Letter of Agreement

A Letter of Agreement (LOA) is intended to allow a unionized workforce to implement a schedule that is not supported by their current contract, without opening the contract itself. The LOA represents a safe means of trying something that was not conceived as of the last contract agreement. A sample LOA is shown below. There are certainly additional components which could be added if all parties agree. For example, some LOAs contain language for terminating the LOA prematurely should conditions such as worker dissatisfaction or safety issues surrounding the schedule arise.

A Sample Letter of Agreement

This letter represents an agreement between the union and company. The work and pay policies contained in this document apply only to those employees working a shift schedule that covers twenty-four hours a day, seven days a week, using four crews and twelve-hour shifts. While such a schedule is in place, the rules in this document shall, when a conflict exists…

SCHEDULE PATTERN: The schedule to be used and …

MANAGEMENT RIGHTS: Nothing contained in this document shall be seen …

SHIFT PREMIUM: There will be a shift premium of $.24 per hour for …

OVERTIME PAY: Overtime shall be computed and payable at the rate of one and one-half (1-1/2) times the Employee’s regular straight time hourly rate. Overtime shall be appropriate and payable for:

  1. All hours worked in …
  2. All hours worked in excess …
  3. All hours worked on an …
  4. Employees will be paid overtime pay for work performed …

PREMIUM PAY: Premium pay shall be computed and paid at the rate of …

PAY PERIOD: The pay period shall begin with the start of …

WORK WEEK: The normal work week shall consist of either four …

WORK WEEK FOR PURPOSES OF OVERTIME: The pay week shall consist of a 7-day period that begins at 6:00 am on ...

WORK DAY: The work day shall be considered to begin with the start of the twelve (12) hour day shift and end …

SHIFT STARTING TIMES: The 12-hour day shift will begin at 6:00 am and end …

LUNCH AND BREAK PERIODS: Those employees working a normally scheduled 12-hour shift shall receive an additional fifteen-minute…

OBSERVED HOLIDAYS: The following holidays shall be granted regular full time employees who have …

VACATION ELIGIBILITY: Employees will be granted vacations based on the following schedule with pay during each twelve (12) month period that follows the appropriate anniversary of the last date of hire with the company:

After the first (1st) anniversary 40 hours

After the second …

CARRYING OVER OF VACATION: Vacation may be carried over from one year to the next. The maximum number of hours …

VACATION SCHEDULING: Employee vacations will normally consist of a “block” of work days. A block is defined as ...

VACATION COMPENSATION: All vacations will be paid at the hourly rate as calculated …

JURY DUTY COMPENSATION: Employees who lose scheduled time from their scheduled work week due to service …

FUNERAL LEAVE COMPENSATION: All employees who have completed their probationary period will be granted up to three (3) …

SICK LEAVE ELIGIBILITY: Past employees (with more than one year of employment) shall be awarded forty-eight …

SICK LEAVE COMPENSATION: Compensation per shift missed shall be based on …

JOB CLASSIFICATION: The positions of Loader Spotter …

CROSS TRAINING: To accommodate vacations and breaks, employees will be tasked with learning more than one job skill. The accumulation of additional jobs will result in additional pay in accordance with …

While this is just an example of a typical LOA, your situation will be unique. Call us today at (415) 472-3688 or fill out our contact form and we can help you with your specific situation.