IAM W15

IAM W15

International Association of Machinists and Aerospace Workers

W15

News

Weyco Severance (Mtn. Pine)

12/13/2006
MEMORANDUM OF AGREEMENT

Between Weyerhaeuser Company – Mid-South Operations
And the
International Association of Machinists and Aerospace Workers, Woodworkers District II, Local Lodge W 15

A decision has been made by Weyerhaeuser Company to close the Plywood and Veneer operations in Mountain Pine, Arkansas, and the Company has so notified employees and the IAM&AW, Woodworkers District II, and its Local Lodge W 15.

This agreement constitutes the full and final resolution of all issues under the labor agreement and the sole and exclusive agreement between the parties with respect to the effects of these actions on the Bargaining Unit employees and to all other matters pertinent thereto. The parties desire to conclude a final and binding agreement with respect to the effects of said events on Bargaining Unit employees and, therefore, enter into the following:

Eligibility for Severance
Although the Company has no policy, which requires it to make severance payments, the Company agrees to make voluntary severance payments under the following terms and conditions:
• Employees must remain on the payroll in good standing until released in order to receive severance.
• Terminate employment with Weyerhaeuser Company.
• Option forms must be completed and shall be binding as of the date of declaration.

Severance Pay
In lieu of all rights under the labor agreement, those employees with more than one year of service, who meet the eligibility requirements above shall receive severance pay equal to forty (40) hours straight time pay for each full year of continuous service, less required deductions, up to a maximum of twenty-six (26) weeks, based on the following:
• Severance payments are based according to the employee’s full years of continuous service beginning with the last hire date. Calculations shall begin on the date of termination.
• If the employee returns to work for Weyerhaeuser Company at any location within the severance period (beginning with the date of termination), the employee agrees to return a prorated portion based on the severance period and date of return. (See attachment #1)
• Continuous service shall be measured from the employees’ last date of hire.

Vacations
Employees will receive pay for vacation earned, not paid according to the labor agreement. They will also be eligible for pro-rata vacation earned between their last anniversary date and the date of termination provided they have one year of service. Pro-rata vacation will be based on one-twelfth (1/12) per month for the months he or she did work. One hundred seventy-three (173) hours shall constitute a month.

Health and Dental
Active coverage will continue through the end of the month in which the employee is terminated.

Disability and Life Insurance Benefits: Short Term disability terminates when the employee is no longer at work. Long term disability and Life Insurance coverage ceases upon termination. Life insurance coverage may be converted to an individual policy by calling the carrier.

COBRA Continuation
The Company will pay the full premium toward health and dental COBRA costs for the first three (3) months of the initial 18-month period. The employee must enroll in COBRA when first eligible to receive the company subsidy. If during the 3-month subsidy period, other coverage becomes available, subsidized COBRA would no longer be available per COBRA guidelines.

Pensions
All employees will be 100% vested in Weyerhaeuser Pension Plan at the time of termination. Accrued benefits will be paid pursuant to the terms and conditions of the plan. Employees with less than $5,000 present value will receive a lump sum payment; requests may be made to Vanguard upon termination.

401(k)/PSP
Employees will be 100% vested at the time of termination. Employees with a combined present value upon termination of $1,000 or less will automatically receive a lump-sum payment, if the combined total is greater than $1,000 but less than $5,000 the balance will be rolled over to a Vanguard individual retirement account (IRA). However, if a distribution request form is requested and completed, other distribution options may be available.

Unemployment Compensation
Whether an employee qualifies for unemployment or not is a decision made by the State. Employees receiving severance pay in accordance with this agreement will be reported “terminated through no fault of their own.”

Tuition Refund:
Tuition refund will be available to any employee leaving the Company with more than one year of continuous service as follows:
• The available benefit is 80% of tuition, fees and books, up to a maximum of $2,000.
• Benefit is available for a maximum of 24 months from the date of employee’s termination.
• Once an employee enrolls, the benefit is payable for 12 months and the course of study is to be completed within the maximum 24-month period.

Preferential Hiring and Relocation Allowance:
Weyerhaeuser Company will give consideration, in other Weyerhaeuser locations where there may be mutual interest. To be considered for transfer, interested employees must indicate an interest and complete all required forms. This does not guarantee re-employment but does provide an opportunity for each laid-off employee to be considered for employment prior to the filling of an opening by outside hire.

Employees accepting an offer of employment at another Weyerhaeuser Company facility will have a maximum of thirty (30) days to decide whether to permanently accept employment at the receiving facility or to receive severance from their former facility. The receiving facility shall likewise have a maximum of thirty (30) days to evaluate and decide whether to permanently retain the new employee, if not the employee shall be eligible for severance.

Employees who accept full-time permanent employment in any other Weyerhaeuser operation are not eligible for severance. They will however, be entitled to a one time cash payment based on mileage. After the 30 day evaluation period an employee who accepts an offer of transfer shall be eligible for the following relocation allowance. This allowance is administered by the Relocation Dept. in Federal Way.

$1,000 – between 51 and 400 miles
$2,000 – between 401 and 800 miles
$3,500 – between 801 and 1,500 miles

Job Search Assistance
The Company will make available through the appropriate government agency, job search assistance to all employees requesting assistance who are terminated as a result of this closure. Such assistance includes searching for potential employers, coordinating pre-employment testing, interview skills training, and administrative support.

Career Counseling
The Company will make available through the appropriate government agency, professional career counseling services for all employees affected who request such services.

In Witness whereof, the parties hereto have caused this Agreement to be executed by their duly authorized representative this 11th day of December, 2006.

Weyerhaeuser Company

IAM&AW Woodworkers District II, Local Lodge W15

ATTACHMENT #1

ACKNOWLEDGMENT

I hereby elect to terminate my senority with Weyerhaeuser Company and receive severance pay in accordance with the terms of the Severance Agreement between Weyerhaeuser Company and the IAM&AW and its Local Lodge W 15. I understand that I cannot be re-employed by the Company or any subsidiary or affiliate of the Company whether in a salaried, hourly, temporary or full-time capacity (without paying back unused severance if hired back before the payment period has expired)..I further understand that I cannot be retained as a consultant or contractor by the Company without repaying any unused portion of severance based on the severance period. ___________________________ __________________ Employee Signature Date ___________________________ __________________ Weyerhaeuser Representative Date

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Last modified: 12/13/2006