AGREEMENT. Between. And The. January 1, December 31, 2017

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1 AGREEMENT Between MAYO CLINIC HEALTH SYSTEM ALBERT LEA AND AUSTIN AUSTIN CAMPUS Austin, Minnesota And The MINNESOTA LICENSED PRACTICAL NURSES ASSOCIATION/AFSCME LOCAL 105 January 1, December 31, 2017

2 Table of Contents Article/Content Page Number Scope and Definition 3 Hours 3 Overtime 3 Extra Weekend 3 Low Census 3 Flexible Work Schedules 4 Mandatory Shifts 4 Salary 5 On-call 5 Shift Differentials 5 Short Notice Call-in 6 Christmas Holiday Incentive 6 Part-time Nurses 6 Paid Time Off (PTO) 6 Short Term Disability (STD) 6 Senior Nurse Recognition-Holidays 6 Leave of Absence 6 Funeral Leave 6 Jury Duty Leave 6 Educational Leave of Absence 6 Health Program 7 Pension Plan 7 Other Benefits 7 Health Insurance 7 Time Schedule 7 Identification 7 Seniority 7 Termination of Employment 8 Special Conferences 8 Grievance Procedure 9 Union Security and Dues 9 Dues Deduction Authorization 9 Arbitration of Contract 12 Management Rights 12 No Strikes or Lockouts 13 Bulletin Boards 13 Job Security 13 Duration and Renewal 14 2

3 This Agreement was made and entered into the day and year hereinafter written by and between Mayo Clinic Health System Albert Lea and Austin Austin Campus, herein referred to as the "Hospital" and the Minnesota Licensed Practical Nurses Association/AFSCME Local 105, herein referred to as the "Union" as follows: ARTICLE I. SCOPE AND DEFINITION A. This Agreement shall apply and be limited to the Licensed Practical Nurses employed by the Hospital. The Hospital recognizes the Union as the exclusive bargaining representative for the nurses. B. The term "Nurse" as used herein shall mean "Licensed Practical Nurse" or "Certified Medical Assistant." The term Licensed Practical Nurse shall mean a person currently holding a license or valid permit from, recognized by, and in good standing with the Minnesota Board of Nursing as a Licensed Practical Nurse. The term "Certified Medical Assistant" shall mean a person currently hold a certification recognized by, and in good standing with the American Association of Medical Assistants or other recognized certifying body. The Hospital and the Union agree that only persons so licensed or holding such a valid permit shall be recognized as Licensed Practical Nurses. ARTICLE 2. HOURS A. The basic work week will be forty (40) hours and the normal work day will be eight (8) hours. If a nurse is required to work more than eighty (80) hours in any two (2) week period or more than eight (8) hours in any day, or more than eight (8) consecutive hours (such time shall not include an unpaid one-half hour lunch period), she will be paid at one and one-half (1-1/2) times her regular rate of pay for all time worked in excess of eighty (80) hours in a two (2) week pay period or in excess of eight (8) hours in one day or more than eight (8) consecutive hours. Provided, however, that nurses who work in excess of twelve (12) consecutive hours shall receive double time (2X) for all hours worked in excess of twelve (12). B. Full-time and regular part-time nurses as defined in Article 4 will be entitled to every other Saturday and Sunday off. Any such full-time or regular part-time nurse who is required to work more than one successive Saturday or Sunday shall be paid an additional sixty ($60) dollars for each extra Saturday or Sunday worked if the nurse works the day or evening shift. Any full-time or regular part-time nurse who is required to work more than one successive Saturday or Sunday on the night shift shall be paid an additional seventy ($70) dollars for each extra Saturday or Sunday worked. (Weekend bonus will be prorated to $7.50 per hour paid on each full hour worked during the day or evening and will be prorated to $8.75 per hour paid on each full hour worked on the night shift.) If such full-time or regular part-time nurses work two or more Saturdays or Sundays for his/her own convenience, he/she will not be paid the additional weekend bonus for such extra Saturdays or' Sundays worked. It is understood that because of scheduling difficulties, days off during the week may be split days off. For purposes of this Section, the weekend for night shift employees shall be as follows: "Saturday" is the shift which begins at 11:00 p.m. on Friday and "Sunday" is the shift which begins at 11:00 p.m. on Saturday. C. Shift rotation will be kept to a minimum. D. Nurses shall be allowed fifteen minutes relief in each four (4) hour period except in emergency situations. E. If a nurse reports for work on his/her regular shift and is sent home for lack of work, or if a nurse is 3

