Loading...
SR-09-23-1980-6QSanta Monica, California, September 15, 1980 TO: Mayor and City Council FROM: City Staff $EP 2 3 1988 SUBJECT: Extension of an Existing Memorandum of Understanding between the City and Transportation Department Employees' Representative Organizations Under Paragraph 13(C) of the Urban Mass Transportation Act of 1964, As Amended Introduction As a condition of receiving federal assistance for the purchase of new buses, the City must make fair and equitable arrangements to protect Transportation Department employees against any worsening of their positions within the De- partment resulting from the use of the federal funds. To satisfy this require- ment, this report requests that the City Council authorize the City Manager to seek an extension of the terms and conditions of a previous Memorandum of Understanding, adopted by the Council on September 13, 1977, to cover eleven buses to be purchased under two grants. Background On March 25, 1980, the City Council authorized the City Manager to submit an application to the federal Urban Mass Transportation Administration (UMTA) for $1,158,854 to purchase six fully equipped advanced design transit buses, as additions to the fleet. This application has been sent to UMTA for its review and approval. On September 10, 1980, the City Council authorized the City Manager to file another application with UMTA for$1,050,000 to purchase five buses as replace- ments. A public hearing on this application is scheduled for October 23, 1980, after which the document will be submitted to UMTA for its review and approval. Section 13(c) of the Urban Mass Transportation Act specifies that as a condition of any financial assistance, fair and equitable arrangements be made as deter- mined by the Secretary of Labor, to protect employees against a worsening of / Q SEP 2 3 1980 l Santa Monica, California, September 15, 1980 TO: Mayor and City Council FROM: City Staff $EP 2 3 1988 SUBJECT: Extension of an Existing Memorandum of Understanding between the City and Transportation Department Employees' Representative Organizations Under Paragraph 13(C) of the Urban Mass Transportation Act of 1964, As Amended Introduction As a condition of receiving federal assistance for the purchase of new buses, the City must make fair and equitable arrangements to protect Transportation Department employees against any worsening of their positions within the De- partment resulting from the use of the federal funds. To satisfy this require- ment, this report requests that the City Council authorize the City Manager to seek an extension of the terms and conditions of a previous Memorandum of Understanding, adopted by the Council on September 13, 1977, to cover eleven buses to be purchased under two grants. Background On March 25, 1980, the City Council authorized the City Manager to submit an application to the federal Urban Mass Transportation Administration (UMTA) for $1,158,854 to purchase six fully equipped advanced design transit buses, as additions to the fleet. This application has been sent to UMTA for its review and approval. On September 10, 1980, the City Council authorized the City Manager to file another application with UMTA for$1,050,000 to purchase five buses as replace- ments. A public hearing on this application is scheduled for October 23, 1980, after which the document will be submitted to UMTA for its review and approval. Section 13(c) of the Urban Mass Transportation Act specifies that as a condition of any financial assistance, fair and equitable arrangements be made as deter- mined by the Secretary of Labor, to protect employees against a worsening of / Q SEP 2 3 1980 i To: Mayor and City Council -2- September 15, 1980 their position within the Department as a result of federal funding. Included in this protection are all rights, privileges and benefits(including pension rights and benefits) of employees covered under existing memoranda of under- standing. In addition, the agreement specifies certain levels of compensation for up to six years for employees who are displaced as a result of the project. Six of the eleven buses will be added to the fleet to accommodate the growing patronage of the Department's Big Blue Buses. The other five will be used to replace existing equipment purchased in 1968 and 1969. Because of the nature of the project, it is expected that no layoffs, dismissals or demotions will occur as a result of this federal financial assistance. Originally, the City Council adopted this Memorandum of Understanding for a previous bus acquisition grant at its September 13, 1977 meeting. The terms and conditions were later extended to two other bus acquisition grants by I Council action on July 25, 1978 and March 27, 1979. According to the Department of Labor, with the concurrence of the affected employee organizations, this same agreement can be extended to cover the present projects. Alternatives 1. The City Council could direct staff to negotiate a new memorandum. It is unlikely, however, that the employee organizations, and the Department of Labor, which has final approval, would agree to less protection than that pro- vided previously. The City would then be ineligible to receive a total of $2,208,854 in federal assistance. 