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May 8, 2009 Mr. Ian Brown President Gas Workers Union, Local 340 312 Central Avenue S.E. Minneapolis, MN 55414 RE: Pension Plan Dear Mr. Brown: This will confirm our discussions during negotiations regarding the CenterPoint Energy, Inc. Retirement Plan (“Pension Plan”). Although issues related to the expiration of the “grandfather provision” of the Pension Plan were resolved last fall, based on current economic conditions, the Union has expressed concern about future potential changes to the Pension Plan. The Company’s general intent is that Local 340 represented employees should not be advantaged or disadvantaged compared to other Company employees as the result of any future changes to the Pension Plan. The Company has no present plans to make any material changes to the Pension Plan and is committed to the principle that if any changes are made in the future, they would be implemented on a uniform basis for all employees, including employees represented by Local 340. We will provide you advance notice of any future changes and discuss them with you before such changes are implemented. Yours truly, Accepted and Agreed, Michael I. Fahey Ian Brown Director, Employee Relations President, Local 340

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Page 1: RE: 2008 Safety Recognition and Incentive Program for ... Web view08/05/2009 · Under the 2008 Safety Program an employee’s STI is adjusted based upon performance in the following

May 8, 2009

Mr. Ian BrownPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Pension PlanDear Mr. Brown:

This will confirm our discussions during negotiations regarding the CenterPoint Energy, Inc. Retirement Plan (“Pension Plan”).

Although issues related to the expiration of the “grandfather provision” of the Pension Plan were resolved last fall, based on current economic conditions, the Union has expressed concern about future potential changes to the Pension Plan.

The Company’s general intent is that Local 340 represented employees should not be advantaged or disadvantaged compared to other Company employees as the result of any future changes to the Pension Plan. The Company has no present plans to make any material changes to the Pension Plan and is committed to the principle that if any changes are made in the future, they would be implemented on a uniform basis for all employees, including employees represented by Local 340. We will provide you advance notice of any future changes and discuss them with you before such changes are implemented.

Yours truly, Accepted and Agreed,

Michael I. Fahey Ian BrownDirector, Employee Relations President, Local 340

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May 8, 2009

Mr. Ian BrownPresidentGas Workers Union, Local 340312 Central Avenue S.E., #592Minneapolis, MN 55414

RE: Utility Apprentice Job Classification

Dear Mr. Brown:

This will confirm our discussions during negotiations regarding the creation of a Utility Apprentice job classification.

The Utility Apprentice would be subject to assignment at the discretion of the Company to perform work across several different functional areas, including Gas Operations, and Gas Engineering/ Technical Services. The work performed by this position would include duties in construction and maintenance, field collection activities, atmospheric corrosion inspections, service line surveys and test point readings, ERT investigations, painting meters and risers, meter age change work, meter shop work, minor maintenance and operational support duties in Peak Shaving, and other duties as assigned.

The start times and day off patterns for employees assigned to the Utility Apprentice position will be determined by the Company based on operational needs.

The Utility Apprentices will be required, as a condition of continued employment, to enroll in and remain in good standing in the Company’s Gas Fitter’s Apprenticeship Program. The Union agrees to cooperate with the Company and support any amendments that may be required in connection with our Gas Fitter’s Apprenticeship Program to accommodate creation of the Utility Apprentice position. A Utility Apprentice employee who completes four years of service in such position may move (without a posting) into a first year C&M Mechanic Operator position subject to passing applicable assessments. Such employee may also bid for other positions within the Company for which the employee may be qualified.

The 05/01/08 wage scale for the Utility Apprentice position will be:After 5th year $20.63After 4th year $20.13After 3rd year $19.63After 2nd year $18.63After 1st year $17.70During first year $16.77

If the above meets with your approval, please sign below.

