Labor Agreement - Clerical and Technical Employees

Labor Agreement between the City of Ferndale and Local 998 Ferndale Clerical and Technical Employees - July 1, 2004 - June 30, 2007

Effective July 1, 2004 - Expires June 30, 2007

FERNDALE CHAPTER OF LOCAL 998

SOUTH OAKLAND COUNTY MUNICIPAL EMPLOYEES

AGREEMENT

This Agreement is between the City of Ferndale and the Ferndale Chapter of Local 998 South Oakland County Municipal Employees, its successors, and/or assigns now affiliated with Michigan Council #25 and chartered by the American Federation of State, County and Municipal Employees Union (AFL-CIO).

PREAMBLE

Both parties to this agreement desire to continue working harmoniously and to promote and maintain high standards between the City and the Employees, for the purpose of serving the best interests of the citizens of Ferndale.

ARTICLE I - RECOGNITION

Section 1. - Pursuant to and in accordance with all applicable provisions of Act 379 of the Public Acts of 1965, as amended, the employer recognizes the Union as the exclusive representative for the purpose of collective bargaining with respect to rates of pay, hours of employment, and other conditions of employment, as defined by the terms of this Agreement for those employees included in the bargaining unit.

Section 2. - The bargaining unit shall consist of all employees holding positions in classifications designated in the Salary Schedule referred to in Article XVI, excluding police and fire department sworn personnel, all supervisory personnel, and all other personnel not set forth in this Article or Article XVI, and all directors and managers.

Section 3. - In the event a new classification is created which is appropriate to this bargaining unit, or an existing one is reclassified, the City will negotiate with the Union to establish the annual salary.

Section 4. - Bargaining unit positions shall not be reclassified or retitled for the purpose of transferring same to another bargaining unit or to exempt status without prior negotiation.

Section 5. - The City recognizes and will not interfere with, restrain, or coerce employees in their right to self-organization, to form, join or assist labor organizations, or to bargain collectively through representatives of their own choosing, or to engage in concerted activities for the purpose of collective bargaining. The Employer will not permit any other group or Union to solicit membership or collect dues on the Employer's time. 

Section 6. - The Employer recognizes the established rights as explained by Act 379 and this contract, responsibilities, and values of the Union and has no objection to its Employees becoming members of the Union, responsible in conjunction with the Employer for making and keeping this contract.

ARTICLE II - REPRESENTATION

Section 1.  Committee

The employees shall be represented by a committee of three officers, one of whom shall be the chairperson, elected in any manner determined by the employees.  This committee shall be selected from a group of nominees on the seniority list.

Promptly following the effective date of this Agreement, the Union and the City shall provide to each other a written list of names and titles of their respective representatives and the capacity in which they will function in regard to the grievance procedure, negotiations or other labor relations functions and will provide prompt notice of any changes.

Section 2.  No Discrimination

There shall be no discrimination against any employee because of membership in the Union, or because of acting as an officer or in any other capacity on behalf of the Union.

The parties recognize that the Employer and the Union are legally and morally obligated to guarantee to all citizens a fair and equal opportunity for employment and to these ends agree that no person shall be denied employment or membership in the Union, nor in any way be discriminated against because of sex, age, race, color, creed, national origin, political or religious beliefs, handicapped condition or marital status as provided by State and Federal laws as amended, except where based on a bona fide occupational qualification.

Section 3. Time Off for Union Business - Authorized committee persons shall be paid for time lost during working hours in attending grievance and negotiation meetings with City representatives.  A member of the committee will be permitted to leave the job, upon request, and after receiving approval by the supervisor, for the purpose of investigating a grievance in the committee person's assigned area.  Such committee person shall report to the supervisor upon completion of the investigation, and if the committee person goes into the department of another supervisor, the committee person must first notify such supervisor.  This right to receive pay for time lost shall not be abused.  The City will furnish cards for the maintenance of records of the time spent hereunder.

ARTICLE III - UNION SECURITY

Section l. - During the life of the Agreement, and to the extent the laws of the State of Michigan permit, the City of Ferndale agrees to deduct Union membership dues levied in accordance with the constitution and by-laws of the Union from the pay of each employee who executes or has executed the "Authorization for Payroll Deduction" form.

Section 2. - Deductions under all properly executed "Authorization for Payroll Deduction" forms shall become effective at the time the application is signed by the employee and shall be deducted from the first pay of the month and each month thereafter.

Section 3. - All sums deducted from an employee's pay, as provided for in this Article, shall be forwarded by the City to the Treasurer of Local 998.

Section 4. - Employees who have been employed for a period of thirty (30) days and are covered by this Agreement, as defined in the Article entitled "Recognition," and who do not apply for membership to the Union shall sign an "Authorization for Payroll Deduction" form and pay to the Union an amount equal to the regular monthly Union dues as a monthly service charge to the Union. 

Section 5. - It shall be a condition of employment after thirty (30) days of service that all employees covered by this Agreement shall make application for payroll deduction.  Any employee who fails to comply with the above provisions shall, at the request of the Union to the Employer, be discharged from the service of the Employer ten (l0) days after such employee receives notification from the Employer of such employee's violation of this Article.

Section 6. - The Union shall indemnify the City against any and all claims, demands, suits or other forms of liability which may arise out of or by reason of action taken or not taken by the City for the purposes of complying with the provisions of this Article.

ARTICLE IV - UNION DUES AND INITIATION FEES

Section l.  Application for Membership - Employees who are members of Local 998, American Federation of State, County and Municipal Employees Union (AFL CIO) shall tender the initiation fee and monthly membership dues by signing the Application for Membership and Authorization for Payroll Deduction Forms. Any forms which are incomplete or in error will be returned promptly to the Union by the Employer.

Section 2. - Deductions for each calendar month shall be remitted to the Union with a listing of employees for whom said deductions were made, within fifteen (l5) days after date of deduction.

Section 3.   P.E.O.P.L.E. Deduction - The Employer agrees to deduct from the wage of any employee who is a member of the Union P.E.O.P.L.E. deduction as provided for in a written authorization. Such authorization must be executed by the Employee, and may be revoked by the Employee at any time by giving written notice to both the Employer and the Union.

The Employer agrees to remit any deductions made pursuant to this provision promptly to the Union together with an itemized statement showing the name of each employee from whose pay such deductions have been made and the amount deducted during the period covered by the remittance.

ARTICLE V - JOINT RESPONSIBILITIES

Section 1.  No Strike, No Lockout

Under no circumstances will the Union cause or authorize or permit its members to cause, nor will any member of the bargaining unit take part in any strike, sit-down, stay-in, or slowdown, on any property of the City or any curtailment of work or restriction of production or interference with the operations of the City.  In the event of a work stoppage or other curtailment of production, the City shall not be required to negotiate on the merits of the dispute which gave rise to the stoppage or curtailment until same is ceased.

In the event of a work stoppage, or other curtailment, the Union shall immediately instruct the involved employees, in writing, that their conduct is in violation of the contract, that they shall be disciplined up to and including discharge and shall instruct all such persons to immediately cease the offending conduct.

The City shall have the right to discipline, up to and including discharge, any employee who instigates, participates in or gives leadership to any activity herein prohibited.

The City will not lock out any employee during the term of this Agreement.

Section 2.  No Coercion - Neither the City nor the Union shall interfere with, restrain, or coerce employees either to join or refrain from joining the Union.

Section 3. - The parties acknowledge that during the negotiations which resulted in this Agreement, each had the unlimited right and opportunity to make demands and offer proposals on subjects for collective bargaining, which they did, and that the understandings and agreements arrived at by the parties after the exercise of that right and opportunity are set forth in this Agreement.  Both parties, for the duration of this Agreement, specifically waive the right to negotiate or be required to negotiate any proposals, questions introduced, debated and settled prior to execution of this Agreement or any other subject for collective bargaining.  Any agreement supplemental hereto will not be binding upon either party unless executed in writing by the parties hereto.

ARTICLE VI - SENIORITY

Section 1. - Seniority shall accrue to permanent, full-time employees and shall be based upon total continuous service with the City.  Approved leaves of absence without pay and layoffs shall not be cause for loss of seniority.  Provided, however, such laid off employees or employees on leave without pay, excepting those employees on leave for medical or educational reasons, shall not accrue seniority during the actual period of layoff or leave.