2. The City Council could authorize the City Manager to seek an agreement from the affected employee groups to extend the Memorandum of Understanding, adopted September 13, 1977, to cover the two pending grants. This would make the City eligible to receive the federal funds. Recommendation City staff recommends that the City Council authorize the City Manager to seek agreement from affected employee groups to extend the Memorandum of Understanding, adopted September 13, 1977, to cover the pending grants for a total of eleven buses. Prepared by: Jack Hutchison Bob Ayer MEMORANDUI`4 OF UNDERSTANDING 1.01 Parties to the Memorandum This Memorandum of Understanding has been prepared pursuant to the terms of Ordinance 801 (CCS) of the City of Santa Monica and Section 13(c) of the Urban Mass Transportation Act of 1964; Public Law 88 -365, as amended, hereinafter called "Act, " and has been executed jointly by the a City Manager on behalf of management officials of the City, y t President, Chairman of the Committee of Adjustment and Secretary of Santa Monica Local 1785, United Transportation Union, on behalf of said Local 1785; the Division Director of the Public Employees Union, a Divi- sion of Local -986, International Brotherhood of Teamsters, on behalf of said Local 986; and the President of the City Administrative and Office Associates /Municipal Employees Association on behalf of the Association, hereinafter collectively called "Employee Organizations ". i 1. OZ City Council Approval It is, however, the mutual understanding of the parties hereto that this Memorandum of Understanding is of no force or effect whatsoever unless or until ratified by resolution duly adopted by the City Council of the City of Santa Monica. 1.03 Definitions (a) ,Employee(s)" shall mean employees of the Transportation Department of the City of Santa Monica who are represented by the Employee Or- ganizations. ° (b) . "Project" shall mean the application by the City of Santa Monica to the United States Department of Transportation fora capital grant to assist in the purchase of seventeen (17) new air - conditioned diesel transit buses, and three hundred (300) new fiberglass bus benches as approved by said Department of Transportation. The phrase "as a result of the Project" shall, when used in this 1\4emorandum of Understanding, in- clude events occurring in anticipation of, during and subsequent to the Project. 1. 09 Compliance with Section 13(c) of the Act The project shall be carried out in such manner and upon such terms and conditions as Hill be fair and equitable, and employees covered by this Memorandum of Understanding will not in any -\vay be adversely affected as a result of t-be Project within the meaning of Section 13(c) of the Act.' -I- 1.05 Rights and Benefits All rights, privileges and benefits (including pension rights and benefits) of employees covered by this Memorandum of Understanding, under existing memoranda of understanding, shall not in any way be worsened as a result of the Project. 1.06 Collective Bargaining The collective bargaining rights of employees covered by this Memorandum of Understanding, to the extent such _rights.now exist,, including the right to ` arbitrate labor disputes, as provided by applicable laws, policies and /or memoranda of understanding shall be preserved and continued. 1.07 Layoff Protection.. Any employee covered by this Memorandum of Understanding who is laid off or otherwise deprived of employment or placed in a worse position with respect . to compensation, hours, working conditions, fringe benefits, or rights and privileges pertaining thereto at any time during his employment as a result of the Project including any program of efficiencies or economies directly or indirectly related thereto, shall be entitled to receive any applicable rights, privileges and benefits as specified in the employee protective arrangements attached hereto and made a part hereof as Exhibit "A "; provided, however, that nothing in Exhibit "A" shall be deemed to supersede or displace any other provisions of this Memorandum of Understanding, and in the event of conflict or inconsistency between them, the other provisions of this Memorandum of Understanding shall control. 1.08 Claims Procedure The City shall be financially responsible for the application of these conditions and will make the necessary arrangements with the Employee Organizations to provide for it mutually satisfactory claims handling procedure under this Memo- randum of Understanding. In the case of an adversely affected employee, the City will either honor the claim by restoring the claimant to his former position with full back pay and allowances, or give notice to his Employee Organization of its basis for failing to honor such claim, giving reasons therefor. In the event the City fails to honor such claim, the Employee Organization may invoke the following- procedures for further joint investigation of the claim by giving notice of its desire to pursue such procedures, \5'itliin ten (10) days from the receipt by the City of such notice, the parties shall exchange such factual infor- mation as may be available to them relevant to the disposition of the claim and shall jointly take such steps as may be necessary or desirable to obtain from soon third parties such additional factual information as may be relevant. As _Z_ as practicable thereafter, the parties shall meet and attempt to agree upon the proper disposition of the claim. If no such agreement is reached and the City decides to reject the claim, it shall give written notice of its final re- jection of the claim, detailing its reasons therefor. In the event the claim is so rejected by the City, the claim may be processed to arbitration as provided by Section 1. 11 of this Memorandum of Understanding. 'Throughout the claims handling and arbitration procedures, the City shall have the burden of affir- matively establishing that any deprivation of employment or other worsening of employment position, has not been as a result of the Project, by proving that factors other than the Project affected the employee. 