Summary of Memorandum of Agreement

Between
Hydro One and the Power Workers Union
____________________________________________________________

Overview
The Bargaining Committee is pleased to announce the completion of 2015 Collective
Bargaining and is recommending acceptance of the tentative agreement reached on
APRIL 14, 2015.
The PWU will be holding ratification meetings between MAY 3, 2015 and JUNE 19, 2015
to provide members the opportunity to attend, receive a ballot and cast their vote.
The Bargaining Committee feels that this agreement provides security for our
membership as well as delivering improvements and stability over the course of the
Collective Agreement.
BALLOTS WILL BE COUNTED IN THE UNION OFFICE ON JULY 3, 2015

Bargaining Committee Recommendation

Your Bargaining Committee is unanimously recommending the membership accept the
Memorandum of Agreement dated APRIL 14, 2015

Chief Stewards Recommendation

The Chief Stewards within Hydro One are also unanimously recommending the
membership accept the Memorandum of Agreement dated APRIL 14, 2015

The following summarizes the results of the 2015 negotiating process

EMPLOYMENT SECURITY
No regular employee will be involuntarily laid off during the term of the Collective Agreement.

Hydro One 2015 Negotiations Summary

Page 1 of 12

DURATION
Three Year Collective Agreement (April 1, 2015 March 31, 2018)
WAGES ALL employees will receive wage increases as follows:
Effective Apr. 1, 2015 1% general wage increase to all PWU employees
Effective Apr. 1, 2016 1% general wage increase to all PWU employees
Effective Apr. 1, 2017 1% general wage increase to all PWU employees

PENSION AND INSURANCE

Effective MARCH 31, 2025 for future service benefit accruals for current employees and new
hires:
Adjust the number of years for final average earnings to 5 years from 3 years.
Pension benefits earned for future service beginning March 31, 2025 would be based on a high
five-year average instead of a high three-year average; the high three-year average would
continue to apply to pension benefits earned for service prior to March 31, 2025

Early retirement rule of 85 (from rule of 82). Members with 82 or more points on March 31, 2025
would retain eligibility for an unreduced pension for all service. For all other members with
service prior to March 31, 2025, pension benefits earned for service prior to March 31, 2025
would remain subject to the 82-point rule for an unreduced pension

The above changes will be incorporated into the 2015-2018 Collective Agreement, pension
brochure and will require pension amendments.

1) Pension Contribution Increases

Employee pension contributions, effective April 1, 2015, - 1.0% below YMPE / 1.0% above YMPE
Employee pension contributions, effective April 1, 2016, - 1.0% below YMPE / 1.0% above YMPE
Employee pension contributions, effective April 1, 2017, - 0.5% below YMPE / 1.0% above YMPE
Employer current service contributions will not be less than employee contributions for
period up to March 31, 2025.

Hydro One 2015 Negotiations Summary

Page 2 of 12

2) Lump-Sum Payments
PWU employees contributing to the Pension Plan as of April 1, 2015 will receive the following:
Lump sum payment of 1% of bas salary as of April 1, 2015 (adjusted if less than 12 months
until employee no longer makes pension contributions)
Lump sum payment of 2% of base salary as of April 1, 2016 (adjusted if less than 12 months
until employee no longer makes pension contributions) provided the individual is still an
employee of Hydro One as of April 1, 2016 and contributing to the Pension Plan.
3) IPO Share Grant Plan
PWU employees contributing to the Pension Plan as of April 1, 2015 will participate in an IPO
Share Grant Plan, as follows:
Share grants will be made on April 1st of each year starting April 1, 2017 and continuing up to
and including April 1, 2028 (i.e. maximum of 12 grants) provided the individual is still an
active employee of Hydro One as of the grant date and has less than 35 years of pensionable
service, with the number of shares granted to each individual each year calculated as 2.70%
of Salary as of April 1, 2015/Initial Share Price.
Example if an employee has a base salary on April 1, 2015 of $90,000, and the initial share
price is $20.00, 121.5 shares (2.70% x $90,000/$20.00) will be granted to the employee each
year up to a maximum of 12 grants. At the end of the 12 years, the employee will have 1458
shares.