Section 2. - Each employee, upon completion of probation, which shall be a period of one (l) year, for an original appointment for salaried employees, shall be placed on the seniority list as provided in Section 5 of this Article. Once an employee has been confirmed, seniority shall accrue from the employee's first day of employment with the City.

Section 3. Casual, Project, and Part-time Employees

Casual, Project, and Part-time employees are defined as follows:

A Casual employee is an employee who:

Works irregularly.

Normally works a schedule of not over twenty (20) hours per week.

Works less than two hundred forty (240) hours in any fiscal year.

A Project employee is an employee who is hired in connection with a specific project, work on which will not extend beyond its completion, or one hundred twenty (l20) calendar days whichever is less.

Casual and project employees shall not acquire seniority or be members of the bargaining unit. Extension of casual and project employee time limitations may be granted by mutual written consent of the parties. The granting of such request shall not be unreasonably withheld by the Union.

A Part-time employee is an employee who:

Works regularly.

Normally works a schedule of not over twenty (20) hours per week.

Part-time employees shall acquire seniority on a pro-rata basis determined by the hours worked calculated against a standard 2080 hour work year.

Part-time employees shall receive only the following benefits earned on a pro-rata basis:

Vacation calculated against a standard 2080 hour work year based on hours worked after each has a minimum one year service.

Holiday Pay.

Future part-time employees will be required to pass the Civil Service Test for the classifications enumerated in the Wage Schedules.

The Employer shall not split any full-time position into two (2) or more part-time positions. Prior to an employee's first day of work, Management would notify the Union, identifying said employee and would generally describe said employee's duties.

Section 4. - Seniority shall terminate if an employee:

Quits or retires. Provided, however, that with respect to an employee who quits, this provision shall not apply to whatever rights such employee has heretofore enjoyed in connection with the pension plan upon re-employment.

Is discharged for a just cause.

Is absent from active employment for a period equal to his/her seniority at the beginning of the absence or for three (3) years, whichever is less, with the exception of Article XIV, Section 6.

Separates upon a settlement covering total disability.

Is absent from work for five (5) working days without notifying the City.

Accepts any kind of employment for pay while on authorized leave of absence (except as provided in Article XIV, Section 6 and Section 11).

Does not report for work immediately at the termination of an authorized leave of absence, unless advising City prior to the completion of the leave and receives written approval from the City.

Is on layoff and fails to report for work within five (5) working days after having been recalled.

Section 5. - A seniority list shall be kept current and maintained by the Employer.  A copy shall be furnished to the Union on a regular, yearly basis.

Section 6.

An employee who moves to a position outside the bargaining unit but who continues to be a full-time employee shall have seniority frozen in the bargaining unit.

When an employee is laid off who has frozen seniority in Local 998, said employee may exercise said frozen seniority when a job becomes vacant in the Local 998 bargaining unit that said employee can perform.

Section 7. - Employees hired under government-sponsored programs for training, youth assistance or welfare shall not acquire seniority while in such government-sponsored positions, unless mutually agreed between the parties of this Agreement.

Section 8. - Notwithstanding seniority, in the event of a layoff, the Chapter Chairperson and Chief Steward shall continue to work for a minimum six (6) months as long as there is a job said Chapter Chairperson and Chief Steward can perform.  Recall shall be in accordance with the Layoffs and Recalls Article.

ARTICLE VII - LAYOFFS AND RECALLS

Section l.  Layoffs

Definitions

Layoff is the separation of an employee from the classified service of the City due to a reduction in force for lack of work, lack of funds, or reasons beyond the control of the City.

Displacement shall be defined as the re-assignment, transfer, or demotion of an employee as the result of the elimination of a position, discontinuance of an operation, or the bumping of an employee by a more senior employee affected by one of the aforementioned, caused by lack of work, lack of funds, or reasons beyond the control of the City.

Actions Prior to Layoff

The Union shall be afforded an opportunity to meet with the City to discuss the circumstances requiring the layoff(s) and to propose alternatives for City consideration that might curtail layoffs.

The names and order of employees scheduled for layoff shall be given to the Union Committee.

Determination of Layoff - The employer shall determine the position(s) to be eliminated.

Order of Layoff

All casual, project, and part-time employees, except for specialized recreation staff such as instructors, locker room stewards, officials, etc., or special project employees, shall be laid off first.

All probationary employees within the bargaining unit shall be laid off next.

If additional layoffs are necessary, employee(s) may exercise seniority rights, provided the employee(s) has the ability to perform work available.  The procedure for layoff or displacement shall be as follows:

First, to a vacant position of the same classification or comparable classification (of equal pay or lower).  If not available...

By displacing the least senior employee in the same classification or comparable classification (of equal pay or lower).  If not resolved there...

By demotion to the next lower classification for which the employee is qualified, in which event the least senior employee in that classification shall be laid off or displaced.

A meeting shall be held with Management, the supervisor of the department into which the employee may be placed, Union representatives, and any other individuals Management feels are necessary to render a decision.  If Management decides an employee is unable to perform such work, that employee shall be given the appropriate Civil Service test and, if passed, assignment to that position shall be made subject to a sixty (60) calendar day trial period to determine ability to perform the duties and functions of the position.

Where two (2) or more employees have the same seniority date, the order of layoff as to those employees shall be determined by entrance examination scores, with the lowest score being laid off first.

Layoff Notices - The City Manager shall issue layoff notices.  Five copies of each layoff notice shall be prepared and distributed as follows: to the Employee, the Personnel Technician, the Bargaining unit, the Departmental File, and the Civil Service Board. Employees to be laid off shall be given as much notice as possible but in no event shall layoff notices be issued less than ten (l0) working days prior to the layoff date.

Voluntary Layoff - An employee may elect to take a layoff instead of exercising seniority rights.  Such election shall not prejudice eligibility for unemployment compensation.

In the event the position of a former member of Local 998 is lost by layoff because of lack of work, lack of funds, or reasons beyond the control of the City, said employee who was a full-time salaried employee in Local 998 on JULY 1, 1985 may elect to exercise bargaining unit seniority in order to return to a position within Local 998.

If an employee is exercising frozen seniority and wishes to return to the bargaining unit, said employee will enter under the provisions set forth in Article VI, Section 6 (a) and 6 (b).

In the event of a permanent reduction of the level of employment for any reason, employees who lack seniority or qualifications to continue working within Local 998 will be given every consideration for other available City jobs that said employee(s) are capable of performing.

Layoff of Employees in Non-Working Categories

Employees on Paid Sick Leave: These employees shall be laid off the same as other employees and their sick pay shall terminate on the effective date of their layoff.

Employees on Workers' Compensation: These employees shall be laid off the same as other employees.  They will be continued on the Workers' Compensation payroll, but their sick leave supplement, if any, shall terminate. The layoff notices for employees who are on Workers' Compensation shall be noted to this effect, and a copy shall be transmitted to the Finance Department.

Employees on Leave of Absence: Employees on leave of absence, for whatever reasons - illness, education, personal or military - shall be notified that their names have been reached for layoff.

Employees shall notify the City of their proper post office address or change of address, and they shall be given a receipt from the City that such notice has been given.  The City shall be entitled to rely upon the address shown upon its records for all purposes.

Section 2. Recalls

A recall shall be defined as the process by which a laid off or displaced employee is returned to work in the employee's former position, classification or a comparable one of equal or lower pay. Should an employee be recalled to a comparable position of equal or lower pay, that employee shall have continuing recall rights to his former classification.  Recalls shall take precedence over the filling of positions under Article VIII, Promotions.

Recalls shall be by order of seniority, provided the employee is able to perform the work required.

Employees on the seniority list when recalled to work shall be given five (5) working days advance notice in which to report for work. Failure of an employee to report back to work within five (5) working days of the date of receipt of the recall notice will be considered a voluntary quit on the part of the employee unless the employee requests, in writing, an extension of the recall period. All requests for an extension of the recall period must be received by the Ferndale City Manager's office no later than the 5th working day after the employee is notified of the recall. The City will respond to the request for an extension of the recall period within three (3) working days of its receipt. If an extension is granted, the employee must report to work on the date indicated on the City's response to the employee's request for an extension. If the request for an extension is denied, the employee must report to work within five (5) days of the date the employee receives the City's response to the employee's request for an extension or the employee will be considered as having voluntarily quit. The letter of notification of recall and the letter requesting extension of the recall period attached hereto as Exhibits 2 and 3 shall be used to fulfill the requirements of this provision.