4 asked to report and reports for work, and is then sent home, the employee shall receive a minimum of two (2) hours pay. Nurses will receive benefit credit for low census days. F. Normally there shall be at least twelve (12) hours between scheduled shifts (days, evenings, or nights) except on days prior to scheduled days off. This provision shall apply only to regularly scheduled personnel. G. Except in cases where scheduling would deprive patients of needed nursing service, nurses will not be scheduled to work more than two of three shifts (days, evenings, nights) during a fourteen (14) day work period. H. Nurses who are required to attend in-service training programs will be compensated at the applicable rate of pay for all time spent at such meetings. I. Flexible Work Schedules: The Hospital and an individual nurse may agree upon a pattern of work schedules providing for work in excess of eight (8) hours per day. Work schedules established pursuant to the provisions of this Section shall be subject to the following conditions: (1) The basic work period shall be forty (40) hours per week. A nurse shall be paid time and onehalf (1-1/2) for work in excess of forty (40) hours per week rather than the overtime provisions set forth in Article 2. Further, even though the total hours worked during a week may not exceed forty (40), a nurse working in excess of his/her scheduled work day shall be paid at a rate of time and one-half (1-1/2) for all excess time so worked, except that hours in excess of twelve (12) consecutive hours in a work day shall be paid at the rate of double time. A nurse shall have the opportunity to review the alternate work schedule or schedules being considered prior to volunteering for flexible work schedules. The Hospital shall retain written documentation that a nurse has agreed to a flexible work schedule and of the type of flexible schedule to which the nurse has agreed. The nurse shall be provided with a copy of this documentation. (2) Shift differential shall be paid for the entire shift for any shift where the majority of hours worked occur after 3:00 p.m. (3) Paid Time Off (PTO) and short term disability shall be earned at a rate proportional to that specified in Article 5 for nurses who are not working a flexible schedule. (4) Flexible schedules established pursuant to this Section shall not be posted under the provisions of Section 22.C. of this Agreement. (5) The Hospital shall not discriminate against any nurse on the basis that he/she desires or declines to work flexible schedules. J. If, after making a diligent effort to secure a volunteer, the Hospital cannot provide necessary staff for a shift, the least senior nurse from the preceding shift will be required to work the necessary hours to fully staff the shift as shall be determined by the Hospital. In no event, however, shall any nurse be required to work an extended shift a second time in any thirty (30) day period following a double shift assignment. If a further staffing necessity arises within that subsequent thirty (30) day period, the next less senior nurse will be required to fulfill that mandatory over-time assignment. K. Nurses with a 0.4 FTE status or greater who volunteer fourteen (14) or fewer calendar days in advance to pick up a shift will not be considered the least senior nurse for determining scheduled mandatory overtime, except in the case where patients would be deprived of needed nursing service. This shall also apply to a nurse who works four (4) or more hours immediately prior to or after the nurses regularly scheduled eight (8) hour shift. 4

5 L. Nurses who voluntarily extend their shift into the evening or night shift for four (4) or more hours will receive the shift differential for the additional hours. ARTICLE 3. SALARY A. Licensed Practical Nurses will be paid according to the following salary schedule. Increases will become effective the pay period following the nurse reaching the hours level as indicated in the chart below.: 1/1/2015 1/1/2016 1/1/2017 Increase 1.50% 1.00% 0.75% Start $17.52 $17.69 $ Year (2,080 hours) $17.86 $18.04 $ Years (4,160 hours) $18.23 $18.42 $ Years (6,240 hours) $18.60 $18.78 $ Years (8,320 hours) $18.96 $19.15 $ Years (10,400 hours) $19.34 $19.54 $ Years (12,480 hours) $19.74 $19.93 $ Years (14,560 hours) $20.13 $20.33 $ Years (16,640 hours) $20.52 $20.73 $ Years (18,720 hours) $20.94 $21.15 $ Years (20,800 hours) $21.35 $21.56 $ Years (24,960 hours) $21.79 $22.00 $ Years (31,200 hours) $22.22 $22.44 $ Years (37,440 hours) $22.66 $22.88 $ Years (41,600 hours) $23.11 $23.34 $ Years (52,000 hours) $23.58 $23.81 $ Years (58,240 hours) $24.05 $24.29 $24.47 B. Upon employment by the Hospital of a nurse who has had prior experience as a Licensed Practical Nurse, either in some other hospital or during a period of prior employment in this Hospital, the Hospital agrees to review and evaluate the experience and qualifications of such nurse and to assign such credit as the Hospital deems reasonable to the previous experience of the nurse. For the purpose of classification of such nurse under paragraph three of the Agreement relating to "salary," the credit will be considered as the equivalent of employment in the Hospital. It is understood that this nurse will reach the maximum sooner than a nurse who has been employed at the basic minimum. C. Nurses who are required to take call duty will receive an additional four dollars and eighty-five cents ($4.85). A nurse shall not receive call pay for any time spent performing work at the Hospital. Nurses shall be paid a minimum of two (2) hours pay, at the applicable rate of pay for the first time he/she is called in during his/her assigned on-call period and shall be paid for the actual time worked, with a minimum of one (1) hour at the applicable rate of pay, for each subsequent time he/she is called in during his/her assigned on-call period.. D. Effective January 1,2015, nurses working the evening shift shall be paid an additional one dollar and fifty cents ($1.50) per hour for all hours worked on such shift. Nurses working the night shift shall be paid an additional two dollars and fifty-five cents ($2.55) per hour for all hours worked on such shift. Effective January 1, 2016 nurses working the evening shift shall be paid an additional 5