1.09 Priority of Employment or Reemployment Any employee who has been terminated or laid off for lack of work as a result of the Project shall be granted priority of employment or reemployment to fill any vacant position in the City's Transportation Department for which he is, or by training or retraining can become, qualified. In the event training or re- training is required by such employment or reemployment, the City shall pro- vide, or provide for, such training or retraining at no cost to the employee. and such employee shall be paid, while training or retraining, the salary or hourly rate of his former job classification, or the training rate for the position for which he is training, whichever is higher. 1.10 Organizational Changes Resulting from the Project r In the event the City contemplates any change in its organization or operations which will result in the dismissal or displacement of employees* or rearrange- ment of the working forces represented by the Employee Organizations as a result of the Project, the City shall give reasonable written notice of such intended change to the Employee Organization(s). Such notice shall contain a full and adequate statement of the proposed changes to be effected, including an estimate of the number of employees of each classification affected by the in- tended changes. Thereafter, within thirty (30) days from the date of said notice, the City and the Employee Organization shall meet for the purpose of reaching,: agreement with respect to the intended changes. Any such change involving a dismissal. displacement or rearrangement of the working forces represented by the Employee Organization shall provide for the selection of forces from the employees represented by the Employee Organization on bases accepted as appropriate for application in the particular case, and any assignment of em- ployees made necessary by the intended changes shall be made on the basis of agreement between the City and the Employee Organization, In the event_ of a failure to agree, the dispute may be submitted to arbitration by either party pursuant to Section 1. 11 of this Memorandum of Understanding. In any such arbitration, the terms of this Memorandum of Understanding are to be inter- preted and applied in favor of providing employee r t Commerce Act protection and benefits no lcs than those established pursuant to 5(2)(f) -3- 1.11 Disputes In the case of any dispute regarding the application, interpretation or enforce- ment of any provision of this Memorandum of Understanding which cannot be settled by the parties within thirty (30) days, the same may be submitted at the written request of either the City or the Employee Organizations affected to the Secretary of Labor for arbitration. The Secretary's decision shall be based on all the relevant facts and circumstances surrounding the dispute and shall nclude any financial or other appropriate relief. Said decision shall be i accepted by all parties to the dispute and shall be carried out in accordance with and subject to all applicable laws, 1.1Z 'Collateral Effect Nothing in this Memorandum of Understanding shall be construed as a under- taking by the City, the Employee Organizations or the employees covered by this Memorandum of Understanding to forego any rights or benefits under any other Memorandum of Understanding or under any applicable provision of law. 1.13 Assignrx;ent This Memorandum of Understanding shall be binding upon the successors and assigns of the parties_ hereto, and they shall agree to be bound by the terms of this Memorandum of Understanding and accept the responsibility for full per- formance of these conditions. 1,14 Provisions Held Invalid In the event any provision of this Memorandum of Understanding is held to invalid or otherwise unenforceable under the federal, state or local law, such provision shall be renegotiated for purpose of adequate replacement under Section 13(c) of the Act. If such negotiation shall not result in mutually satis- factory agreement, either. party may invoke the jurisdiction of the Secretary of Labor to determine substitute fair and equitable employee protective arrange, ments which shall be incorporated in this Memorandum of Understanding and any other appropriate action, remedy or relief. 1.15 Effect on Contract of Assistance In the event this Project is approved for assistance under the Act, the foregoing terms and conditions shall be made part of the Contract of Assistance between the Federal Government and the applicant for federal funds, provided, however, that this Memorandum of Understanding shall not merge into the Contract of Assistance, but shall be independently binding by and enforceable by and upon the parties hereto, in accordance with its terms; nor shall the other memoranda -4- of understanding between the Employee Organizations and the City merge each shall be independently into this Memorandum of Understanding, but binding and enforceable by and upon the parties thereto, in accordance with its terms. 1.16 Merger of Negotiations This Memorandum of Understanding represents the full and complete under- standing of every kind and nature whatsoever between the parties hereto and all preliminary negotiations of whatsoever kind or nature are merged herein. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understa mber nding to be executed this 1st day of Septe ,19??. Santa Monica Local 1785 United Transportation Union by �dfo Pres ent b y ° q'aikr,:,.n/Committee of &creta4ry 'stment by Public Employees Union, A Division of Local 986, international Brotherhood of Teamsters Division Director City Administrative and Office Associates/ Muni 'pal E� los Association by.