In instances in which an employee cannot return to work within the required time limit, the next employee in point of service may be called and may be permitted to work until the senior employee returns.

On recall from layoff, should an employee be substituted for by an employee with lesser seniority, contrary to the seniority provisions of this Agreement, the employee adversely affected shall receive compensation as herein provided, or as may be mutually agreed. The compensation to such employee shall be equal to the employee's rate of pay, times the hours lost during such substitution, provided time lost shall not start sooner than after notification to the City that such substitution exists.

When an employee is called back to work, the Committee shall be given the employee's name, classification, and starting date.

Section 3. Miscellaneous

All layoff and recall notices and notices of disciplinary and discharge action taken and the reasons therefore shall be in writing.

ARTICLE VIII - PROMOTION

Section l. - A promotion shall be defined as an upward change in a position in the bargaining unit that results in additional compensation for additional duties or responsibilities performed during the regular work day.

Section 2. - The City shall fill promotional vacancies and new positions from the ranks of employees within the bargaining unit, except where the employee's skills do not meet the job requirements as set forth below.

Section 3. - A promotion will be awarded to one of three employees receiving the three highest promotional examination grades, provided each has achieved a minimum passing grade of sixty-five percent (65%).

Section 4. - The promoted employee shall be given a trial period of no more than six (6) months in order for the City to determine ability to perform the duties and functions of the position.  In the event the employee cannot perform the duties and functions of the position within the trial period, he/she shall be returned to his/her former classification.

Section 5. - Upon written request, the City will submit written notice to the employee and the Union as to why an employee who passed the promotional exam was not awarded the position.

Section 6. - In the promotional examinations for bargaining unit employees, a figure of forty percent (40%) shall be allowed for the written exam, forty percent (40%) for the oral (or skill, or aptitude or performance) exam and twenty percent (20%) for experience and training (seniority).

Section 7. - The standards and percentages set forth in Section 6 above shall be applied irrespective of whether or not the exam is promotional, open competitive, or by public advertisement.

Section 8. - In the event that only a written exam is required, the weight shall be eighty percent (80%) for the written portion and twenty percent (20%) for experience and training.

Section 9. - Points for seniority shall be computed as follows:

One-half (1/2) point per year, commencing with the third year of continuous service through the tenth year.

One (1) point shall be awarded for each of the next sixteen (l6) years of continuous service, up to and including twenty-six (26) years of continuous service, with a maximum of twenty (20) points for seniority credited.

No additional points will be granted beyond the twenty-six (26) years of continuous service.

If an oral, skill or performance exam is to be required along with the written exam, the job description and posted announcement for said job must contain that information.  Otherwise it is assumed that only a written exam will be given.

Applicants shall pass the written exam (and oral, skill, aptitude or performance, when applicable) with a total average of sixty-five percent (65%) before being credited with points for experience and training (seniority).

Section l0. - A promotional vacancy or position within the bargaining unit that becomes open will be posted by Management.  Any employee interested in taking an exam for the job will submit a written notice to the Employer within the time specified in the notice, provided the employee will have at least five (5) working days notice of said examination.

Section 11.  Lateral Moves - If a position is vacant, employees within the classification shall have the initial opportunity to apply, based on seniority.  Employees receiving a lateral move will be required to hold such jobs for a period of six (6) months before making application to a new position. Once an employee elects to make the lateral move, management may post, or advertise the position being vacated in accordance with the contract.

Section l2.  Working Out of Classification

Should a permanent employee, when assigned by management, perform the work of a higher classification within the bargaining unit for a minimum eight (8) hour day, the City shall pay such employee the rate applicable to the higher classification which is immediately higher than the employee's regular rate.  Any employee shall not be required to temporarily fill a non-bargaining unit position.

Should employees perform work in a lower classification, their rate shall continue at their regular classification rate of pay.

Supervisory personnel shall not routinely spend a majority of their work day engaged in work activities consistently performed by their subordinates.

ARTICLE IX - DISCIPLINE & DISCHARGE PROCEDURE

Section l.  Definition and Types of Discipline

The City retains the right to discipline or discharge employees for just cause.

Disciplinary action shall be defined as any action taken by the City against any employee for just cause, including but not limited to violation of Civil Service Rules.

Disciplinary action shall be deemed to be corrective in nature and the principle of "progressive" discipline shall be employed by the City in all infractions.  Nothing in this section shall prevent the Employer from taking appropriate disciplinary action without regard to progressive discipline when the offense is deemed to be serious in nature. Disciplinary action shall be initiated only on a uniform and impartial basis and shall be consistent with the facts and circumstances surrounding the infraction.

Disciplinary action may consist of the following:

Oral reprimand.

Written reprimand.

Suspension without pay.

More severe discipline which may mean discharge.

The term "disciplinary action" shall further be defined as any action which would result in a loss of wages, fringe benefits, temporary demotion or change in classification.  "Temporary," in this Article, shall not exceed six (6) months.

Section 2. Corrective Counseling

In the interest of fair and expeditious corrective action, an employee who has allegedly committed a violation of a minor nature relating to performance may be interviewed by Management and given corrective counseling.  Corrective counseling, even where noted, shall not be considered as disciplinary action.

Section 3.  Disciplinary Procedures

Disciplinary action shall be in written form stating the alleged violation against an employee.  Whenever disciplinary action is taken against an employee which may result in suspension, temporary demotion, or dismissal, the employee shall be given a signed copy of the written statement of the charges and specifications, and advising the employee of the right to be represented by a Union official at any conference, interview, or hearing at every stage of the disciplinary process.

If the Employer has reason to reprimand an employee, it shall be done in a manner that will not embarrass the employee before other employees or the public.

The written charges and specifications underlying the discipline or discharge shall cite the specific sections of rules and regulations, departmental orders, appropriate law or ordinance, or provisions of this Agreement which the employee is alleged to have violated and a copy will be given to the employee and the Union.

Before any disciplinary action is taken against an employee, the employee shall be given an opportunity to make a statement in defense and offer any supporting evidence immediately available to the supervisor who is rendering such discipline.

An employee, upon receipt of a written reprimand, is required to acknowledge notice of said reprimand by initials and date.  The initials of an employee on a written reprimand shall not be construed as agreement with the charges, but only that the employee has knowledge that such a reprimand is in existence.  An employee receiving a written reprimand has the right to have a reply added to the personnel file (Act 397 of l978) not to exceed five (5) sheets of 8 1/2-inch by 11-inch paper.

Personnel files shall be made available by the City for the employee to review upon written request.

Following any disciplinary suspension, the affected employee shall be reinstated to the same job or assignment held by the employee prior to such suspension, unless a change of assignment was included as part of the disciplinary action.  Should a discharged employee be reinstated, the employee shall be assigned to the same job or assignment held prior to such discharge, if available.  If such position is not available, the affected employee, if deemed qualified by the City, may "bump" into any position being held by a lesser seniority employee, or in the alternative, the matter may be resolved by an agreement between the parties as to the placement of the returned employee.

The Union shall have the right to take up the suspension and/or discharge as a grievance at the third step of the grievance procedure, and the matter shall be handled in accordance with this procedure through the applicable arbitration provision.

After eighteen (18) months of satisfactory service, oral and written reprimands that did not result in suspension appearing in an employee's personnel file shall be removed, unless the employee has received other reprimands with the 18-month time period.

Section 4.  Discharge of Probationary Employees (New Hires)

It is understood and agreed that no provisions of this Agreement shall infringe upon, or affect in any way, the rights of the City to terminate the employment of any probationary employee for any cause deemed sufficient by the City.  In the event of discharge, the City will give due consideration to any representation advanced by the probationary employee in any step of the grievance procedure.  However, the City's decision after such consideration shall be final.

The work and conduct of probationary employees shall be subject to close scrutiny and evaluation, and if found to be below the standards satisfactory to the City, the probationary employee may be discharged at any time during the probationary period.