6 one dollar and fifty five cents ($1.55) per hour for all hours worked on such shift. E. A nurse who agrees to work an eight (8) hour shift on a scheduled day off with eight (8) hours or less notice will be paid an additional twenty-five dollars ($25.00). F. Nurses working between the hours of 3:00 p.m. on December 24 and 3:00 p.m. on December 25 will receive two times their normal pay for the shift. G. All hours worked between 11 p.m. Friday and 7 a.m. Monday will receive an additional fifty cents ($.50) per hour. ARTICLE 4. PART-TIME NURSES A change in status from fill-time to part-time or from part-time to full-time shall not work a forfeiture of earned and accrued benefits including placement on the salary schedule. ARTICLE 5. PAID TIME OFF/SHORT TERM DISABILITY A. Paid Time Off/Short Term Disability: Paid Time Off (PTO) and benefit eligible nurses shall be eligible to participate in the Hospital's PTO and short term disability plans on the same terms and conditions as such plans may be offered to other Mayo Clinic Health System in Minnesota noncontract employees and as may be modified from time to time by the Hospital. B. Senior Nurse Recognition: Nurses with a minimum of forty-one thousand six-hundred (41,600) hours of service will be offered their choice of two (2) holiday preferences per year. ARTICLE 6. LEAVES OF ABSENCE A. A leave of absence of up to twelve (12) weeks may be requested for any reason outlined under the Family Medical Leave Act, assuming the nurse has been continuously employed for at least one (1) year and has worked at least 1,250 hours during the twelve (12) months preceding commencement of the leave. A request for such a leave must be in writing and must give the reason for the request and the probable duration of the leave. A nurse must use eligible accrued Short Term Disability and Paid Time Off benefits during such leave on the same terms and conditions as non-union employees. If a nurse desires to return to the Hospital at a date different than the date of return specified at the begirming of the leave, she/he shall notify the Hospital three (3) weeks in advance of the specified return date or the desired return date (whichever is earlier). B. If a nurse does not qualify for FMLA leave, a nurse may request a leave of absence for critical illness/injury in the immediate family, which leave may be granted for a length of time to be mutually agreed upon by the nurse manager and the nurse. C. Funeral leave eligible nurses shall be eligible for funeral leave on the same terms and conditions as such leave may be offered to other Mayo Clinic Health System in Minnesota non-contract employees and as may be modified from time to time by the Hospital. ARTICLE 7. EDUCATIONAL LEAVE OF ABSENCE A nurse who has been employed by the Hospital for a continuous period of four (4) years or more may, in the discretion of the Hospital, be granted an educational leave of absence up to twelve months. The Hospital will extend said leave provided the nurse maintains a level progress which qualifies him/her for a nursing related degree. In order to qualify for such leave, the nurse must be a full-time student at a college or university working toward a nursing related degree as approved in advance by the Hospital. No such leave will be granted unless application therefore has been made at least six (6) months in advance of the first day such leave is to begin. The nurse must sign a certificate that he/she will return to 6

