AFFILIATION AGREEMENT between UNITED NURSES OF CHILDREN S HOSPITAL and INTERNATIONAL BROTHERHOOD OF TEAMSTERS

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1 AFFILIATION AGREEMENT between UNITED NURSES OF CHILDREN S HOSPITAL and INTERNATIONAL BROTHERHOOD OF TEAMSTERS This Affiliation Agreement (the Agreement ) is entered into between the International Brotherhood of Teamsters ( IBT ) and the United Nurses of Children s Hospital ( UNOCH ). WHEREAS, IBT and UNOCH have the common objectives and purposes to benefit their members and improve their conditions by every legal means; to advance the social, economic, and educational welfare of their members; to advance and strengthen the rights of members in accordance with the applicable laws; to better represent their members in employeeemployer relations; to negotiate collective bargaining agreements that obtain better hours, wages, and other terms and conditions of employment; to maintain the achievements of those who came before us; and on an individual basis, to protect the membership against arbitrary, discriminatory, or unjustified discipline or actions taken or proposed to be taken against them; WHEREAS, both organizations recognize that the strength of the labor movement is founded in cooperation and unity; WHEREAS, both organizations believe that it is in the best interests of our respective memberships to enter into this Affiliation Agreement; NOW, THEREFORE, IBT and UNOCH agree as follows: 1. Local Charter IBT shall charter UNOCH as an autonomous Local Union to be known as the UNOCH, affiliated with IBT as Local Approval Process and Effective Date This Affiliation Agreement shall become effective on the day of approval by a majority of votes cast by UNOCH members participating in a secret ballot on the adoption of this Agreement and by IBT as required by the IBT Constitution. The affiliation will be effective upon such approval by both unions ( effective date ). As of the effective date of the affiliation, UNOCH shall enjoy all the benefits and privileges of a newly chartered IBT Local Union including, but not limited to, full participation in the 2016 IBT Convention as afforded by Article III of the IBT Constitution. 3. UNOCH Jurisdiction UNOCH s jurisdiction shall include all current bargaining units represented by UNOCH, which includes the Registered Nurse (RN) Unit and the Technical Unit, as well as all employees of Rady Children s Hospital-San Diego including, but not limited to, satellites, subsidiaries and affiliated organizations, or other entities covered by Rady Children s Hospital- 1

2 San Diego s hospital license, but expressly excludes bargaining units that are currently represented by another Teamsters Local Union. If there is a rare instance of an organizing conflict between UNOCH and another Teamsters Local Union, it will be resolved in accordance with Article XII, Section 21 of the IBT Constitution. 4. Property and Assets Autonomy All of the assets, real and personal, tangible and intangible, wherever situated, which are currently the property of UNOCH, including appreciation of existing property and any accretion, addition or accumulation thereto and including its name, funds, and records, are acknowledged to be the property of UNOCH and shall remain its property in the event of secession, dissolution, or disaffiliation that occurs within the first three (3) years of this Agreement following the effective date of this affiliation. This affiliation shall not affect, interrupt, or impair the status of UNOCH in any pending action or proceeding, any deeds, bonds, mortgages, leases, or contracts of any kind including, but not limited to, recognition agreements and collective bargaining agreements, or the continuity thereof, and further, shall not impair any certification or any representational rights or any other rights or obligations of UNOCH under its existing or future collective bargaining agreements or payroll deductions. The funds and property of UNOCH shall remain under the direction and control of UNOCH except as otherwise provided by the IBT Constitution and this Agreement. 5. Merger/Dissolution IBT will not require UNOCH to dissolve or to merge with an IBT Local Union. At its sole discretion, UNOCH may merge with an IBT Local Union if it chooses, but only if such merger is approved by the UNOCH membership, the UNOCH Executive Board, and IBT. 6. Dues and Per Capita Payments There will be no change in dues nor per capita paid to the IBT until July, 2016 when the following adjustments will start to occur: First Adjustment: Effective on the first full pay period in July, 2016, the monthly dues will be set at 1.4 times the member s hourly rate, or the current dues rate, which ever is larger. From these dues, UNOCH shall pay per capita at the rate of.25 times the hourly rate or the current dues rate (base rate), whichever is larger, and per capita to the Joint Council at the rate of $1.00 per member. Second Adjustment: Effective on the first full pay period in July, 2017, the monthly dues will be set at 1.6 times the members hourly rate, or the current rate, which ever is larger. From these dues, UNOCH shall pay per capita at the rate.35 times the hourly rate or the base rate, whichever is larger, and per capita to the Joint Council at the rate of $1.25 per member. Third Adjustment: Effective on the first full pay period in July, 2018, the monthly dues will be set at 1.8 times the members hourly rate, or the current rate, whichever is larger. From these dues, UNOCH shall pay per capita at the rate of.45 times the hourly rate, and per capita to the Joint Council at the rate of $1.50 per member. 2

