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DHL/Airborne Change of Operations Decision, April 2004

Affecting Locals 25, 70, 85, 100, 107, 135, 170, 174, 222, 249, 287, 299, 326, 331, 407, 493, 600, 624, 671, 745, 856, 912, and 961

DHL/Airborne Express Multi-Region Change of Operations Decision MR-CO-03-04/2004

The following is the decision from the DHL/Airborne Express Multi-Region Change of Operations MR-CO-03-04/2004, which was heard April 1, 2004, at a Special Hearing.

DECISION: The Company’s proposed Change of Operations be approved as modified and clarified by the Company on the record with the following provisions:

  • There shall be no layoff of any regular, fulltime Airborne employees as a result of the merger of DHL and Airborne. This no layoff protection applies to all regular, fulltime Airborne employees whether they have a scheduled work assignment or not, including 10 percenters or shapes. The no layoff protection shall remain in existence until April 1, 2006. In addition, the no layoff protection includes a guarantee of no less than 40 hours per week pay at the applicable rate for all regular, fulltime Airborne employees. With regard to regular, part-time employees, the Supplements shall govern any guarantees.

  • In the event that there is a need to layoff regular, fulltime employees because of the loss of customers or the cyclical changes in business volume, the Company may initiate layoffs, but, within 72 hours of the layoffs, the Company must make application to this Multi-Region Change of Operations Committee for approval of the layoffs. The failure to make application to the Change of Operations Committee within 72 hours of the layoffs shall result in the layoffs being deemed as merger related and subject to the protection and guarantee contained in Paragraph 1 above. The Company shall have the burden of proof to justify the non-merger related reasons for the layoffs.

  • Prior to the implementation of this change of operations decision, all regular, fulltime Airborne employees on letter of layoff must be recalled to work effective February 13, 2004 or made whole retroactive to that date in accordance with the guarantee contained in Paragraph 1 of this decision.

  • There shall not be a negative impact on any Airborne employees’ work opportunities as a result of the DHL and Airborne merger, including 6th or 7th day work or other premium day work opportunities. Daily overtime shall be assigned in accordance with the terms of the respective Supplemental Agreements.

  • Any Airborne facility that has lost international work shall be covered by the no layoff protection as well as the protection against negative impact on work opportunities referred to in Paragraph 4 above.

  • Any contractual rights enjoyed by Airborne employees prior to the merger with DHL will not be affected by the merger.

  • The Company’s proposal to allow a specific number of DHL employees, to follow their work that is being transferred to Airborne is modified as follows:

    • Drivers: (i.e., reduction of 55)

      • Local 671: reduce original estimate from 19 to 7. Add 2 of those positions to Local 493 (NOR). Net reduction of 10.

      • Local 326: reduce original estimate from 4 to 0. Net reduction of 4.

      • Local 407: reduce original estimate from 19 to 15. Net reduction of 4.

      • Local 600: reduce original estimate from 29 to 18. Net reduction of 11.

      • Local 85: reduce original estimate from 23 to 21. Net reduction of 2.

      • Local 174: reduce original estimate from 22 to 20. Net reduction of 2.

      • Local 624: reduce original estimate from 8 to 7. Net reduction of 1.

      • Local 135: reduce original estimate from 23 to 19. Net reduction of 4.

      • Local 249: reduce original estimate from 10 to 9. Net reduction of 1.

      • Local 287: reduce original estimate from 11 to 10. Net reduction of 1.

      • Local 912: reduce original estimate from 4 to 2. Net reduction of 2.

      • Local 70: reduce original estimate from 17 to 12. Net reduction of 5.

      • Local 107: reduce original estimate from 25 to 22. Net reduction of 3.

    • Clerical: (i.e., reduction of 23)

      • Local 299: reduce original estimate from 18 to 4. Net reduction of 14.

      • Local 745: reduce original estimate from 6 to 1. Net reduction of 5.

      • Local 856: reduce original estimate from 9 to 6. Net reduction of 3.

      • Local 961: reduce original estimate from 5 to 4. Net reduction of 1.

  • With the above modifications to the number of proposed DHL employees to follow their work to the Airborne location where the work is transferred, the Committee approves the proposed transfer of DHL employees. Successful bidders, subject to Paragraph 9 below, shall be dovetailed on the applicable Airborne seniority list based on their fulltime DHL service date. Subject to Paragraph 9 below, DHL employees will only be permitted to bid into the Airborne terminal where their work is being transferred. Unsuccessful bidders shall be endtailed on the applicable fulltime seniority list, behind preferential casuals and Airborne part-timers who had not previously been offered a fulltime position in accordance with the Supplemental Agreement or Part-time Addenda. DHL fulltime employees who follow work to Airborne pursuant to this decision will not perform work previously performed by Airborne part-time employees. The Company must comply with the Supplemental Agreements and Part-time Addenda with regard to new hires beyond the number of DHL employees who transfer to follow their work as a result of this decision.