7 work at the Hospital for at least one (1) year immediately following the termination of such leave. The time spent on leave of absence shall not be credited to PTO, length of service, or salary increments. ARTICLE 8. HEALTH PROGRAM Prior to the beginning of employment with the Hospital, a nurse must complete all pre-employment health exams, testing, or immunizations (or complete the immunization declination process) as defined by the Hospital. Annually thereafter, the nurse shall complete the flu vaccination program (either by receiving the vaccination or by completing the immunization declination process) and Tuberculosis testing program as currently defined by the Hospital. ARTICLE 9. RETIREMENT PLANS Benefit eligible nurses shall be eligible to participate in the Hospital's retirement plans on the same terms and conditions as such plans may be offered to other Mayo Clinic Health System in Minnesota non-contract employees and as may be modified from time to time by the Hospital. ARTICLE 10. OTHER BENEFITS A. Benefit eligible nurses shall be eligible to participate in the Hospital's health insurance, dental insurance, life insurance, accidental death and dismemberment, and long term disability plans on the same terms and conditions as such plans may be offered to other Mayo Clinic Health System in Minnesota non-contract employees and as may be modified from time to time by the Hospital. B. Nurses working the evening shift or night starting on December 24 or the day or evening shift on December 25 shall receive two times their normal pay for all hours worked. If the shift starts or ends outside of the 32 hour period of 3 p.m. December 24 to II p.m. December 25 the majority of hours worked will determine eligibility for the holiday premium. ARTICLE 11. TIME SCHEDULE A minimum of a four (4) week schedule will be posted at least two (2) weeks in advance of the nurses' work week. A nurse desiring a specific day or days off shall notify the Hospital three (3) weeks or more prior to the schedule being posted. A Request for an alteration to the posted schedule by a nurse may be granted if the nurse obtains his/her own replacement acceptable to the Hospital and providing such replacement does not involve payment of overtime. ARTICLE 12. IDENTIFICATION All nurses covered by this Agreement shall be required to wear appropriate Licensed Practical Nurse or Certified Medical Assistant insignia while on duty. ARTICLE 13. SENIORITY A. In the event of layoff, a nurse shall be laid off in the inverse order of hiring or seniority. Nurses shall be rehired according to seniority in the inverse order of layoffs. B. Seniority standing shall be granted to all nurses. C. Seniority standing shall be determined on the basis of total hours worked at Mayo Clinic Health System Albert Lea and Austin Austin Campus since the most recent date of hire. 7

8 D. A seniority list shall be presented to the Union upon request of its officers. E. A nurse shall lose seniority upon termination of his/her employment by the Employer or upon his/her voluntary resignation from employment at Mayo Clinic Health System Albert Lea and Austin Austin Campus. F. Nurses who have been laid off and who, by virtue of their seniority, are entitled to reemployment when the working force is increased, shall receive five days written notice by registered mail at the last address which such nurse has left with the Employer. If such nurse does not report for work within five days after the mailing of such notice in the U.S. mails at Austin, Minnesota, with proper postage prepaid thereon, such nurse's seniority and right of recall shall be lost. During said interval, the Employer shall have the right to fill the vacancy on a temporary basis if it is considered necessary by the Employer to do so. If the work force has not been increased within a twelve (12) month period from date of layoff, re-employment rights shall be lost and the nurse shall lose all seniority rights. G. It is expressly agreed that the operation of this Article 13 shall not have the effect of depriving patients of needed nursing service. A nurse may be retained out of the sequence described in this Article 13 if nurses with greater length of employment do not have the ability to perform the duties within a reasonable period of orientation not to exceed three weeks. H. The Hospital shall prepare on or about the 1st day of January of each calendar year, a seniority list based upon the foregoing provisions which shall be posted on the employee's bulletin board which shall be final and binding on all persons unless a grievance has been filed within 15 days of the date of such posting by any individual nurse that such posting is not correct. After the 15-day period the seniority list will be removed from the bulletin board and placed on the Hospital's intranet site. The seniority list shall identify, for each nurse, the total number of compensated hours since the nurse's most recent date of employment. I. All new nurses shall be given a trial period of sixty (60) days before acquiring any seniority and, during such trial period, the Hospital may terminate the employment of such nurse without cause and without the consent or notice to the Union. For part-time nurses, the trial period will be the equivalent of sixty (60) working days. If a nurse is retained on employment after said trial period, his/her seniority shall be determined from his/her most recent date of hire. ARTICLE 14. TERMINATION OF EMPLOYMENT A. The Hospital shall be entitled to and shall receive from each person covered by this Contract, four weeks notice in writing of the individual's intention to terminate his/her employment with the Hospital. If a nurse gives less than four weeks notice of termination of his/her employment, he/she shall waive terminal PTO benefits as provided in Article 5 of this Agreement. Exceptions to this provision may be made at the sole discretion of the Employer. B. A nurse shall not be demoted, suspended, or discharged without just cause. Theft of Hospital property, drunkenness or under the influence of controlled substances except prescribed medications while on duty, bringing intoxicating liquor or controlled substances except prescribed medications on the Hospital's premises, continued or willful neglect of his or her work, failure to provide a certificate of illness when requested to do so, and repeated infractions of the rules of the Hospital in the performance of duty shall be grounds for discharge. ARTICLE 15. SPECIAL CONFERENCES In the interest of good communications, to cultivate and achieve mutual understanding and cooperation, and to develop responsible labor relations participation, Special Conferences may be requested by either party to exchange ideas and information, and together explore and discuss situations and subjects of interest and concern. 8

