) When the Company reduces employees in an occupational group in rank, they shall be reduced in rank in such manner that the employee with the least seniority in each affected classification within the occupational group shall be reduced first. (b) When the Company reduces the number of employees in an occupational group, such employees shall be released from the group in such manner that the employee with the least bargaining unit continuous service shall be released first. For purposes of this Subsection, the Local Union President and/or a member of the Executive Board of the Michigan State Utility Workers Council shall be considered to have the most seniority in her occupational group. The procedure will be: (1) An employee who is to be so released and who has retained seniority in a former occupational group covered by this Agreement must elect to return to her former occupational group or elect to participate in the choices available to her in subsection b(2) below. If she fails to return to her former occupational group her seniority in the former occupational group shall terminate. (2) An employee who is to be released shall be given an opportunity, based on bargaining unit continuous service, to fill a vacancy that she is qualified to fill or replace any probationary employee in any of the Company’s Virtual Call Center locations. (c) An employee who fills a vacancy or replaces a probationary employee will not be eligible for a Separation Allowance. (d) If the Company increases the work force of an occupational group, the released employee most recently released or transferred from the occupational group pursuant to this Section, shall be recalled first, provided she is available and qualified to perform the work and she is recalled within the time limits set forth in Section 4 of this Article. Notice of the Company's desire to recall an employee shall be delivered to the employee or be sent to the employee's last known address (with a copy to the Local Union President). The employee must, within 10 days of notification (if notification is by mail, the shall be considered the date of notification), notify the Company whether she intends to report for work at the time her services are needed. If the employee fails to notify the Company or fails to report for work as above provided or is not recalled within the time limits date of mailing of Section 4 of this Article, her continuous service shall be terminated. Section 4. When an employee is released by the Company for lack of work or other reason beyond her control, and is later reemployed, her seniority shall be restored to its status as of the date she left the service of the Company under the following conditions: (a) An employee who has completed more than five years of continuous ser-vice with the Company will have her seniority restored if she is reemployed within five years. (b) An employee who has completed at least one but less than five years of continuous service with the Company will have her seniority restored if she is reemployed within the time equivalent to her continuous service. (c) An employee who has completed less than one year of continuous service with the Company will have her seniority restored if she is reemployed within one year. (d) An employee, whether a full- or part-time employee, may be recalled to a full- or part-time job; however, she shall not lose her recall rights if she fails to accept recall to a job that is not the same as her status (full- or part-time) prior to her layoff. Section 5. Any regular full-time employee who has completed one year or more of bargaining unit continuous service and who is released by the Company during the term of this Agreement on account of lack of work shall be paid a Separation Allowance. The amount of the Separation Allowance will consist of the employee's regular straight-time pay for five workdays (one week) for each full year of bargaining unit continuous service for a maximum of thirty (30) weeks, less the amount or amounts of any Separation Allowance paid to the employee on any previous occasion or occasions. This allowance shall be in addition to any vacation pay in lieu of vacation to which the released employee may be entitled, but will be subject to the following conditions: (a) Loss of a particular job shall not be considered a release on account of lack of work if employment is available to the employee by the exercise of any of her rights under this Agreement except as provided for in this Article. (b) Loss of a particular job shall not be considered a release on account of lack of work if the employee is offered work at the time of such release with any company acquiring or succeeding to all or any part of the property of the Company. (c) An employee shall not be eligible for a Separation Allowance if released by the Company on account of lack of work as the result of being replaced by an employee returning from military service. (d) An employee who is paid the Separation Allowance shall retain her recall rights in accordance with Article XVII, Section 4. In the event the employee is not recalled within the time limits expressed within Article XVII, Section 4, she shall forfeit all reemployment rights and any other privilege, right, or benefit, to which she may be entitled under this Agreement at the time of her release by the Company, except vested rights, if any, under Section VII of the Pension Plan as amended and except any rights under Article XXVIII of this Agreement. (e) If an employee is reemployed under the provisions of Article XVII, Section 3(d) or recalled for work within the time specified in Article XVII, Section 4 and she wishes to restore her Separation Allowance to the status that it was at her time of release for lack of work she may do so by paying to the Company within 30 days of reemployment in a lump sum the gross amount of the Separation Allowance paid to her at the time of her release. Section 6. “Lack of work” shall not include the retirement of an employee under the provisions of the Pension Plan for any reason. Section 7. The Company shall pay $500.00, less applicable taxes, toward the necessary moving expenses of any employee and her family when the headquarters of the employee is changed to another location as a result of the exercise of her layoff rights under Article XVII, Section 3. The new headquarters must be 60 or more miles from her current headquarters, and the employee must move more than 60 miles from her current residence and within 30 miles of her new headquarters within 6 months of the date of placement. The employee must present proof, satisfactory to the Company, that she has established a new residence under the mileage limits established in this provision before she will be reimbursed. ARTICLE XVIII OUTSIDE CONTRACT WORK The parties recognize that delivery of the Company's services at high quality and the lowest price will enhance employee job security and the continued viability of the Company. During the 2002-2003, 2005 and 2010 Working Agreement negotiations, the Company and the Union discussed the Company's concerns and efforts to meet the challenges of the increasingly competitive utility business and the role of contracting in that process. Throughout these negotiations the Union repeatedly emphasized its concern about employment security for its members. In order to address these mutual concerns, the parties agree to the following: Section 1. The Company will not employ outside contractors for the purpose of laying off employees who perform the expected, regular work of bargaining unit employees. Section 2. Suspension of Section 1 During the term of the Working Agreement commencing on August 1, 2010 and terminating on August 1, 2015, the provisions of Section 1 shall not apply and the Company shall be free to employ contractors to perform work that might otherwise be subject to Section 1 as it deems appropriate. Section 3. Employment Security and Wage Rate Protection During the term of the Working Agreement commencing on August 1, 2010, and terminating on August 1, 2015, every eligible employee will have an opportunity for guaranteed employment without wage rate reduction in the event of a reduction or rearrangement of forces, as more specifically set forth below: A. Eligibility Eligible employees are bargaining unit employees (excluding probationary employees) who on August 1, 2010 are on the active payroll, on disciplinary layoff, on FMLA leave or on authorized leave of absence. B. Employment Security Protection If the Company reduces or rearranges its forces under Article XVII, an eligible employee will be assured an opportunity to fill a job she is qualified to perform rather than be laid off to the street. If necessary to assure that there are a sufficient number of jobs available that employees are qualified to perform, the Company will create the number of vacancies within 90 miles to assure that each eligible employee who would otherwise be laid off to the street is offered such an opportunity. C. Wage Rate Protection An eligible employee who accepts a job offered to her under B above will suffer no reduction in the regular straight time rate of pay she was receiving immediately prior to her placement in her new job, provided she remains in her new job classification or in a higher rated job. D. Consequence of Refusal To Accept A Job An eligible employee who fails to accept a job offered to her under B above and as a consequence is laid off to the street shall be entitled to a separation allowance, if otherwise eligible, in accordance with Article XVII and recall rights under Article XVII. Section 4. Joint Committee Review and Arbitration The Union may seek Arbitration of a specific contracting decision if such a decision results in the reduction and/or rearrangement1 of more than 5% of the employees in a headquarters or complete elimination of an occupational group, as follows: A. The Company will give the Michigan State Utility Workers Executive Board and the affected local union notice of such contracting decisions at least 30 days before such reductions and/or rearrangements occur. B. The Union may present the concerns of such employees identified for reduction and/or rearrangement to a committee (to be established by the Company and the Union), comprised of an equal number of Company and Union representatives, for resolution. The concerns will be deemed resolved if a majority of the committee agree to a resolution of the concerns. C. If disposition of such concerns is not agreed upon by a decision of the majority of the members of the committee, the Union may request a further review by the President of the Company or his designated representative(s). D. If no settlement is reached as a result of the above process, the Executive Board of the MSUWC may submit a grievance on the subject contracting decision directly to Arbitration on behalf of the employees reduced and/or rearranged, provided this is done within one month of the decision of the President or his representative(s). E. In considering such a grievance, an Arbitration Board may not find a violation of the Working Agreement unless it determines that: 1. The contracted work which has been grieved: (a) was the expected regular work of the Company of a continuing nature, (b) was not peak work, (c) was assigned to contractors for the purpose of reducing and/or rearranging employees who ordinarily and customarily do such work, and (d) would have been performed in a more cost effective fashion and of equal quality by the employees whose work was, in fact, performed by contractors; and 2. The subject contracting decision has directly resulted in the reduction and/or rearrangement of more than 5% of the employees in a headquarters or the complete elimination of an occupational group. F. The foregoing is the exclusive method for resolving any disputes concerning the use of contractors by the Company. Except as provided above, Article VII shall apply in