� 0 President by 71 Secretary' -5- ManaZcit)r ement Officials CitMonica by Manager APPR VED AS TO FOR City ttorney EXHIBIT "A" A -1 The employee protective arrangements for the Project to which this Exhibit "" A shall include the following rights, privileges, and benefits to the extent applies applicable to any covered employee. 1 -(a) (b) Whenever an employee retained in service is placed in a worse position with respect to compensation as a result of the Project, he shall be con -. sidered a "displaced employee" and shall be paid a monthly "displacement raph. Said allowance ", to be determined in accordance with this parag displacement allowance shall be paid during the protective period following the date on which the employee is first displaced, so long as the employee is unable, in the normal exercise of his seniority rights, under existing agree- ments, rules and practices, to obtain a position producing compensation equal to or exceeding the compensation of the position fromwhichhewas displaced, The displacement allowance shall be a monthly allowance determined by computing the total compensation received by the employee and his total time paid for during the last twelve (14 months in which he performed service immediately preceding the date of his displacement as a result of the Project, and by dividing separately the total compensation and the total time paid for by 12, thereby producing the average monthly compen- sation and the average monthly time paid for. Such allowance shall be further adjusted to reflect any subsequent wage adjustments increasing employee compensation, If the displaced employee's compensation in his current position is less in any month in which he performs work. than the aforesaid average compensation (adjusted to reflect subsequent wage ad- justments), he shall be paid the difference, less compensation for any time lost on account of voluntary absences to the extent that he is not available for service equivalent to his average monthly time, but he shall be compensated in addition thereto at the rate of the current position for anytime worked in excess of the average monthly time paid for. It is not intended that the provisions of this paragraph shall affect in any way the retirement on pension or annuity rights and privileges of any employee. If a displaced employee fails to exercise his seniority rights, under existing agreements, rules and practices, to secure another position available to him, which does not require a change in his place of residence as hereinafter defined, -to which he is entitled under the working agreement and which carrie a wage rate and compensation exceeding those of the position which he elects to retain, he shall thereafter be treated for the purposes of this paragraph, as occupying the position he elects to decline, . Z. (a) Whenever any employee is laid off or otherwise deprived of employment as a result of the Project, he shall be considered a "dismissed employee ", and shall be paid a monthly dismissal allowance to be determined in (b) (c) accordance with this paragraph. This dismissal allowance shall be first paid each dismissed employee on the 30th day following the day on which he is "dismiss.ed ", and continue payable monthly for the following periods of time,, Employee's length of service period of payment prior to adverse effect 1 day to 6 years equivalent period 6 years or more 6 years During the six -year period following the date on which the employee is° deprived of employment, the monthly dismissal allowance shall be equiv- alent to 1j12 of the compensation received by him in the last twelve (12) months of his employment in which he earned compensation (adjusted to reflect subsequent wage adjustments increasing compensation) prior to the date on which he was first deprived of employment as a result of the Project, An employee shall be regarded as deprived of employment and entitled to a dismissal allowance when the position he holds is abolished as a result of the Project and he is unable to obtain by the exercise of his seniority rights, under existing agreements, rules and practices, another position; or, when the position he holds is not abolished but he loses that position as a result of the exercise of seniority rights by an employee whose position is abolished as a result of the Project; or, as a result of the exercise of seniority rights, under existing agreements, rules and practices, by other employees brought about as a result of the Project. Any such deprivation of employment which occurs as a result of an agreement reached or arbi- tration award rendered in accordance with these employee protective arrangements which require a selection from, or reassignment of, the working forces, shall not be deemed to be any less a result of the Project by reason of such agreement or award. Each employee receiving a dismissal allowance shall keep the City informed as to his current address and the current name and address of any other person by whom he may be regularly employed. (d) The dismissal allowance shall be paid to the regularly assigned incumbent f the position abolished, if the position of an employee is abolished when o of h e, he will be entitled to the dismissal allowance absent from service, when he is available for service. The employee temposah'ily falling said position at the time it was abolished will be given a dismissal allowance on the basis of that position until the regular employee