Section 5.  Reports

The City may conduct investigations of alleged incidents involving employees and may request that employees submit written statements.  Failure of an employee to submit a statement when requested may result in disciplinary action.

ARTICLE X - GENERAL PROVISIONS

Section l. - There will be a bulletin board placed in a conspicuous place for the use of the Union.

Section 2. - Before the Employer puts new rules in effect, they will be discussed with local Union officers.  It is understood, however, that if said new rules are in conflict with the terms of this Agreement, nothing in this Section is to prevent the Union from resorting to the grievance procedure as set forth in this Agreement.

Section 3. - All employees will receive a fifteen (l5) minute coffee break during the morning and afternoon hours.

Section 4. Copy Costs

The cost of the printing and distribution of this Agreement shall be paid by the City.  Any other City-authorized printing or postage pertaining to Union business shall be invoiced to Local 998.

Union officers may use the copy machine for chapter/city related business, including notification of Union meetings, with the understanding all costs will be borne by Local 998, and providing such use does not interfere with City business.

Section 5. - This Agreement shall supersede all prior agreements and incorporate all provisions negotiated and agreed upon.

Section 6. - If, by mutual agreement, the City and the Union negotiate and agree upon supplemental items, any such supplemental agreements shall be attached to and made part of this Agreement.

Section 7. - Any employee who either does, or may, as a part of employment, operate a City-owned motor vehicle must provide proof of a valid Michigan Operator's license to the employee's supervisor.  Any change in such status must be reported immediately to the employee's supervisor. Failure to report a status change may result in discipline.

Section 8 - Special Conferences

Special conferences will be arranged between the chapter chairperson and the employer upon the request of either party. Requests for special conferences shall be made within 24 hours of occurrence, and the conference shall be held within ten (10) work days after the request is made. An agenda of the matters to be taken up at the meeting, together with the names of the conferees representing the requesting party, shall be presented at the time the conference is requested. Matters taken up in special conference shall be confined to those included in the agenda. Such conference shall, to the extent possible, be held during working hours.

Members of the Union shall not lose time or pay for the time spent in such special conferences and no additional compensation will be paid to such employees for time spent in such conferences beyond regular work hours. A representative of Council #25 may attend the special conferences. Matters of a grievable nature, if not resolved in conference, shall be moved to the appropriate step of the grievance procedure, such step being agreed to in writing by the conferees.

Section 9. - The parties agree as follows: No unit employees will be laid off as a result of the utilization of volunteers by the City to perform activities at the library. However, the City is not required to fill any positions which become vacant through attrition from resignation, retirement or for other reasons. Any such positions will remain in the bargaining unit if and when they are filled.

Section 10. - The City shall pay all costs involved for State-required certification or re-certification of the Building Inspector, with such costs to be approved by the Department Head.

Section 11. Tuition Reimbursement

The City will reimburse an employee for college tuition costs for courses pre-approved by the employee's department head. The reimbursement will be limited to $1,000 per fiscal year for tuition and required text books. The employee may apply for reimbursement by submitting a paid receipt and a copy of the grade report indicating an achieved grade of "C" or better.

ARTICLE XI - MANAGEMENT RESPONSIBILITY

It is not the purpose of this agreement to infringe upon or impair the normal rights of the City to make and place in effect its decisions concerning the operation of the City of Ferndale.

The City, on its own behalf and on behalf of its electors, hereby retains and reserves unto itself, without limitation, all powers, rights, authority, duties and responsibilities conferred upon and vested in it by the laws and the Constitution of the State of Michigan and the United States, and the Charter of the City.  Further, all rights which ordinarily vest in and are exercised by employers, except as are specifically relinquished in this contract, are reserved to and remain vested in the City, including, by way of illustration and not by way of limitation, the following rights:

To manage its affairs efficiently and economically, including the determination of quantity and quality of services to be rendered, the control of materials, tools and equipment to be used, and the discontinuance of any service, materials or method of operation.

To introduce new equipment, machinery or processes, change or eliminate existing equipment and institute technological changes, decide on materials, supplies, equipment and tools to be purchased.

To construct new facilities or to improve existing facilities.

To determine the size of the work force.

To hire, assign and lay off employees.

To permit employees not included in the bargaining unit to perform bargaining unit work when it is necessary for the orderly continuation of municipal services when a bargaining unit member is not available.  This shall not be on a permanent basis nor result in the erosion of bargaining unit work.

To adopt, revise and enforce reasonable working rules and regulations and to carry out cost and general improvement programs.

To determine the qualifications and competence of employees to perform required work.

To discipline, suspend or discharge for just cause and to maintain discipline and efficiency of employees.

To establish a general policy to provide for training programs designed to improve employee performance, proficiency and career advancement.

To hold open or eliminate a position created by a vacancy and not fill vacancies of authorized positions once they have become vacant because of reassignment, retirement, promotion or separation.

To determine the amount of supervision necessary on all jobs, assignments or operations.

To designate and delegate the Civil Service Board as an agency of the City, and the rules and policies set forth in the Civil Service Rules, as approved by the Ferndale City Commission, 3/26/45, Index #61, shall be continued with the exception of those rules which are expressly covered as provisions in this Agreement.

ARTICLE XII - CONTRACTING OUT WORK

Section 1. - The parties recognize the responsibility of the City to provide services to its citizens in the most economical fashion, and also recognize that in appropriate cases, outside contractors may be employed to perform such services.

Section 2. - In cases where the City deems it necessary to subcontract work out, the Union will have adequate advance notice and full discussion with Management to determine the feasibility of retaining the work within the bargaining unit prior to letting such a contract.

Section 3. - In no event shall any seniority employee be laid off as a direct result of subcontracting until the City has complied with the stipulation in Section 2.

ARTICLE XIII - GRIEVANCE PROCEDURE

Section 1. - Should a difference arise between the City and the Union as to the meaning or application of the Agreement, it shall be settled in accordance with the Grievance Procedure set forth below:

The Union may, upon mutual consent, submit a grievance to the level of Management that has the authority to adjust said grievance.

Step l. Any employee having a grievance shall first take up the matter with the employee's immediate supervisor.  If not settled, it shall be discussed with the Committee person and shall be reduced to writing and signed by the grievant.  Copies of grievances of an economic nature will be filed at the same time with the City Manager’s office. Any grievance not submitted within five (5) working days (excluding Saturdays, Sundays and holidays) of its occurrence shall be considered automatically closed.

Step 2. The written grievance shall be discussed between the Committeeperson and the designated supervisor.  The applicable supervisor shall give a written decision within five (5) working days (excluding Saturdays, Sundays, and holidays) of receipt of the written grievance.

Step 3. In the event the grievance is not settled in Step 2, it may be appealed to the City Manager within five (5) working days (excluding Saturdays, Sundays and holidays).  The City Manager or official designee shall investigate the grievance (which may include the holding of a meeting or hearing) and issue an answer in writing within fifteen (l5) working days (excluding Saturdays, Sundays and holidays).

Step 4.  Arbitration - Any unresolved grievance which relates to the interpretation, application or enforcement of any specific Article and Section of this Agreement, or any written, supplementary agreement, and which has been fully processed through the last step of the grievance procedure, may be submitted to arbitration in strict accordance with the following:

Arbitration shall be invoked by written notice to the other party of intention to arbitrate within fifteen (l5) working days from receipt of the Step 3 answer.  The City shall grant an extension of time limits except as noted below.

The Employer may require that a grievance which is processed to AFSCME Council 25 be processed to Arbitration by sending a Certified Letter to the Arbitration Department in Lansing. Upon receipt of the Notice, the Union has ten (10) business days to process the grievance to arbitration. This letter from the Employer shall not be sent earlier than forty-five (45) days from the Third Step Answer. This will not prohibit the parties from mutually agreeing to any extension or holding a matter in abeyance in writing.

AFSCME Council 25 Arbitration Department may send a list of Ad-Hoc arbitrators to the City to see if the parties can mutually accept an Arbitrator.

If the parties are unable to agree, the case will be filed with the American Arbitration Association. In either case, the parties will be bound by the rules and procedures of the American Arbitration Association.