the event of Arbitration. ARTICLE XIX ABSENCES Section 1. When possible, no employee shall absent herself from work for any reason without first making arrangements for such absence with her supervisor or other designated VCC representative. Section 2. A regular full-time employee called for jury service or who is subpoenaed to appear as a witness in court or before any other body empowered to compel attendance of witnesses by subpoena, in a case which was not initiated by the employee or in a case in which the employee is a party to the suit or legal action, shall be excused for the time necessary to allow her to be in attendance as required without loss of her straight-time pay. A regular part-time employee shall be excused for the time necessary to allow her to be in attendance as required above, but without pay. Section 3. A regular full-time employee will be excused without loss of straight-time pay and a part-time employee will be excused without pay, or she may use paid personal absence, if any, for the purpose of attending the funeral or memorial service of a deceased immediate family member, that is, a spouse, child (including stepchild), parent (including stepparent), sibling, parent–in-law, grandparent or grandchild. A regular full-time employee or a regular part-time employee will be excused, without pay, or the employee may use paid personal absence, if any, in the event of the death of a sister-, brother-, daughter- or son-in-law for up to three work days to attend the funeral or memorial service. It is understood that the employee will not take more than 3 work days from the date of the death to the day after the funeral or memorial service. However, if the burial or memorial service requires traveling to the extent that the employee cannot return to work in time to secure eight hours rest before the beginning of her scheduled work period, a regular full-time employee shall be excused from work without loss of straight-time pay for one additional day. A regular part-time employee shall also be excused for one additional day, but without pay, or the employee may use paid personal absence, if any. Section 4. A temporary leave of absence is an excused absence from work without pay and for a period of not more than 30 days in any calendar year, except absences occasioned by illness or accident. A temporary leave may be granted by the appropriate company representative with or without a written confirmation, and provided she can be spared from duty. Such leave need not be reported or reflected in the employee’s service record beyond the extent necessary to determine the amount of her pay. Such leave of absence may be extended, without the accumulation of seniority during such extended period, for a total absence of not more than six months, with the written approval of the appropriate company representative. While on such leave of absence an employee shall not be deemed to have forfeited her accumulated seniority rights, provided that, upon her return to work, she is able to perform the essential duties of her job. If such an employee remains away for more than six months, or if she accepts other employment during such leave of absence without the specific sanction of the Company, her employment with the Company shall be deemed to have terminated. Section 5. Any employee with seniority who is injured while on duty shall continue to accumulate seniority during her absence on account thereof and shall be reinstated, upon recovery, to her former position with full seniority rights, provided she is able to perform the essential duties of her job. This shall also apply to any employee who may become incapacitated by illness, or by accident while off duty, except that her seniority shall cease to accumulate when her continuous service is terminated in accordance with the provisions of this Agreement. It is understood that when such an employee returns to work the regular rules of seniority will prevail for those below her on the seniority list. Section 6. Any employee who may be called upon to transact business for the Union, which business requires her temporary (not exceeding 30 days in each instance) absence from duty with the Company, shall upon twenty-four hours’ notice and permission from the proper representative of the Company, be allowed to be absent from duty without pay, but without the loss of any seniority rights, for sufficient time to transact such business. Section 7. An employee who may be elected or appointed to an office in the Union, which election or appointment requires her absence from duty with the Company for an extended period, shall be granted a leave of absence without pay. Likewise, an employee who may be elected or appointed to a political office which requires her absence from duty with the Company for an extended period shall be granted a leave of absence without pay unless in the sole judgment of the Company, the responsibilities of the office to which she is elected or appointed include a possible conflict of interest with her employment with the Company. Should she be reelected, or reappointed, to the same political office, or be elected or appointed to a different political office, for an ensuing term, her leave of absence and her employment with the Company shall be terminated as of the date her new term begins. An employee who engages in political activity shall do so as a private citizen and not as a representative of the Company and no campaigning for political office shall be done on Company property or during her working hours. Upon termination of a leave of absence for Union business or political office described in this Section, if the employee is able to perform the essential duties of her job and she decides to return to work, she shall be reinstated in her former job including all of her continuous service and seniority rights cumulative to the time of returning to the Company. In such event the regular rules of seniority will prevail for those employees below her on the seniority list. Section 8. If an employee accepts a call to serve as a pallbearer for a fellow em-ployee, a member of a fellow employee's immediate family or a fellow annuitant (or the annuitant's spouse) the Company will permit the employee to be absent from work, without pay, on a regular workday for whatever time may be necessary therefor, but not to exceed one day. The Company will cooperate with Veterans' organizations to permit employees to be absent from work, without pay, on a regular workday whose services are desired at military funerals, for a reasonable length of time therefor, but not to exceed one day in any instance. If a fellow employee dies, employees assigned to the local operating headquarters of the deceased employee, up to a total of six such employees, including those serving as pallbearers, will be allowed to attend such deceased employee's funeral, without pay, for whatever time may be necessary therefor, but not to exceed one day. ARTICLE XX PAID PERSONAL ABSENCES Section 1. A regular full- or part-time employee who is not a probationary employee will be entitled to paid personal absence from work without loss of straight-time pay as set forth in this Article. Section 2. The amount of paid personal absence for which regular full-time employees shall be eligible will be governed by the following rules: 28 ARTICLE XX BARGAINING UNIT CONTINUOUS SERVICE PAID PERSONAL ABSENCE ELIGIBILITY Completed probationary period and < 1 Year Up to 40 Hours* At 1 Year Up to 156 Hours* ≥ 1 and < 6 Years 156 Hours ≥ 6 and < 14 Years 196 Hours ≥ 14 and < 22 Years 236 Hours 22 or More Years 276 Hours * Prorated based on amount of time left in the calendar year after probationary period is completed or 1 year of Company service is achieved. Section 3. The amount of paid personal absence for which regular part-time employees shall be eligible will be governed by the following rules: BARGAINING UNIT CONTINUOUS SERVICE PAID PERSONAL ABSENCE ELIGIBILITY At 1 Year Up to 40 Hours* 1 or More Years 40 Hours *Prorated based on amount of time left in the calendar year when 1 year of Company service is achieved. Section 4. Regular full- and part-time employees may purchase up to 40 additional hours of paid personal absence through payroll deduction, but only pursuant to the terms and conditions of the Company’s Vacation Buy Policy. Section 5. If an employee retires or dies, she will be eligible for payment in lieu of the current year’s unused and any deferred paid personal absence, but not including purchased paid personal absence. Further, if an employee retires or dies, she will also receive pay for 1/12 of the following year's paid personal absence amount for each month worked in the current calendar year. Payment shall be made to the person(s) as set forth in MCLA 408.480(2) if an employee dies. Absences of more than 30 consecutive days are deducted for purposes of calculating time worked. The rate of pay used to calculate the allowance will be the employee’s straight-time pay. Section 6. In the event that an employee is or becomes ill prior to her scheduled paid personal absence time, she will be permitted to change her paid personal absence to a subsequent date as long as the schedule permits. If an employee is admitted to a legally constituted hospital during her scheduled paid personal absence, the period of her hospital confinement will be charged against her sick leave benefits (under Article XXIII) if any, and following her discharge from the hospital she, if qualified, continue on sick leave or will either resume her scheduled paid personal absence or return to work and defer the balance of her paid personal absence to a later date as the schedule permits. Further, if a death occurs in her immediate family (as defined in Section 3 of Article XIX) during her scheduled paid personal absence, she may substitute funeral leave as defined in Article XIX, Section 3. In either event, the employee shall give prompt notice of hospitalization or the death in the family. Section 7. (App 6) At an appropriate time each year employees who are entitled to paid personal absence will express their preferences as to paid personal absence periods and other prearranged absences in which to take a paid personal absence and the Company shall, as soon thereafter as possible, establish workable schedules. In establishing such schedules, the Company will respect the wishes of the employees as to the time of taking their paid personal absence, insofar as the needs of the service will permit. If more than one employee submits a written request for paid personal absence to be taken during the same time and the schedule will not permit both employees to exercise their paid personal absence requests, the request of the employee with the greater bargaining unit continuous service by job classification will be given preference over other requests for paid personal absence during such period. In order for an employee to exercise bargaining unit continuous service preference, the written paid personal absence request must be submitted to her supervisor by December 15 of the preceding year. Requests for paid personal absence submitted from 12:01 AM December 16 through midnight on December 31 of each year will not be considered. Only requests submitted on or before December 15 and on or after January 1 will be considered. Any written request submitted after January 1 of the current year will be granted on a first-come basis. Section 8. Paid personal absences may be taken in increments of a minimum of three-tenths of an hour. Section 9. At the end of each calendar year, the Company will automatically defer up to 80 hours of a regular full-time employee’s paid personal absence into the following calendar year, as long as she has used at least 80 hours. Any hours in excess of 80 hours at years’ end shall be forfeited. The Company will automatically defer up to 10 hours of a regular part-time employee’s paid personal absence