Yours truly, Accepted and Agreed,

Michael I. Fahey Ian BrownDirector, Employee Relations President, Local 340

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May 8, 2009

Mr. Ian BrownPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: 2008 Safety Recognition and Incentive Program for Regulated Gas Operations

Dear Mr. Brown:

This will confirm our discussions and agreement regarding the 2008 Safety Recognition and Incentive Program for Regulated Gas Operations (2008 Safety Program).

This will confirm that the Union agrees to accept the 2008 Safety Program on the same terms and conditions as other Company employees. Under the 2008 Safety Program an employee’s STI is adjusted based upon performance in the following three safety STI metrics:

Recordable Injury Rate (RIR) Lost Time Injury Rate (LTIR) Preventable Vehicular Collision Rate (PVCR)

If an employee has a recordable injury or illness for the previous calendar year, that either results in medical treatment, restricted work, or lost time as defined by OSHA guidelines and determined by CenterPoint Energy’s Case Management group that is a result of an employee not following established and documented safe work practices or procedures; or, if an employee has a preventable vehicular collision for the previous calendar year as determined and ruled by one of the CenterPoint Energy Gas Operations Vehicular Collision Review Committees, then the employee shall receive a 25 percent reduction of the discretionary portion of their STI payout (12.5% of their total STI payout). Additionally, if an employee has two recordable incidents, which is any combination of recordable injuries (including lost time incidents) that are the result of an employee not following established and documented safe work practices or procedures, or preventable vehicular incidents, then the employee shall not receive any STI payout for that calendar year. (Note: Employee would not be charged, however, for two (2) occurrences from one event; i.e. -- PVC resulting in RI.)

It should be noted that if an employee commits a significant breach of a safety protocol, the employee could lose all of the STI payout (even with one incident) when given a performance ranking of “needs improvement.”

Nothing in this agreement precludes the Union from contesting the factual basis of the Company’s determination that a vehicle collision was preventable or from arguing that an employee’s recordable injury or lost time injury was not the result of the employee’s failure to follow established and documented safe work practices or procedures.

If the above meets with your approval, please sign and return a copy of this settlement letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey Ian BrownDirector, Employee Relations President, Gas Workers Union, Local 340

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May 8, 2009

Mr. Ian BrownPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Driver Policy Grievance #A-01-001Dear Mr. Brown:

This will confirm our recent discussions regarding the Company Driver Policy which was originally implemented effective September 1, 2000. We appreciate the input and concerns expressed by your Grievance Committee concerning the Driver Policy and as a settlement to the above grievance, we have agreed to amend the Driver Policy to include the following provisions:

The initial policy was applied retroactively to all Motor Vehicle Record (MVR) convictions which appeared in an employee’s record for the three years preceding the date on which we obtained the MVRs (December, 2000). With the exception of reckless or careless driving convictions, convictions involving the use of alcohol or drugs (DWI, DUI, etc.), or any actual suspension on a driver’s license, the Driver Policy will only be applied prospectively from the effective date of September 1, 2000, and the three year period for review of an MVR record will begin from September 1, 2000 (subject to the exception noted above).

Any disciplinary actions issued to employees as a result of the MVR checks which were run in December, 2000, will be rescinded and will be of no force and effect. The safety notices issued to employees in December of 2000 informing them of their Driver Policy point total at that time will be considered non-disciplinary informational notices.

An employee responding in a company vehicle to an emergency who is ticketed and convicted for an overweight vehicle will not be assessed any points under the Driver Policy.

Convictions for defective vehicle, defective brakes and defective equipment will be considered under the Driver Policy only insofar as they involve a company assigned motor vehicle.

Minor convictions which occur in connection with an employee’s use of a recreational vehicle (i.e.; boat, snowmobile, jet ski, 4-wheeler, etc.), will not be considered for purposes of assessing points under the Driver Policy. Minor convictions as used herein includes “no wake” convictions as well as all other non-moving violations. An employee who exceeds 10 points due solely to recreational vehicle convictions will be handled on an individual basis.

