joint presentation co-operative wage study fall 2014

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JOINT PRESENTATIONCO-OPERATIVE WAGE STUDY

FALL 2014

THE CO-OPERATIVE WAGE STUDY – a system of job classification worked out jointly by companies and the United Steelworkers. The procedure worked out is now used for job classification in most collective agreements now in effect in the metal industry from ore mining up to final fabrication.

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The “C.W.S. MANUAL”

• C.W.S. Manual for Job Description, Classification and Wage Administration.

• The contents herein are titled “Co-operative Wage Study (C.W.S.) Manual for Job Description, Classification and Wage Administration” (hereinafter for convenience called “the Manual”.)

• The Manual is supplemental to the Labour Agreement currently in effect between Essar Steel Algoma and the United Steelworkers.

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PURPOSE

This Manual is established as an aid to the Company and the Union to:

•Preserve the principles and related provisions from which is established an equitable wage rate structure.

•Continue the body of job descriptions and classifications upon which the wage rate structure is based.

•Provide the procedure through which to maintain the job descriptions and classifications in adjustment with new and changing conditions.

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DEFINITIONS

The following are definitions of terms as used herein:

A)BASIC AGREEMENT – the Labour Agreement between the Company and the Union relating to wages and other terms and conditions of employment.

B)EMPLOYEE OR EMPLOYEES – all persons for whom the Union is the bargaining agent as provided in the Basic Agreement.

C)JOB OR POSITION – the duties performed by one or more employees at a designated work station or within assigned areas.

D)JOB DESCRIPTION – the official record which sets forth for a given job the identification, location, primary function, tools and equipment, materials source of supervision, direction exercised and working procedure of that job.

E)JOB CONTENT – the requirements of a job as to training, skill, responsibility, effort and working conditions.

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DEFINITIONS (CONT’D)

F) JOB CLASSIFICATION – the official record which sets forth for a given job the job content analysis and factor level code and classification values of the job’s requirements as to the following factors:

– Pre-employment training

– Employment training and experience

– Mental Skill

– Manual Skill

– Responsibility for materials

– Responsibility for tools and equipment

– Responsibility for operations

– Responsibility for safety of others

– Mental effort

– Physical Effort

– Surroundings

– Hazards

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G) TRADE OR CRAFT JOB – any of the jobs performed in construction, rehabilitation of facilities and in repair and maintenance work, as listed in the CWS Manual and any such other trade or craft as may from time to time be agreed upon and any such other trade or craft jobs as may from time to time be agreed upon.

H) ASSIGNED MAINTENANCE JOB – any job (other than those covered in paragraph (G) on which the employees are assigned to operating and service units for the performance of field inspection, repair, replacement, installation, adjustment and greasing and oiling of facilities and equipment within the assigned area, and includes jobs such as:

– Mechanical Maintenance Tech. (MMT),(Millwright )

– Electrical Maintenance Tech. (EMT), (Electrical)

– Erector

– Fitter Welder

any such other maintenance jobs of specific and special nature as may be necessary in the operation.

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I) CLERICAL AND TECHNICAL JOB – a job within this bargaining unit on which:

– the duties are predominantly clerical or technical in nature

– physical effort beyond that normally related to performance of office, laboratory or drafting duties is seldom involved

– the duties are not directly involved with the work of a production or maintenance crew; and

– the duties are normally required to be performed in an office (including laboratory or drafting room), or using an office as headquarters.

J) GROUP LEADER JOB – a job on which the employee has the combined responsibility of directing the work of a group of employees on other hourly rated production and maintenance jobs and performing some of the same work as that of the group directed. The direction generally consists of activities such as required to:

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– plan work to be performed by the group

– determine “on-the-job” working procedure in the case of repair and maintenance work

– arrange for necessary tools, supplies and facilities

– assign and instruct members of the group, and

– inspect, co-ordinate and record the work performed by the group.

Such direction does not include activities such as required to:

– hire, promote, demote, suspend or discharge members of the group

– represent the Company in handling employee grievances

– determine the schedules of hours, days and weeks during which members of the group shall work; and

– perform other general supervisory or Management functions

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K) SPELL HAND JOB – a job on which the primary function is to provide relief periods for the respective occupants of two or more positions in a regular operating crew.

L) LEARNER JOB – a job established for the purpose of providing training to eligible employees in order that they may qualify for the respective job for which the learner job has been created.

M) APPRENTICE JOB – a job being performed by an apprentice during the period of his assignment to training by actual work performance in a given trade or craft in order that he may quality as a journeyman in the respective trade or craft.

