APPENDIX A - MEMORANDA OF UNDERSTANDING


MOU I Certificate Requirements**
This Memorandum is intended to set out the parties’ understanding of the Corporation’s certificate requirements for Chief Officer, Mate (ASTO, Minor and Intermediate Vessels), and Second, Third and Fourth Officer (Crews). Without prejudice to the Corporation’s residual right to establish certificate requirements and selection criteria, it is understood that except for regulatory changes or significant changes in the Corporation’s operation, the certificate requirements identified herein shall remain in place for the foreseeable future. It is also understood that should the regulations or operations change, the parties shall meet to discuss the impact of such changes.

The parties acknowledge the following:
1. The Corporation has set the minimum certificate requirement for a Chief Officer, Large, Northern, Spirit, and Pacific Cat Vessels, and for an ASTO Mate, Minor Vessel at a CN1 certificate (Master Local Voyage). This certificate enables the holder to sail as Master without voyage to tonnage restrictions on the coast of British Columbia. Possession to the CN1certificate, or its equivalent, permits the holder to be assessed as a Chief Officer on the Large, Northern, Spirit, or Pacific Cat Vessels. The holder shall be eligible for appointment or substitution to the position for which s/he has been successfully assessed.
2. The Corporation has set the minimum certificate requirement for Second, Third, and Fourth Officers, (except Second Officer, Staffing Pool and Second Officer, Northern Vessel), at a Watch Keeping Mate certificate (WKM). This certificate enables the holder to sail as a Second Officer. Possession of the WKM certificate, or its equivalent, permits the holder to be assessed as a Second Officer (except Second Officer, Staffing Pool or Second Officer, Northern Vessel), Third, or Fourth Officer. The holder shall be eligible for appointment or substitution to the position for which s/he has been successfully assessed.
3. The Corporation has set the minimum certificate requirement for a Second Officer, Northern Vessel at the CN11 certificate (Mate Local Voyage). Possession of the CN11 certificate, or its equivalent, permits the holder to be assessed as a Second Officer, Northern Vessel. The holder shall be eligible for appointment or substitution to the position for which s/he has been successfully assessed.
4. The Corporation has set the minimum certificate requirement for a Mate, Minor and Mate, Intermediate Vessel at a Watch Keeping Mate Ferry Mate Long Run Endorsed certificate (WKM-E). This certificate enables the holder to sail as a Mate of a ferry on the coast of British Columbia without voyage or tonnage restrictions. Possession of the WKM-E certificate, or its equivalent, permits the holder to be assessed for a Mate, Minor or Mate, Intermediate Vessel. The holder shall be eligible for appointment or substitution to the position for which s/he has been successfully assessed.
5. An employee who has successfully assessed, cleared, and who has substituted as Chief Officer with a CN11-E or WKM-E certificate, as of October 9, 1998, shall continue to be eligible for substitution as Chief Officer, Large, Spirit, or Northern Vessel, at her/his present point of assembly. These employees shall also be eligible for appointment as Mate, Minor or Mate, Intermediate Vessel. These employees shall be eligible for substitution at other points of assembly, or to be appointed as Chief Officer, Large, Spirit, or Northern Vessels on completion of the CN1 certificate, (Master Local Voyage), or its equivalent. These employees shall not be further assessed for Chief Officer, provided the employee has continued to periodically substitute as a Chief Officer, Large, Spirit, or Northern Vessel and provided the CN1 certificate, or its equivalent, has been obtained within four (4) years following October 9, 1998. This protection shall not apply to substitution or appointments as Chief Officer on Pacific Cat Vessels.
6. An employee who has been successfully assessed, cleared and who has substituted as Second Officer, Northern Vessel with a WKM-E certificate, as of October 9, 1998, shall continue to be eligible for substitution as Second Officer, Northern Vessel, on routes 10, 11 and 40. These employees must periodically substitute as Second Officer, Northern Vessel, and must obtain a CN11 certificate, or its equivalent, within four (4) years following October 9, 1998, in order to maintain this eligibility. These employees shall also be eligible for substitution or appointment as Second Officer, Large, or Spirit Vessel and as Mate, Minor or Mate, Intermediate Vessel. This protection shall not apply to substitution or appointments as Second Officer, Staffing Pool or Second Officer on Pacific Cat Vessels.
7. An employee who has been successfully assessed as Chief Officer, Large or Spirit Vessel, with a WKM-E or CN11-E certificate, who has not been cleared or who has not substituted as Chief Officer, Large, or Spirit Vessel, shall not be eligible for substitution on those vessels. These employees are eligible for appointment as Mate, Minor and Mate, Intermediate Vessel. The assessment that has been successfully completed for the position of Chief Officer, Large, or Spirit Vessel shall be recognized provided the employee has obtained a CN1 certificate, or its equivalent, within four (4) years following October 9, 1998. Those employees who wish to become eligible for substitution or appointment to the position of Chief Officer, Large, or Spirit Vessel shall be required to successfully complete a further assessment based on incremental revisions to the selection criteria.
8. An employee who has been successfully assessed and appointed to the position of Second Officer, Northern Vessel with a WKM-E certificate as of October 9, 1998 shall continue in this position and shall be eligible for appointment to other vessels as Second Officer.
9. Should any of the certificates listed herein be renamed by Transport Canada, the equivalent certificate without restriction on tonnage or voyage on the coast of British Columbia, shall be recognized.
MOU II Deas Dock Cleaning Crew
Those regular positions now assigned to the Deas Dock cleaning crew and located at Horseshoe Bay Terminal shall be eliminated by attrition.
MOU III Departure Bay, Duke Point and Wellington Road**
Departure Bay, Duke Point and Wellington Road are separate and distinct points of assembly except as provided in this Memorandum as follows:

