Letter of Agreement on Divestiture
This letter will document the Company's position regarding the effects on Honeywell employees represented by Teamsters Local 1145 in the event efforts to sell a Honeywell Division results in a divestiture from Honeywell.
It is the Company's intent that the buyer's will, subject to the agreement of the union as the lawful representative of the transferring employees, assume the terms and conditions , or their equivalent, of the collective bargaining agreement and pension agreement between Honeywell and Teamsters Local 1145. At the closing date as the agreements would apply to the transferring employees.
With such an assumption, an employee working in or who is on layoff or leave (other than an employee receiving benefits for permanent disability under the Long Term Disability Plan or the Honeywell Pension Plan) from a divested business, who is offered a comparable job or continuation of his/her layoff or leave, will be transferred to the new company with the seniority he/she had on the closing date. If an employee in a divested unit is not offered a comparable job or a continuation of his/her layoff or leave, such employee will be treated as a surplus employee by Honeywell under the collective bargaining agreement.
If a transferred employee who is actively employed by the new company on the closing date is later involuntarily laid off by the new company the employee may, for a period equal to his/her seniority on the closing date, with a minimum of two (2) years and maximum of five (5) years after the closing date, resign his/her employment with the new company and exercise his/her cumulative seniority previously earned at Honeywell and with the new company to return to Honeywell, with such seniority, and displace the least senior Honeywell employee, to whom he/she is senior, on whose job he/she is qualified to perform.
An employee displacing the least senior employee under the above paragraph, will be eligible for the pay protection proved in Appendix B., Section 7 of the then current collective bargaining agreement.
If, on the closing date, a transferred employee of a divested business is on layoff status from the business, and not actively employed elsewhere in Honeywell, his/her employment shall transfer to the new company. However, if he/she is not recalled by the new company within the applicable time period set out above, the employee may at any time within such time period resign his/her employment status with the new company and exercise his/her combined seniority at Honeywell as provided above.
If, on the closing date, a transferred employee of a divested business is on leave of absence, his/her employment shall transfer to the new company. However, if he/she is not reinstated to active employment by the new company upon the expiration of such leave, he/she may resign employment status with the new company and exercise his/her combined service as provided above, regardless of the time the leave expires.