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N) INSTRUCTOR JOB – a job established with the primary function to train learners – apprentices, or other employees: (1) under classroom circumstances; (2) on jobs having learner or apprentice rate schedules established as a part of the standard hourly wage rate structure; (3) on jobs under new or changed conditions; or (4) on jobs under other special circumstances. Such training does not include situations of an employee giving instruction or guidance to (a) his helper or helpers; (b) an “extra-man” learner or other employee on the same job: or (c) another member or “extra-man” learner of the crew in which such employee works.

O) STANDARD HOURLY WAGE SCALE – the scale of rates established for the respective job classes.

P) OUT-OF-LINE DIFFERENTIAL – an out-of-line differential is an amount paid to an employee in excess of the standard hourly rate for a job, which amount, except as it may be adjusted or eliminated according to the terms of the Basic Agreement, shall be the difference between:

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P) OUT-OF-LINE DIFFERENTIAL (CONT’D)

– an employee’s existing rate on a job (in the case of an incentive job his existing minimum guaranteed rate) as of the date the Standard Hourly Wage Scale became effective for current payment and the standard hourly rate for such job as of the same date if his existing rate for such job was higher, or

– an employee’s standard hourly rate on a job before and after a reclassification as provided in 6.02(g) if his standard hourly rate before reclassification was higher.

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FACTORS OF JOB DESCRIPTION & CLASSIFICATION

The conditions which surround each job are such that accurate comparisons and grouping of jobs by title, only are not possible. It is necessary to obtain full knowledge regarding the functions of each job and its requirements through a job description which sets forth for the job:

-Job Title

-Department and Subdivision

-Date of Description

-Primary functions of the job

-Source of supervision

-Direction exercised

-Tools and equipment used

-Materials used, processed and handled

-Working Procedures

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FACTORS OF JOB DESCRIPTION & CLASSIFICATION (CONT’D)

The importance of adequate job descriptions cannot be overstressed. The job description serves to record the conditions from which the job is classified originally and to judge changes in job content which result from new or changed conditions when such are established from time to time.

The job description of a job shall be only in sufficient detail to serve as the basis from which to identify and classify the job and the job classification of a job shall serve only to assign the job into a proper job class for application of the standard hourly wage scale.

The classification of jobs on the basis of job content involves certain basic determinations with respect to the training, skill, responsibility, effort and working conditions required by each job. In order to reduce possible errors of personal judgment into practical but reasonable working limits such determinations and considerations are subdivided and refined into an analysis and classification of each job’s requirements and relative worth on the basis of the following factors:

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– Pre-employment training

– Employment training and experience

– Mental skill

– Manual skill

– Responsibility for materials

– Responsibility for tools and equipment

– Responsibility for operations

– Responsibility for safety of others

– Mental effort

– Physical effort

– Surroundings

– Hazards

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Job classifications serve to:

–Group jobs having substantially equivalent content in the same job class regardless of location.

–Reduce the number of job classifications to the smallest practical number.

–Provide the basis from which to gauge equitable wage relationships as between jobs.

–Form the foundation from which to measure changes in job content from time to time.

–Enable the application of the standard hourly wage scale.

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The basic guides, through which to analyze the job's requirements as to the respective factors of job content, and to determine the factor level code and numerical classification values of such requirements are set forth in the following.

FACTOR 1 - PRE-EMPLOYMENT TRAINING: Consider the mentality required to absorb training and exercise judgment for the satisfactory performance of the job. This mentality may be the result of native intelligence and schooling or self study.

FACTOR 2 - EMPLOYMENT TRAINING AND EXPERIENCE: Consider the time required to learn how to do the job, producing work of acceptable quality and of sufficient quantity to justify continued employment. Consideration must be given to the necessary time spent on directly related work in addition to the necessary time spent on the job being classified. The total time should be based upon continuous progress. The total time will generally be less than the elapsed time spent on the job and related jobs. The time an employee spends on the job due to lack of turnover on the job ahead will not be considered a part of the training time.

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FACTOR 3 - MENTAL SKILL: Consider the mental ability, job knowledge, judgment and ingenuity required to visualize, reason through and plan the details of a job without recourse to supervision.

FACTOR 4 - MANUAL SKILL: Consider the physical or muscular ability and dexterity required in performing a given job including the use of tools, machines and equipment.