9 Bargaining unit members shall be paidfor time spent in attendance at designated Special Conferences and this time shall be considered as hours worked. Special Conferences will be held quarterly. ARTICLE 16. GRIEVANCE PROCEDURE A. The Hospital and the Union agree to the following procedure of presenting and adjusting grievances which must be processed in accordance with the following steps, time limits, and conditions: (1) The Hospital believes that the interest of the nurses and the institution is best served if problems concerning a nurse's employment with the Hospital are resolved at the department level. Therefore, questions or complaints by nurses are to be presented to their manager and thoroughly discussed in an attempt to obtain a solution which is satisfactory to both parties. It is the responsibility of the manager to make every reasonable effort to resolve the problems within the guidelines of Hospital policy. (2) If the grievance is not solved satisfactorily by the nurse and the manager within five (5) working days of its occurrence, the nurse shall present the written grievance to the Director of Human Resources or his/her designee. The nurse may be accompanied by one representative of the Minnesota Licensed Practical Nurses Association/AFSCME Local 105. The Hospital representative will hear the nurse's complaint within ten (10) working days following receipt of the grievance. A written recommendation as to how the nurse's grievance may be resolved will be forwarded to the nurse within five (5) working days following the meeting. Failure to respond shall be considered a denial of the grievance. For purposes of this procedure, the term "working days" shall exclude Saturdays, Sundays, and holidays as defined in this Agreement. (3) If the Hospital and the nurse fail to arrive at a final settlement in Step 2, the Union may request appointment of an impartial arbitrator to settle the grievance. Failure to give notice to the Hospital for the demand for arbitration within fifteen (15) working days following the above hearing with the Hospital representatives or his/her designee shall terminate all proceedings respecting said grievance. The arbitrator shall have no power to subtract from, amend, modify, or extend any terms of the Agreement. He/she shall consider and decide only the particular issue presented to him/her, and his/her decision and award shall be based solely upon his/her interpretation or application of the terms of this Agreement. The arbitrator shall render no award under this Agreement which shall be retroactive beyond the date the grievance was originally filed with the Hospital. The award of the arbitrator shall be final and binding on both parties to this Agreement. The parties shall request the American Arbitration Union to furnish a panel of five arbitrators. Upon being furnished the panel, the parties shall meet and alternatively strike names from the panel until only one name is left and that person shall be the arbitrator. The party requesting the arbitration shall have the first strike. Either party may strike one entire panel and request another panel. All expenses related to the arbitrator shall be borne equally by the Hospital and the Union. (4) The time limits established in the grievance procedure are intended to facilitate the prompt consideration and resolution of nursing grievances and will be strictly followed. The parties may mutually agree in writing to extend the time limits, but neither party is required to extend them. Failure to follow the time limitations shall result in the grievance being waived, any existing decisions or interpretations shall be upheld, and the grievance shall not be submitted to arbitration. ARTICLE 17. UNION SECURITY AND DUES DEDUCTION A. It shall be a condition of continued employment that all nurses covered by this Agreement, who are members in good standing of the Union on the effective date of this Agreement shall remain members in good standing of the Union for the duration of this Agreement. 9