3 Fourth Adjustment: Effective on the first full pay period in July, 2019, the monthly dues will be set at 2 times the member s hourly rate. From these dues, UNOCH shall pay.55 times the hourly rate and the regular per capita to Joint Council 42. Final Adjustment: Effective on the first full pay period in July, 2020, UNOCH shall pay the regular rate per capita applicable to private sector members to the IBT in accordance with Article X, Section 3 (b)(iii) of the IBT Constitution and the regular per capita to Joint Council 42. The Executive Board has the authority, in its sole discretion, to waive the increase with respect to that portion of the dues retained by the Local, provided that full per capita is paid to the IBT pursuant to the IBT Constitution. Per Capita Payments are not in addition to the dues but instead, are taken out of the dues paid by the members. 7. No Initiation Fees Nor Assessments UNOCH will not charge an initiation fee to any current member and no current member shall be required to pay an initiation fee to the IBT. UNOCH shall not be required by the IBT to charge an initiation fee to new members. 8. Services and Benefits Provided by IBT On and after the effective date of affiliation with IBT, UNOCH will be entitled to the services available from the International Union in the same manner and to the same extent as other IBT Local Unions. Upon UNOCH s request, these services include, but are not limited to, those provided by the office of the General Secretary-Treasurer, and the Organizing, Strategic Research and Campaigns, Economics and Contracts, Training and Development, Capital Strategies, Safety & Health, Government Affairs, and Communications. a. The office of the General Secretary-Treasurer will provide dues and membership accounting services through the Teamsters TITAN System and will provide software to handle all other Local Union accounts payable and receivable through the IBT computerized bookkeeping system. The office will provide training, maintenance and updates with respect to these systems. IBT will waive the cost of the TITAN equipment and the monthly communications line cost for the two-year period following the effective date. b. The Public Services Division will assign experienced representatives to assist UNOCH with contract negotiations and grievances as needed and requested. c. The Organizing Department will consult with UNOCH on potential organizing targets and will assist UNOCH in pursuing organizing designed to increase UNOCH membership as needed and requested. 3

4 d. The Strategic Research and Campaigns and Capital Strategies Departments will be available to assist UNOCH with any pressure against employers as an adjunct to collective bargaining and other UNOCH efforts. e. The Training and Development Department will be available to design and provide training for UNOCH officers, shop stewards, and members concerning Local Union operations, contract negotiations, grievance handling, and other matters that might be relevant to the union members and leaders. f. The Economics and Contracts Department will be available to provide expert support for collective bargaining negotiations, grievances, and other matters. For example, this Department can provide cost data on contract proposals and economic information on the financial conditions of employers involved in bargaining. g. The Safety and Health Department will be available to provide assistance with safety and health issues, including accidents involving repetitive motion problems and hazardous materials. h. The Department of Federal Legislation & Regulations conducts lobbying and other government initiatives at the federal level. The Department of Field & Political Action conducts lobbying and other governmental initiatives at the state and local levels and operates the Teamsters Political Action Committee (D.R.I.V.E.), one of the largest labor union PACs in the United States, which collects and contributes more than twelve million dollars ($12,000,000) during each two-year election cycle. These Departments will be available to assist UNOCH with any matter that involves federal, state, or local government or politics. i. The Communications Department will be available to provide UNOCH members with the Teamsters member publications and will provide UNOCH officers and stewards with all Teamsters leadership publications. The Communications Department will also be available to assist with press and publicity in the event of any concerted or economic action against an employer and would assist UNOCH with its own publications to its members. The Communications Department will also be available to assist with Internet websites and other electronic communications matters. 9. Rights of Membership On the effective date of the affiliation UNOCH members will become and be considered members of IBT and will be entitled to all rights and privileges of membership and all benefits of IBT membership under the IBT Constitution to the same extent as any existing IBT members and in accord with all existing IBT policies and procedures. Other benefits 4