into the following calendar year. Any hours in excess of 10 hours at years’ end shall be forfeited. Section 10. A regular full- and part-time employee shall, by December 1, 2010, and by December 1 of each succeeding year for the duration of this Agreement, elect one of the following options: OPTION A. Medical and Emergency Bank - A 40-hour Medical and Emergency bank will be established from the regular full-time employees’ annual paid personal absence bank entitlement (a 20-hour bank will be established from the regular part-time employees’ annual paid personal absence bank entitlement) for the purpose of overriding a closed paid personal absence schedule in the event of a medical or other emergency. A regular full- and part-time employee who is not enrolled in training can use up to 40 hours (20 hours in the case of a part-time employee) of paid personal absence, if any, to override the closed schedule and take the necessary time off. Such Medical and Emergency leave bank shall be used only for the following purposes: a. To care for a sick child. b. For medical appointments for herself or immediate family members (child (including a stepchild), spouse, parent (including stepparent)). c. For other emergencies, at the discretion of her supervisor. d. For the employee illness, limited to a maximum of one work period during her workweek. e. The provisions of Article XXIII, Section 8 shall be suspended for an employee choosing this option in a closed schedule, except the employee can make up time taken for the employee’s medical appointments that cannot be scheduled outside of her scheduled work hours as provided for in Article XXIII, Section 8 as long as she has hours left in the Medical and Emergency bank. f. Employees, other than probationary employees, with less than 12 months of bargaining unit continuous service will be granted a Medical and Emergency bank on a prorated basis. g. The employee shall, upon request, provide medical documentation or other proof satisfactory to the Company for (a) through (d) above. OPTION B. Tokens - In the event an emergency or unplanned event occurs and the paid personal absence schedule is closed, a regular full- and part-time employee who is not enrolled in training can use “tokens” to override the closed schedule and take the necessary time off. Regular full- and part-time employees will be given up to fourteen quarter-shift and/or work schedule “tokens” to be used throughout the year. On December 1, each unused “token” can be placed in a drawing for prizes. Each headquarters will hold a drawing for the prizes. a. The “tokens” can be used January 3 through December 15, with the exception of the following days: Day after New Year's Day Superbowl Sunday Day after Memorial Day Week of 4th of July Day after Labor Day Wednesday before Thanksgiving Day b. Employees may not use a total of more than6 tokens during the months of January and February and no more than 4 tokens during the month of March. c. In the event of a major catastrophe, additional days may be blocked out. d. Tokens cannot be used on days employees are scheduled or volunteer to work a holiday or overtime. e. Tokens cannot be traded or given away. f. Tokens can be redeemed for hours or days. A quarter-day token can be used for up to one quarter of the employee’s normal schedule. Two quarter-day tokens are required for a half day. Four quarter-day tokens are required for a full day. g. Employees must have paid personal absence time available to use tokens. h. Each regular full- and part-time employee is entitled to maximum of 14 tokens each calendar year. i. The tokens shall expire on an annual (calendar) basis. j. Employees, other than probationary employees, with less than 12 months of bargaining unit continuous service will be granted tokens on a prorated basis. In the event that the Company or the Union encounter difficulties in the implementation of the Medical and Emergency bank, the President of the Michigan State Utility Workers Council and the Director of Labor Relations agree to enter into discussions to determine whether to continue the Medical and Emergency bank or agree to some other arrangement no later than December 1, 200610and by December 1 of each year for the duration of this Agreement. Further, either the Company or the Union may terminate Option A no later than December 31, 200610 and by December 31 of each succeeding year of this Agreement through written notice of such termination effective upon receipt of such notice by the other party and the employees will only be able to utilize tokens, as set forth above, effective the first day of January of each such year that the termination occurs. Section 11. Regular full-time employees will be credited with up to 8 hours of paid personal absence and part-time employees will be credited up to 4 hours of paid personal absence, on an hour-for-hour basis, if the holiday falls on an off-duty day. Regular full- and part-time employees will be credited paid personal absence, on an hour-for-hour basis, for all hours worked on a Company-designated holiday. If the employee works on, or her off-duty day(s) falls on December 24, 25, or 31, all paid personal absence hours credited for any of these days but not used will be automatically deferred into the following calendar year notwithstanding the limitation contained in Article XX, Section 9. Section 12. An employee with one or more years of bargaining unit continuous service may use unpaid time off (UPT) only after she has used one-half of the paid personal absence that she is eligible for, unless her Team Leader has authorized her to use UPT. A Team Leader may authorize UPT to any employee who has less than a full year of bargaining unit continuous service due to extenuating circumstances and may require documentation for such absence ARTICLE XXI OVERTIME Section 1. Employees shall be paid time and one-half the employees’ straight-time rate after 40 hours of work in a workweek. Paid absences such as holidays, paid personal absence, death in the family, jury duty, union business – Company paid or union paid and rest period shall not be considered time worked, however, such paid absences will be used to determine whether the employee has 40 or more hours in a workweek and is eligible for overtime pay. Hours attributed to sick leave, work accident, medical treatment–work related, military duty, workers’ compensation, whether paid or unpaid, shall be excluded from determining whether employees worked 40 hours in a workweek and are eligible for overtime pay. (a) Overtime shall be paid when employees work hours outside of a scheduled work time for a call-out assignment even if the employee does not have 40 hours of work in a workweek. (A call-out occurs when an employee is called outside of and not adjacent to the employee’s scheduled work time and the employee is asked to report immediately.) (b) Employees shall be paid at time and one-half their straight-time rate after 12 hours worked in a day. Any type of paid or unpaid absences shall be excluded from determining whether employees have worked more than 12 hours in a day. Section 2. Employees shall be paid at two times their straight-time rate after 50 hours of work in a workweek or after 16 hours worked in a day. Any type of paid or unpaid absences shall be excluded from determining whether employees have worked more than 50 hours in a workweek or after 16 hours worked in a day for double time purposes. Section 3. Unless some other procedure is agreed upon between the local union representing a specific call center location and the Company, the Company may require an employee to be available on standby (a predetermined 24-hour period set by the Company, by VCC location, which may include the employee’s work schedule during which the employee must remain readily available to handle unplanned activities necessary to maintain or restore service to the customer or facilities as necessary for the integrity of the system). In such an event, the employee will be paid 1 hour of straight-time pay for a regular workday and 2 hours of straight-time pay for an off-duty day or on a Company-observed holiday. Such assignments will be offered by seniority to volunteers within the proper job classification. In the event the VCC experiences a need for standby employees, WAHAs who are on standby will be the first group of standby employees who will be called out from a state-wide list by order of bargaining unit continuous service. Section 4. An employee called outside of and not adjacent to her scheduled work time or before the start of her shift (call out assignments) and asked to report immediately will be paid 1 hour at her straight-time rate as a reporting bonus. If such assignment is not adjacent to the regular shift, she will receive a minimum of 2 hours of pay at her applicable rate starting when she begins work. Section 5. Any employee who works 16 or more hours within a 24-hour period will, whenever possible, be released for a 8 hour period before she is required to report to work for her next regular daily work period. If, however, the Company is unable to release such employee, she shall receive two times her straight-time rate of pay for all hours worked in excess of 16 hours until she is released from work for 8 hours. If the employee is released and such 8 hour period extends into her regular daily work period, she shall suffer no loss of her straight-time pay for any portion of her regular daily work period which is within such 8 hour period. If, in the judgment of the Company, the employee cannot be gainfully employed during the portion of her regular daily work period remaining after the expiration of such 8 hour period, such employee may be excused from work for the remainder of her regular daily work period without loss of her straight-time pay. Section 6. The Company will request volunteers from among the employees qualified to perform the work before requiring employees to work overtime. The Company shall determine when overtime will be worked and will offer overtime by seniority from the volunteer list. During the period that the Company is administering the overtime provisions of this Agreement, all employees who are then working may be asked (or required if necessary) to extend their work schedules until such time that the Company has a sufficient number of employees to meet the needs of the service. Section 7. In the event the number of qualified employees by classification who volunteer to work overtime is insufficient to meet the needs of the service, the Company will require qualified employees by classification to work overtime in the following order of preference: (a) qualified on-duty employees whose regular schedules are adjacent to the overtime assignment based upon their seniority in ascending order , (b) other qualified employees who are on duty on the day of the scheduled or call-out overtime assignment based upon their seniority in ascending order, (c) qualified on-duty employees in the next higher classification (1) will be asked to work the overtime assignment and (2) if not enough employees volunteer, such employees will be required to work the overtime assignment, based upon their seniority in ascending order; (cd) qualified employees who are on their off-duty day will be required to work overtime based upon their seniority in ascending order. At the sole discretion of the Team Leader, an employee may be excused from scheduled or call-out overtime due to extenuating circumstances of a previous commitment. The employee may be required to provide appropriate documentation satisfactory to the Company of the previous commitment. ARTICLE XXII SHIFT PREMIUM PAY Section 1. If the employee’s regular work schedule includes the hours between 6 p.m. and 6 a.m., she shall be paid a premium of 6% of her hourly straight-time rate or $1.00 per hour (whichever is greater) for all hours worked between 6 p.m. and 6 a.m. In addition, if 50% or more of