Hourly Layoff Policy

Overview

ABX strives to provide ABX employees with secure and stable employment. Staffing levels are carefully set to meet, but not exceed, operational needs. However, ABX is in a very competitive industry and must be able to adapt to changing business conditions. If economic, industry, or operating conditions require a workforce reduction, the Hourly Layoff Policy and Department Addenda will provide guidance to management and employees in the layoff of hourly employees. Any reduction in force will be carefully implemented with the utmost consideration and sensitivity for ABX employees.

Core Requirements

A reduction in force requires the involvement and authorization of Executive Management and Human Resources Management. Before authorizing a layoff, all other feasible options available will be considered to address the changing business needs. When it is determined that a layoff is necessary, this policy will facilitate the orderly transition and realignment of the workforce to ensure that ABX retains the necessary skills and workforce to conduct business, and the impact on employees is minimized.

This policy applies to hourly employees on step scales and some exempt job classifications due to their similarity in job duties with hourly positions. Preference will be given to maintaining job security for our most senior, experienced employees in a layoff situation.

The Hourly Layoff Policy will be used in conjunction with Department Addenda that each department will develop and maintain. Each addendum will list job families and layoff procedures specific to that department.

ABX will comply with all state or federal laws that govern workforce reductions or layoffs.

Definitions

Layoff—the reduction of jobs and employees due to operational, economic or industry changes. Affected employees are eligible for recall to their former positions up to a maximum of seven years.

Job Families and Job Family Seniority—In the event of a layoff, job family seniority (JFS), along with qualifications and ability, will determine the order in which employees are laid off and recalled. Job families consist of jobs within a department that generally have some relationship between them in terms of job progression or related job duties. JFS is used only for layoff purposes and accrues as long as an employee works either part-time or full-time in any position that is within the same job family. An employee can change positions and continue to accrue JFS as long as the position is within the same job family. Each department will group together the jobs or job classifications that will make up each job family. Casual and temporary time does not count towards JFS.

Department Addendum: Each department will develop and maintain a supplement (called an Addendum) to the Hourly Layoff Policy. The addendum is specific to that department and includes the job families and procedures that will be used in conjunction with the hourly layoff policy to guide a department through a reduction in force. Each department is responsible for maintaining a current addendum.

Changes to Job Family Seniority

Certain employment changes can affect JFS.

  1. Job Family Seniority continues to accrue:

-During temporary assignments, such as acting leads, special projects, and filling in for supervisors.

-During Company approved leaves of absence.

  1. Job family seniority can accrue up to seven years during a layoff. Job classification seniority and company seniority can also accrue for this period. However, all seniority will stop accruing if an employee is offered a recall opportunity and turns it down. The employee will retain all previously accrued seniority but no additional seniority will accrue until the employee accepts a recall and returns to work. At that time, all seniority will be adjusted for the period of time elapsed from the first turndown.
  1. If an employee takes a job outside the job family for less than 24 months, previous JFS will be adjusted to exclude the time worked outside of the job family.
  1. Job family seniority is lost if an employee resigns, is terminated, or takes a job outside the job family for more than 24 months.
  1. If an employee takes a position outside a job family and subsequently returns to his or her former job family due to an involuntary workforce reduction or reorganization, the employee’s former JFS date will be reinstated.

Layoff

If a layoff is necessary, management will determine the number of jobs and/or employees in each job classification that will be affected.

  • Before any regular part-time or full-time employees are laid off, temporary employees, contract employees, casuals, interns, and co-ops working in any of the affected classifications will be terminated, unless they are operationally necessary.
  • Employees with documented performance issues will be considered for termination before any layoffs. Documented performance issues include multiple formal corrective actions, overall marginal performance appraisals, last chance agreements, and final letters for attendance discipline.
  • The layoff will then occur in the order of employees with the least JFS within the job or classification being affected.
  • Affected employees will be given a minimum of fourteen-calendar days notice or two weeks regular pay in lieu of notice.
  • Affected employees are able to exercise their JFS to displace the least senior employees in jobs they previously held within their job family. Within 5 days, employees must notify management of their intent to exercise JFS for placement into a job previously held within the job family. The following criteria also apply:

-The employee must still meet the qualifications of the job and may be required to successfully complete skill assessments that are normally required.

-The employee cannot displace a less senior employee when it would result in a promotion.

-The employee must be able to work the scheduled shifts and days off required.

-JFS cannot be exercised to displace leads.

-The employee will be paid at the step in scale, which corresponds most closely with the step in scale of their JFS. Step increases will be determined by established pay step intervals (e.g. 6 or 12 months).

Recall

Employees may be recalled up to seven years from date of layoff. Recall notification will be made in writing to employees by certified mail.

Recall of laid off employees will be in reverse order (most senior) of JFS. When openings become available in the affected job classification, the employee with the most JFS in that job classification will be recalled, either from a layoff or from the job classification the employee assumed through displacement. Laid off employees will be recalled before new employees are hired into the affected job classifications.

If an employee accepts the first recall to work, the employee’s seniority (JFS, Job classification, company seniority) will consist of all seniority accrued prior to the layoff, plus all seniority accrued during the layoff. Vacation will begin accruing based on the employee’s company seniority date. The employee will return to work at the former step in pay prior to the layoff.

An employee may turn down the a recall opportunity and remain on the recall list. However, the employee will not be called again until all other employees on the recall list have been called. The employee’s name will move forward on the list as each person (in order of JFS) is offered a position. At the time the employee accepts a recall, JFS, job classification seniority, and company seniority will be adjusted for the period of time elapsed from the first turndown. Vacation accruals will be based upon the employee’s adjusted company seniority date. The employee will return to work at the former step in pay prior to the layoff.

Recall rights and employment will be considered terminated if:

-The employee declines a recall to his or her former position.

-Reasonable efforts to contact and recall the employee are unsuccessful.

-The employee fails to maintain recall status.

-The employee does not to report to work by the established return-to-work date.

-The employee has not been recalled within seven years from date of layoff.

Employee Role and Responsibility

Understand that in order to remain competitive, ABX must respond quickly to economic, market, and operational changes.

Recognize that ABX places a high priority on providing stable employment but cannot guarantee permanent employment to any employee.

Be considerate of employees who may be affected if a layoff occurs.

Laid off employees must keep a current address on file with the Human Resources Department, and annually restate in writing (between December 1-31) their desire to stay on the recall list.

Employees who are recalled are expected to report to work within fourteen days of receipt of their recall notice.

Management Role and Responsibility

Manage staffing levels to meet operational needs but avoid overstaffing.

Communicate with employees about the Layoff Policy and their Department Addendum. Ensure that Department Addenda are kept up to date.

Be prepared to communicate with employees the reasons for a layoff and help them remain positive about the company.

Develop a plan to cover the duties from eliminated positions that are still necessary to perform and update job descriptions accordingly. Reassign job duties and clearly communicate changes to employees.

Appeal Process

The decision to layoff is not subject to the complaint resolution process. An employee can, however, appeal the decision that they were selected to an Appeals Committee for reconsideration. The Corporate Director of Human Resources will chair this committee. Members will include one executive (from outside of the department of the employee filing the appeal), one member of management and two hourly or non-exempt employees. The President will appoint the Appeals Committee, at the time of the layoff. All appeals must be filed within three working days of the notification. The Appeals Committee will strive to render a decision within two working days of receipt of the appeal.

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Effective Date 9-01-05ABX Air, Inc.Human Resources Department