Except as stated above, the remaining provisions of the Driver Policy remain as stated in the Company’s Human Resources Company Driver policy as amended effective December 18, 2008.

If this settlement meets with your approval, please sign and return a copy of this letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey Ian BrownDirector, Employee Relations President, Local 340

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August 20, 2008

Mr. Ian BrownPresidentGas Workers Union, Local 340312 Central Avenue S.E., #592Minneapolis, MN 55414

RE: CenterPoint Energy, Inc. Retirement Plan

Dear Mr. Brown:

On August 13, Ira Winsten and I met with members of your Labor Management Committee team and communicated the Company’s effort to address the concerns of members of the CenterPoint Energy, Inc. Retirement Plan. This transmittal letter formally communicates the nature of the changes that are being offered to Local 340-represented employees.

As previously communicated, the Pension Protection Act (PPA) of 2006 changed the way retirement plans may calculate lump sum benefits effective January 1, 2008. Absent action by the Company, the frozen prior plan annuity benefit formula would be subject to this PPA conversion rate and, based on actuarial forecasts, lump sums resulting from such conversions would be subject to potential decreases depending on the year in which someone commenced their pension benefit.

In order to protect plan participants from the impact of PPA on future lump sum benefits, the Company proposes to calculate post-2008 lump-sum benefits from the frozen formula using an interest rate based on the 30-Year Treasury rate for 2008 of 4.52% to create a restated 1/1/2009 cash balance. By locking in the 4.52% conversion rate as of 12/31/08, we are preventing the frozen “A” lump sum portion of the pension benefit from likely decreasing in the future. In addition:

Company proposes to provide a “B” benefit functioning similarly to the cash balance formula to credit grandfathered participants with 5% of pay beginning in 2009. If accepted, Plan participants will receive the greater of the winning “A” benefit, plus the new 5% “B” benefit beginning 1/1/2009. If accepted, the “B” benefit for non-grandfathered participants (those hired on or after 1/1/1999) will also be 5% of pay beginning 1/1/2009.

The 30-Year Treasury rate for November of each year will continue to be used to determine interest growth on both the new restated cash balance and the new “B” 5% cash balance additive benefit for grandfathered participants. It will also be used for the non-grandfathered participants’ cash balance plan as well.

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Mr. Ian BrownAugust 20, 2008Page -2-

Company proposes to change the company match in the Savings Plan to dollar for dollar up to 6% of pay beginning in 2009 with the understanding that the discretionary match will be eliminated effective 1/1/2009.

I believe that this information, reflective of the plan design changes described above, fully represents the company’s effort to address the concerns of both the grandfathered and the non-grandfathered members of the Retirement and Savings Plans. These changes are being offered to Local 340-represented employees as part of CenterPoint Energy’s common approach to benefits for all employees. They are being made for all other CenterPoint Energy Minnesota Gas employees on a uniform basis and are being offered to all Local 340-represented employees on the same basis pursuant to the provisions of Article 30 of the CenterPoint Energy Minnesota Gas/ Local 340 labor contract and the May 3, 2006, Letter of Agreement between the Company and Local 340 on the Pension Grandfather Provision. The Union’s acceptance of these changes, confirmed by the Union to the Company in a timely manner, will be considered as an agreement to apply benefits on a uniform basis effective January 1, 2009. Specifically, the Union acknowledges that the $5000 Company-provided retiree life insurance will cease for all employees who retire and cease active employment as of that date and thereafter since that is not a uniform benefit offered to other employees.

It should also be understood that the Retirement Plan and Saving Plan changes represented in this letter require amendments to the Retirement and Savings Plan that must ultimately be submitted to and approved by the Board of Directors of CenterPoint Energy, Inc. While I am confident that these changes will ultimately be approved by the Board, this offer and the Union’s agreement to it must be considered conditional upon that approval.