1. Departure Bay Staffing Pool and casual employees may be assigned work, for which they are qualified, at either Departure Bay, Duke Point or Wellington Road.
2. Departure Bay employees on Engineer watch #9 may be assigned work, for which they are qualified, at either Departure Bay or Duke Point.
3. Wellington Road casual employees who are employed in Catering Stores may be assigned work, for which they are qualified, at either Wellington Road, Departure Bay or Duke Point.
The Union agrees that the employees identified in points 1. through 3. above cannot claim expenses for travel for work at any of the points of assembly identified.

Wellington Road, Departure Bay and Duke Point shall be considered the same location for the purpose of intra-terminal transfers.
MOU IV Northern Service
(a) The minimum of 84 regular ship board positions in the North on Routes 10 and 11 shall be reduced only through attrition to a minimum of 78 positions.
(b) In order to encourage employees to take shorter blocks of compensatory time off (C.T.O.), the Employer shall provide transportation for designated periods to allow for effective scheduling of C.T.O.
(c) The Employer shall approach the Union with the concept of creating classifications that shall provide greater flexibility in other areas on the northern vessel.
MOU V Northern Vessel Employee Transportation
Employees whose point of assembly is Prince Rupert but who are not resident in Prince Rupert, shall be entitled to use their employee travel pass to travel to and from their point of assembly for a shift assignment aboard the Queen of the North/Queen of Prince Rupert. If accommodation is available aboard the vessels, employees may make use of it. Employees will be entitled to use the 50% staff meal discount while travelling.
MOU VI Northern Vessels (Grandparented Transportation Costs)**
(a) The Employer shall continue to pay transportation costs associated with air travel from Vancouver to Prince Rupert to those employees guaranteed travel expenses. The Employer shall not be responsible for providing the transportation costs to employees who fill vacancies as they arise in the future.
(b) Costs associated with air travel shall include the costs of travel from Nanaimo, Victoria, and in Vancouver, to the Vancouver International Airport and to Prince Rupert.
(c) Costs associated with air travel shall not include the costs of travel from residences that are out of province. Employees who reside out of province shall be paid the cost of transportation from the Vancouver International and to Prince Rupert.
(d) Where an employee changes his/her current residence to another location of Vancouver Island, the costs associated with air travel for that employee shall not increase.
(e) Where an employee changes his/her current residence to another location in the province, outside of Vancouver Island. The Employer shall be responsible for costs of travel from Vancouver Airport to Prince Rupert for that employee.
(f) An employee who formerly travelled to Prince Rupert by transportation provided by the Employer from Port Hardy shall continue to be paid transportation expenses under clause 29.10(b).
MOU VII Joint Commitment on Increasing Productivity, Reducing Costs, Increasing Revenue and Gainsharing**

(a) The parties are committed to increasing productivity and efficiency, reducing costs and increasing revenue throughout the operations of the Corporation in a manner which is beneficial to the people of British Columbia, to the employees of the Corporation and which meets the Corporation’s operational needs.
(b) The parties are particularly mindful of the mutual benefits to be gained by reviewing work practices, systems and processes within the Corporation with a view to identifying alternatives and operational efficiencies.
(c) Therefore, the parties agree to establish a Joint Committee of equal members of Union and Management representatives and meet pursuant to Clause 2.11 of the Collective Agreement
(d) The Committee shall enter into discussions within 90 days of the signing of the Collective Agreement with a view to enhancing the delivery of service to the public, to improving work practices, systems, and processes with the Corporation, and to identifying opportunities for revenue enhancement. Issues to be discussed shall include but are not limited to the following:
1. work practices, systems and processes;
2. utilization of casual employees;
3. improved value from low usage operational times;
4. improvements to administrative, human resource and operational practices, and
5. new or alternative methods for the enhancement of revenue.
(e) The parties acknowledge that during the course of these discussions suggestion for gainsharing improvements may arise.

