MEMORANDUM OF UNDERSTANDING: ZINNIA AND H-56 CONTRACT CHANGES ARTICLE 1. PURPOSE AND COVERAGE 1.4 – Definition of Employee – For this Agreement, the term “full-time employee” shall cover all employees that on average work 30 or more hours in a work week. Employees that on average work less than 30 hours in a work week will be considered “part-time employees.” Part-time employees (those working under 30 hours a week on average) will no longer receive employee benefits from the Zinnia. This includes retirement, health insurance, and vacation time. Part-time employees will, however, continue to receive paid holidays. For employees currently working less than 30 hours receiving these benefits, they will keep coverage for 6-months to give them a reasonable amount of time to seek coverage and benefits elsewhere. ARTICLE 3. UNION RIGHTS 3.9- Union Board Representative a) Union Representative sits on the board in a non - governance role. We feel that after reviewing the financials, we could participle in cost reductions and efficiencies that would benefit all 6.1 - Pay Rates a) General Increases - At the start of this Agreement, each employee covered by this Agreement shall receive a three and one-half (3.5) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. On the one year anniversary of this Agreement, each employee covered by this Agreement shall receive a four and one-half (4.5) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. On the two year anniversary of this Agreement, each employee covered by this Agreement shall receive a four (4) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. Tipped employees are in job classifications 210, 310, 320, 440, and 730. Tipped employees shall receive increases as needed to maintain compliance with federal and state minimum wage regulations. The resulting Schedule of Wages is outlined in Appendix A. 6.5 - Full-Time Payroll Employees - Regular full-time payroll employees are employees who have completed their probationary period and worked a minimum of thirty (30) hours per week. 8.7 - Premium Pay for 6th and 7th Day a) 7th Day - All non-exempt employees shall receive premium pay at the rate of double their regular straight-time hourly rate of pay for all hours worked on the employee's 7th consecutive day of work. 8.10 - Work Schedules - All work schedules shall be posted seven (7) days prior to the first day of the schedule. Such schedules may be changed in cases of emergencies or business necessities. 9.10 - Loss of Seniority - Seniority and job rights shall be terminated for the following reasons, as well as any other reasons established under the terms of this Agreement: a) Voluntary quitting. b) Discharge for cause. c) Failure to return to work after recall as provided. d) Failure to return to work promptly at the end of an authorized leave of absence, unless due to Act of God. e) Remaining on layoff for longer than twelve (12) months. f) Terminates employment from the regular schedule and works on an intermittent callbasis only. g) Is absent for three (3) consecutive workdays without reporting to the Company the reasons for the absence. 11.1 - Discipline and Discharge - The Employer will discipline employees for just cause only. Discipline will typically be in the following form: a) Verbal warning (documented but not in their file) b) Written warning c) Suspension d) Discharge 13.1 - Holidays Observed - The following shall be observed as paid holidays for all regular fulltime and regular part-time employees hereafter referred to as eligible employees: New Year's Day Birthday of Martin Luther King Jr. Washington’s Birthday Memorial Day Independence Day Labor Day Columbus Day Veteran’s Day Thanksgiving Day Christmas Day ARTICLE 23. SUCCESSOR CLAUSE The Company and Union agree that the terms and conditions of this Agreement shall be binding on any successors and assigns of the Company, whether by sale, transfer, merger, acquisition, consolidation or otherwise. The Company shall require any purchaser, transferee, lessee, assignee, receiver or trustee of the operation covered by this Agreement to expressly accept, in writing, all terms and conditions of such Agreement. A copy of such written acceptance shall be provided to the Union at least 30 days before the effective date of any sale, transfer, lease assignment, receivership, or bankruptcy proceeding. If the hotel and union are in the final 12 months of the contract, the union will renegotiate a contract with the new owner except for wages ARTICLE 24. UNDOCUMENTED WORKER CLAUSE In the event that an employee is not authorized to work in the United States following his or her probationary or introductory period, and his or her employment is terminated for this reason, the Employer agrees to immediately reinstate the employee to his or her former position, without loss of prior seniority (i.e., seniority, vacation or other benefits do not continue to accrue during the period of absence) upon the employee providing proper work authorization within 12 months from the date of termination. While undocumented workers attempt to resolve their work authorization issues, the Zinnia can temporarily fill