If you have any remaining questions regarding these changes, please call me. If you agree with the terms of this letter and the changes set forth herein, please sign and return a copy of this letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey Ian BrownDirector, Employee Relations President, Local 340

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May 3, 2006

Mr. Michael EverettsPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Part-Time Employees Dear Mr. Everetts:

This will confirm our discussions during negotiations regarding the Company proposal’s to allow the use of part-time employees. Only Local 340-represented employees who are employed on the date of signing will be eligible to participate on a voluntary bid basis. Should the Company move forward with the plan, the following shall apply:

1. Part-time employees who are scheduled to work 1000 hours or more in a calendar year are eligible for sick leave, vacation, personal holidays and holiday pay on a pro rata basis based on their normal work schedule as established by their supervisor. They are also eligible to participate in the short-term incentive program and the insurance and savings plan programs, with the same premium rates and range of benefits as full-time employees.

2. Part-time employees are not eligible for funeral leave, jury duty pay, paid volunteer time, or paid volunteer time.

3. Part-time employees will receive the same rate of pay they held immediately prior to entry into the

part-time position or the current wage for their position and level, whichever is greater. 4. Part-time employees will be paid overtime at the rate of time and one-half for all time worked in

excess of eight hours in a day or in excess of 40 hours in a week. Double time will be paid for hours worked on a named holiday and for work in excess of eight hours on a Sunday.

5. Part-time employees will pay Local 340 Union dues on a prorated basis using the same formula as full-time employees. The Company will continue to collect and submit Union dues to Local 340.

6. The Company will notify the Union when part-time employees are posted for bid.

7. Part-time employees will bid vacations and work schedules separately from full-time employees.

8. Part-time employees will only be eligible for call-out overtime and overtime on holidays and Sunday after all full-time employees have been offered overtime.

9. There will be no layoffs of full-time employees while part-time employees are working.

10. The Company will determine the number of part-time slots. In the event that there are more signers than openings, seniority shall prevail.

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11. Except as provided in this letter, all other provisions of the Local 340 Agreement will apply to part-time employees.

12. The parties agree to meet and discuss the part-time positions and schedules prior to the time they are initially posted. The posting will include the number of positions available. The schedules will be posted for 1000 or more hours; however, an employee may elect to be scheduled less than 1000 hours on a voluntary basis.

13. The parties will discuss any issues regarding the use of part-time employees on an annual basis at the LMC level.

This letter will remain in effect for the duration of the current contract and any extensions thereof. If it meets with your approval, please sign and return a copy of this letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey Michael EverettsDirector, Employee Relations President, Local 340

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May 3, 2006

Mr. Michael EverettsPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Sick Leave

Dear Mr. Everetts:

After considerable and lengthy discussions during negotiations regarding the use of sick time, the Union recognizes that regular attendance of employees is a reasonable expectation of the Company and may be considered as part of an employee’s performance review/rating. (Note: attendance will be one of a number of factors considered in an employee’s performance.) The Union does not condone the misuse or abuse of sick time, and recognizes that employees should only use sick time when they are unable to work due to illness or injury. The Company recognizes that employees who are unable to work due to illness or injury have a right to use sick time, and may have other leave rights prescribed by law.

If the Company has a reasonable basis to believe that an employee is misusing or abusing sick time, the Company may request that the employee who calls in sick or injured submit a doctor’s certificate from a physician (or other appropriate healthcare professional) confirming that the employee has been examined and is ill or otherwise disabled from working. The Company may also continue its current practice of requiring fitness for duty certificates for employees who are absent for three or more days from work.

Yours truly, Accepted and Agreed,

Michael I. Fahey Michael EverettsDirector, Employee Relations President, Local 340

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June 3, 2002

Mr. Michael I. FaheyDirector, Employee RelationsReliant Energy Minnegasco800 LaSalle AvenueMinneapolis, MN 55402

RE: Mandated Overtime in the H.S.P. Department

Dear Mr. Fahey:

During negotiations, representatives of the Company and the Union spent considerable time discussing overtime and mandated overtime in the H.S.P. Department.