10 B. Any regularly scheduled nurse who is not currently a member of the Union and does not choose to become one, and any newly hired regularly scheduled employee covered by this Agreement who successfully completes the probationary period and does not choose to become a member shall, as a condition of continued employment, pay to the Union a monthly fee equal to the regular monthly dues of the members of the Union. The Union agrees to indemnify the Hospital and hold it harmless against any actions or claims, including expenses and reasonable legal fees by or of employees based upon or as a result of this provision. C. Any nurse covered by this Agreement who fails to comply with the above provisions will have their employment with the Hospital terminated upon receipt of written notification from the Union that the employee has failed to comply with the above provisions. D. The Hospital agrees to deduct, from the salaries of those nurses who choose to join the Union, dues for the Minnesota Licensed Practical Nurses Association/AFSCME Local 105 in according with the standard form used by the Union provided that said form shall be executed by the employee. Such deductions of twelve (12) equal payments shall be forwarded to the Union office together with a record of the amount and those for whom deductions have been made. E. The Hospital agrees to fiirnish the Union a monthly list of new hires, terminations, and nurses on leave of absence. 10

11 MINNESOTA LICENSED PRACTICAL NURSES ASSOCIATION/AMERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES AFSCME Council Central Avenue Nashwauk, MN MEMBERSHIP DUES OR SERVICE FEE DEDUCTION AUTHORIZATION I hereby authorize and direct the Mayo Clinic Health System - Austin (Hospital) to deduct from my salary and to pay the designated office of the Union in the amount from time to time duly certified as correct by the Union. Such deductions shall be made in twelve (12) equal monthly installments in an amount sufficient for the payment of the duly certified membership dues or service fee. I hereby waive all rights and claims for said monies paid in accordance with this authorization to my assignee: Union. This authorization shall remain in effect for a period of one (1) year or until the expiration of the current contract between the Union and the Hospital, whichever date occurs first. Furthermore, this authorization shall be automatically renewed for successive periods of one (1) year each or for the period of each succeeding contract between the Union and the Hospital whichever is shorter. Provided, however, that this authorization shall be terminated if I give written notice of termination to the Union and the Hospital during the thirty (30) days immediately preceding the expiration of each period of one (I) year of each contract between the Union and the Hospital whichever occurs sooner. SIGNATURE SOCIAL SECURITY NUMBER STREET AND NUMBER ADDRESS ORIGINAL LICENSE NUMBER CITY, STATE, AND ZIP CODE DATED TELEPHONE NUMBER (SEND ONE COPY TO THE PAYROLL DEPARTMENT OF THE HOSPITAL AND ONE COPY TO THE UNION) 1 1

12 ARTICLE 18. ARBITRATION OF CONTRACT A. The Hospital and the Minnesota Licensed Practical Nurses Association/AFSCME Local 105 recognize that it is essential that patient care be provided on an uninterrupted basis for the welfare of patients and the public. The provisions of this Article 18, therefore, are designed to ensure continuity of care by establishing a mechanism for the resolution of disputes which may arise regarding the negotiation of contracts. B. The provisions of this Article 18 shall be in full force and effect during the period of January 1, 2006 through December 31, C. In the event the parties are unable to agree by negotiation on the terms of a new agreement to replace any agreement expiring prior to December 31, 2022 the provisions of the succeeding agreement shall be determined by arbitration as provided in this Article 18. Either party may submit the dispute to arbitration by written notice to the other party. D. The Hospital shall appoint one arbitrator, the Union shall appoint one arbitrator, and the two arbitrators so chosen shall appoint a third arbitrator who shall act as Chairman of the Board of Arbitration. If the arbitrators appointed by the Hospital and the Union are unable to agree upon the appointment of such third arbitrator within five (5) days after submission to arbitration, the American Arbitration Union shall submit five (5) names to the parties and the parties shall select the third arbitrator, who shall act as Chairman, from the five submitted by the American Arbitration Union. The selection of the third arbitrator shall be by the process of elimination with the parties alternately striking names from the list of five submitted by the American Arbitration Union, until only one name remains. If the parties are unable to agree with respect to which party shall take the first turn for the purpose of striking a name, it shall be decided by the flip of a coin. Each party shall be responsible for compensating the arbitrator of its choice, and the parties shall share equally the fees and expenses of the third arbitrator. E. The Board of Arbitration shall conduct a hearing and shall determine any unresolved issues with respect to "wages, hours, and other terms and conditions of employment." Provided, however, that the Board of Arbitration shall have no authority to modify or eliminate the provisions of this Article 18 or 20. The term "wages, hours, and other terms and conditions of employment" shall be given the same meaning for purposes of this Article as it has under Section 8(d) of the National Labor Relations Act as amended. The Board of Arbitration shall make an award in writing and the decision of a majority of the Board shall be final and binding on both parties. ARTICLE 19. MANAGEMENT RIGHTS A. The management of the Hospital and the direction of the work forces is vested exclusively in the Hospital including but not limited to the right to hire, promote, demote, suspend, discipline, and discharge for proper cause; the right to decide job qualifications for hiring; the right to transfer or layoff because of lack of work or other legitimate reasons; to judge the relative skill, ability, or qualifications of employees; to determine any type, kind, and quality of service to be rendered to patients and citizenry; to determine work standards; to plan and schedule employees work including overtime; to plan and schedule any training programs; to create, promulgate and enforce reasonable work rules, and all other functions of management and directions not expressly limited by the terms of this Agreement. The Union expressly recognizes the prerogative of the Hospital to operate and manage its affairs in all respects with its responsibilities. B. In the practical application of this Contract, it will be necessary for the supervisors and administration to interpret this Contract, or the applicable parts of it, on many occasions. For the practical and successful operation of the Hospital, it is understood that unless illegal, immoral, or injurious to the health of the employee or other persons, employees will follow the reasonable instruction of their supervisor and that in cases where an employee disagrees with the supervisor as to the interpretation of the Contract, the employee may take the matter to the grievance procedure as outlined herein. 12