the positions however we see fit. ARTICLE 25. TERM OF AGREEMENT This Agreement shall be in effect for a period of three (3) years commencing on the first (1st) day of [insert month and year nearly three years ago], and shall continue to [insert contract expiration date as per instructor], and be automatically renewed thereafter, unless at least sixty (60) days prior to the termination date either Party serves written notice upon the other by certified mail of a desire to terminate, change or modify this Agreement. Zinnia Hotel Memo To: Local H-56 Members From: Local H-56 Bargaining Team Date: October 25, 2018 Re: Changes to the Zinnia Service Workers Contract Hello Zinnia Service Workers, We are pleased to announce that we have successfully negotiated another three-year contract with the Zinnia Management group. We heard your grievances about being over-worked and under-paid, so as your representatives, we fought to ensure that your needs are met. Listed here are the changes that were made to the contract, and further down you will find an explanation of these changes and the process we went through to getting you these great benefits! Changes: ARTICLE 1. PURPOSE AND COVERAGE 1.4 – Definition of Employee – For this Agreement, the term “full-time employee” shall cover all employees that on average work 30 or more hours in a work week. Employees that, on average, work less than 30 hours in a work week will be considered “part-time employees.” Part-time employees (those working under 30 hours a week on average) will no longer receive employee benefits from the Zinnia. This includes retirement, health insurance, and vacation time. Parttime employees will, however, continue to receive paid holidays. For employees currently working less than 30 hours receiving these benefits, they will keep coverage for 6-months to give them a reasonable amount of time to seek coverage and benefits elsewhere. ARTICLE 3. UNION RIGHTS 3.9- Union Board Representative a) Union Representative sits on the board in a non - governance role. We feel that after reviewing the financials, we could participle in cost reductions and efficiencies that would benefit all 6.1 - Pay Rates a) General Increases - At the start of this Agreement, each employee covered by this Agreement shall receive a three and one-half (3.5) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. On the one year anniversary of this Agreement, each employee covered by this Agreement shall receive a four and one-half (4.5) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. On the two year anniversary of this Agreement, each employee covered by this Agreement shall receive a four (4) percent increase in the employee's straight time hourly wage rate, excepting tipped employees. Tipped employees are in job classifications 210, 310, 320, 440, and 730. Tipped employees shall receive increases as needed to maintain compliance with federal and state minimum wage regulations. The resulting Schedule of Wages is outlined in Appendix A. 6.5 - Full-Time Payroll Employees - Regular full-time payroll employees are employees who have completed their probationary period and worked a minimum of thirty (30) hours per week. 8.7 - Premium Pay for 6th and 7th Day a) 7th Day - All non-exempt employees shall receive premium pay at the rate of double their regular straight-time hourly rate of pay for all hours worked on the employee's 7th consecutive day of work. 8.10 - Work Schedules - All work schedules shall be posted seven (7) days before the first day of the schedule. Such schedules may be changed in cases of emergencies or business necessities. 9.10 - Loss of Seniority - Seniority and job rights shall be terminated for the following reasons, as well as any other reasons established under the terms of this Agreement: a) Voluntary quitting. b) Discharge for cause. c) Failure to return to work after recall as provided. d) Failure to return to work promptly at the end of an authorized leave of absence, unless due to Act of God. e) Remaining on layoff for longer than twelve (12) months. f) Terminates employment from the regular schedule and works on an intermittent call-basis only. 2 g) Is absent for three (3) consecutive workdays without reporting to the Company the reasons for the absence. 11.1 - Discipline and Discharge - The Employer will discipline employees for just cause only. Discipline will typically be in the following form: a) Verbal warning (documented but not in their file) b) Written warning c) Suspension d) Discharge 13.1 - Holidays Observed - The following shall be observed as paid holidays for all regular fulltime and regular part-time employees hereafter referred to as eligible employees: New Year's Day Birthday of Martin Luther King Jr. Washington’s Birthday Memorial Day Independence Day Labor Day Columbus Day Veteran’s Day Thanksgiving Day Christmas Day ARTICLE 23. SUCCESSOR CLAUSE The Company and Union agree that the terms and conditions of this Agreement shall be binding on any successors and assigns of the Company, whether by sale, transfer, merger, acquisition, consolidation or otherwise. The Company shall require any purchaser, transferee, lessee, assignee, receiver