Tim Nelson said:
[SIZE=10pt] ATTACHMENT C[/SIZE]
[SIZE=10pt]Mr. Richard Delaney[/SIZE]
[SIZE=10pt]President and Directing General Chairman[/SIZE]
[SIZE=10pt]IAMAW District Lodge 141[/SIZE]
[SIZE=10pt]1771 Commerce Drive[/SIZE]
[SIZE=10pt]Elk Grove Village, IL 60007[/SIZE]
[SIZE=10pt]Dear Mr. Delaney:[/SIZE]
[SIZE=10pt]This letter will confirm our agreement regarding the application of excise tax or other penalty included in The Patient Protection and Affordable Care Act (PPACA) or any excise tax or penalty which may replace the PPACA.[/SIZE]
[SIZE=10pt]In the event the Company determines that any of the PPO 100, 90 or 80 percent plan design options provided for in this Agreement (each a “Plan”) would be or become subject to an excise tax or other penalty under applicable law (and thus become an “Affected Plan”), the Company will meet and confer in good faith in order to reach an agreement with the Union concerning the minimum modification or modifications to the affected Plan necessary to avoid application of the excise tax or other penalty. The Company shall provide to the Union information that the Union reasonably requests, including actuarial reports, necessary for the Union’s design and consideration of such modifications. Unless otherwise agreed, any agreed modification shall become effective at the time the excise tax or penalty would become applicable in respect of the Affected Plan (the “Affected Plan Date”).[/SIZE]
[SIZE=10pt]If the Company and the Union are unable to agree on modifications necessary to avoid the application of the excise tax or other penalty on the Affected Plan within ninety (90) days after the initial meeting, an arbitrator shall immediately be selected in accordance with the Collective Bargaining Agreement to determine the modifications to the design of the Affected Plan that will become applicable. The authority of the arbitrator is expressly limited to establishing those modifications to the design of the Affected Plan that will ensure that no excise tax or other penalty will apply. If the arbitrator determines that no reasonably practical modification to the Affected Plan can guarantee that no excise tax or other penalty will apply, the Company shall have the right to terminate the availability of the Affected Plan to the Fleet Service employees. If, under the preceding sentence, the Company has terminated or would have the right to terminate the availability to the Fleet Service employees of all three Plans, the arbitrator will be empowered to designate an alternative plan design (a “New Plan”) that is available from the Company provider and that replicates the provisions of the 80 percent plan to the greatest possible extent without causing the New Plan to become subject to any excise tax or other penalty. In the event that the penalty or excise tax is otherwise owed for any reason, notwithstanding any contrary provision of the law, the Company shall be permitted to implement such modifications to the design of the Affected Plan as it considers to be necessary to avoid the excise tax or penalty. The Company shall have a reasonable period of time following the issuance of the arbitrator’s determination to implement the New Plan. Notwithstanding the foregoing, the provisions of this Letter of Agreement shall not be effective if, after the effective date of this Agreement, the Company enters into any new or amended collective bargaining agreement having a term of three (3) years or more with any union group that does not contain a provision substantial similar to this Letter of Agreement.[/SIZE]
[SIZE=10pt]In the event a plan is modified pursuant to this Letter of Agreement (LOA), employees will be afforded the opportunity through an open enrollment period to elect a different plan, prior to the implementation of any modified plan. [/SIZE]
[SIZE=10pt]Sincerely,[/SIZE]
[SIZE=10pt]E. Allen Hemenway[/SIZE]
[SIZE=10pt]Vice President[/SIZE]
[SIZE=10pt]Labor Relations[/SIZE]
[SIZE=10pt]Agree and concur:[/SIZE]
[SIZE=10pt]Mr. Richard Delaney[/SIZE]
[SIZE=10pt]President and Directing General Chairman[/SIZE]
[SIZE=10pt]IAMAW District Lodge 141[/SIZE]
Notice: The action verbs. The union is absolutely eliminated after it selects an arbitrator and the case becomes a 'two party' case with the arbitrator and "Company".
Noun Verb Process
1. Company
determines
2. Union offers suggestions over 90 days
3. Company refuses or accepts union suggestions but is not obligated to agree.
4. Arbitrator
is selected.
5. If Arbitrator
establishes modifications to health care plans to ensure against taxes then stop here. If not, then go to next step.
6. Arbitrator
determines no modifications can guarantee that the excise tax won't apply
7. Company has
right to terminate
8. Arbitrator
empowered to devise alternative "New Plan"
9. Company
shall be permitted to implement "New Plan"
10. Company
shall have a reasonable time.
The following is true
1. The Company does NOT have to agree with suggestions by the union.
2. After they select an arbitrator, the Union is not mentioned ever again, nor is there any action on the part of the union afterwards.
3. The Arbitrator is strictly there to determine the whacking to ensure the company is protected from cost.
4. The Arbitrator has to guarantee TO THE COMPANY that it will not be affected by the taxes.
5. If the Arbitrator can't guarantee, then the Company has the RIGHT to terminate the plan.
6. If the company can terminate the plan, the the Arbitrator is EMPOWERED to devise a new plan
7. And the company is PERMITTED to implement.
Nowhere does the arbitrator consider the union, and this isn't a case where the arbitrator is there to rule in the union favor or company favor. The arbitrator is simply there to protect the company from these cost and to guarantee any cost cutting will keep the Company from the tax burden. Again, the union has no rights to this process after the process is triggered and the arbitrator is selected to make guarantee to the company regarding the excise taxes.