13 C. All nurses covered by this Agreement and the Minnesota Licensed Practical Nurses Association/AFSCME Local 105 acknowledge and agree to adoption of the Mayo Clinic Health System Drug and Alcohol Testing Policy on the same terms and conditions as such policy applies to other Mayo Clinic Health System non-contract employees and as may be modified from time to time by the Employer. ARTICLE 20. NO STRIKES OR LOCKOUTS There shall be no sty kes or lockouts of any kind whatsoever during the period of January 1,2006 through December 31, The prohibition against strikes and lockouts shall be absolute and shall apply regardless of whether a dispute is subject to arbitration under the grievance arbitration provisions of Article 16 and regardless of whether the dispute is subject to arbitration under the contract arbitration provisions of Article 18. ARTICLE 21. BULLETIN BOARDS A. The Hospital will provide bulletin board spaces for posting of meeting notices. ARTICLE 22. JOB SECURITY A. No nurse shall suffer a reduction of hours or be laid off as a result of the transfer of assignments, duties, or responsibilities currently being performed by members of this bargaining unit to current or newly-hired employees in other classifications. B. In reducing staff due to diminished number of needed nursing care hours, the Hospital will first offer to the nurse the opportunity to take time off as paid days in the Unit and on the shift affected. Those paid days will be the PTO days (which can be taken a day at a time). C. When a position is available for which a Licensed Practical Nurse is eligible, it shall be posted on the intranet for a period of seven (7) calendar days including Saturdays and Sundays. Said posting will state whether it is a full-time or part-time position, the shift and to whom to apply for the position. A nurse with greater qualifications shall be given preference and may be taken out of the seniority sequence. If two or more currently employed nurses apply, and all such applicants have the same qualifications for the position, the nurse with the most seniority shall have preference. As between an applicant currently employed and one not employed, the currently employed applicant shall have preference provided he/she is qualified. A currently employed nurse shall apply within the posting period to establish preference. A nurse must be in his/her current position for a minimum of one (1) year before being eligible to transfer, unless a different arrangement is mutually agreed upon between the nurse and the Hospital. 13

14 For Mayo Clinic Health System- Albert Lea and Austin located in Austin: Ke i Slegh, Regional Director of Human Resources ARTICLE 23. DURATION AND RENEWAL A. This Agreement shall be in full force and effect until December 31, 2017 and thereafter from year to year unless written notice of a desire to change, modify, or tenninate the Agreements given by either party in writing to the other party at least ninety (90) days prior to the expiration date of the Agreement. IN WITNESS WHEREOF, the undersigned have caused this Agreement to become effective and be duly executed by their authorized representative. Minnesota Licensed Practical Nurses Association/AFSCME Local 105 Sheila Pokom, A FSCME S-t--a)ff Representative 1 4-1" /7 5 Car 6 5 is, Dc irerming to ( Steve Waldhoff, Chief Administrativ di j ibi Ro A Gina Everson, LPN M oi4i ( 14

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