LETTER 34

Voluntary Separation Option/Special Severance Package

Mr. James M. Parent

Assistant Directing Business Representative

District Lodge No. 26

365 New Britain Road

Kensington, Connecticut 06037

Dear Mr. Parent:

This is to confirm the understanding and agreement between the Company and the Union concerning a Voluntary Separation Option and a Special Severance Program to be offered during the life of the Agreement.

VOLUNTARY SEPARATION OPTION

(a)    A separation program will be offered during the period January 1, 2005 through June 30, 2007 to any employee covered under this collective bargaining agreement, age 55 or over as of the date of separation, who (1) would otherwise be laid off in a reduction in force or (2) who volunteers and is accepted for separation under the circumstances described in paragraph (b).  Eligible employees who receive benefits pursuant to this program will have no recall rights.

(b)    Employees eligible for this program pursuant to Section (a)(2) must be employed in an occupational group within a seniority area which is directly affected by a permanent job loss and must volunteer to substitute for another employee who would otherwise be laid off from that occupational group within a seniority area.  The Company will not be required to accept any such volunteers and the total number of volunteers to be accepted will be in the sole discretion of the Company.  Volunteers, if accepted, will be accepted on the basis of seniority, starting with the most senior employee in the occupational group within the specified seniority area.

(c)    The benefits under this option are:

       One (1) week of severance pay for each completed year of service;

·        A one time $5000 lump sum payment; not reduced for early retirement;

·        Medical and dental insurance coverage will be provided to employees who participate in this voluntary layoff option and their dependents at no cost for a period of six (6) months following the employees' termination dates.  If the employee receiving benefits under this program dies before receiving the entire six (6) months of free health care coverage, medical and dental insurance coverage will continue for the participant’s dependents at no cost until six (6) months after the employee’s separation date.  

SPECIAL SEVERANCE PROGRAM

A Special Severance Program will be offered to 200 employees covered under this collective bargaining agreement according to the following eligibility standards:

(a)   Employees who, as of December 31, 2004, are age 55 or older and who have 25 or more years of seniority are eligibly to apply for this package.

(b)   To participate in the program, an eligible employee must submit the appropriate form to the Company no later than December 20, 2004, signed by the eligible employee.  In the event there are more than 200 employees who wish to participate in this Program, the 200 participants will be accepted on the basis of seniority, starting with the most senior employee who has volunteered to participate.  A list of employees who cannot participate because of insufficient seniority will be retained and utilized to replace participating employees who subsequently decide not to participate.

(c)    Termination dates for employees participating in this Special Severance Program will be scheduled by management between April 2005 and December 2005, with consideration for the employee’s requested termination date.  Every reasonable attempt will be made to accommodate employees’ requested termination dates, but management reserves the right to determine each individual’s termination date under this offering in order to avoid a disruption to operations caused by an untimely loss of required skills or too many employees terminating from the same business unit at the same time.  Furthermore, in some instances it may be necessary to change termination dates after they have been scheduled based upon business requirements.  Eligible employees who receive benefits pursuant to this Special Severance Program will have no recall rights.

(d)   The benefits under the Special Severance Program are:

·   One (1) week of severance pay for each completed year of service.

·   Medical and dental insurance coverage in effect at the date of termination will be provided to participants in this Special Severance Package and their dependents at no cost for a period of twelve (12) months following the employee’s retirement date.  If the participant dies before receiving the entire twelve (12) months of free health care coverage, medical and dental insurance coverage will continue for the participant’s dependents at no cost until twelve (12) months after the employee’s termination date.

·   A one-time $15,000 lump sum, payment, not reduced for early retirement.

Sincerely,  

James R. Miller

Vice President, Industrial Relations

Accepted this 6th day of December 2004