If not timely submitted, the grievance shall be considered dropped consistent with Section 4 of this Grievance Procedure.

The arbitrator shall limit the decision strictly to the interpretation, application and enforcement of this Agreement and shall be without power and authority to make any decision:

Contrary to, or inconsistent with, or modifying, varying, adding to or subtracting from in any way, the terms of this Agreement.

Concerning the discipline or discharge of employees for engaging in a strike, slowdown or stoppage of work who exercise their right under Section 6 of Act 336, as amended by Act 379 of the Public Acts of 1965.

Granting any wage increases or decreases.

Establishing, deleting, or altering job description and position classifications.

Granting any right or relief for any period of time whatsoever prior to the execution date of the Agreement.

The arbitrator shall be without authority to require the City to delegate, alienate or relinquish any powers, duties, responsibilities, obligations or discretion which by law the City cannot delegate, alienate or relinquish.

No settlement at any stage of the grievance procedure, except an arbitration decision, shall be a precedent in any arbitration and shall not be admissible in evidence in any future arbitration proceeding.

The decision of the arbitrator in a case shall not require a retroactive wage adjustment in another case except by express agreement of the parties.

There shall be no appeal from the arbitrator's decision, if made in accordance with the jurisdiction and authority under this Agreement.  The arbitrator's decision shall be final and binding on the City, on the employee or employees, and on the Union.  The arbitrator shall submit the decision in writing within thirty (30) days after conclusion of hearings.

The expense of the arbitrator shall be shared equally by the parties.  The aggrieved and the aggrieved's local representative shall not lose pay for time off the job while attending the arbitration proceedings.

Section 2. - No claim for back wages shall exceed the amount of wages the employee would otherwise have earned at the individual's rate, less any compensation received from any source of employment or unemployment compensation received during the period in question.

Section 3. - Should either the Union or the City experience difficulty in complying with the time limits as prescribed in this Article, a reasonable extension of time may be requested by the party requiring such additional time.  The granting of such request shall not be unreasonably withheld by the other party.

Section 4. - Any grievance not appealed from a decision in one of the steps of the above procedure to the next step as prescribed shall be considered dropped.  The City shall be authorized by this procedure to file grievance against the Union.

Section 5. - An agreement reached between Management and the Committee is binding on all workers affected and cannot be changed by an individual.

ARTICLE XIV - LEAVES

Section 1.  Vacation

All permanent, full-time employees hired before March 8, 1995 who have been continuously employed for a period of one (l) full year or more prior to such vacation period will be entitled to a maximum of 25 vacation days per the following schedule:

 All permanent, full-time employees hired after March 8, 1995 who have been continuously employed for a period of one (1) full year or more prior to such vacation period will be entitled to vacation with pay according to the following schedule:

 For the purpose of determining vacation for permanent, full-time employees, the time interval of one year shall commence from the first day the employee is placed on probationary status as an employee.

Employees of the bargaining unit will be allowed vacation selection by seniority within each department.

Vacations will, as far as possible, be granted at times most desired by employees, but the final right to the allotment of vacation periods is exclusively reserved to the Employer.  The number of employees allowed vacation at one time shall be restricted only insofar as it does not affect the orderly operation of the City.

Deduction of Vacation in the Case of Hospitalization - An employee who is hospitalized for an illness or an accident occurring during the time of a regularly scheduled annual vacation leave shall not have the time deducted from annual vacation leave for the hours that normally would have been spent working.  The time will be deducted, however, from the employee's accumulated sick leave bank and the vacation will be rescheduled. An employee may elect and so notify the City's Management to deduct annual vacation time as sick leave.

Section 2.  Personal Days

For the purpose of determining personal days, the time interval shall be upon completion of thirty (30) calendar days.

Full-time employees shall be entitled to three (3) personal days per year. Said personal days are not accumulative and must be taken in the year they are granted or will be forfeited.  Employees taking personal days must notify their supervisor at least 24 hours in advance.  If employees fail to provide 24-hour notification, the supervisor may or may not approve the personal day.

Permanent, full-time employees may utilize a personal day in conjunction with a paid holiday or vacation day.

Personal days may be taken in units of two (2) hours or more.

Section 3. Paid Holidays

No employee shall be eligible to be paid for holidays not worked until the employee has been in the employ of the City for thirty (30) calendar days.

The employer agrees to pay permanent employees for the following holidays not worked:

1. New Year's Day 7. Labor Day

2. Martin Luther King, Jr. Day 8. Thanksgiving Day

3. President's Day 9. Day following Thanksgiving Day

4. Good Friday 10. Christmas Eve

5. Memorial Day (or day celebrated as) 11. Christmas Day

6. Independence Day 12. New Year's Eve

For the above days employees will be paid eight (8) hours pay at their regular hourly rate.

If any of the above holidays fall on a Saturday, the preceding Friday shall be celebrated as the holiday; if on Sunday, the following Monday will be celebrated as the holiday, and the employee will be paid for such day(s).

Section 4.  Sick Leave

Paid sick leave benefits for members of the bargaining unit shall commence upon completion of one (1) full calendar month from the date of the employee's first day of work. There shall be no pro-ration for part of a month.

Accumulation and Use - On July 1 of each year, each full-time permanent employee will be credited with nine (9), eight (8) hour sick leave days per fiscal year, which may be used by the employee between July 1 and June 30 of the following year, allowing a maximum accumulation of sixty (60) sick leave days. Credit for sick leave will be pro-rated in the first and last fiscal year an employee works for the City.

Control Program - Beginning on July 1, 1995, a sick leave control program will be initiated whereby full-time, permanent employees shall be entitled to receive payment for a proportionate amount of unused sick time accrual, subject to the following provisions:

To qualify for this benefit, employees will be required to have thirty (30) days (two-hundred forty [240] hours) in their sick leave bank on June 30th of each fiscal year. Each employee may accumulate up to a maximum of sixty (60) days (four hundred eighty (480) hours) in their sick leave bank under this program.

Employees who qualify under "C.1." above shall be paid $120.00 for each complete day of unused sick leave credited to the employee during the preceding fiscal year, up to a maximum payment under this program of five (5) days ($600.00) in any single year. An employee may take off up to 16 hours of sick leave per fiscal year without reducing the maximum payment available under this program. After an employee takes off sixteen (16) hours of sick leave in a fiscal year, the amount an employee will be paid under this program will be reduced from $600.00 by $120.00 for each day or fraction of a day the employee takes off in sick leave. Use of any fraction of a sick leave day will be deemed as use of a full sick leave day for purposes of computing payment for unused sick leave available under this program. Sick leave hours which are unused or uncompensated for under this program will be credited to the employee's sick leave bank until said bank contains four hundred and eighty (480) hours. Payments under this program will be made in November of each year, calculated based on the employee's use of sick leave during the preceding fiscal year.

Payment for sick time shall be pro-rated in the case of an employee’s separation from work due to retirement, lay-off, or death in service.

Use of sick leave days is for the purpose of employee illness and is to be used with discretion.

Sick leave may be used for an illness in the employee's immediate family which requires the presence of the employee. 

Misuse of sick leave may be cause for disciplinary action.

Employees will be allowed to use sick leave in increments of one (l) hour.

Employees reporting illness must advise their supervisor within fifteen (15) minutes of the starting time of their service day.

Sick Leave Extension Policy - Upon recommendation of the Appointing Authority, the City Council may approve the extension of sick leave for an employee beyond the employee's credited sick leave time in accord with the following schedule:

It is anticipated that the Appointing Authority will evaluate the request for sick leave extension prior to bringing it before the City Council and make recommendations both as to approval of the extension and the length of the extension, based upon past performance of the employee. In the event of such leave extensions granted by City Council, all other time off provisions will not accrue during such leave time.

Section 5.  Sick Policy and Procedure

Whenever an employee is absent for a period in excess of three (3) consecutive working days, said employee may be required to provide medical certification as to fitness to return to work.  Such certification shall be at the employee's expense and from a doctor of the employee's choosing.  The City may employ a physician of the City's choosing and, at the City's expense, examine such employee for the purpose of determining the nature of the injury or illness.  Provided, however, that where the department head may have personal knowledge or information concerning the employee's illness or injury, the requirement of medical certification may be waived by said department head.