FACTOR 5 - RESPONSIBILITY FOR MATERIALS: Consider the obligation imposed either by authority of the inherent nature of the job to prevent loss through damage to materials. The responsibility exists only to the extent that it is controllable by the workman, that is, the damage is a direct result of an act of, or negligence of, the workman on the job. Material is that which is actually

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FACTOR 5 - RESPONSIBILITY FOR MATERIALS (CONT’D): worked on. It may not always be product, as the equipment worked on by maintenance workers is considered materials for those jobs. This factor covers in addition to product, processing materials such as fuels, acids, tempering oils, etc. On attendant jobs only the material handled or supplied such as oil, air, gas, water, etc., is to be considered as material for the job. Both care required and the probable monetary loss are to be considered. The cost of error must be qualified by the probability of detection. Determine the factor level by the degree of care required for the particular element of the job causing the estimated damage. Credit the cost of error for the length of time that it would normally continue before detection, with a maximum of one turn of production. In determining the loss, consider cost of repair or replacement and the salvage value. Use values of materials in round numbers, considered normal for the industry (as reflected in the descriptions and classifications of benchmark and specimen example jobs), rather than actual plant costs.

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FACTOR 6 - RESPONSIBILITY FOR TOOLS AND EQUIPMENT: Consider the obligation imposed on the workman for attention and care to prevent damage to tools and equipment with which he is actually working or which come under his control. The degree of responsibility is determined by the probability and cost of damage which might occur at any one time. Equipment installed or repaired by maintenance workers is considered as material and is credited under “Responsibility for Materials”.

FACTOR 7- RESPONSIBILITY FOR OPERATIONS: Consider the obligation imposed on the workman for utilizing capacity of equipment or process by maintenance of pace and machine speeds. This includes planning, instructing and directing the work of others. Consider the size of crew and teamwork required, the importance and size of equipment and the degree of control exercised by the workmen on the job. Excess capacity and storage facilities between process operations are definite indicators for the lowering of the classification in this factor.

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FACTOR 8 - RESPONSIBILITY FOR SAFETY OF OTHERS: Consider the degree of care required by the nature of the job and surroundings in which it is performed to avoid or prevent injuries to other persons. Only the direct acts of negligence of the person performing the job should be considered. It is assumed that other workers are observing the safety rules, and that all safety devices for which the job is not directly responsible are in order.

FACTOR 9 - MENTAL EFFORT: Consider the mental or visual concentration and attention required by the job for the performance of work at normal pace. Select that level which best describes the average degree of concentration and attention required throughout the turn.

FACTOR 10 - PHYSICAL EFFORT: Consider the muscular exertion required by the job when the employee is performing at a normal pace. Select that level which best describes the average degree of muscular exertion required throughout the turn.

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FACTOR 11 - SURROUNDINGS: Consider the general conditions under which the work is performed, other than hazard, and the extent to which these conditions make the job disagreeable. Select the description from the table which best describes the average working conditions for the job.

FACTOR 12 - HAZARDS: Consider the probability and severity of injuries to which the workman is exposed, assuming that the workman is exercising reasonable care in observing safety regulations.

In the application of the foregoing basic guides, the following rules shall apply:

(A) It is the job that is under consideration and NOT THE INDIVIDUALS who work on the job.

(B) Jobs are to be classified without regard for existing wage rates.

(C) Jobs are to be placed in the appropriate level in each factor by considering the specific requirements of each job, the description of each level and the illustrations set forth.

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(D) Classification in each factor shall be made at or above a minimum requirement called "Base". The "Base" level is not given a numerical classification value since only the relative ranking of jobs is to be determined by the plan

(E) Classification of each job shall take into account the kinds of work performed and the surrounding circumstances when the employee on the job is performing at normal pace.

(F) No interpolation between factor levels is contemplated in the use of this plan. In the determination of the final job class for a job, total the numerical classification values for the factor levels to which the job is assigned in the twelve factors and use only the closest whole number resulting therefrom. For example: if the decimal part of the number is .4 or less, drop the decimal part; if the decimal is .5 or more, use the next higher whole number.

(G) In the subsequent reclassification of a job due to change in job content, consider only the factors affected by the change.

Move the job into the next job class "only if the change in job content is at least one whole job class".

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(H) The description and classification of each job shall be consistent with, and conform to, the descriptions and classifications of jobs as agreed to in the plant and also with the appropriate "Benchmark" or "Specimen Example" job descriptions and classifications as set forth in the Appendix of the Volume entitled "Job Description and Classification Manual for Hourly Rated Production, Maintenance and Non -Confidential Clerical Jobs".

Special problems are presented in the description and classification of trade or craft, assigned maintenance, clerical and technical, group leader, spell hand, testing and inspection, learner, apprentice and instructor jobs.

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CWS PROCESS for JOB REVIEW

•The department group jointly submits a formal request to the CWS Committee to have a Job Description reviewed. The Job is placed on a CWS Priority List with the applicable retro date on the list.