MOU VIII Gainsharing

The Parties acknowledge that suggestions for gainsharing improvements may arise or be negotiated at any time during the life of this Collective Agreement to provide additional (one-time, or ongoing) payments. Where such initiatives are identified, the Parties will meet to review the proposal and consider whether it should be included within the scope of this Memorandum.
MOU IX Job Evaluation and Pay Grid Revision Committee**

(a) Additional Funding
In the April 1, 2000 to March 31, 2001 budget year, the Employer shall commit one-quarter of one percent (0.25%) of the then current annual regular employee unionized payroll (that is, the amount for regular employees pay only) for purposes of addressing inequities resulting from implementation of the job evaluation plan. This amount shall be expended to change the base rate of affected jobs and shall not include the cost of changes to wage dependent benefits resulting from such basic pay increases.

(b) Joint Technical Committee on Job Evaluation and Pay Grid Revision

Within three months of (the date of Union ratification), the parties shall form a joint technical working committee on job evaluation and pay grid revision comprising of up to four (4) technical experts appointed by each side. The committee shall make decisions by consensus, shall develop its own methods of proceeding, and shall meet in accordance with clause 2.11.

The committee’s mandate is to develop recommendations regarding amendments to the salary grid and, if necessary, other aspects of the Licensed and Unlicensed Job Evaluation Plans. These recommendations shall, if possible, be presented to the parties for their ratification during the term of the current Collective Agreement. No change shall be made to the salary grids of the Job Evaluation Plans unless they are ratified by both parties.

Without limiting the scope of the committee’s work, the committee shall endeavour to develop new, and more appropriate grade levels based upon the existing evaluated rates for each job.

The committee shall determine, on a mutually agreeable basis, where to apply the additional funding set out in part (a) above. In this regard, the committee shall determine which classifications are to receive a pay adjustment and the amount of any such adjustment, provided the total of all such adjustments does not exceed the allocated amount. Pay adjustments determined by the committee shall be effective the first pay period following April 1, 2000.

MOU X Vessel Designation Overlay**

The parties agree that the Vessel Designation Overlay agreed to by the parties will be applied to the current rates of pay for licensed employees. When applied to Ships’ Officers rates of pay for employees who work on Spirit Class Vessels or High Speed Craft, the base rates for Third Engineers shall be 10% higher than their counterparts on Large Vessels and 7% higher for all other Officers who work on Spirit Class Vessels or High Speed Craft. The amounts specified are currently in effect and in applying the Vessel Designation Overlay to the Structured Job Based Rating Plan, the intent of the Memorandum is to retain the salary differential which currently applies to positions of Spirit Class Vessels and to apply the same differential to positions with similar classifications on fast ferries.


MOU XI No Layoffs**

(a) Notwithstanding clause 10.10 (a) and (c), and Article 12 of the Collective Agreement, the parties hereby agree that new layoffs and job relocations will be accomplished through attrition during the period from December 1, 1999 to October 31, 2000.
On October 31, 2000, the parties agree to revert to the existing language in the Collective Agreement.

MOU XII Issues related to the Ships’ Officers’ Component**

A. Queen of Chilliwack
Vessel Designation
The Queen of Chilliwack is designated an Intermediate Vessel.

Exclusions
While the Queen of Chilliwack operates on Route 7, the Union agrees to the exclusion from the bargaining unit of the following position:
Senior Master

While the Queen of Chilliwack operates on Route 7, the Corporation and the Union agree that the following position will be included in the bargaining unit:
Master

While the Queen of Chilliwack operates on Route 40, the Union agrees to the exclusions from the bargaining unit of the following positions:
Senior Master
Master

B. Staffing Pool/ASTO/Relief
Positions
1. The Corporation will create new Staffing Pool/ASTO Relief positions as
follows:
Second Officer
Second Officer/Relief Chief Officer
ASTO Mate/Relief Master

2. The Corporation will reclassify twenty-five (25%) percent of its existing number of Second Officer – Staffing Pool (CN1 E positions) to Second Officer – Staffing Pool (WKM) positions by attrition.