Both the Union and the Company recognize that in the service repair business there will be peak times which will require overtime to meet customer demands. The Union has stressed it does not want the Company to use subcontractors for these peak times. Both the Union and the Company realize that the overtime asked for and required can be a hardship for the employee and their family.

The Company has agreed that in order to reward employees that have been working the overtime, and to entice more technicians to work overtime during the light-up season (September-November) or any other month in which the Company enacts the 40-hour rule for mandated overtime, the Company will issue “Award Dollars” in the amount of $75.00 for anyone working 24 hours of overtime per month and additional $75.00 for working 40 hours or more per month.

The Company will give as much advance notice as possible for any mandated overtime.

Yours truly, Accepted and Agreed,

John L. Hennessy Michael I. FaheyPresident, Gas Workers Local 340 Director,

Employee Relations

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April 17, 2002

Mr. John HennessyPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Bidding of Work Areas

Dear Mr. Hennessy:

This will confirm our agreement during negotiations to incorporate the following elements into the Company's procedures for the establishment and bidding of work areas for Service Technicians in Minnegasco Home Service Plus.

1. Work areas will be established by the Company, with input from the Union, and posted for bid by shift, and seniority at least annually (in six month blocks, e.g.; October - March; April - Septem-ber). Work areas may also be rebid as determined necessary by the Company to meet operational needs and will be rebid if the Company makes any significant changes in the take-home vehicle policy in the future (e.g.; discontinuance of take-home vehicles, etc.).

2. For each work area, Advanced Service Technicians, Level 1, 2, and 3 will be bid by seniority. Service Technicians will also bid by seniority. The percentage of Service Technicians in any quadrant will not exceed 50% of the Service Technician classification. This percentage will not include rotating Technicians or 4-12 assigned Technicians.

3. For each work area, Appliance Repair Technicians and Advanced Appliance Repair Technicians will bid together by seniority as a separate group from Service Technicians.

4. The Company will designate the skill area (i.e.; laundry or kitchen) of all employees upon completion of their probationary period. Employees in their probationary period will continue to be assigned at the discretion of the Company to general skill work in a work area determined by the Company.

5. In those areas where a gasfitter's certificate is required (i.e.; Minneapolis, Edina, etc.), 35% of the technician requirement for those areas will be filled with technicians who have a gasfitter's certificate. If sufficient coverage is not obtained in such areas through bidding, junior employees with a gasfitter's certificate will be assigned in reverse seniority order until the 35% coverage level is attained.

If the above meets with your approval, please sign and return a copy of this letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey John L. HennessyDirector, Employee Relations President, Local 340

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December 18, 2001

Mr. John Hennessy PresidentGas Workers Union, Local 340 312 Central Avenue S.E. Minneapolis, MN 55414

RE: Ten-hour Four-day Workweek

Dear Mr. Hennessy:

This will confirm an agreement under the following conditions to make available ten-hour, four-day workweeks for Home Service Plus Technicians.

1. The ten-hour, four-day workweeks begin January 1, 2002, and end on December 31, 2002.

2. The workweek consists of four consecutive ten-hour days at the published straight-time rate.

3. Normal days off will be Friday, Saturday, and Sunday for approximately one-half of the department, and Saturday, Sunday, and Monday for the remaining one-half. These days off will alternate on a three-week basis; however, Management will have the right to designate the division of personnel in order to accommodate workloads.

4. Overtime, when assigned, is paid for hours exceeding ten hours in one day or forty hours in one week. Overtime will be paid at one and one-half times the straight time rate unless otherwise specified in the labor contract.

5. Day off overtime for the ten-hour shift will be as stated in Article 14 of the Union Agreement.

If ten-hour shifts need to be rotated, those rotating will be offered them as either eight or ten-hour shifts.

If the ten-hour shifts are dropped, affected technicians will go to regular eight-hour, ten on four off shifts. Twenty-year technicians, however, will be assigned shifts according to Article 14, Section 9, of the Union Agreement. .