•The current Job Description is obtained from Company or Union files and used to record changes to job parameters from the date of the last review

•The CWS Committee members contact the department or work group to schedule meetings/tours with the group.

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CWS PROCESS for JOB REVIEW, cont’d

• Meetings are held with group with all required parties in attendance: Workers, Superintendent and/or Supervision, Stewards and CWS Committee members. The current Job Description is reviewed and edited for additions and deletions. Tours of the workplace are conducted so that the CWS Committee can get a feel for the work environment and job duties.

• Recorded changes to Job Description are recorded in G-Form, and a draft Job Description is created to be further reviewed by CWS Committee, Department and workers, any further changes are added until all parties are satisfied.

• Requested changes are recorded and then once the changes are agreed to the CWS Committee sign off on G –Form by adding signatures and proper date.

• The CWS Committee then begins the process to factor the job according to the 12 classification factors by comparing current job factors to other similar jobs within Essar Steel Algoma Inc. or similar jobs in the same industrial sectors.

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CWS PROCESS for JOB REVIEW, cont’d

• The CWS Committee continues to review the 12 factors until they reach an agreement in all 12 factors.

• If an agreement is reached the CWS Committee signs off on factoring, and a formal letter to payroll is prepared from the Company to Payroll stating the overall change and the retro date of the rate change and all workers who have been employed in the position receive their back pay on their pay stubs in the near future.

The final step in the process is to sign off on the New Job Description and the parties maintain hard copies in files both at the Union Office and Company HR Office.

If agreement cannot be reached the Referee Process will be implemented.

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REFEREE PROCESS

Referee Process • Should the Company and the Union be unable to agree upon the

description and/or classification, the following shall be the procedure:

• The Company shall install the proposed classification and the Standard Hourly Wage Rate for the job class to which the job is thus assigned shall apply effective as set forth in Section 6.02 (B) (3);

• 2. The Union C.W.S. Committee may within 30 days thereafter refer in writing to the two representatives designated in 4.02 (B) an allegation that the job is improperly described or classified under 6.02 (B).

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REFEREE PROCESS, Cont’d

• The two representatives selected shall meet within 30 days of the date the matter was referred to them. If either party is unable to meet within the 30 day period, a substitute representative shall he designated by the party concerned and the 30 day period referred to above shall be deemed to commence as of the date of his appointment.

• Within 60 days after the date of their first meeting, the two representatives shall jointly notify the parties hereto in writing of their agreement or failure to reach agreement. Agreement between the two representatives shall be final and binding.

• If the two representatives are unable to reach agreement within the specified period, the Union may, within 30 days of the date of the written notification of the two representatives, notify the Company in writing of it intention to submit the dispute to the last step of the grievance procedure prior to arbitration.

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JOB CLASSIFICATION INSTRUCTIONS

• Fill in the heading spaces as follows:

Department - Same as SAP

Sub Division - Same as SAP or previous

Plant Code - Description Number

Standard Title - No longer needed

Plant Title - Title as listed in SAP

Date - Effective date of new

Supersedes - Date of last known description

Write the necessary information in the following order:

• PRIMARY FUNCTION: Make a brief statement of the fundamental duties of the job, that is, its purpose.

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JOB CLASSIFICATION INSTRUCTIONS (CONT’D)

• TOOLS AND EQUIPMENT: Describe the equipment in sufficient detail to identify the job relative to other similar jobs. List of items, such as equipment, tools or materials, should be written "open end", e.g. "hand tools, such as hammer, pliers and wrenches," or the list should end with "..... Etc". The examples given should be typical of the job but not complete.

• MATERIALS: State materials used and produced, showing size and grade ranges. Lists of materials should end with "..... Etc." Inclusive terms may be used instead of lists, as "Ladle additions" or "Ordinary and alloy grades". No statement of rate of production should be shown in the description, as "tons per hour".

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• SOURCE OF SUPERVISION: State by whom the job is directly supervised. If directed by another workman, describe nature and extent of the direction.

• DIRECTION EXERCISED: Name any other jobs for which the job is responsible for instruction or direction, such as helpers or other positions on a machine. Describe briefly the nature and extent of such direction.

• WORKING PROCEDURE: Describe the duties in chronological order by job steps with only enough detail to give a complete picture of duties. On operating jobs show routine operating cycle duties first and setups, adjustment and irregular duties second. Describe the duties only and not the equipment or process involved. Use short direct statements and eliminate all qualifying words and phrases which are not necessary for clarity.