is available for g.e r \ °1C eg and thereafter shall revert to his previous status and will be given the protections of this agreement in said position, if any are due hiin, (e) An employee receiving a dismissal allowance shall be subject to call to return to service by his former employer after being notified in accor- dance with the terms of the working agreement, and such employee may be required to return to service of his former employer for other rea- sonably comparable employment for which he is physically and mentally qualified and if his return does not infringe upon the employment rights of other employees under the working agreement, M When an employee who is receiving a dismissal allowance returns to service, said allowance shall cease while he is so reemployed and the period of time during which he is so reemployed shall be deducted from the total period for which he is entitled to receive'a dismissal allowance. ` During the time of such reemployment, he shall be entitled to all other applicable provisions of this agreement. (g) The dismissal allowance of any employee who is otherwise employed shall be reduced to the extent that his combined monthly earnings from such other employment, any benefits received under any unemployment insurance law, and his dismissal allowance exceed the amount upon which his dismissal allowance is based. Such employee, or his Employee Organization representatives, and his former employer, shall agree upon a procedure by which the City shall be currently informed of the wages earned by such employe in employment other than with his for- mer employer, and the benefits received. (h) The dismissal allowance shall cease prior to its normal expiration date, as described in paragraph 2. (a) above, in the event an employee fails without good cause within ten (10) calendar days to return to service in accordance with the working agreement by the exercise of his seniority rights to secure an available position in his former classification, or for other reasonably comparable employment for which he is physically and mentally qualified or in the event of his resignation, death, retirement or dismissal for cause in accordance with the working agreement. 3. In determining length of service of a displaced or dismissed employee for purposes of this agreement, such employee shall be given full service credits in accordance xvith the records and labor agreements applicable to him and he shall be given additional service credits for each month in which he received a dismissal or displacement allowance as if he were continuing to perform services in his former position. 4. No employee receiving a dismissal or displacement allowance rball be de- prived, during his protected period, of benefits attaching to his employment such as group life insurance, hospitalization, and medical care, free trans- portation, so long as such benefits con portation, etc., under the same conditions A -4 tinue to be accorded to other employees of the City�s Transportation Department, in active service or on furlough as the case may be, to the extent that such benefits can be so maintained under present authority of law or corporate action or through future authorization which may be obtained. 5. No employee shall be entitled to an allowance under paragraphs 1 or 2 hereof because of the abolishment of a position to which, at some future time, he could have bid, been transferred, or promoted. 6, (a) Any dismissed or displaced employee, who is retained in service or who is later restored to service after being entitled to receive a dismissal or displacement allowance, and who. within his protective period, is required {ter defined by paragraph to change the point of his employment as hereipa 11, in order to retain or secure active employment with his employer and is thereby required to move his place of residence, shall be reimbursed hhold and other personal effects. for for all expenses of moving h . ly, and for his the travelling expense for himself and his immediate fam own actual wage loss during the time necessary for such transfer, and for a reasonable time thereafter (not to exceed five (5) working days) used in securing a place of residence in his new location. and The the wats extent of and means the responsibility of the City under this paragraph, Y of transportation shall be agreed upon in advance between the City and the employees affected, or their Employee organization representatives. Claims under this paragraph must be submitted to the City within ninety (90) days after they are incurred. (b) if any, such employee is furloughed within three (3) years after changing his point of employment in accordance with paragraph (a) hereof, and elects to move his place of residence back to his original point of employment, the City shall assume the expense of moving his household and other per - sonal effects under the provisions of paragraph (a) hereof. (c) Except as otherwise provided in this paragraph, changes in place of resi- dence, subsequent to the initial changes caused by the action taken pursuant to the project, which do not result from said action, but grow out of the normal exercise of seniority, shall not be considered within the purview of the provisions of this paragraph. 