6. Sick leave and vacations are charged on a ten-hour basis. Funerals are charged on an eight-hour basis plus two hours of vacation.

7. During any week when a holiday occurs, all employees will work three ten-hour days and be charged two hours of vacation time.

Yours truly, Accepted and Agreed,

Michael I. Fahey John L. HennessyDirector, Employee Relations President, Gas Workers Local 340

Cc: John Pierce

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December 18, 2001

Mr. John Hennessy PresidentGas Workers Union, Local 340 312 Central Avenue S.E. Minneapolis. MN 55414

RE: Every Other Weekend Shift Days Off

Dear Mr. Hennessy:

This will confirm an agreement that allows Home Service Plus Technicians assigned to work every other weekend to choose their days off during the week (Monday - Friday). The agreement will be in effect from January 1, 2002, through December 31, 2002.

1. The days off are not required to be consecutive.

2. If technicians do not specify days off, they will be assigned consecutive days off according to the shift schedules.

3. Selections must be approved by Work Planning.

4. Labor or Management with thirty days prior notification may rescind this agreement.

Yours truly, Accepted and Agreed,

Michael I. Fahey John L. HennessyDirector, Employee Relations President, Gas Workers Local 340

Cc: John Pierce

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February 19, 2001

Mr. John HennessyPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE:Advanced Appliance Repair Technician & Special Appliance Repair Technician Positions

Dear Mr. Hennessy:

This will confirm our discussions regarding the Company’s desire to establish two new positions within the Appliance Repair job family: Advanced Appliance Repair Technician and Special Appliance Repair Technician. The Company believes these new positions are necessary to promote retention of Appliance Repair technicians by providing them with the opportunity for career and salary advancement.

Job descriptions for these two new classifications are attached to this letter.

The Advanced Appliance Repair Technician will not be a posted position. To qualify for this position, an employee must have three years of experience as an Appliance Repair Technician or, for Service Technicians, a combined total of three years of experience covering two skills. The employee must also enroll in and make satisfactory progress in the company-sponsored Gasfitter Apprenticeship Program and must obtain a Gasfitter Competency Card from the City of Minneapolis within 18 months after becoming eligible to test. Demonstrated experience in both the kitchen and laundry skills will also be required.

The Special Appliance Repair Technician will be a posted position. In order to qualify, an employee must possess a gasfitter card and have three years of experience as an Advanced Appliance Repair Technician or, for Service Technicians, a combined total of three years of experience covering two skills, including demonstrated experience in both kitchen and laundry skills. In addition, the Gasfitter Certificate will be waived for this initial Special position on the condition that the employee selected enroll in the Company’s Gasfitter Apprenticeship Program and obtain a Gasfitter Certificate within 18 months after becoming eligible to test.

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Special Appliance Repair Technicians will not be eligible to courtesy post for Master Service Technician positions.

We are proposing the following pay rates for these new classifications:

Advanced Appliance Repair Technician: 05/01/00 05/01/01 Expert $18.34 $18.982nd Year $17.89 $18.511st Year $17.45 $18.06

Special Appliance Repair Technician: 05/01/00 05/01/01 Expert $20.30 $21.012nd Year $19.87 $20.571st Year $19.38 $20.06

We would like to move forward with the establishment of these positions as soon as possible and would appreciate your early consideration. If this concept meets with your approval, please sign and return a copy of this letter to my office.

This will also confirm that as part of our discussions, the Company has agreed to fill and post the Master Service Technician position recently vacated by Ron Kubes. The Company also acknowledged that the new Field Trainer positions in HSP were created to improve the training, coaching and field assessment of service technicians and not to replace Master Service Technicians. The Company also agrees to maintain the current complement of Master Service Technicians through the duration of this Letter of Agreement.

This Letter of Agreement will remain in effect for the duration of the current Minnegasco / Local 340 Agreement, including any extension thereof.