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• In the case of maintenance jobs, indicate the general types of equipment repaired or serviced, but not a specific list.

Do not show a time breakdown in description.

Do not show any reference to spell time.

Do not list any duties not performed.

• The sentence describing each function of the job should begin with a verb which is explicit and clear cut in meaning.

• Description should not be over one page in length.

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JOB CLASSIFICATION CONVENTIONS

FACTORS 1, 2, 3 AND 4:

In classifying jobs, consider the phase of the job that requires the highest level in each of these factors in the ordinary performance of the job. However, do not classify a job into a higher level because of some auxiliary work or occasionally assisting another workman.

FACTOR 5 - RESPONSIBILITY FOR MATERIAL:

In calculating the probable loss resulting from damage to materials, use the assigned values shown below. All values relating to steel are for low carbon grades. Calculate increased values due to product mix, alloys and additional processing by adding the necessary increments.

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JOB CLASSIFICATION CONVENTIONS (CONT’D)

CoaI .......................................................... $ 4.00 per ton

Coke ......................................................... $ 6.00 per ton

Ore in Yard ............................................... $ 4.00 per ton

Hot Metal in ladle (Iron) ............................ $13.00 per ton

Heavy Melting Scrap ................................ $15.00 per ton

O.H. Steel in ladle .................................... $21.00 per ton

Ingots-stripped carbon steel ..................... $22.00 per ton

Blooms, Billets, Slabs ............................... $30.00 per ton

Conditioned Blooms, Billets, Slabs ........... $32.00 per ton

Bars - light and specialties ........................ $45.00 per ton

Bars – heavy and structurals……………… $36.00 per ton

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Rods (#5) ..............................................………$40.00 per ton

Strip-hot rolled ........................................……..$36.00 per ton

Strip-cold reduced-annealed-temper rolled …..$45.00 per ton

Butt Weld Pipe-hot rolled .........................…….$45.00 per ton

Seamless .............................................……….$50.00 per ton

Wire-drawn 12-1/2 ga............................ ………$46.00 per ton

Show briefly the calculation used in determining the value of the material loss.

Jobs responsible for attending equipment which furnishes power, water or other such service to producing departments will be credited with responsibility for the materials with which they work directly and not with product which may be affected by a failure of the service.

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FACTOR 6 - RESPONSIBILITY FOR TOOLS & EQUIPMENT:

Place the job in proper level for the care required to prevent the type of damage most likely to occur. Select the cost level, low, medium or high by comparison with the bench mark jobs. As a general guide, probable costs not over $200.00 are considered as "low", over $200.00 but not over $1,000.00 are "medium" and over $1,000.00 are "high". Consider the average or most common and not the extreme cases. For instance, the most probable damage to a truck would be below $500.00 and not a complete wreck requiring replacement.

Damage to productive equipment as a result of faulty service or supply of processing material by an attendant job does not warrant assignment of credit on the attendant classification, except when it is beyond the power of the operator responsible for such equipment to take action to prevent the damage.

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FACTOR 7 & 8 - RESPONSIBILITY FOR OPERATIONS AND RESPONSIBILITY FOR SAFETY TO OTHERS:

Follow instructions given in the factor definitions.

FACTOR 9 & 10 - MENTAL EFFORT AND PHYSICAL EFFORT:

Classify all jobs on the basis that no enforced idle time exists, such as wait for materials, wait for crane service, wait for instructions, etc.

FACTORS 11 & 12 - SURROUNDINGS AND HAZARDS:

Follow instructions given in the factor definitions.

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FACTOR 9 - MENTAL EFFORT:

Consider the mental or visual concentration and attention required by the job for the performance of work at normal pace. Select that level which best describes the average degree of concentration and attention required throughout the turn.

FACTOR 10 - PHYSICAL EFFORT:

Consider the muscular exertion required by the job when the employee is performing at a normal pace. Select that level which best describes the average degree of muscular exertion required throughout the turn.

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FACTOR 11 - SURROUNDINGS:

Consider the general conditions under which the work is performed, other than hazard and the extent to which these conditions make the job disagreeable. Select the description from the table which best describes the average working conditions for the job.

FACTOR 12 - HAZARDS:

Consider the probability and severity of injuries to which the workman is exposed, assuming that the workman is exercising reasonable care in observing safety regulations.

The total classification is equal to the total of the 12 factors plus any Convention Additives (maintenance positions only). Classification will only change if the change is greater than 1 point.

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joint presentation co-operative wage study fall 2014

Documents

given job

system of job classification

job content analysis

body of job descriptions

wage administration

craft jobs

maintenance jobs of

classification values