3. The Corporation will reclassify seventy-five (75%) percent of its existing number of Second Officer – Staffing Pool (CN1 E positions) to Second Officer/Relief Chief Officer (CN1-Master Local Voyage) positions by attrition.

4. The Corporation will reclassify ASTO Mate (CN1 E) positions to ASTO Mate/Relief Master (CN1 – Master Local Voyage) positions by attrition.

5. The Corporation retains the right to restrict the number of Second Officer Staffing pool (WKM) positions created at any point of assembly where Staffing Pools are maintained pursuant to point 2 above to no more than twenty-five (25%) of the existing number of Second Officer – Staffing Pool positions at that point of assembly.

Work and Substitution
Work and Substitution assignments shall continue to be based on the Corporation’s operational needs and in accordance with the applicable job descriptions and the Collective Agreement.

Seniority
The Group Seniority Schedule in Article 32 of the Collective Agreement shall be amended to include the positions of Second Officer/Relief Chief Officer and ASTO Mate/Relief Master in Group A.

An employee will be credited with a Group A seniority from the date of his/her appointment to a regular position as a Second Officer/Relief Chief, or the date of his/her appointment to a regular position as an ASTO Mate/Relief Master, whichever is applicable.


MOU XIII Salary Adjustments**

(a) Effective November 1, 2000 and November 1, 2001 a general wage increase of 2.0% shall apply to all rates of pay.
(b) November 1, 2002 a Wage Protection Provision shall be in effect.

LETTER OF UNDERSTANDING

Between the

B.C. FERRY & MARINE WORKERS’ UNION

and the

BRITISH COLUMBIA FERRY CORPORATION

Licensed Job Evaluation Salary Grid Revisions

The British Columbia Ferry Corporation will commit a maximum of $221,000 and any other monies that may be available from the .25% of regular employee base payroll, as set out in Industrial Inquiry Commissioner Ready’s recommendation, of December 15, 1999 to adjust the Licensed job evaluation salary grid.

Adjustments to the grid will occur within 60 days of ratification of the Collective Agreement. A Joint Licensed Working Committee, comprised of two members appointed by each side, will make grid modification decisions by consensus.

Furthermore, the parties agree to introduce new salary steps within each grade level. The salary steps, the method of movement through the steps and the salary administration rules including issues of salary protection will be determined by the Committee.

Any savings realized through introduction of salary steps along with an additional $175,000 committed by the Corporation through the Workforce Development Accord will be made available to the Joint Committee on November 1, 2001. Such funds will be utilized by the Committee to further adjust the salary grid and/or make adjustments to other aspects of the Licensed job evaluation plan.

The parties agree that this Letter of Understanding modifies Appendix “A” Issues Related to the Ships’ Officers Component in Industrial Inquiry Commissioner Ready;s recommendation, of December 15, 1999 [Subsection B. Staffing Pool/ASTO Relief; Salary Adjustment]. In particular, the maximum salary adjustment of $100 per month for the positions of Second Officer/Relief Chief Officer and ASTO Mate/Relief Mate will not occur. Salary adjustments for these positions will be determined by the Committee in accordance with the comprehensive review of the Licensed salary grid, and will be funded through the funding framework identified herein.

Any disputes regarding the application of this Letter of Understanding shall be heard by one of the two following Classification Umpires;
Joe Surich
John Kinsey

On behalf of the On behalf of the
British Columbia Ferry Corporation BC Ferry and Marine Workers’ Union




Date Date

LETTER OF UNDERSTANDING

Between the

BRITISH COLUMBIA FERRY CORPORATION

And the

B.C. FERRY & MARINE WORKERS’ UNION

Wage Protection Provision

The parties agree that the wage schedules covered by this Collective Agreement shall be amended effective November 1, 2002 in accordance with the following:

1. The Consumer Price Index (CPI) to be utilized shall be that published by Statistics Canada affecting British Columbia with the 1992 base of 100.
2. The October 1, 2001 to September 30, 2002 increase in the British Columbia CPI (published in October 2002) shall determine the adjustment to the wage schedule effective November 2002. Adjustments will occur to each job rate by an amount equal to the increase in the CPI with each 1% increase, or portion thereof in CPI adjusting each job rate by 1%, or portion thereof.
3. If Statistics Canada changes its basis for calculating CPI, such changes shall be converted to provide the same benefits as are herein provided.

On behalf of the On behalf of the
British Columbia Ferry Corporation B.C. Ferry and Marine Workers’ Union


Derek Johnston Trevor Oram
Vice President, Human Resources President


Date Date