the employee’s regular shift is worked between 6 p.m. and 6 a.m., the employee shall be paid the premium for the entire shift. The premium pay provided in this section shall be paid in addition to overtime rates, if applicable. Section 2. When Sunday is scheduled as part of an employee’s regular work week, a premium of 25% of the employee’s straight-time rate shall be paid for such time worked on Sunday. The premium pay provided in this section shall be paid in addition to overtime rates, if applicable. Section 3. When Saturday is scheduled as part of an employee’s regular work week, a premium of 6% of her hourly straight-time rate or $1.00 per hour (whichever is greater) shall be paid for such time worked on Saturday. The premium pay provided in this section shall be paid in addition to overtime rates, if applicable. ARTICLE XXIII SICK LEAVE Section 1. Effective January 1, 2011, an active, regular full-time employee is eligible for paid sick leave benefits if she is unable to work due to a recognized illness or injury subject to the following provisions as follows: a. 90% of her straight time rate for all days of her first occasion; b. 90% of her straight time rate for days 1 through 5 of her second occasion, then 85% of her straight time rate for days 6 through 14 of her second occasion, then 90% of her straight time rate for day 15 and thereafter; c. if the first day of her third occasion occurs after two months of her return to work date from the end of her second occasion, then she will be paid as set forth in (b) above; if the first day of her third occasion occurs within two months of her return to work date from the end of her second occasion, then she will not be paid for her first full shift (hours that are equivalent to the number of hours of her regular shift) or she may use her PPA, if any; then she will be paid 80% of her straight time rate for days 2 through 14 and 90% for day 15 and thereafter; d. if the first day of her fourth and subsequent occasions occur after six months of her return to work date from the end of her preceding occasion, then she will be paid as set forth in (b) above; if the first day of her fourth or subsequent occasions occur within six months of her return to work date from the end of her preceding occasion, then she will not be paid for her first two full shifts (hours that are equivalent to the number of hours of her regular shift) or she may use her PPA, if any; then she will be paid 80% of her straight time rate for days 3 through 14 and 90% for day 15 and thereafter. A day, as used herein, shall be equivalent to the number of hours of the shift for which she was scheduled. If the employee works only a partial shift on her first day of a sick leave occasion and such illness bridges a workday, the employee’s first full shift of sick commence at the time they are first absent on the partial day and continue into the next workday for a period of time equivalent to the number of hours in her first full shift. Her second and subsequent days of her sick leave will be calculated in the same manner for purposes of Section 5 of this Article. Regular part-time employees are not eligible for paid sick leave benefits. Section 2. Such payments are reduced by any Workers’ Disability Compensation Act benefits. Sick leave benefits are not payable:  When benefits would normally be payable under the provisions of the Long-Term Disability Plan (whether the employee is participating in the Plan or not).  For the illness/injury of a family member.  For treatments that are primarily elective and/or cosmetic in nature.  If the employee fails to take proper remedial measures.  If the employee fails to provide a satisfactory physician's statement, when requested, or if an employee fails to participate in a Company-initiated evaluation by a physician.  If the absence is due to the misuse of alcohol or controlled substances.  When the absence is for precautionary reasons.  When absences are a result of other employment. Section 3. Sick leave benefits will be payable for participation in a Company-approved substance abuse rehabilitation program with a lifetime maximum of 30 days and not more than two occasions. Section 4. A regular full-time employee must be on the active payroll to be eligible for sick leave benefits at the time her illness begins. Section 5. Employees may be eligible for the following maximums in a calendar year, but may not exceed this maximum in any 15-month period of time: FULL-TIME EMPLOYEES MAXIMUM BENEFIT 6 months or more and less than 10 years 960 hours 10 years or more 1540 hours Section 6. An employee who is on paid sick leave at the end of a calendar year will have unused sick leave benefits carry over into the following calendar year. Subsequently, employees who are fully recovered and return to work full time, with Company approval, for 31 consecutive calendar days, may be eligible for additional sick leave benefits. These additional benefits may not exceed the amount described above, minus any sick leave benefits paid during the calendar year. Section 7. The Company will make an attempt to accommodate an employee's return to work with restrictions although this may not make the employee eligible for additional sick leave benefits. Section 8. Except as provided for in Article XX, Section 10, an employee will be permitted to use paid personal absence when an employee’s medical appointment cannot be scheduled outside of her scheduled work hours. If the needs of the service permit, the employee will be permitted to make up any such work hours missed (up to a maximum of four hours) by extending her shift either before or after her work schedule or working an equivalent number of hours on her off duty days during the same workweek. The employee shall, upon request, provide medical documentation or other proof of illness satisfactory to the Company, during a closed paid personal absence schedule. Whenever possible, medical appointments, other than emergencies or urgent events, will be scheduled at least one week in advance. Section 9. In order to reward the employee with no absences due to a paid or unpaid illness, FMLA absences, unauthorized absences or leaves of absence due to illness during the previous calendar year, the employee shall be granted a bonus occasion of up to an equivalent of two bonus shifts of 90% pay to be utilized on her third or, if earned, subsequent occasions when such employee is not receiving 90% of her pay. Such a bonus occasion of pay may be accumulated for up to a maximum of three consecutive years and for a total of three bonus occasions. ARTICLE XXIV SENIORITY Section 1. Seniority, as used herein, shall mean an employee’s length of service within the bargaining unit occupational group. Seniority shall not accrue to a probationary employee until completion of the probationary period set forth herein, at which time the employee shall possess seniority as defined in this Section. It shall hereafter accrue in the manner provided for in this Article. Section 2. The term "occupational group", as used herein, is defined as meaning all employees who are engaged in definitely similar occupations and who are regularly assigned to the same Virtual Call Center headquarters of the Company. Section 3. All new regular full-time employees and all new regular part-time employees will be considered probationary until they accumulate 180 calendar days of continuous service. The Company shall have the exclusive right to transfer or discharge them at any time during this period of probationary service. Unless otherwise specifically limited in this Agreement, however, probationary employees shall receive all the rights accruing to regular full- and/or part-time employees, depending upon whether the employees are regular full- or part-time employees in this Agreement. Full-time probationary employees shall receive all of the benefits accruing to regular employees only upon accumulating 90 days of continuous service. In addition, full- and part-time employees will be eligible for overtime during their probationary period if they are otherwise qualified to perform the work. Upon completion of such probationary service, each new employee shall be added to the seniority list of the occupational group to which she is then assigned, as of her first day of employment. When two or more employees are hired or transferred on the same day and have equal seniority or bargaining unit continuous service in the occupational group to which they are assigned, the seniority of each for purposes of promotion or release for lack of work shall be determined by the last four digits of the employee’s Social Security number, with the highest number prevailing. Section 4. As long as an employee is assigned to an occupational group covered by this Agreement, her seniority will accrue in that group. (a) If she is transferred to another occupational group, her seniority shall be governed by the following rules: (1) She shall continue to accrue seniority in the occupational group from which she is transferred for a period of six months. If she is transferred as a result of the provisions contained in this Agreement, she will be considered to have been transferred on the last date of the posting. (2) At the end of the six-month period, she shall accrue seniority in her new occupational group effective as of the date of her transfer from her former occupational group. If, however, she had established seniority in her former occupational group at the time of her transfer, her seniority in her new occupational group shall accrue as of three months prior to the date of her transfer. This three months' preferential seniority can only be exercised in this occupational group. (3) She shall retain seniority in a former occupational group until her accrued seniority in her new occupational group, excluding the three months' preferential seniority described in Subsection 2, equals the seniority she had in her former occupational group, or she has been out of a former occupational group for a period of time equal to her seniority in that group, at which time all of her seniority in that former occupational group shall be cancelled. (4) When a new occupational group is established, an employee with seniority in any occupational group who is transferred into the new group within the first six months of the new group's existence will be given seniority (in the new job title assigned) in the new occupational group equivalent to that which she had accrued in the group from which she is transferred. (5) If two or more occupational groups are combined (or integrated) by the Company into one occupational group, each affected employee will be given seniority in the new occupational group equivalent to that which she had acquired in the occupational group to which she was assigned immediately preceding the combination (or integration), plus any seniority she had acquired in any other occupational group being combined (or integrated) into the new occupational group. (b) When an employee is temporarily transferred from the occupational group in which she is regularly employed to another location in the Company’s property, her seniority will continue to accumulate in her regular occupational group while she is temporarily working elsewhere. Section 5. Seniority lists setting forth the seniority status, bargaining unit continuous service, and job classification of all employees in each occupational group covered by this Agreement shall be posted by the Company on an electronic bulletin board with access given to all bargaining unit employees in the Virtual Call Center. Such lists shall remain posted on electronic bulletin boards and be brought up to date at intervals of three months each within the months of January, April, July, and October. Such list will be furnished to the Local Union President as soon as practicable after the date of electronic posting. Section 6. Any employee on leave for 30 days or less