ate the wage structure applicable to existing cousin flecos Such hourly wage rales, together with all incentives towin ich habe sul remain in effect during the term of this agreements adjusted, or supplemented in the manner prescribed in this article is recognized that the company, at its discretion, may also find stay or do time to time to establish new incentive rates of todasteiningen 1. Changes, modifications, or improvements made in equipment materiale prodot If there is any such change, modification, or improvement in casting point stablishment of a new rate by discussing such request with Is In the beat that to intement is reached in respect to the employce's Tequestesse may be filed by och sployee within ten calendar days after such changes or events in our he company did not have the right to establish a new or adjusted the destructure is close W. as the result of a grievance being processed under this Section B, it is determined that her to the new or adjusted rate shall be reinstated as of the creuve of the more Did the changes made in the department satisfy the circumstansoked in the prema 2 ya the affected employees have a legitimate grevance under the CBA la S. you were the arbitrator, would you allow the combine the would allow the company to eliminate the incentive pay New and Changed Rates herause of any of the following circumstances: material or on an existing product, the company may change the elements of the ne watt. The company will calculate retroactive payment to the extent pasienter the price Source: Adapted from Timken Co., 85 LA 377 (1985) any be Biato hala ild be this 4. Wage Rates eing ated ees. OU 30 ve un ed or rates affected by such change, modification, or improvement but will not change the elements not affected by such change, modification, or improvement 2. New or changed standards of manufacture in (a) processes; (b) methods and (c) quality. 3. Changes in the duties of an occupation covered by incentive rates that affect the existing incentive standards. Whenever it is claimed by any employee that any of the changes or events have accused the et outlined in Paragraphs 1, 2, and 3 of the preceding Section Bois Ancle ampie who is affected thereby, either (1) by the production of product or (2) by being employed as a merupation affected by such claimed changes or events outlined in said purple, muy repotte The structure QUESTIONS Explain your answer. If the practice began as an error on the part of a payroll clerk, would that fact change you The company had an incentive pay rate in place that could increase the employees' pay by 30 percent over their base pay. Citing changed circumstances, the employer eliminated the incentive puy for one department. The union appealed. The collective bargaining agreement (CBA) in place at the time of the grievance reserved all management rights to the company unless restricted rates were also included in Article V of the agreement, unless changes to the incentive rates were a result of the changed circumstances previously cited. If this was the case, employees affar by the changes were given the right to grieve the application of the changed incentive rate. Wher the incentive pay was totally eliminated for one department, the union grieved on behalf of the It was the company's position that significant changes of equipment and operations agreement. A new mechanical device had eliminated the need for fracture tests of fun the affected department authorized the unilateral elimination of the incentive pay under The employees in the department had been reduced from 6 Head Operators, 22 Attendor Carbarizing, and A Becorder Optical Pyrometers to 3 Head Operators and 4 Attendants. 7 classification of Recorder Optical Pyrometer was completely eliminated because the dise were no longer needed. The company's interpretation of the contract language was thar changed circumstances allowed the company to eliminate unilaterally the incentive as part of the employees wages, and the company could not unilaterally eliminate the in puy. New or change rates cow be negotiated as circumstances dictated, but eliminating Anicle of the agreement established wages to be paid and specifically continued during The union's position was that the CBA contemplated the incentive pay being keprie dar henet 2. Should the com renegotiated? Does it change for three years? 2. The parties did not know why the company began opinion as to how to decide this case? Case Study 7-2 Incentive Pay by the language of the agreement. the term of the agreement all incentive rates in existence at the time of the agreement excepting only the company's right to establish new incentive rates or to adjust existing incentive rates" under certain conditions listed in the agreement. Those conditions include changes, modifications, or improvements made in equipment involved in an incentive pay ceas new or changed standards of manufacturing and changes in job duties of those affected Procedures on how the company was to proceed to establish new or changed incentive by incentive pay. affected employees. tema ming employees ht pay completely was not allowed