7. The following conditions shall apply to the extent they are applicable in each instance to any employee who is retained in the service of the City (or who is later restored to service after being entitled to receive a dismissal allowance) and who is required to change the point of his employment, as hereinafter defined by paragraph 11, within his protective period as a result of the Project, and is, thereby, required to move his place of residence; provided, however, A - a that these conditions shall not apply where the change of the point of employ- ment is nearer his place of residence, If the employee owns his own home in the locality from which he is required to move, he shall, at his option, be reimbursed by the City for any loss suf- fered in the sale of his home for less than its fair market value, such loss to be paid within thirty (30) days of the sale of the home, In Bath case, the fair market value of the home in question shall be determined, as of a date suffi- ciently prior to the date of the transaction of sale, so as to be unaffected thereby. The City shall, in each instance, be afforded an opportunity to purchase the home at. such fair market value before it is sold by the employee to any other person. It is the intent of this paragraph that the fair market value so deter- l mined and to be received by the employee, is not to be reduced by any expenses incident to the closing of the transaction of sale of home, such as loan discount, loan closing costs, preparation of abstract, or deed of sale, and the employee will be made whole for any such expense involved. If the employee is under a contract to purchase his home, the City shall pro- tect him against loss under such contract an d in addition, shall relieve him from any further obligation thereunder. If the employee holds an unexpired welling occupied by him as his red lease of a d home, the City shall protect him from all loss and cost in securing the cancel- lation of said lease. Changes in place of residence which are made subsequent to the initial changes +caused by the Project, and which grow out of the normal exercise of seniority rights, shall not be considered within the purview of this paragraph. Should a controversy arise in respect to the value of the home, the loss sus- tained in its sale, the loss under a contrast for purchase, loss and cost in securing termination of a lease, or any other question in connection with . these matters, it shall be decided through joint conference between the em- ployee, or his Employee Organization representative, and the City. In the event they are unable to agree, the dispute or controversy may be referred by the City or the Employee Organization to a board of competent real estate appraisers, selected in the following manner. one to be selected -b the rep- resentatives of the employee, and one by the City, and tliese two, if unable . to agree within thirty (30) days upon a valuation, shall endeavor by agreement within ten (10) days thereafter to select a third appraiser, or to agree to a method by which a third appraiser shall be selected, and failing such agree- local real esta went, either party may request the state or estate board or corn-, ithin ten (10) days a third appraiser mission, or comparable body, to designate w whose designation will be binding upon the parties. A decision of majority of the appraisers shall be required and said decision shall be final and binding, The salary and expenses of the neutral appraiser, including expenses of the I. - v appraisal board, shall be borne equally by the parties to the proceedings. All other expenses shall be paid by the party incurring them, including the compensation of the appraiser selected by such party, S. A dismissed employee entitled to protection under this "Exhibit "A" may, at his option, within seven (7) days of his dismissal, resign and (in lieu of all other benefits and protections provided in this agreement) accept a lump sum payment computed in accordance with Section (9) of the Washington Job Pro- tection Agreement of May 1936, 9., Whenever used herein, unless the context requires otherwise, the term "protective period" means that period of time during which a displaced or dismissed employee is to be provided protection hereunder and extends from the date on which an employee is displaced or dismissed to the expiration of six (6) years therefrom, provided, however, that the protective period for any benefits of these provisions, shall not continue for a longer period fol- lowing the date he was displaced or dismissed than the employee's length of service as shown by the records and labor agreements applicable to his em- ployment prior to the date of his displacement or his dismissal, 10. If any employer of the employees covered by, this Exhibit "A" shall have rear- ranged or adjusted its forces in anticipation of the Project, with the effect of depriving an employee of benefits to which he should be entitled under this Exhibit as an employee affected by the Project, the provisions of this agree- ment shall apply to such employee as of the date when he was so affected. 11: The phrase "point of employment" as used in paragraphs 6 and 7 herein is understood to xnean the place an employee reports for work, and if said point of employment is changed by a distance of ZO or more straight line miles, no nearer the employee's residence. Lie provisions of paragraphs 6 and 7 shall apply. 1Z. Nothing in this Exhibit shall be construed as depriving any employee of any rights or benefits or eliminating any obligations which such employee may have under any existing job security or other protective conditions or arrange- " means; provided, that there shall be no duplication or pyramiding of benefits to any employees, and, provided further, that the benefits under this Exhibit, or any other arrangement, shall be construed to include the conditions, respon» sibilities and obligations accompanying such benefits. Reference: Contract No. 3556 (CCS)