shall not suffer any loss of seniority rights, except as otherwise provided in this Agreement. ARTICLE XXV HEALTH AND SAFETY Section 1. The Company and the Union will cooperate in an effort to prevent injuries and illnesses, assure compliance with applicable health and safety rules and promote a safe and healthy environment for all employees. ARTICLE XXVI CONFLICTS Section 1. In the event that any provision of this Agreement shall conflict with any Federal or State law, order, directive, rule, regulation, permit provision or license provision now or hereafter enacted or issued, such provision hereof shall not remain operative or binding upon the parties, but the remaining portion of this Agreement shall remain in force and effect. ARTICLE XXVII PAYCHECKS Section 1. Weekly payroll periods will be closed at midnight each Sunday and paychecks for the straight time earned will, unless otherwise provided, be issued not later than the end of the work period on the first Friday following. In the event an employee is not scheduled to work on Friday, and her paycheck is available, it will be issued to her, on request, no later than the end of the work period on Thursday. Overtime and premium pay will be paid not later than the end of the work period on the second Friday following. ARTICLE XXVIII BENEFITS BY CHOICE Section 1. Effective January 1, 200611, the VCC employees shall be covered by the same health care plan agreed to and available to the Operating, Maintenance & Construction (OM&C) employees. ARTICLE XXIX RETIREMENT PLAN Section 1. The VCC employees shall be covered by the same provisions of the Pension Plan that are applicable to the Operating, Maintenance & Construction (OM&C) employees which was made effective as of September 1, 2005, and shall continue in force and effect to and including August 31, 2015. Section 2. The VCC employees shall continue to participate in the Savings Plan for Employees of Consumers Energy, including the Defined Company Contribution Plan, under the same provisions and conditions as are applicable to the Operating, Maintenance & Construction (OM&C) employees as amended effective September 1, 2010. ARTICLE XXX WAGE SCHEDULE Section 1. The schedule of hourly wage rates attached hereto, marked Exhibit "A", and made a part hereof, are the Starting and Standard Rates for each job coming within the scope of this Agreement. The job titles referred to therein are the same job titles agreed to by the parties during the initial negotiations for this Agreement. The specifications as to the duties involved in, and the qualifications necessary for the performance of each job listed are, by reference, made a part of this Agreement. The Company will fairly and consistently apply Job Descriptions by not assigning employees work which is entirely dissimilar and unrelated to the duties listed in her Job Descriptions or Job Descriptions for lower rated jobs in her occupational group. Section 2. If an employee is promoted to a job listed in Exhibit "A", she shall receive an increase of: (a) fifty cents per hour, or (b) the Starting Rate of the job to which she is promoted, whichever is higher. However, no employee shall be paid more than the Standard Rate of the job to which she is promoted. Section 3. Any bilingual CSR who is utilized for bilingual work will be paid a premium of $2.00 per hour for all hours worked. Section 4. On the first Monday on or after April 1 and October 1 of each year, each employee is eligible for a merit increase, subject to the following rules: Such increase shall be in the amount of twenty-five cents per hour, except that the last increase shall be an amount required to reach the Standard Rate of the job to which she is assigned, but not to exceed twenty-five cents per hour. Any such increase shall be prorated due to any absence(s) from work of 10 or more days in the preceding six month period, except for paid personal absences or approved unpaid personal time offered to employees on a day-to-day basis. (b) No employee shall receive a merit increase unless her work performance during the last six-month interval is meets expectations or higher. (c) If an employee receives a disciplinary layoff, she shall receive a prorated merit increase. (d) A temporary assignment shall not serve to extend the six-month interval referred to herein. (e) Merit increases shall become effective as of the first day of the workweek in which the increase is granted. (f) Newly hired and promoted employees shall receive a prorated merit increase. Section 5. Where, in the judgment of the Company, an employee’s experience and qualifications or other circumstances justify such action, a higher Starting Rate than that specified may be applied, or the merit increases specified in this Agreement, may be accelerated as to that employee; provided, however, that such rate shall not exceed the Standard rate specified for the job to which she is assigned. Section 6. Effective as of August 2, 2010, August 1, 2011, August 6, 2012, August 5, 2013 and August 4, 2014, after notice of ratification as provided in Article XXXII, and conditioned upon the ratification of this Agreement, each employee will receive the percentage increase in accordance with the table below. If the employee is not at the Starting Rate of her classification, she will be paid at the Starting Rate. The Starting and Standard Rates in effect on such dates for each job classification shall likewise be increased. Such increases shall not be made effective for an employee covered by Article XXIII until such time as she returns to work. Any employee whose rate of pay on August 2, 2010, August 1, 2011, August 6, 2012, August 5, 2013 and August 4, 2014, is more than the Standard Rate of the job she then occupies shall, as of the effective dates set forth above, receive an increase of one-half the difference between the new Standard Rate and the old Standard Rate for her job (adjusted to the nearest whole cent) provided, however, that her new rate of pay shall not be less than the new Standard Rate for her job. Grade 8/2/2010 8/1/2011 8/6/2012 8/5/2013 8/4/2014 4 2.75% 2.5% 3.0% 3.0% 3.0% 3 2.75% 2.5% 3.0% 3.0% 3.0% 2 2.75% 2.5% 3.0% 3.0% 3.0% 1 2.75% 2.5% 3.0% 3.0% 3.0% ARTICLE XXXI TEMPORARY ASSIGNMENTS Section 1. When an employee is temporarily assigned to duties at another location, which assignment makes it necessary for her to remain away from home overnight, or to purchase meals, lodging, transportation, etc, such necessary expenses will be paid by the Company, upon the approval of her supervisor. The Company will also, on request, advance the money required to pay such expenses, which must be reimbursed to the Company within 90 days from the date of the advance. Each employee so affected shall also, when possible, be notified of such assignment before being released from work on the previous day. Each employee so assigned temporarily to another location will be allowed travel time to and from her headquarters once each weekend, if she can be spared from work. If a holiday occurs during such an employee's regular workweek and the employee is assigned to work at the temporary location both before and after the holiday during that workweek, the holiday will be considered a weekend for purposes of this Section. In addition, if the Company does not furnish the employee transportation to and from her headquarters on each weekend, the employee shall be paid mileage to and from her headquarters, if she travels in a vehicle furnished by herself. In the event any of the employees referred to in this Section may wish to return to their homes at their own expense instead of remaining away overnight, and the Company approves, the employee will be paid mileage to and from her headquarters instead of remaining away from home overnight if she travels in a vehicle furnished by herself. If it is known by the Company at the time of the assignment that it is to be of five or more consecutive regular daily work periods, qualified volunteers will be assigned such duties by seniority. In the event insufficient volunteers are obtained, the qualified available employees with the least seniority will be so assigned. ARTICLE XXXII EFFECTIVE DATE AND DURATION Section 1. This Agreement shall take effect, except as otherwise provided herein, on August 1, 2010 after receipt by the Company of official written notice from the Union to the effect that it has been duly ratified by the Union membership in accordance with the constitution and by-laws of the Union. This Agreement shall continue in full force and effect until August 1, 2015 and shall continue in effect from year to year thereafter, unless either party hereto shall give the other party at least sixty days' written notice, by registered mail, before the end of the term of this Agreement or before the end of any annual period thereafter, of its desire to terminate the same or to change or amend any of its provisions. IN WITNESS WHEREOF, the parties hereto have, by their officers duly authorized in the premises, executed this Memorandum of Agreement on the first day of July, 2010. CONSUMERS ENERGY COMPANY Date July 1, 2010 By /s/ T.P. McCloskey Timothy P. McCloskey Its Director of Labor Relations Date July 1, 2010 By /s/ Lekia D. Blake Lekia D. Blake Its Senior Labor Relations Representative Date July 1, 2010 By /s/ Aaron A. Warriner Aaron A. Warriner Its Labor Relations Representative Date July 1, 2010 By /s/ T.F. O’Masta Thomas F. O’Masta, Its Executive Director, Customer Operations Date July 1, 2010 By /s/ W. Noble Billingsley W. Noble Billingsley Its Field Director III Date July 1, 2010 By /s/ Peter A. Edghill Peter A. Edghill Its Director of Customer Service Date July 1, 2010 By /s/ Linda M. Foley Linda M. Foley Its Director of Resource Planning & Technology Date July 1, 2010 By /s/ Karen D. Malenfant Karen D. Malenfant Its Call Center Director IN WITNESS WHEREOF, the parties hereto have, by their officers duly authorized in the premises, executed this Memorandum of Agreement on the first day of July, 2010. CONSUMERS ENERGY COMPANY Date July 1, 2010 By /s/ T.P. McCloskey Timothy P. McCloskey Its Director of Labor Relations Date July 1, 2010 By /s/ Lekia D. Blake Lekia D. Blake Its Senior Labor Relations Representative Date July 1, 2010 By /s/ Aaron A. Warriner Aaron A. Warriner Its Labor Relations Representative Date July 1, 2010 By /s/ T.F. O’Masta Thomas F. O’Masta, Its Executive Director, Customer Operations Date July 1, 2010 By /s/ W. Noble Billingsley W. Noble Billingsley Its Field Director III Date July 1, 2010 By /s/ Peter A. Edghill Peter A. Edghill Its Director of Customer Service Date July 1, 2010 By /s/ Linda M. Foley Linda M. Foley Its Director of Resource Planning & Technology Date July 1, 2010 By /s/ Karen D. Malenfant Karen D. Malenfant Its Call Center Director OCCUPATIONAL GROUP JOB TITLES VIRTUAL CALL CENTER 4 Senior Customer Service Representative (009003) 3 Customer Service Representative III (009002) 2 Customer Service Representative II (009001) 1 Customer Service Representative I (009000) EXHIBIT INDEX OF APPENDICES Number Page 1. Operating Efficiency 49 2. Issues of Mutual Interest 50 3. Drug Rehabilitation 52 4. Work at-Home Agents (WAHAs) 54 5. Family and Medical Leave Act (FMLA) 57 6. Paid Personal Absence Scheduling 61 7. Attendance Improvement Incentive Program 63 8. Work Schedules – College Students 65 9. Work Schedule Selection Process 66 10. Medical Information Requests 67 11. Objective Performance Standards Discipline Process (New) 68 12. Information to be Provided to the Union (New) 70 13. Training Advisory Group (New) 71 14. VCC Employee Acting in Local Union Capacity (New) 72 15. Saturday Schedules (New) 73 16. Assigning Local Union President to Day Shift (New) 74 April 1, 2003 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 During the 2002-2003 negotiations, the parties discussed their mutual interest in maintaining and improving the Call Center’s operating efficiency. During the term of this Agreement it may be desirable to experiment with the Company's method of operations to improve its operating efficiency. The parties recognize that such experimental changes may entail temporary modifications of the provisions of the Agreement. No change in the provisions of the Agreement may be implemented by the Company, however, without prior written agreement of the Director of Labor Relations and the Michigan State Utility Workers Executive Board. Gregory A. Sando, Director of Labor Relations July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC negotiations the Company and the Union discussed forging a partnership of mutual interest that will provide the platform for addressing issues of mutual concern during the term of the Agreement. This effort will continue as the parties seek to expand the areas of common ground in the increasingly dynamic business environment in which the business of supplying the energy needs of the people of Michigan must operate in the years ahead. Innovative solutions to issues of mutual concern to the parties without diminishing the traditional role of the Union as representative of U.W.U.A. members or the Company’s management responsibilities will be needed to maintain and enhance the Company’s competitive position and the Union’s involvement in the new marketplace. It is within this framework that on a jointly agreed upon schedule:  The Company will hold briefings and seek input from the members of the Executive Board of the Union on current and anticipated near and long term issues that may impact the partnership efforts of the parties. Corresponding meetings will be held between a representative of local management and the local union president or her designated representative.  