Yours truly, Accepted and Agreed,

Michael I. Fahey John L. HennessyDirector, Employee Relations President, Local 340

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February 9, 1998

Mr. John HennessyPresidentGas Workers Union, Local 340312 Central Avenue S.E.Minneapolis, MN 55414

RE: Workday Policy GrievanceDear Mr. Hennessy:

This letter will confirm our discussions regarding clarification of the workday policy grievance settlement in view of the Company's establishment of new work areas and start zones within such work areas.

The Company has established four work areas within the metropolitan area for Local 340 Home Care Services crews. Four (4) start zones have been established within each of these work areas as outlined in maps prepared by the Elapsed Time Subcommittee on work areas which included Ray Thompson, Mike Everetts and Tom Veldhouse (copy attached). Work schedules showing shift, days off and skill area will be posted for each of the work areas for bidding by Service Technicians. In conjunction with bidding of work areas, Technicians will be asked to indicate their preferred start zone. Assignments to start zones will be made by the Company with due consideration to seniority and skill area.

The Company may need to change work areas or start zones in the future to meet business needs; however, prior to making such changes, we will meet with the Union to address business issues involved and to explore ways to minimize the potential impact of the changes on employees. We are also willing to work with representatives of Local 340 as necessary to address issues related to the establishment and operation of these new work areas and start zones.

We have agreed to retain the following provisions from the original workday policy grievance settlement, with clarifications to incorporate the start zone concept we discussed.

1. a. Monday -- Saturday Day Shifts and Monday -- Saturday 1:00 p.m. to 9:00 p.m. Shifts: • If an employee's first job is in his/her assigned start zone within his/her work

area, or closer to home than the start zone, the employee will be at such job at the start of the shift.

• If an employee's first job is outside the employee's assigned start zone, and not closer to home, the employee will start his/her shift from the center of his/her start zone and then proceed to the first job.

• For jobs at the end of an employee's shift which are outside the employee's assigned start zone, and not closer to home, the employee will be paid for driving time which is in excess of the time usually required to drive the distance between the employee's home and the center of his/her assigned start zone.

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Mr. John HennessyFebruary 9, 1998page -2-

b. All Sunday and Holiday Shifts and All 4:00 p.m. to 12:00 a.m. and 12:00 a.m. to 8:00 a.m. Shifts: • At the start of each work shift, an employee will commute (on the employee's

own time) to his/her assigned start zone within his/her work area and, promptly after arrival in such start zone, log on to his/her MDT for assignment to the first job.

• An employee whose last job is within the normal Local 340 work areas which are posted for bid will be compensated for any driving time which is in excess of 30 minutes from the last job to the edge of the closest start zone nearest the employee's home. A maximum of 30 minutes driving time will be paid.

• An employee whose last job of the day is outside the normal Local 340 work areas posted for bid (e.g.; St. Paul) will be compensated for driving time from such last job to the borderline of the closest Local 340 start zone, plus any driving time which is in excess of 30 minutes from such borderline to the edge of the closest start zone nearest the employee's home (maximum of 30 minutes).

2. The provisions set forth in paragraph one above apply only to employees in the Home Care Services Division. The Union agrees that all other Local 340 employees will continue to be covered by the terms of the Company's Workday Policy which was effective September 1, 1995.

3. This agreement does not change the Company's current policy regarding employees who report to meeting sites outside their assigned work area and no commuting time will be paid for such meetings.

4. This settlement agreement is without precedent or prejudice to the position of either party relative to future changes which may take place in the Company's workday policy. This agreement will run concurrently with the duration of the basic Minnegasco/Local 340 Agreement and any extensions of such basic agreement.

If the above meets with your approval, please sign and return a copy of this letter to my office.

Yours truly, Accepted and Agreed,

Michael I. Fahey John L. HennessyDirector, Labor Relations President, Local 340

cc: Ray ThompsonJulie Stenslie