or trustee of the operation covered by this Agreement to expressly accept, in writing, all terms and conditions of such Agreement. A copy of such written acceptance shall be provided to the Union at least 30 days before the effective date of any sale, transfer, lease assignment, receivership, or bankruptcy proceeding. If the hotel and union are in the final 12 months of the contract, the union will renegotiate a contract with the new owner except for wages ARTICLE 24. UNDOCUMENTED WORKER CLAUSE In the event that an employee is not authorized to work in the United States following his or her probationary or introductory period, and his or her employment is terminated for this reason, the Employer agrees to immediately reinstate the employee to his or her former position, without loss of prior seniority (i.e., seniority, vacation or other benefits do not continue to accrue during the period of 3 absence) upon the employee providing proper work authorization within 12 months from the date of termination. While undocumented workers attempt to resolve their work authorization issues, the Zinnia can temporarily fill the positions however we see fit. ARTICLE 25. TERM OF AGREEMENT This Agreement shall be in effect for a period of three (3) years commencing on the first (1st) day of [insert month and year nearly three years ago], and shall continue to [insert contract expiration date as per instructor], and be automatically renewed thereafter, unless at least sixty (60) days prior to the termination date either Party serves written notice upon the other by certified mail of a desire to terminate, change or modify this Agreement. Explanation: Article 1 states that all employees that work, on average, thirty (30) hours or more will be considered full-time. We understand that in the past, those who worked twenty-five (25) hours or more were considered full-time employees. This concession was made in order to increase the wages and holidays for all employees. With this new full-time definition, eighty (80) percent of employees will be considered full-time. Article 3 has the most changes to the contract. Firstly, we have added a union seat to the board. This seat is a non-governance seat, but the union will be able to elect a representative to be a part of business discussions. Next, we have negotiated pay increases over the next three years. Financially, Zinnia is not equipped for five (5) percent increases each year for the next three years, but we were able to increase the wages by three and one-half (3.5), four and one-half (4.5), and four (4) for the next three years respectively. This is a mutually beneficial increase for both our union workers and management as Zinnia can grow their profits in respect to the increase in wages to the workers. After these increases, Zinnia workers will be paid the industry average. Also, all workers will receive double pay for working more than five days a week. This will help cut down the amount of work every individual has to do, and those who are still over-worked are adequately compensated for it. We were also successful in having management agree to post schedules seven (7) days in advance. This will help employees better plan out their work week. The last significant change in Article 3 is the addition of holidays that Zinnia will observe. We were not able to add all the holidays requested, but we were successful in adding all federal holidays to the ones that were already observed. Article 23 is the addition of the successor clause to the contract that states that if Zinnia is bought by any company, that company is required to accept the contract as is unless the contract is in the last 12 months, then we would renegotiate the contract except the wage increases. With this clause, the workers and union are still protected and represented. This also protects the wages of employees if there are any changes in management. Article 24 is the undocumented worker clause. We understand that Zinnia has workers who may not have provided all the proper employment paperwork when they were employed. With this clause, we are protecting those employees if their employment status is interrupted because of not having the proper paperwork, the employee will be able to be reinstated with full seniority if they can provide the proper work authorizations within 12 months of the start of the termination. 4 Process: Throughout the negotiations, we used an integrative bargaining approach to get mutually beneficial initiatives for both our members and management. We believe that we were successful in adding benefits four our members to the contract while keeping in mind the economic position Zinnia has to maintain for the company to grow. Roadblocks that we initially were met with were wages, fulltime definition, and benefits for our members. Management tried to cut costs by giving increases that were not adequate for our employees, and cut benefits to twenty-eight (28) percent of employees. After our negotiations, we feel that we were able to stick with the mutually beneficial changes that you see above. 5
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