Members of management will meet with the Executive Board of the Union to solicit and consider the Company and Union insights concerning the more significant issues related to workforce planning, scheduling, staffing levels, job security, training, revenue opportunities and more efficient use of the workforce to better align the parties’ efforts to reach mutually acceptable goals.  The Director of Labor Relations and the President of the Michigan State Utility Workers Council may meet to discuss the above items and other matters and to reach mutually acceptable solutions to these and other issues. Alternatively, Joint Committees may be formed by the Director of Labor Relations and the President of the Michigan State Utility Workers Council to explore these and other matters in greater detail, to analyze them and to make joint recommendations for further consideration by the Company and the Union. The parties agree to meet as soon as practicable after the ratification of the VCC Working Agreement to pursue these objectives. Sincerely, Timothy P. McCloskey, Director of Labor Relations APPENDIX 3 April 1, 2003 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 Dear Mr. VanSlooten: The Company and the Union have discussed the need for drug rehabilitation and aftercare for employees who test positive on a random drug screen pursuant to the Company's Research and Special Programs Administration (RSPA) Policy. In response to such a need and in an effort to encourage employees to remain drug-free after their first positive drug screen, the parties have agreed to amend the penalty (Effect of Violations) provisions of the FFD Policy as follows: 1. On the first occasion that an employee fails to pass a test for controlled substance and/or alcohol as shown by random testing, the employee will be given an opportunity to agree to participate in an approved evaluation/treatment activity through the Employee Assistance Service. If the employee does not successfully complete the treatment activity or does not agree to participate in an approved evaluation/treatment activity, the employee shall be discharged from employment and neither the Union nor the employee shall file a grievance or a demand for arbitration or contest the discharge action in any manner. 2. If the employee fails to pass a test for controlled substances and/or alcohol as shown by random and/or post rehabilitation testing within one year from the date the employee was returned to work after her first positive random test in 1 above, the employee shall be discharged from employment and neither the Union nor the employee shall file a grievance or a demand for arbitration or contest the discharge action in any manner. 3. If the employee fails to pass a test for controlled substances and/or alcohol as shown by random and/or post rehabilitation APPENDIX 3 testing after the one year period in 2 above, the employee shall be given a disciplinary layoff of not less than 30 and not more than 90 days. The employee will be given an opportunity to agree to participate in an approved evaluation/treatment activity through the Employee Assistance Service. The employee must remain in the aftercare treatment for a minimum of two years, if necessary. Neither the Union nor the employee shall file a grievance or a demand for arbitration or contest the disciplinary action in any manner. If the employee does not successfully complete the treatment activity or does not agree to participate in an approved evaluation/treatment activity, the employee shall be discharged from employment and neither the Union nor the employee shall file a grievance or a demand for arbitration or contest the discharge action in any manner. 4. If the employee fails to pass a test for controlled substances and/or alcohol as shown by random and/or post rehabilitation testing within the two year period discussed in 3 above, or thereafter, the employee shall be discharged. Neither the Union nor the employee shall file a grievance or a demand for arbitration or contest the discharge action in any other manner. All other provisions of the Company's RSPA FFD Policy shall remain in full force and effect and shall not be affected by this agreement. The foregoing supersedes anything to the contrary in AAA Case No. 54 30 1377 93. Gregory A. Sando Steven VanSlooten, President Director of Labor Relations Michigan State Utility Workers Council, AFL-CIO Date: __________________ Date: ____________________ APPENDIX 4 April 1, 2003 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 Dear Mr. VanSlooten: The parties have discussed alternative work schedules for work-at-home agents (WAHA) during the 2002-2003 VCC negotiations and have agreed to the following provisions for establishing such alternative work schedules.  Participation will be voluntary and will be made available to those regular full-time employees who qualify for the program, by seniority.  WAHAs work schedules will be based on the needs of service and may include, but are not limited to, split shifts, off hours and/or weekends.  Employees who volunteer and agree to work at home must do so for a period of at least 1 year from a home located within the same Local Access Transport Area (LATA) as the VCC. Any such home must be acceptable to management.  The Company must be able to install and connect the necessary equipment at reasonable cost prior to permitting the employee to work as a WAHA. In addition, the telecommunication costs and fees must be acceptable to the Company prior to permitting the employee to work as a WAHA.  WAHAs are subject to the same work standards as other employees and will be included in the quality and coaching process and will be required to follow appropriate call-handling guidelines as detailed by VCC training, coaching and the Customer Service Help System.  WAHAs will provide an acceptable place, location and office furniture for the placement of the necessary Company equipment. Such equipment is for Company use only and cannot be changed or modified in any way. If the employee moves to a different home acceptable to management after her 1 year commitment, she has the option of returning to the VCC or agree to sign a new one (1) year commitment as outlined herein.  If the employee chooses to move to a different home acceptable to management within the first year, she may either continue to work as a WAHA by incurring the APPENDIX 4 cost of equipment installation in the new home or return to the VCC and reimburse the Company for all prior equipment installation expenses on a 12-month prorated basis or fulfill her 12 month on-call obligation provided for herein after she returns to the VCC.  The employee shall reimburse the Company for the full cost of the equipment installation if she requests to return to the Call Center during her one-year commitment within 90 days of her return to the Call Center. Such an employee will not be eligible to volunteer as a WAHA for an 18-month period.  The VCC management reserves the right to approve the work area based on established criteria and may visit the work area on a monthly or other basis. A courtesy call of at least one hour before the visit will be provided.  WAHAs may be required to report to the Call Center for work, training, meetings, during periods of equipment failure, when selected for random drug testing, power outages at her home during her scheduled work hours and at other times requested by the VCC management. WAHAs will report at their own expense if they are informed to do so prior to the end of the previous workday or 16 hours in advance.  WAHAs will communicate with VCC management via e-mail, telephone, in person or any other means acceptable to the VCC management.  The Company may terminate an employee’s WAHA status with no less than 30 calendar days’ notice. Such an employee will not be eligible to volunteer as a WAHA for an 18-month period.  WAHAs may be required to work outside of their work schedule when other employees are unable to report to work due to inclement weather or if other emergencies require immediate customer response that cannot be met promptly by the regular overtime provisions of the parties’ collective bargaining agreement.  WAHAs are permitted regular work breaks and are eligible for time-off as other employees.  WAHAs will be required to work up to 12 weeks on-call each calendar year without on-call pay. WAHAs may be assigned on-call one week per month. WAHA-Cyber employees will be required to work on-call without pay for one week per each 10-week period. Such monthly on-call assignment will be offered to all WAHAs, Cyber-WAHAs by bargaining unit continuous service. If the WAHA or Cyber-WAHA is temporarily reassigned to the VCC for a month or more, the regular on-call provisions will apply.  Damage or loss to Company equipment where the WAHAs negligence is a contributing cause shall be the responsibility of the employee.  WAHAs are responsible for all tax consequences, and compliance with zoning restrictions and subdivision indentures.  Except as modified herein, WAHAs shall be subject to all policies and procedures that are applicable to other Call Center employees.  After 1 year, a WAHA may request to return to the VCC with 14 calendar days’ notice to the designated VCC management representative. APPENDIX 4  The WAHAs at-home work place will be considered an extension of the Company’s work space during the WAHAs working hours and the Company will be liable for job-related accidents that occur in the WAHAs at-home work place during the WAHAs working hours. The Company assumes no liability for injuries occurring in the WAHAs at-home work space outside of her work hours. Except as set forth above, the Company assumes no liability for injuries occurring in the rest of her home at any time or in her at-home work place outside of her work hours.  The WAHA agrees to designate a specific at-home work space, maintain safe conditions in the work space and to practice the same safety habits in the designated at-home work place as she would in her VCC designated work place.  In the case of injury while working at home, the employee will immediately report the injury in the same manner as a work-related injury at a Company facility to get instructions for obtaining medical treatment.  