Whenever any employee becomes ill or injured while in the employ of another employer or while the employee is self-employed, and such injury or illness is compensable under the Michigan Workers Disability Compensation Act, then, and in such event, the employee shall not be eligible for sick leave benefits through the City.

Employees shall not be permitted to substitute other types of leaves for sick leave unless specifically requested by the employee and authorized by the department head, except as allowed by Section 1(e) of this Article.

The City may require a physical examination at the City's expense of any employee when, in the opinion of the department head, there is a question of the employee's physical ability to perform assigned work.  An employee refusing to submit to such physical examination shall be suspended without pay or benefits forthwith until said employee complies with such directive.

In the event that a city employed physician shall deem an employee disabled or otherwise unfit for duty, and such determination is disputed by the employee, the employee may employ a physician to make a determination as to fitness for service. In the event that the employee's physician and the City's physician disagree concerning the employee's disability, said physicians shall jointly appoint another physician whose determination shall be final and binding on all parties. The expense of such physician shall be shared equally between the City and the employee.

Section 6.  Military Leave

Leaves of absence without pay shall be granted to any full-time, regular employee who is inducted into or volunteers for the Armed Forces of the United States for training or service. Military leaves will be administered as required under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), or other relevant legislation.

The Employer agrees that the same right to re-employment which the law affords to selective service employees inducted into the Armed Forces of the nation will accrue to employees voluntarily enlisting in such Armed Forces providing each such employee notifies the Employer of such enlistment when leaving employment.

Vacancies resulting from military service leaves granted shall be filled only on a temporary basis.

Section 7.  Funeral Leave

In case of death in the immediate family of a full-time employee, funeral leave with pay may be granted for a reasonable period under the circumstances.

For the purpose of this Agreement, a reasonable period shall be defined as three (3) working days.

If said funeral is over 200 miles from home, the reasonable length of time may be increased to five (5) working days.

"Immediate family" is defined as spouse, children, parents, parent-in-law, brother, sister, brother-in-law, sister-in-law, grandchildren, grandparents, spouse's grandparents, or relative living in the same household.

Section 8.  Maternity Leave

An employee who becomes pregnant must notify her department head of her condition no later than the beginning of the fourth month of pregnancy.

Each month of pregnancy, starting with the fourth month, the employee must supply the department head with a statement from the attending physician stating that the physician knows the nature of the employee's duties with the City and allows the employee to continue carrying out these duties with the City from month to month.  The personnel office will supply forms.

A copy of this statement should be included as part of the employee's file in the personnel office.

In no case should the employee be allowed to continue as a City employee without the employee's physician's permission.

Maternity leaves without pay may be granted to regular full-time employees with six (6) months or more of continuous service.

Maternity leave shall be granted in accord with Section 14 of this Article.

Section 9.  Jury Duty

An employee called for jury duty or subpoenaed as a witness shall receive the difference between jury pay or witness fees and regular wages during the time required to serve.

Section 10. Leave of Absence Without Pay

Except as otherwise provided, a leave of absence without pay and benefits may be granted to full-time, permanent members of the bargaining unit having been in the employ of the City for one (1) year or longer, for a period not to exceed one (l) year, provided that said employee has filed a written application with the City.

Management shall review each written request for leave and such leave shall be granted only when it will not result in undue prejudice to the interest of the City as an Employer beyond any benefits to be realized.

No leave of absence shall be granted to any employee with less than six (6) months service or within ninety (90) days from reinstatement on return from layoff.

No leave will be granted for the purpose of permitting employment with another employer or to be self-employed, except as provided in Section 11 of this Article.

Section 11.  Union Leaves

Any employee elected or appointed as a Union officer to any labor activity which necessitates an extended leave of absence shall be granted such leave without pay and benefits for as long as the employee holds said office or is involved in said activity for a period not to exceed one year.  No more than one person shall be on an extended leave at one time.

Union members consisting of the chairperson, vice chairperson, secretary, steward or elected delegates shall be granted time off without pay to attend AFSCME or AFL-CIO conventions so long as said absence does not affect the orderly operation of the City.

Section 12.  Absence Without Leave

Any absence of any employee from duty, including any absence for a single day or part of a day, that is not authorized by a specific grant of leave of absence shall be deemed to be an absence without leave.

Any such absence shall be without pay and the employee may be subject to disciplinary action.

In the absence of such disciplinary action, any employee who is absent for three (3) consecutive working days without notifying the City or without justifiable reason shall be deemed to have resigned.  Such absence may be covered by a subsequent grant of leave if approved by Management.

Section l3.  Failure to Report After Leave Termination

Failure of an employee to report at the expiration of any leave of absence, or an employee giving a false reason to obtain a leave of absence, shall constitute automatic termination of employment, except as Management may extend such leave.

Section 14. Family and Medical Leave Act

Effective August 5, 1993, an employee with one year seniority and who has worked at least 1250 hours during the past year may be granted an unpaid leave of up to twelve (12) weeks for one of the following:

Birth of a child.

Placement of child for adoption or foster care.

Caring for a spouse, child or parent with serious health condition.

Serious health condition of the employee.

Employees taking a family and/or medical leave under the Act will be required to give Management thirty (30) days notice when possible and will be required to use up all paid vacation, personal days and/or sick leave, if available, before using the unpaid leave.

ARTICLE XV - HOURS OF WORK

Section l. - The standard work day will be no more than eight (8) hours.

Section 2. - The standard work week will be no more than five (5) days in any period of seven (7) consecutive days.

Section 3. - The meal period each work day shall be one (l) hour.

Section 4. - Individual work schedules shall be established between the employees and the employer in the best interest of both parties, but shall not impair the continuous operation of the respective department. The Employer may establish daily work schedules for employees that are different from the normal starting and quitting times enumerated in Section 5 of this Article.

Section 5. - The standard work day will be as follows:

City Hall, including the Police Department: 8 a.m. to 5 p.m., Monday through Friday.

Library: Hours shall fall within the time frame of 9 a.m. to 9 p.m., Monday through Friday, and 9 a.m. to 6 p.m. on Saturday, in accordance with Sections 1 and 2 of this Article.

During the week of Thanksgiving only, the standard library work week shall be Monday through Friday.

Library employees shall not be required to operate the library with only one employee present. Library personnel shall contact the City immediately to notify Management in the event only one employee is present.

Section 6.  Overtime

Employees shall be paid at the rate of time and one-half for all hours worked in excess of eight (8) hours in one day or more than forty (40) hours in any consecutive 7-day period. At their option, employees will receive compensatory time off at the rate of time and one-half for all time worked in excess of eight (8) hours in one day or more than forty (40) hours in any consecutive seven (7) day period, time to be taken within thirty (30) days of the time earned.

Overtime work shall be uniformly offered, based on ability to perform, and shall be voluntary, except in the event of emergencies.  The employer will not discriminate against any employee who declines to work overtime.

ARTICLE XVI - WAGES AND SALARIES

The wage and salary schedules set forth in Schedules A and B for fiscal years 2005 through 2007 attached hereto and made a part of this agreement, are to be in effect July 1, 2004, and shall remain in effect until June 30, 2007.

A signing bonus will be paid to employees on the payroll at the time of the 2004-2007 contract ratification in the amount of $300 for year 1 and $300 for year 2.

Effective July 1, 2004, the Animal Control Officer will be paid an annual bonus of $1500 for obtaining "chemical capture" certification.

ARTICLE XVII - LONGEVITY PAY

All employees who have completed five (5) or more years of continuous, full-time service shall be eligible to receive longevity pay under the following schedule:

Completion of five (5) years service $ 500

Completion of ten (10) years service $ 750

Completion of fifteen (15) years service $1,000

Employees must have completed the specified year necessary to qualify for an increase in longevity payment.

Longevity payments shall be made to eligible employees once each year in June.

If an employee separates from service due to retirement, lay-off, or death in service, the employee shall be entitled to receive a pro-rated portion of the longevity, computed on months earned at the time of separation.

ARTICLE XVIII - HOSPITALIZATION, DENTAL, OPTICAL, AND LIFE INSURANCE

Section 1. Hospitalization and Dental Coverage

Each full-time employee hired before January 6, 1995 will be provided with Family coverage, including the Young Adult rider, paid by the City under the Blue Cross Blue Shield of Michigan (BCBSM) Community Blue (CB) 2 program, BCBSM CB Dental coverage, and a $10/$40 (generic/brand) drug card.