  • In those areas where there is more than one Airborne facility and where all employees at those facilities are on a common master seniority list, affected DHL employees within that area shall be afforded the opportunity to bid into any Airborne facility, which is covered by the master seniority list. In those areas where there is more than one Airborne facility, but where there are separate seniority lists for each facility, the DHL employees within that area shall be afforded the opportunity to bid into only the specific Airborne facility that receives the DHL work. If terminal or station seniority governs position on the seniority list, DHL employees shall endtail on the seniority list below Airborne employees.

  • The Company will make its best efforts to obtain all bargaining unit work performed by DHL employees at a DHL facility which is merged into an Airborne facility and transfer such work to an Airborne location, including the staging of aircraft and the loading and unloading of aircraft by the DHL employees. All pick-up and delivery work performed by DHL employees or independent contractors of the type currently performed by Airborne bargaining unit employees within the preexisting Airborne footprint shall be performed by bargaining unit employees when the operations are merged.

  • DHL employees’ service date must be based on their continuous service date. An employee who has a break in service can only use his/her most recent employment date, excluding any break in service, any time worked outside of a bargaining unit classification, such as time spent in supervision, dispatching, maintenance, part-time, casual or other non-unit work for bidding and layoff purposes. There can be no bridging of an employees’ prior service date, after a break in service, with a subsequent service date.

  • Preferred casuals shall be given work opportunities prior to DHL employees who are not successful bidders to follow their work to an Airborne location. Area Supplements or Local Union work rules shall govern the order of call for available work opportunities.

  • Consistent with Article 8, Section 6 (f) of the NMFA, employees who are presently non-CDL qualified will be given 60 days to qualify. The Company must provide training personnel and equipment to be used by the employee to become CDL qualified.

  • The implementation date for this change of operations will be April 19, 2004.

  • During the 60-day period immediately following the implementation date for this change of operations, the Company must maintain its existing bids without disrupting any bids exercised by Airborne or DHL employees. Following the 60-day period, the Company will re-bid all work in the combined DHL and Airborne facilities.

  • Local 70’s and Local 85’s request to obtain, as bargaining unit work, that work presently performed by DHL employees at manned drop stations and the work of picking up packages at unmanned drop stations is granted.

  • Local 856’s request that the number of DHL clericals transferring to the South San Francisco facility be reduced from 2 to 1 is granted. A work opportunity must be offered to the Local 856 clerical who is on layoff at South San Francisco facility.

  • Local 671’s request that 8 of its Airborne members, who are classified as part-timers, but who have regularly worked 40 hours per week will be re-classified as regular, fulltime employees and provided the protection against layoffs and work guarantees contained in Paragraph 1 of this decision. The two Local 671 members who turned down the offer for fulltime status will continue to be classified as part-timers.

  • Local 671’s request to perform tractor-trailer work that is now being performed by independent contractors is denied.

  • The Change of Operations Committee does not have the authority to alter or amend a majority decision rendered by a grievance panel, requiring the Company to comply with the contract regarding work jurisdiction to be performed by Local 624. Therefore, this decision directs compliance with the prior majority award regarding Local 624’s work jurisdiction.

  • Disputes as to seniority dates will be referred to the grievance procedure for resolution.

  • The Company must comply with Article 12 of the NMFA regarding union made uniforms.

  • The Company is instructed to continue health and welfare coverage for transferring DHL employees in the Company health plan until such time as those employees qualify for coverage under the applicable Union health plan. The Company must make contributions to the applicable pension plan, consistent with the Supplements, upon the DHL employees commencing work at the combined DHL and Airborne facilities.

  • The Change of Operations Committee will hold jurisdiction until April 1, 2006. All grievances related to this change of operations, except seniority date disputes, shall be filed with the Change of Operations Committee. There will be no delays or postponements to impede expedited resolution of the disputes.

  • Nothing contained in this decision is intended to be in violation of the National Master Freight Agreement or any of its respective Supplemental Agreements.

  • This decision is based on the authority of the Change of Operations Committee under Article 8, Section 6(g) to apply a seniority application based on the factual circumstances of the DHL and Airborne merger.