AgdaPkt 2009-04-20 spc - Laserfiche WebLink

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6A Page 11 for the MRF sorters, their new CBA rates would be input into FORM 3-G. This Form would calculate the cost increase from the amounts quoted by the contractor in their proposal. Question #2: What happens if the CBA is NOT renegotiated by Allied before the start of the new Contractor's initiation of service in 1/1/11, but is renegotiated AFTER the initiation of new services and the costs increase because MRF Sorters are included in the CBA? Answer #2: If the CBA is not renegotiated until after the initiation of services (in 2011 or thereafter), then the initial one-time rate adjustment would include an adjustment for MRF Sorters using the procedure for non-represented direct labor employees. This process adjusts the rate quoted by the contractor in their initial proposal using 80% of the changes in the U.S. Department of labor, Bureau of labor Statistics, Private Industry Employment Cost Index series no. CIU2030000000000A. This step applies because the initial one-time adjustment takes place in October 2010 to be effective January 2011 and at that point the initial CBA is still in effect under this scenario. After the CBA expires and a new CBA is agreed upon, the contractor would be entitled to an adjustment in wages and benefits for all direct labor employees (represented or not) based on the CPI only. So, if the MRF Sorters were not represented in the previous CBA and a new CBA was agreed upon after 2011 that included MRF Sorter representation, then the contractor would be entitled to MRF Sorter wage adjustment, however, it would be based on CPI only and not on the wages agreed upon in the new CBA. The starting MRF Sorter labor rate would be that which was established during the initial one-time rate adjustment and subsequent adjustments using the non- represented procedure. So it could be said that if the new CBA inCluded MRF Sorter representation, the contractor would "eat" the difference between their MRF Sorter rate as initially quoted and subsequent adjustments and the new CBA rate. Question #3: What happens if the renegotiated CBA expires well into the term of the NEW Contractor's operations term and is renegotiated by the NEW contractor and the costs increase becau se there is a wage in creases that is negotiated into the new CBA? Answer #3: If/when the CBA expires well into the term of the new Agreement, the contractor would be entitled to a rate adjustment for direct labor based on CPI only. Likewise, it could be said that if the new CBA included MRF Sorter representation, the contractor would "eat" the difference between their MRF Sorter rate as initially quoted and subsequent adjustments and the new CBA rate.