Each full-time employee hired after January 6, 1995, but before January 1, 2006, will be provided with Family coverage, including the Young Adult rider, paid by the City under the BCBSM CB 3 program, BCBSM CB Dental coverage, and a $10/$40 drug card.

Each full-time employee hired after January 1, 2006 will be provided with Family coverage, including children up to age 19, paid by the City under the BCBSM CB 3 coverage, BCBSM CB Dental coverage, and a $10/$40 drug card.

Waiver of Hospitalization Coverage

Effective July 1, 1994, for any employee who signs an Affidavit indicating that s/he is covered by alternative coverage and transfers medical coverage to the medical insurance provided by his or her spouse, the City will pay a $2,400 per year incentive to eligible employee who elect to decline the City’s insurance plans during the entire year. For individuals who elect this option effective July 1, 2000, they shall be paid the sum of two hundred dollars ($200) per month, payable quarterly, for each full month they do not have coverage. Said payments shall not be considered part of FAC.

Employees will be eligible to decline coverage consistent with the criteria established by the City and Blue Cross Blue Shield of Michigan.

Employees will be eligible to re-enroll in the City’s plan, as soon as they are allowed under the applicable Blue Cross Blue Shield of Michigan policy, when they are covered under health insurance from another source and lose that coverage.

When an employee makes a decision to re-enroll into the City’s medical plan which is not caused by a loss of health insurance from another source, that employee cannot re-enroll until the next annual enrollment.

Section 2 - Dental Coverage, Defined

The four benefit classes defined under BCBSM are: Class I – Preventative, Class II – Restorative, Class III – Prosthodontic, and Class IV – Orthodontic, to age 19.

Benefit levels are 100/75/50/50 (% of costs), subject to an annual maximum of $1000/year for Classes I, II, and III; and a $1000 lifetime maximum for Class IV.

Section 3. Optical Insurance

Each permanent full-time employee will be provided with optical insurance under the BCBSM VSP plan, or the equivalent plan of such insurance.

Section 4. Change in Carrier - In the event that Management wishes to change the insurance carrier, the Union shall be consulted and given an opportunity to review the terms and benefits of the insurance plans available before such change takes place.

Section 5. Life Insurance

Each permanent, full-time employee will be provided a Group Life Insurance Policy having a face value of Thirty Thousand Dollars ($30,000) which shall be reduced to Five Thousand Dollars ($5,000) upon retirement.

The Employer shall pay the employee's share of the premiums.

Employees covered by this Agreement may, if they so desire, sign an authorization card and be provided with an additional Ten Thousand Dollars ($10,000) of life insurance value to be paid at the employees' expense by payroll deduction.

Section 6. Change Notice - Each employee shall be responsible for notifying the City on "membership and record change" forms, of any change in dependency or beneficiary coverage within thirty (30) days of said change for hospitalization and insurance purposes.

Section 7. Retiree Hospitalization

For full-time employees retired after January 1, 2006:

Health coverage provided to retirees will be the same as health coverage provided to current employees, including co-pays and drug coverage.

"Same health coverage" refers to the level of benefits and will not include the sharing of premium costs if negotiated in the future.

For full-time employees hired after January 1, 2006:

Employees will not be provided retiree health care.

Employees retiring on a duty disability will be provided health coverage until they are Medicare-eligible.

Hospitalization will be provided to the spouse of a deceased retiree for so long as the spouse is receiving retirement benefits. Eligibility for individuals who retire under the Defined Contribution Plan will require the same age and years of service requirements as individuals who retire under the Defined Benefit Plan.

The City and the Union agree that health insurance, life insurance, and Medicare Supplement insurance reimbursement are retirement benefits. The parties further agree that as retirement benefits they are payable by utilizing the funds of the City of Ferndale General Employees’ Retirement System.

ARTICLE XIX - DUTY DISABILITY

Section 1. - The provisions of the Workers' Compensation Act of the State of Michigan shall apply in all accidents and injuries to employees in their line of duty.

Initial Step: Responsibility of Employee:

All injuries, no matter how slight, must be reported the day the injury occurs, either to the Employer, immediate supervisor, or department head.

In case of compensable injuries, an employee is required to go to doctors designated by the Employer or its insurance carriers.

The provisions of the Workers' Compensation Act of the State of Michigan shall apply to all injuries and accidents to employees in their line of duty.

The first sixty (60) calendar days of an employee's absence as the result of compensable injury sustained in the line of duty will not be deducted from the employee's sick leave bank and will be compensated at full pay.

After sixty (60) calendar days have expired, the Employer will pay the full salary of the employee, at his option, which shall be pro-rated between the sick leave bank and Workers' Compensation payments.

Section 2. - Any employee receiving an injury on the job requiring that person to go home, will receive pay for a full day's work at the regular rate; and if the employee is required to report back on a working day to a physician authorized by the City, said employee will be paid for time lost.

Section 3.

Sick time and Workers' Compensation will continue until the day the banked sick time of the employee runs out.  The Employee will, during this time, be issued two (2) separate paychecks: a Workers' Compensation check, and a regular pay check making up the difference between Workers' Compensation payment and full pay.

The employee's banked time shall be charged at the same percentage rate as is the Employer's contribution to the employee's full pay.

NOTE: Workers' Compensation monies received are NOT listed as income whenever City figures Federal income and State income taxes.  Workers' Compensation monies are also NOT figured as part of the pension.

Also: NO deduction of any kind can be taken out of Workers' Compensation checks, such as Co-Op deductions, union dues, etc.

Section 4. - Sick leave and Workers' Compensation will continue until an individual's banked sick time runs out.  Workers' Compensation then continues alone, except that during the time an employee is off, the employee shall still be credited with current monthly sick leave accrued and will be eligible for holiday pay.

ARTICLE XX - MILEAGE

Section l.

Employees using their personal vehicle regularly for City business shall be paid forty-five dollars ($45.00) per month.

Employees using their personal vehicles occasionally for City business shall be paid at the standard IRS rate ($0.31 in 1996) per mile.

Part-time employees using their personal vehicles regularly for City business shall be paid twenty-two dollars and fifty cents ($22.50) per month or 20 cents ($.20) per mile provided they can document that they have driven more than 112.5 miles during any month.

ARTICLE XXI - PENSION CONTRIBUTION

Section 1. The employee pension program is set forth in detail in Chapter XIXA, as amended, of the Charter of the City of Ferndale. The Employees Retirement System plan is a "contributory Plan." Article VII, Section 2(b) of Chapter XIXA, pertaining to member's contribution, is hereby revised, effective July 1, 1978, that contribution be reduced to one percent (1%).  Effective July 1, 1979, to be non-contributory.

Effective January 1, 1988, the amount of the initial contribution shall be 4.2% for the increased annuity factor from (1.7%) to (2.0%) and each year thereafter the contribution shall be determined annually by the City's Actuary.

Until September 2l, l990, any employee may refrain from making future employee contributions. Any employee who makes this selection shall remain at the l.7 annuity factor and shall forfeit the increased 2% annuity factor. Any employee who forfeits the increased 2% annuity factor shall be paid the employee's accumulated contributions, which shall be the equivalent of the employee's contributions made after January 1, l988. Employees who continue to make contributions, and who later resign or are discharged, shall have the right to withdraw accumulated contributions equivalent to their contributions made after January 1, l988.

Section 2. - Monies contributed by the Employer on behalf of the employee shall remain in the "Employer's Contribution Share" of the retirement system.  Any monies to be refunded to an individual at the time of either resignation or discharge would only be the accumulated contributions of the employee paid in prior to July 1, 1978 and the one percent (1%) contributions paid from July 1, 1978 through June 30 1979.

ARTICLE XXII - RETIREMENT

Section 1. - Defined Benefit Plan

The employee pension program is set forth in detail in Chapter XIXA, as amended, of the Charter of the City of Ferndale.  Only employees hired before July 1, 1996, are eligible to participate in the Employees Retirement System.