DEFAULT
In the event that the Hydro One IPO does not occur by December 31st, 2015, the following
shall apply:
(a)
(b)
(c)
(d)
(e)

1 year term
1% wage increase
1% increase in pension contributions
1% cash lump sum payment
All other terms continue as amended

Hydro One 2015 Negotiations Summary

Page 3 of 12

ARTICLES
ARTICLE 2

PART A:

GRIEVANCE PROCEDURE

1.0

EMPLOYEE CATEGORIES

2.7 Modification to the Job Classification Tribunal

to allow a job challenge access to the GRB faster.

1.4.1

Temporary Full-Time
Temporary full-time employees work the
regular hours of the classification into which
they are hired and may be engaged for up
to 12 15 months of accumulated service.

ARTICLE 10
SELECTION TO VACANCIES
10.1

General

2.0

REGULAR STATUS

2.

Temporary employees engaged in work of

a continuing nature, shall be afforded
regular status upon attaining 12 15 months
accumulated service.

6.0

VACATIONS

st

10.1.1 Effective April 1 2016, no person shall be

appointed to a vacancy in the PWU
jurisdiction until all qualified PWU
represented applicants have been selected.
10.4.4 The Union will meet with Management twice
yearly to participate in the development of
selection strategies of the following:
(II)
(III)

Senior Qualified journeypersons from the

PWU Hiring Hall.

6.5.1
2.

Senior qualified employees from the PWU

Hiring Hall who have successfully
completed the Hydro One Inc./PWU Joint
apprenticeship or are currently enrolled in
the Hydro One Inc./PWU Joint
apprenticeship. This group shall comprise
70% of the selections (rounded to the
closest number of employees) under this
item provided sufficient applicants are
available. Selections beyond 70% require
joint agreement.

Furthermore, employees who are not

able to use their vacations by April 30,
as noted above, will be entitled to
receive the unused vacation in a cash
amount. The employee may also bank
up to one (1) week as indicated in item
36.0.3.

ARTICLE 15
SUCCESSOR RIGHTS
1. Upon a sale as defined in Article 17.1,
the Company agrees to engage in
discussions with the PWU regarding any
movement or transfer of staff from the
Company to the Transferee prior to any
transfer taking place.

Hydro One 2015 Negotiations Summary

Under special extenuating circumstances

(as identified in Subsections 6.4.1, 6.5.2
and 6.5.4), application for postponement or
carry-over of more than one week's
vacation may be made to the respective
director, or official of equivalent rank, but
the vacation must be completed by April 30
of the next year.

12.0 DISABILITY BENEFITS AND INCOME

PROTECTION
12.1

Sick Leave Plan

Major Medical Absence Reports, and
associated follow up reports shall be paid
for by the employer up to $40.00 $50.00.

Page 4 of 12

BE UTILIZED IMMEDIATELY PRIOR TO

RETIREMENT
3.
13.0

HEALTH INSURANCE PLANS

Vision Care Increase from $550 to $600
Chiropractors Increase from $700 to
$750 effective April 1, 2015 & $750 to
$800 effective April 1, 2017
Initial prescription drug supply - limit to
30 days
Physiotherapy - Medical referral required
for initial visit
Prostate Cancer PCA3 testing with
medical referral from Urologist or
Oncologist

20.0 COMPENSATION AT TEMPORARY

HEADQUARTERS
20.1 Travel Outside of Residence
Headquarters
1. Where the temporary work headquarters is 50
road kilometres or less from the regular work
headquarters: - $35.00$40.00.
2. Where the temporary work headquarters is
greater than 50 road kilometres but less than
101 road kilometres from the regular work
headquarters: - $55.00$60.00.
3. Where the temporary work headquarters is 101
road kilometres or more from the regular work
headquarters: - $85.00$90.00.
35.0

BI-WEEKLY PAY DAYS

1. Salaries and wages of all employees

throughout the Company covered by this
Agreement shall be once every two
weeksonce every week on the third Thursday
following completion of the pay period, effective
with the implementation of bi-weekly pay, once
every two weeks.
36.0

BANKING OF REDUCED HOURS OF

WORK DAYS AND VACATION DAYS TO

Hydro One 2015 Negotiations Summary

Employees who have not been able to

utilize vacation entitlements, as per Part A
Item 6.5.1.2, or who have not been paid out
for such vacation, may bank up to five (5)
days to be utilized immediately prior to
retirement.

