MEMORANDUM OF AGREEMENT GOVERNING CERTAIN NAMED BENEFITS

 

Memorandum of Agreement by and between Sun Company, Inc. (R&M) with a Refinery in Toledo, Ohio, (hereinafter “Company”) and Local 5-912, Pace-IU, (hereinafter “Union”) Governing Certain Named Benefits.

 

  1. As a result of collective bargaining between the parties, the Company and the Union agree that the terms, stipulations, plans and conditions contained in this Memorandum of Agreement shall become effective on February 8, 2002 and shall remain in full force and effect until 12:01 a.m., February 8, 2006.

 

  1. It is agreed and understood that the provisions of this Memorandum of Agreement may not be changed or modified unilaterally during the term of this Agreement, unless said change is necessary to obtain government approval for any of the plans covered hereunder.

 

 

  1. It is agreed and understood that changes, modifications, or amendments to this Memorandum of Agreement may be made by mutual consent of the Company and the Union.  Any such changes, modifications, or amendments shall be in writing, executed by the Company and the Union and shall become effective on the date set forth therein.

 

  1. The Company and the Union agree that the benefits available to employees and conditions thereunder are as set forth in Appendix A through C.

 

 

  1. During the term of this Memorandum, the Union shall not reopen for collective bargaining any matter relating to the benefits covered hereunder.

 

  1. The terms, stipulations and conditions contained in this Memorandum of Agreement or in any of the Benefit Plans covered hereunder shall not be subject to the Grievance and Arbitration procedure contained in any collective bargaining agreement between the Company and the Union.

 

 

  1. The term, stipulations and conditions contained in the Benefit Plans covered hereunder shall govern all disputes arising therein and decisions rendered by the Plan officials (e.g., Insurance Carrier, Plan Administrator, etc.) shall be final and binding on the parties and covered employees.

 

  1. During the term of this Memorandum of Agreement, the Company and the Union agree that there shall be no strikes or lockouts arising out of the provisions of this Agreement.

 

 

  1. This Memorandum of Agreement is contingent upon and subject to obtaining and retaining such governmental approvals as the Company my find necessary to establish (1) the deductibility for income tax purposes of any and all payments made by the Company under this Memorandum of Agreement on the Plan and/or Benefits covered herein, and (2) that any and all trust and trust funds created in connection with said Plan and/or Benefits are tax exempt under applicable provisions of the Internal Revenue Code and under all present and future tax laws and regulations or rules promulgated by Federal, State or any other governmental authority.

 

  1. Any modification or amendment of this Memorandum of Agreement or of said Plans covered herein may be made retroactively by the Company if necessary or appropriate so as to conform with the requirements of law, or so as to qualify and maintain said Benefits or any of them as Benefits and trusts meeting the requirements now in effect, or hereafter amended or adopted, of any law regulation promulgated thereunder by Federal, State or any other governmental authority.

 

 

  1. This Memorandum of Agreement shall cover the following Benefits for employees represented by the Union:

 

Attached hereto and made part hereof as:                            Appendix

 

Toledo Refinery Workers’ Medical Plan                                         A

 

Toledo Refinery Workers’ Short Term Disability                 B

(STD) Plan

 

Toledo Refinery Workers’ Retirement Plan Formula                        C

and Benefit Levels 

 

  1. Cost sharing arrangements with regard to Benefits are specified in the individual plans except as set forth in the body of this Memorandum of Agreement.

 

  1. The Company and the Union agree that during the terms of this Memorandum of Agreement, the Company shall contribute as follows toward the cost of the Toledo Refinery Workers’ Medical Program.  The total premium cost of the aforesaid Plan may change during the term of this Memorandum of Agreement.  Any premium increases during the term of this Agreement beyond the below stated maximum Company contributions, shall be at the sole expense of the employees.

Medical Plan

 

For the duration of this Plan year (ending 6/30/02), the Company agrees to maintain the current negotiated level of contributions to the Toledo Refinery Workers’ Medical Program (Aetna), or its successor, hereinafter the “Company Plan,” and approved HMO’s, up to the following monthly amounts, which are the maximum monthly amounts, which are the maximum monthly Company contributions to the Company Plan, in effect as of February 7, 2002:

 

                                                                                          Maximum Company

                                                                                          Contributions

 

Employee and Dependents (Family) Coverage                                $440.50/Month

 

Employee Only Coverage                                                               $164.00/Month

 

Further, effective with the bargaining if the new plan year beginning July 2002, the Company commits to the Union that bargaining unit employees enrolled in the designated Company National Medical Plan (currently Aetna) will receive a Company contribution toward the total premium based on an employer contribution rate of 80% of the total of each coverage level and an employee contribution rate of 20%.  The Company contribution for bargaining unit employees in alternate Company sponsored Medical plans (HMO’s) will also be based in a contribution rate ratio of 80%/20% so long as the Company contribution does not exceed the Company contribution to the Company National Medical Plan for similar coverage levels.

 

In addition, for the term of the Agreement, the Company Contributions for Medical, in any case above, will not be less than the current fixed dollar Company contribution of $164.00 per month for the Employee coverage and $440.50 for Family coverage.

 

  1. In no event shall the Company contribution to the above Plan exceed the total premium of the coverage selected.

 

  1. If a National Health Insurance Plan is hereafter enacted, the Company’s present and future contributions toward the present Plan (s) premium would be used toward the cost of said National Health Insurance Plan and unused portions of the Company’s contributions would be used for other benefits mutually determined by the Company and Union.

 

 

  1. “Shift Differential” as referenced in the definition of “earnings” contained in the Toledo Refinery Workers’ Retirement Plan (Appendix D) is to be defined as set forth in Article XVII and the 12-Hour Shift Understanding of the Collective Bargaining Agreement.

 

  1. Beginning January 1, 1990, all overtime payments received for time subject to an annual prorated maximum of twenty percent (20%) of basic earnings and the actual shift differential will be used in the calculation of retirement benefits, except for the last two actual months prior to an employee’s retirement date for which a prorated factor based upon the employee’s previous ten (10) months actual experience will be applied.

 

  1. Company and Union agree that each shall not be obligated to bargain with regards to the subject of employee benefits for the term of this Agreement.

 

  1. This Agreement expresses the entire understanding of the parties with respect to the benefits covered hereunder.

 

  1. In the event that any of the terms or provisions of this Agreement are declared invalid or unenforceable by any Court of competent jurisdiction or any Federal or State governmental agency having jurisdiction over the subject matter of this Agreement, the remaining terms and provisions that are not affected thereby shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by the duly authorized representative.

 

Agreed to and accepted this _______ day of February, 2002.

 

 

 

Sunoco, Inc.                                                                 Local 5-912, Paper, Allied-Industrial

With a Refinery in                                                         Chemical and Energy Workers

Toledo, Ohio                                                                International Union, AFL-CIO

 

 

 

_________________________                                  __________________________

James L. Davies                                                           John E. Brown

Chief Spokesperson                                                     President, Local 5-912

2002 Negotiations                                                        PACE-IU