Amend Article VI, Part C, Death Benefits, Section 2 - Effective July 1, 1978 - "Provide surviving spouse with automatic Option 2 pension if employee with ten (10) or more years of City service passes on while an employee of the City."  Remainder of Section 2 to remain unchanged.

Amend Article VI, Part A, Age and Service Retirement, Section 3 - Effective July 1, 1978 - "Provide ten (10) year vesting in the pension system and draw at age sixty (60)."  Remainder of Section 3 to remain unchanged.

Amend Article VI, Age and Service Retirement, Part A, Section 1 - Effective January 1, 1980 - add (C) "Any employee with thirty-three (33) years of City service and membership in the retirement system having attained age fifty-five (55) may draw a pension."

Annuity Factor

Amend Chapter XIXA, City Charter, Article VI, Age and Service Retirement, Section 2(a) (2) multiplied by the sum of 1.7 percent of his final average compensation, effective July 1, 1984.

Effective January 1, 1988, the annuity factor shall be increased from l.7% to 2.0% of the final average compensation. The employees agree to pay the cost of the increased annuity factor from (1.7%) to (2.0%) and the initial cost is understood to be 4.2%. Each year thereafter, the employees' contribution shall be determined annually by the City's Actuary.

Employees may elect NOT to contribute for the increased annuity factor until September 21, 1990; and, therefore, shall receive a 1.7% annuity factor of final average compensation for retirement.

Retirement Hospitalization - Hospitalization coverage will be provided to retirees at age 60 with a minimum of 20 service years, or at age 55 with 30 service years.

Section 2. - Defined Contribution Plan

The defined contribution (DC) pension plan is set forth in detail in the Resolution adopted by City Council on June 24, 1996. All employees hired after July 1, 1996, are covered under the DC plan. The DC plan is elective for employees hired before July 1, 1996.

Contribution Rates - The City will contribute 5% of pension gross to the employee's defined contribution account for employees hired after July 1, 1996. The City will contribute 6% of pension gross to the employee's defined contribution account for employees hired before July 1, 1996. The City will contribute 9% of pension gross per pay to the employee's defined contribution account for employees hired before July 1, 1996 making a mandatory 3% contribution. From July 1, 2000 to July 31, 2000, employees hired after July 1, 1996, will have a one-time opportunity to elect a mandatory 3% contribution.

Vesting Schedule - Employees hired after July 1, 1996 shall be 50% vested at three years, 75% vested at four years, and 100% at five years. Employees hired before July 1, 1996 electing to convert to the DC shall be immediately vested.

Conversion - Employees hired before July 1, 1996 were given 90 days after ratification of the 1996-99 agreement by both parties to opt out of the pension plan in Section 1 and elect participation in the Defined Contribution (DC) Plan. Employees electing to participate in the DC plan had the actuarially-determined value of a Section 1 pension rolled over into the DC plan, and were immediately vested. The window for rollover to the DC will be opened from July 1, 2000 to July 31, 2000 for employees hired before July 1, 1996, who did not opt for the DC during the 1996-1999 contract. The parties agree that this is the final window the Employer will offer for those members to elect the DC plan.

Disability Pension

General

Duty or non-duty disability pensions are granted upon application of a member, or the department head, provided that, after a medical examination of the member made by or under the direction of the medical director, the medical director certifies to the City Manager (a) that the member is mentally or physically totally disabled for duty in the employ of the City, (b) that such disability will probably be permanent, and (c) that the member should be retired.

Hospitalization coverage will be continued for an employee while on duty or non-duty disability, subject to the provisions of ARTICLE XVIII, Section 7.

Duty Disability - When, as a result of a service-connected, permanent disability, an employee is precluded from performing as an active member of the City's work force, such employee will be paid an annual disability benefit equal to fifty percent (50%) of the final average compensation earned as of the effective date of the employee's disability. The City's liability for the disability benefit shall be offset (1) by any amount which may be payable pursuant to the Workers' Compensation Act, and (2) by the lifetime annuity value of the employee's 401(a) defined contribution retirement account, determined as of the effective date of the employee's disability-related separation from service.

Non-Duty Disability - Upon the application of a member, or the department head, a member who (a) has ten or more years of credited service, and (b) becomes totally and permanently disabled for duty in the employ of the City, may be retired by the City Manager. The employee shall be paid a benefit equal to two percent (2%) of the final average compensation for each year of service up to a maximum of fifty percent (50%). The City's liability for the disability benefit shall be offset by the lifetime annuity value of the employee's 401(a) defined contribution retirement account, determined as of the effective date of the employee's disability related separation from service.

Ongoing Evaluations - Routine evaluations of the employee's disability may be made, at the expense of the City, no sooner than every three (3) years, until the employee attains normal retirement age, to determine the disabled employee's fitness for return to duty.

Retirement Hospitalization - Hospitalization coverage will be provided to retirees at age 60 with a minimum of 20 service years, or at age 55 with 30 service years, subject to the provisions of ARTICLE XVIII, Section 7.

ARTICLE XXIII - ICMA-RC PLANS

Deferred Compensation Plan - Each member of the bargaining unit shall have the right to voluntarily participate in the City's Deferred Compensation Program, which is more commonly referred to as the ICMA-RC 457 Plan.

Retirement Health Savings Plan - Employees will be allowed to voluntarily participate in the City’s Retirement Health Savings Plan (RHS) administered by ICMA-RC.

ARTICLE XXIV - TERMINATION, RENEWAL & MODIFICATION

Section 1. - This Agreement shall become effective as of the date of execution, and will remain in full force and effect until June 30, 2007.  Not more than one hundred twenty (120) days nor less than one hundred (100) days prior to the termination thereof, as herein provided, either party may, by written notice to the other party, request negotiations for renewal and modification, or a new Agreement.  Failure to submit such timely notice shall mean that this Agreement shall continue in full force and effect on an annual basis unless and until timely notice is submitted.

Section 2. - Upon receipt of notice to negotiate, both parties shall enter into collective bargaining for the purpose of arriving at a just settlement of all issues by the expiration date.  In the event the parties have been negotiating in good faith, but no agreement is reached by July 1st, this Agreement shall continue in full force and effect on a day-to-day basis, subject to a ten (10) day written notice from either party to terminate this Agreement.  Notice must be by registered or certified mail, receipt requested.

IN WITNESS WHEREOF, the parties hereto have, by their duly authorized representative, signed and sealed this Agreement on the 27TH day of MARCH , 2006.

FOR THE AMERICAN FEDERATION

OF STATE, COUNTY AND MUNICIPAL

EMPLOYEES UNION, LOCAL 998

(AFL-CIO AND COUNCIL 25) FOR THE CITY OF FERNDALE

CAROL A. WILLIS 3/27/06 ROBERT G. PORTER 3/30/06

Local 998 Date Mayor Date

TAMICA L. BROOKS 3/27/06 KAREN PEDRO 3/28/06

Local 998 Date City Clerk Date

J.C.HUBANKS 2/10/06

Local 998 Date Date

LETTER OF UNDERSTANDING #1

PART-TIME, CASUAL, AND PROJECT EMPLOYEES

In an effort to better advise Local 998 of individuals in the employment of the City of Ferndale, fulfilling functions which are performed as outlined in the job classifications contained in the Labor Agreement between the City of Ferndale and Local 998, the City of Ferndale will advise the union in writing, of all employees and their classifications who are not otherwise covered under another bargaining unit.

In the event the Union determines that the employee should be considered covered under the Labor Agreement, the Union will request a special conference with the City Manager to discuss and resolve the classification.

FOR THE AMERICAN FEDERATION

OF STATE, COUNTY AND MUNICIPAL

EMPLOYEES UNION, LOCAL 998

(AFL-CIO AND COUNCIL 25) FOR THE CITY OF FERNDALE

(NOT SIGNED) J.C.HUBANKS 2/10/06

Local 998 Date Date

LETTER OF UNDERSTANDING #2

JOB DESCRIPTIONS

The parties agree to a special conference to discuss updating the City’s job descriptions.

FOR THE AFSCME UNION, LOCAL 998

(AFL-CIO AND COUNCIL 25) FOR THE CITY OF FERNDALE

(NOT SIGNED) J.C.HUBANKS 2/10/06

Local 998 Date Date