PART B
2.2

Service Duty

Payment for Service Duty: one [1] hour

effective March 31, 2016 at the employee's basic
hourly rate per day, except for Saturdays, Sundays
and statutory holidays when the rate will be one
and one quarter [1.25] hour effective March 31,
2016.
21.2 Ten-Hour Shift Provisions Maintenance
Trades Staff
If it is necessary for employees to work on the
Friday, it will be paid at one and one half times the
employee's basic rate for the first two hours (one
hour effective March 31, 2016) worked and two
times the employee's basic rate for all additional
hours worked.
22.0

OVERTIME PROVISIONS

22.3

Premium Payments

Premium payment for overtime which does not

include shift work shall be as follows:
1. One and one-half times the employee's basic
rate shall be paid for all work performed during
the first two clock hours (one hour effective
March 31, 2016) after normal quitting time,
Monday to Friday inclusive.
2. Two times the employee's basic rate shall be
paid for:

Page 5 of 12

All work performed outside of the first two clock

hours (one hour effective March 31, 2016)
after normal quitting time, Monday to Friday
inclusive.
PART C
Not to be reproduced in the collective
agreement
I. Controller Job Doc - Update the educational
requirements such that controllers require
Post-secondary (3 year) electrical technologist
diploma or OACETT electrical technologist
accreditation
II. Training program:
a. New Trainees effective April 1, 2015
training program reduced from 3 years to 2
years for all new hires
b. Existing Trainees moved to a 2.5 year
training program as follows:
i. Trainees Hired 2012
Provide required training and time to
prepare for final exam
Schedule final exam earlier than planned
Backdate to C1 schedule retroactive to
April 1, 2015 upon successful completion of
the exam provided the exam is passed
within 30 days of the first sitting. Those who
pass at a later date will be progressed the
date of successful completion
ii. Trainees Hired 2014
April 1, 2015 Trainee step 2 (new scale)
July 13, 2015 Trainee step 3 (new
scale)
Jan 13, 2016 Trainee step 4 (new
scale)
July 13, 2016 Controller step 1
III. Wage schedules adjusted as per
Appendix 1

Hydro One 2015 Negotiations Summary

7.0

SHIFT WORK

7.7

Differential for Shift Work

1. A shift differential of 70 95 cents per hour shall

be paid to employees who are scheduled to
work between the hours of 1600 and 2400.
2. A shift differential of 1 dollar and 25 cents per
hour shall paid to employees who are
scheduled to work between the hours of 0000
and 0800.
8.0

OVERTIME PROVISIONS

8.3.1

Payment for Overtime

Premium payment for overtime shall be as

follows:
1. One and one-half times the employee's basic
rate shall be paid for all work performed during
the first two clock hours (one hour effective
March 31, 2016) after normal quitting time,
Monday to Friday inclusive. It will also apply to
the first two hours of overtime worked on an
unscheduled day of work.
2. Two times the employee's basic rate shall be
paid for:

all work performed outside of the first two

hours (one hour effective March 31,
2016) after normal quitting time, Monday to
Friday inclusive., and after the first two
hours on an unscheduled day of work.

PART D
2.1 On Call Protection and Control
The rate of pay for on-call duty will be one half
hour (one [1] hour effective March 31, 2016) at
the employees basic hourly rate per day, except
for Saturdays, Sundays and statutory holidays
when the rate will be one (1) hour (one and one
quarter [1.25] hour effective March 31, 2016) at
the employees basic hourly rate per day.