The employee agrees not to provide primary care for any person or animal during the at-home work hours. If such individuals will be in the home during the employee’s at-home work hours, some other individual must be present to provide primary care for those individuals.  The employee agrees to immediately report malfunctioning equipment to the Service Assurance Center. Malfunctioning headsets and phones used to receive customer calls must be reported to the Team Leader.  The employee agrees to be held accountable for providing reasonable security measures for all Company assets, data and proprietary information. The employee understands that Company software may not be duplicated and must be protected through the use of virus detection software where applicable. In addition, the employee agrees to restrict the use of Company equipment to Company business only.  The employee agrees to ensure that Company-provided equipment is fully covered by household or renters insurance and agrees to report to their Team Leader any lapse in insurance coverage.  The On-Call week will be 8:00 AM Monday to 8:00 AM on the following Monday.  Employees who volunteer to work at home will be required to review these provisions and acknowledge such understanding on a form acceptable to the Company and the Union.  The Director of Labor Relations and the Executive Board of the Michigan State Utility Workers may mutually amend this Agreement at any time to meet the needs of the service. Sincerely, Gregory A. Sando Director of Labor Relations APPENDIX 5 April 1, 2003 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 Dear Mr. VanSlooten: During the 2002-2003 Call Center negotiations, the parties discussed the Company’s obligation to comply with federal Family and Medical Leave Act (FMLA). Accordingly, the parties have reached the following understanding regarding leave under the FMLA.  FMLA allows an eligible employee to take up to 12 workweeks of unpaid, job- and health care-protected leave in a 12-month period for birth, adoption or foster care placement, care for a family member (as defined by the FMLA) with a serious health condition or for the employee's own serious health condition.  In some circumstances, such leave may be granted on an intermittent or reduced leave basis.  Requests for leave must be submitted as far in advance as reasonably possible with a minimum of 30 days advance notice when the absence is foreseeable.  Documentation will be required.  While the law only requires an employer to provide unpaid leave in such cases, the employee may simultaneously use Company paid or unpaid leaves, if otherwise eligible, and either the Company or the employee may designate qualifying absences as FMLA. Therefore, the employee may use her paid personal absence, sick leave, or unpaid leaves of absence, if eligible. APPENDIX 5  The Company will automatically designate the following qualifying absences as applying to an employee's FMLA entitlement, if any: Sick Leave of 2 weeks or more Absence for Substance Abuse Treatment Absences covered by the Michigan Workers' Disability Compensation Act Unpaid Leave for Illness/Injury and/or Family Care Leave Policy (Attachment 1)  In addition, local management may designate other qualifying absences as FMLA, in compliance with the FMLA, and the employee will be notified when such designation occurs. APPENDIX 5 ATTACHMENT 1 PREGNANCY POLICY An employee who becomes pregnant may continue to work except for any period she is disabled because of illness or injury during her pregnancy or recovery following childbirth. An employee, if otherwise eligible, is entitled to benefits under the Sick Leave Program during such period of disability. An employee, except a probationary employee, who desires time off before and/or after the period of disability, may take an unpaid "Leave of Absence - Family Care Leave.” LEAVE OF ABSENCE - FAMILY CARE Leave taken under the Family Care Leave Policy will be simultaneously applied against the employee's Family and Medical Leave Act (FMLA) entitlement, if any. When this occurs, FMLA provisions may supersede those of this section. An employee, except a probationary employee, may be granted unpaid leave of absence for up to 12 weeks in any 12-month period for the following reasons: • The birth of the employee's child. • Placement of a child with the employee for adoption or foster care. (Foster care placement is defined as that placement made by a state agency.) • To care for an employee's child, spouse or parent with a serious health condition requiring the presence of the employee. (Child over 18 must be unable to provide self-care due to mental or physical disability.) Employees shall make requests for such absences as far in advance as possible. In no event will employees be allowed such absence without first making arrangements with their supervisor. Time off without pay for this purpose may not be granted if paid personal time is available. Documentation, satisfactory to the Company, substantiating the need for the leave of absence shall be required. Family Care Leave for the birth, adoption or foster care may commence up to 12 weeks prior to the expected date of delivery or placement and must conclude within 12 months of such birth or placement. The current practices in effect for benefit continuation during leaves of absence will apply for Family Care Leave. All Family Care Leaves must be requested by completing a "Request For Leave of Absence" form available in the Human Resources Department. The employee will be permitted, based on a physical examination or physician's release satisfactory to the Company to return to her former job or a comparable job the employee is qualified to perform. All employee benefits are reinstated effective as of the first day the employee returns to work. Sincerely, Gregory A. Sando Director of Labor Relations APPENDIX 6 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the parties discussed their mutual concerns concerning the scheduling of vacations in the VCC pursuant to the provisions of Article XX, Section 7. The parties desire to make the selection process fair and consistent and have agreed that paid Personal Absence shall be granted in the following order of preference: 1. Employees who requested specific dates by the second Monday in December of each year will be granted their requests, needs of the service permitting, by order of Bargaining Unit Continuous Service, by job classification, within a given Occupational Group. In the event the employees have identical Bargaining Unit Continuous Service, the employee whose last four digits of the social security number are higher shall be deemed to have the greater Bargaining Unit Continuous Service. 2. Employees who made specific request for Paid Personal Absence by the second Monday in December of the preceding year, but were not granted their request based on needs of service, will have their original requests granted, by order of Bargaining Unit Continuous Service, by job classification, within a given Occupational Group, if circumstances permit additional absences on the date(s) in question. If, after the initial selection of days, there are remaining days allotted to a specific headquarters, such days will be made available VCC-wide for that time period and for the job classification identified. To the extent practicable, the employee will be notified of the granted PPA by December 31. If, subsequent to this process, any dates continue to be available or an employee cancels or is otherwise not able to utilize the scheduled Paid Personal Absence, the available Paid Personal Absence dates will revert to the original Occupational Group for use on a “first come-first served” basis. APPENDIX 6 3. As outlined in Article XX, Section 7 of the VCC Working Agreement, in order to exercise bargaining unit continuous service preference, “the written paid personal absence request must be submitted to her supervisor by the second Monday in December of the preceding year. Any written request submitted after January 1 of the current year will be granted on a “first come – first served basis”. In order to implement this Section fairly and consistently, the parties agree that requests for PPA submitted after the second Monday in December through midnight on December 31 of the preceding year will not be considered. Only requests submitted on or before the second Monday in December 15 and on or after January 1 will be considered. 4. Employees who made or make specific requests for Paid Personal Absence on or after January 1 of each year will have their requests granted on a “first come – first served” basis, by job classification, within a given Occupational Group, needs of the service permitting. To the extent practicable, an employee granted a pending request for Paid Personal Absence for the following day will be notified on or about 3 p.m. 5. When there is a shift change pursuant to Article XII, Section 7 other than as a part of the process of assigning newly hired or newly promoted employees to a shift, employees in the affected job classifications and/or Occupational Group will have one week after schedules have been approved and posted to request changed dates or additional dates for Paid Personal Absence for the balance of the calendar year. Needs of service permitting, such requests will be granted by order of Bargaining Unit Continuous Service, by job classification within a given Occupational Group. Notwithstanding the above, the order of Bargaining Unit Continuous Service will not apply to displace another employee from approved Paid Personal Absence if an employee was previously approved for either i) Paid Personal Absence based on order of Bargaining Unit Continuous Service at the time of the December approval or ii) a Paid Personal Absence of an entire week schedule or a minimum of five consecutive scheduled days. __________________________ __________________________ Timothy P. McCloskey Patrick M. Dillon, President Director of Labor Relations Michigan State Utility Workers Council APPENDIX 7 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the parties discussed their mutual interest in improving the attendance record of the VCC. The parties have discussed incentives for employees to encourage good attendance and have agreed to the following Attendance Improvement Bonus Incentive Program (Program) for all regular full- and part-time employees: 1. Starting January 1, 2011, and on January 1 of each succeeding year, the Company has established a perfect attendance bonus incentive program for each VCC employee utilizing all absence codes (including FMLA), except: Death In Family (DIF), Jury Duty (JUR), Work Accident (WAS), Paid Military Benefit (PMB), Unpaid Union Business (UUB), Grievance (GRI) and Paid Union Business (BUS). 2. The attendance bonus incentive payments effective January 1, 2011 for employees working the full calendar year are as follows: a. If the employee has perfect attendance for the calendar year, the bonus incentive payment shall be $240.00; b. If the employee has not more than 1 occasion lasting for no more than 3 work days during the calendar year, the bonus incentive payment shall be $120.00. Such payments may be subject to federal, state and local taxes and withholdings, if any. An employee completing her probationary period in the calendar year who subsequently has perfect attendance for the balance of the calendar year will be paid a pro-rata bonus incentive payment for the number of full months worked in the year following her probationary period. APPENDIX 7 3. Bonus incentive payments will be made no later than March 15 of the following year. 4. All regular full- and part-time employees are eligible for the attendance bonus incentive payment. Such employees must be employed in the VCC as CSRs at the time the attendance bonus incentive payment is made in order to receive the attendance bonus incentive payment. ___________________________ ______________________________ Timothy P. McCloskey Patrick M. Dillon, President Director of Labor Relations Michigan State Utility Workers Council APPENDIX 8 July 7, 2005 Mr. Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Street Lansing, MI 48933 Dear Mr. VanSlooten: We have discussed schedule changes for Call Center employees who are also college students and whose regularly assigned work schedules conflict with their college class schedules, causing difficulties for such employees and the Company. Both parties recognize the need to assist such employees so that they can continue their education and maintain their jobs with the Company. We have, therefore, agreed to the following arrangement to assist such employees: 1. When an employee, who is enrolled in an approved college degree program, has a conflict with her regularly assigned work schedule as a result of her term's class schedule, the Company may, on a needs of service basis, change her schedule to accommodate the employee attending classes for that term. No shift change premium will be paid to the employee. The employee will be required to submit a copy of the term schedule, including starting and ending dates along with her request for schedule change. 2. At the end of the term, her schedule will revert back to her former regularly assigned work schedule, as long as the prior schedule is available. No shift change premium will be paid to the employee. 3. Such changes in schedule as referenced heretofore shall not be subject to the provisions of Section 7 of the Work Schedules article of the VCC Working Agreement. _________________________ ______________________________ Gregory A. Sando Steven VanSlooten, President Director of Labor Relations Michigan State Utility Workers Council APPENDIX 9 July 7, 2005 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. VanSlooten: During the 2005 VCC Working Agreement negotiations, the parties discussed their mutual interest in assigning newly promoted or hired employees to shifts. The parties have agreed to the following method: 1. Newly hired employees or employees promoted in accordance with Article XVI, Section 1 of the VCC Working Agreement may be assigned shifts as determined by the Company for up to 6 months from the day of hire and/or day of promotion without regard to Article XII, Section 7 of the VCC Working Agreement. 2. The Company then agrees to either post the shifts in accordance with Article XII, Section 7 of the Working Agreement, so that employees may volunteer to change to those shifts by seniority, or management will utilize the “Work Schedule Selection Process” dated August 1, 2005 in the affected classifications in the affected headquarters within 6 months of the date of hire or promotion. 3. Once a newly hired or promoted employee is placed on a shift in accordance with Article XII, Section 7 or the “Work Schedule Selection Process”, they will no longer have their schedule subject to the provisions of #2 above. 4. The Company further agrees to limit the use of the “Work Schedule Selection Process” to no more than two times in a calendar year within each classification in each headquarters in order to place newly hired or promoted employees. It is understood that the existing process of posting other openings or rebidding shifts for other reasons will not be affected by this agreement. __________________________ ___________________________ Gregory A. Sando Steven VanSlooten, President Director of Work Force Relations Michigan State Utility Workers Council APPENDIX 10 July 7, 2005 Steven VanSlooten, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. VanSlooten: During the 2005 VCC Working Agreement negotiations, the parties discussed their mutual interest in encouraging good attendance by the CSRs. This letter is to reiterate the Company’s position that it does not intend to treat the occasional absence of employees with good attendance records as though they have poor attendance records as it relates to requesting proof of illness for the absence. However, it is understood by the parties that the Company may require satisfactory proof of illness in cases of poor attendance, extended absence, FMLA, medical appointments during closed schedules or other absences that may raise issues of reliability or suspected abuse of sick leave. The Company does intend to put employees with bad sick leave records to the test of proofs in connection with their absences, and does not wish to make absences a matter of convenience for those employees. ______________________________ ________________________________ Gregory A. Sando Steven VanSlooten, President Director of Work Force Relations Michigan State Utility Workers Council APPENDIX 11 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2005 VCC Working Agreement negotiations, the parties discussed and agreed to a three-month aggregate review of the Objective Performance Standards (OPS). During the 2010 VCC Working Agreement negotiations, the parties again reviewed their mutual interest in this issue and have agreed to the following process, consistent with Article VI of the Working Agreement, in an effort to assist the success of those non-probationary CSRs who fail to meet their OPS: 1. If, as a result of a calculation of the employee’s OPS for the three month aggregate look back period, the employee is below the minimum OPS standards, the employee will be coached concerning meeting such goals; 2. If the employee is below the minimum OPS standards after the step set forth above, VCC management and her Local Union President or her designee will counsel the employee concerning meeting such goals; 3. If the employee is below the minimum OPS standards after the step set forth above, the employee will be issued a supervisor desk note and placed on at least a one-month Performance Improvement Plan (PIP) developed with input from the Local Union President or her designee and the employee; 4. If the employee is below the minimum OPS standards after the step set forth above, the employee will be issued a documented oral warning. 5. If the employee is below the minimum OPS standards after the step set forth above, the employee will be issued a letter of discipline; 6. If the employee is below the minimum OPS standards after the step set forth above, the employee will be issued a short term disciplinary layoff. On a one-time basis, if an employee has reached step 5 or 6 as discussed above (letter of discipline or short term disciplinary layoff) and subsequently satisfies the minimum OPS standards for 9 or more consecutive months, then on the next occurrence of unsatisfactory OPS performance, the employee will repeat the prior step (either letter of discipline or short-term disciplinary layoff) rather than proceed to the next step at that time. Subsequent failure to meet the minimum APPENDIX 11 OPS standards for a three-month aggregate period, whether or not it is more than 9 consecutive months will progress to the next step. 7. If the employee is below the minimum OPS standards after the step set forth above, the employee will be issued a long-term disciplinary layoff; 8. If the employee is below the minimum OPS standards after the step set forth above, the employee will be discharged. Timothy P. McCloskey, Director of Labor Relations APPENDIX 12 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the parties discussed their mutual interest in providing certain information to the Union. To that end, the Company agrees to provide to each local president or his or her designee attendance reports on a monthly basis and performance reports under the Objective Performance Standards on a mid-month and end of the month basis. Timothy P. McCloskey Director of Labor Relations APPENDIX 13 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the parties discussed their mutual interest in improving on-going training for VCC employees. To that end, the parties have agreed to develop a training advisory group, as follows:  The group will consist of management representatives and one VCC employee from each of the five VCC Headquarters. The Union will select the five representatives and make every effort to provide representation from each classification.  As an advisory group, they will discuss training needs/issues in the VCC and report their recommendations to management and the Executive Board, including but not limited to the following topics: -gas emergency training -SAP refresher training -sales refresher training  The group will have its first meeting by the end of September 2010, and thereafter meet on a quarterly basis or more often if necessary as determined by the group.  The advisory group will develop agendas before each meeting and publish the issues discussed at each meeting. Timothy P. McCloskey Director of Labor Relations APPENDIX 14 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement mutual gains negotiations, the parties discussed paying VCC employees who are also Local Union presidents and thus have responsibilities in administering the OM&C Working Agreement in addition to the VCC Working Agreement. The Company and Union agree that such employees should suffer no loss of straight time pay when they represent OM&C employees. Therefore, a Local Union President who is also an employee of the VCC shall suffer no loss of straight-time pay in the event such Local Union President also represents employees under the OM&C Working Agreement for attendance at grievance meetings, including informal meetings, and for up to one hour for investigation of grievances. Timothy P. McCloskey Director of Labor Relations APPENDIX 15 July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the parties discussed their mutual interest in providing different shift opportunities for CSR employees. The Company has agreed that it will reallocate Saturday schedules at all VCC work locations and it will ensure that the work schedules with the earliest start time at each location will be only Monday through Friday shifts where practicable with earlier start times (as well as earlier start times for some rotating Saturdays) and will offer such shifts in accordance with Article XII, Section 7. (Attached is an example of such a schedule.) The Company will also train Saturday employees, as needed. Timothy P. McCloskey Director of Labor Relations (Note: See example referred to above in Attachment # 24B of the 2010 VCC Memorandum of Agreement) <div style="text-align: center;">. APPENDIX 16 </div><div style="text-align: center;">July 1, 2010 Patrick M. Dillon, President Michigan State Utility Workers Council, AFL-CIO 110 West Lenawee Lansing, MI 48933 Dear Mr. Dillon: During the 2010 VCC Working Agreement negotiations, the Union requested that an employee elected to the office of Local Union President be placed on the "day" shift for the term of her office. The Company agrees that, upon written request, a Local Union President who is assigned to other than a "day" shift, will, if practicable, be reassigned to the "day" shift. No change of schedule premium will be paid to such Local Union President as a result of the application of the provisions of this letter. Timothy P. McCloskey Director of Labor Relations EEO STATEMENT The Company and the Union subscribe to the objectives of Title VII of the Federal Civil Rights Act of 1964, as amended, Executive Order 11246, as amended, the Vietnam-Era Veterans Readjustment Assistance Act of 1974, as amended, the Age Discrimination in Employment Act of 1967, as amended, the Rehabilitation Act of 1973, as amended, the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994, the 1991 Federal Civil Rights Act, the Americans with Disabilities Act of 1990, as amended, the Elliott-Larsen Civil Rights Act of 1976, as amended, the Michigan Persons with Disabilities Civil Rights Act of 1976, as amended and the Family Medical Leave Act (FMLA) of 1993, as amended. : </div>