Page 6 of 12

2.2 On Call-Hydro One Telecom Technical

Staff
On call is the term used to cover trouble call
service performed by Hydro One Telecom
technical staff. While on call, they are to report to
work in a reasonable length of time.
The rate of pay for on-call duty will be one half
hour (one [1] hour effective March 31, 2016) at
the employees basic hourly rate per day, except
for Saturdays, Sundays and statutory holidays
when the rate will be one (1) hour (one and one
quarter [1.25] hour effective March 31, 2016) at
the employees basic hourly rate per day.
11.0

OVERTIME PROVISIONS

11.3

Premium Payments

1. One and one-half times the employee's basic

rate shall be paid for all work performed during
the first two clock hours (one hour effective
March 31, 2016) after normal quitting time,
Monday to Friday inclusive. It will also apply to
the first two hours of overtime worked on an
unscheduled day of work.
2. Two times the employee's basic rate shall be
paid for:

All work performed outside of the first two

hours (one hour effective March 31,
2016) after normal quitting time, Monday to
Friday inclusive, and after the first two
hours (one hour effective March 31,
2016) on an unscheduled day of work.

All work performed on Saturday, Sunday

and statutory holidays which occur Monday
to Friday.

4. Helicopter pilots and line maintenance

supervisors (helicopters) Compensation for

Hydro One 2015 Negotiations Summary

overtime worked shall be made in the form of

time off with pay. This time off shall be
determined on the basis of one and one-half
hours off for each hour worked during the first
two (2) clock hours (one hour effective March
31, 2016) after normal quitting time. For
overtime worked outside the first two (2) clock
hours (one hour effective March 31, 2016)
after normal quitting time or on Saturdays,
Sundays and Statutory Holidays time off shall
be at two hours for each hour worked.
11.5

Overtime - Regular Part-Time and

Temporary Part-Time Employees

Overtime is defined as:

(a) Hours worked which are in excess of the
normal daily hours of the classification.
The premium payment for such work is one
and one-half times the employee's basic
rate for all work performed during the first
two clock hours (one hour effective March
31, 2016)after the normal quitting time of
the classification., and two times the
employee's basic rate for all work
performed outside of the first two clock
hours after the classification's normal
quitting time.
and/or
(b) Hours worked in excess of 24 in a week.
The premium payment for such work is one
and one-half times the employee's basic
rate for the first two hours (one hour
effective March 31, 2016) worked in a day.
Two times the employee's basic rate for all
work performed in excess of two hours in a
day.
and/or
(c) Unscheduled hours worked on Saturday
and Sunday. The premium payment for
unscheduled hours worked on Saturday
and Sunday is two times the employee's
basic rate.

Page 7 of 12

APPENDIX A
Wages
Effective Apr. 1, 2015
Effective Apr. 1, 2016
Effective Apr. 1, 2017
SECTION 12

1% general wage increase to all PWU employees

1% general wage increase to all PWU employees
1% general wage increase to all PWU employees

TRAVEL AND ROOM AND BOARD ALLOWANCE

Effective April 1, 2015

1.5% increase to all board and travel allowances

Effective April 1, 2016

1.5% increase to all board and travel allowances

Effective April 1, 2017

1.5% increase to all board and travel allowances

NOT TO BE REPRODUCED IN THE COLLECTIVE AGREEMENT

APPA COMMITTEE NEW CLASSIFICATIONS
The parties agree to establish a joint committee to review the introduction of additional
classifications to Appendix A.
The committee will have an initial meeting within sixty (60) days of ratification and will make joint
recommendation(s) to the PWU Sector 3 VP and the Hydro One VP, Strategic Planning (or
delegate) for consideration by December 31, 2015. Only those recommendations that are jointly
agreed to will be implemented.
NOT TO BE REPRODUCED IN THE COLLECTIVE AGREEMENT
APPA COMMITTEE REFERRAL ASSESSMENT
The parties agree to establish a joint committee to discuss options with respect to the following
items:

The parties ability to appropriately assess referrals and the process through which to
manage referrals deemed unqualified
The establishment of a joint hiring process for Electrical Forestry Labourers for new
referrals
The committee will establish criteria regarding what constitutes a new referral

Hydro One 2015 Negotiations Summary

Page 8 of 12

The committee will have an initial meeting within sixty (60) days of ratification and will make joint
recommendation(s) to the PWU Sector 3 VP and the Hydro One VP, Strategic Planning (or
delegate) for consideration by December 31, 2015. Only those recommendations that are jointly
agreed to will be implemented.
Principles Related to the Apprenticeship Program
Modify the existing wording: When Apprentices are doing work on an assigned basis with regular
work crews, they will now be entitled to rest periods as identified in as well as the rest period
provisions outlined in Part B Item 22.4.4.
MISCELLANEOUS
1) MID-TERM AGREEMENTS
MT-10 update overtime language to reflect change effective March 31, 2016
MT-31 Delete
MT-32 - Clarification that MT-32 applies to all staff
LOU on MT-69 - Modify item 6 to change 10% to 15%. The PWU Sector 3 VP and the
Hydro One VP, Strategic Planning will meet annually in advance of the mass hire to
determine if circumstances may allow greater than 15% to bid out of CMS. Should
the parties be unable to come to agreement the default will remain at 15%.
2) SUSPENDED ARTICLES
Suspension of Art. 13, Art. 14, MT-12, MT-14, MT-21
3) NOTICE LETTERS
I. Health and Dental Benefits: Retained
a. A committee will be established to meet and discuss all benefit related
issues/grievances with respect to the administration of the benefit plan by the new
service provider. Any issues which are not able to be resolved in this forum may be
referred to arbitration. The parties each retain their respective notice letters on this
topic.
II. Rotations: Retained
III. T2200: Withdrawn
IV. Chief Steward Expenses: emphasis is on alignment with the business expense policy
(SP0705 requirement to use rental cars): Withdrawn
V. Custom-made Boots or Shoes: Withdrawn
VI. Apprentices Attending Trades School: Withdrawn
VII. Service Credit Appendix A Employees: Withdrawn

Hydro One 2015 Negotiations Summary

Page 9 of 12

4 HOUSEKEEPING
Article 4.2 b) changes to reference Part B Section 10.0 should read Part B Item
19.0
Part B Item 19.0 Title Change - Relief Work & Acting in Vacancies
Part C Item 6.0 Title Change - Relief Work & Acting in Vacancies
Part D Item 9.3 Change item 4 to item 11
Review Benefit Booklet & Dental Codes
Mid-Term Agreements: MT-72, APP-3 Add in
Appendix A Add new classifications
Renumber items as appropriate
Mid-term agreements - language update

SIDE LETTERS / LETTERS OF UNDERSTANDING

EMPLOYMENT SECURITY Renewed
No involuntary layoffs of regular staff
during term of collective agreement.
Does not preclude company from utilizing
Article 11.0 including 11.1 Cash out
Does not preclude company from
terminating for cause.
Does not preclude company from utilizing
Article 17 (Transfers due to sale of
business).

ASSESSMENT TOOL Renewed

SECURITY CLEARANCES Renewed

Personal Risk Assessments (PRA) may

be performed on regular, temporary and
Appendix A employees for legal or
regulatory reasons only.
Employees who are unable to pass a
PRA will be transferred to an equivalent
position (no loss of salary) taking into
account the classification and location of
the job.

SUMMER STUDENTS Renewed

Students will be hired into PWU

represented jobs on a 60% PWU 40%
non PWU basis student list to be
provided to PWU

FORMER INERGI and VERTEX

EMPLOYEES Renewed

Hydro One 2015 Negotiations Summary

The jointly developed application

assessment tool will continue to be used
in the Joint Apprenticeship Council (JAC)
hiring process for all apprentice hiring.
Tool to be used as a pre-screening step
to assess suitable candidates for
apprentice positions.
The JAC will oversee the modifications
/refinements of the tool and make
recommendations to their respective
principals.

Applies to Inergi and Vertex

employees who perform work subject to
a business arrangement with Hydro One

Page 10 of 12

If such an employee is laid off they will be

given fair and objective consideration for
Hydro One vacancies for which they are
qualified, prior to the selection of Hydro
One temporary employees and/or
external applicants.

TRANSFER OF EMPLOYEES - Renewed

Activated if Hydro One transmission or

distribution assets are sold/transferred to
or into another entity Hydro One will ask
new employer to offer employment to all
PWU represented employees who are
performing the work being transferred.
No employee will be required to transfer
to the new owner
If employee chooses to transfer, Article
17 provisions apply.
Hydro One can operate Article 11.0 up to
2X per year in the affected
classifications.
May be activated if more then 50
employees are affected.

TWHQ AND HIRING HALL STAFF

Renewed

Regular employees should be utilized to

perform work in their regular work
location and not be placed on TWHQ
while hiring hall employees perform
similar work in their regular work location
agreed as a general principle
recognizing there will be exceptions.

LETTER OF UNDERSTANDING - NEW

Industry-standard training for Appendix
A referrals from LIUNA:
Effective July 1, 2015, all PWU Appendix A
LIUNA referrals will come to work with the
required training and will provide proof of upto-date training upon hire. Standard First Aid +
AED and CPR including all renewal
The parties agree that this LOU is contingent
upon the renewal of the Agreement between
Hydro One 2015 Negotiations Summary

EPSCA and LIUNA, to which Hydro One is

bound.
LETTER OF UNDERSTANDING -NEW
Purchased Services Agreement Cable
Locating
1. The Company may at its discretion,
contract out all cable locates with the
exception of the following which will be
performed by Hydro One PWU
personnel:
a. Transmission locates;
b. Fault locating;
c. Hydro One Provincial Lines work
requiring locates (i.e. pole
installations, anchors);
d. All locates for stations involving
distribution and transmission
voltages;
e. Locates which require access to
Hydro One equipment (i.e.
transformers, pad mounts, cable
guards). For clarity, non-Hydro
One personnel will not be
allowed to access Hydro One
equipment for the purposes of
locating;
f. Emergency locates.
2. All hours and costing will be supplied to
the PWU. The parties agree to review
the information on a yearly basis.
3. Regular employees within the
classifications of Meter Reader and/or
Meter Reader Data Collectors will be
provided meaningful work within their
current classifications for the duration
of the PSA. Regular PWU staff
performing work that is the subject of
this PSA will not be laid off as a direct
result of this agreement.
4. This agreement will remain in force for
the term of the collective agreement
and will remain in effect yearly
thereafter, unless either party provides
60 days notice in writing to the other
Page 11 of 12

party of their desire to cancel this

agreement.
OUTSOURCING OF SERVICES COVERED
BY THE INERGI MASTER SERVICES
AGREEMENT -NEW
This side letter confirms that the Outsourced
Services performed under the Outsourcing
Agreement must be performed:

APPOINTMENT TENURE OF THE CHIEF

ARBITRATOR UNDER THE HYDRO ONE
INC. / PWU COLLECTIVE AGREEMENTNEW
For the duration of the collective agreement,
the parties agree to appoint John Murray as
Deputy Chief Arbitrator.
REGARDING OVERPAYMENTS- NEW

1.
By persons employed within Ontario to
perform those Outsourced Services, and
2.
Physically located in Ontario at the time
they perform those Outsourced Services

1. For any overpayment that amounts to

$100 or less of the employees gross
weekly pay, the Employer will deduct
the one time overpayment from the next
regular pay.

PENSION BENEFIT ACT (PBA) SECTION

80.1 - NEW

2. Any outstanding liabilities will be

deducted from an employees final pay
upon termination for any reason.

Enter into negotiations which may lead

to a transfer agreement with OMERS (as per
the legislation). Hydro One will in good faith
make all reasonable efforts to obtain such an
agreement.

3. Notification of the overpayment will be

sent to the employee and the union as
per the current overpayment process.
The notification will also indicate the
reason for such overpayment.

REGARDING FIRST NATIONS WORK NEW

4. Any overpayments that are greater than

$100 as per # 1 above will continue to
be addressed through the current
overpayment process as per the
settlement for HO-P-74.

The parties agree to establish a standing

committee to discuss items in regards to First
Nations work and/or projects.

Hydro One 2015 Negotiations Summary

5. This agreement applies to all PWU

represented staff including regular,
hiring hall and temporary employees.

Page 12 of 12