5 available to IBT members on favorable terms include: a union-sponsored, no annual fee credit card; scholarship fund established for children and financial dependents of IBT members; home owner s insurance; online banking; competitive-rate mortgages and personal and home equity loans; a discount drug program for both active members and retirees; retiree medical insurance; term life insurance; accident insurance; car insurance; supplemental life insurance; and discounts on car rentals, computer equipment, and vacation packages. The IBT Benefits Department will also assist UNOCH in making the foregoing and other benefits available to UNOCH members. 10. Affiliation with Change to Win Federation and Coverage Under IBT No- Raid Agreements As an IBT Local Union, UNOCH will become affiliated with the Change to Win Federation and will be protected by and subject to the benefits, entitlements, and rules of the jurisdictional resolution provisions contained in the Change to Win Constitution. IBT shall pay to the Change to Win Federation the required per capita tax on each regular active UNOCH member. In addition, UNOCH shall be an affiliate of IBT for purposes of any No-Raid Agreement that IBT has or will enter into with another International Union. The IBT Legal Department will handle any proceeding arising out of this coverage as well as any proceeding arising out of disputes falling within the coverage of a No-Raid Agreement entered into between IBT and any International Union that is not affiliated with the Change to Win Federation. 11. Autonomy UNOCH shall, at all times, continue to maintain full independent control over its affairs and all particulars in the conduct of its business. Notwithstanding any contradictory provision of the IBT Constitution, UNOCH s autonomy shall include, but is not limited to, the following: a. UNOCH will retain possession and control over its finances, budgets, assets, bank accounts, and related funds. b. UNOCH will maintain independent authority to organize new members in accordance with the jurisdiction outlined in Paragraph 3 above. c. UNOCH will continue to have authority to administer its collective bargaining relationships, represent its members, hold certification, and act as the bargaining representative of its members. Any agreements negotiated by UNOCH with any employer shall be in the name of UNOCH only, and IBT as an International Union shall not be a signatory or party to such agreement. d. UNOCH will continue to collect dues from its members. e. UNOCH will retain independent authority to hire, fire, lay off, direct, and supervise its employees and to engage attorneys, accountants, and other service providers and professionals. 5

6 f. UNOCH shall retain the exclusive right to join or refrain from joining coalitions for bargaining purposes. g. UNOCH shall retain the exclusive right to engage or refrain from engaging in political activity on behalf of Local Union members; but under no circumstances shall UNOCH or its members be required by IBT to endorse or assist any particular candidate for political office, political party, or political issue. h. UNOCH shall retain the exclusive right to decide political endorsements, raise campaign funds, to participate in political campaigns, to take or refrain from taking such political positions as in its sole discretion, benefits its members. UNOCH agrees not to form any Federal Political Action Committee. 12. UNOCH Bylaws and Governance Pursuant to Article XXII, Section 2(a) of the IBT Constitution, UNOCH shall retain its current organizational structure of governance set forth in the UNOCH Bylaws, as amended and approved by the membership. The principal officer of UNOCH shall be the Executive Director. The UNOCH Affiliation Committee and designated representatives of IBT shall constitute a Bylaws Committee, which shall formulate and make recommendations on changes to the Bylaws for purposes of conformance with the IBT Constitution. Any such amendments to the Bylaws will be approved by both the UNOCH membership and by IBT. UNOCH agrees that prospective amendments to its Bylaws shall not conflict with the IBT Constitution. Except as otherwise provided by this Agreement, in any direct conflict between a provision of the UNOCH Bylaws and a provision of the IBT Constitution, the IBT Constitution shall prevail. 13. Disclosure of Information IBT and UNOCH agree to provide full disclosure to each other on all matters relevant to the affiliation. Such matters include, but are not limited to, audits, financial statements, and information concerning assets and liabilities. IBT shall be given access to all UNOCH membership information, including the names, addresses, and other contact information for all UNOCH members and all employees represented by UNOCH. It is understood that the information provided pursuant to this paragraph is proprietary information not available to the general public. IBT and UNOCH therefore agree that information shared pursuant to this Agreement shall be kept confidential and shall not be released to any other person or entity in any circumstances without the written consent of the General Secretary-Treasurer of IBT and the Executive Director of UNOCH. 14. Time Period For Withdrawal from Agreement UNOCH will be able to unilaterally withdraw from this affiliation during the first three (3) years of this Agreement following the effective date of this affiliation through the same membership ratification procedure required for approval of the Affiliation Agreement. Notwithstanding any provision of the IBT Constitution, IBT will not be entitled to the property or assets of UNOCH upon such withdrawal. After three (3) years from the effective date of the Affiliation Agreement, UNOCH will permanently maintain its status as an affiliated Local Union 6

7 of IBT continuously thereafter. 15. Assets and Liabilities UNOCH and IBT are responsible for their respective debts, liabilities, and all other obligations including, but not limited to, any post-retirement benefit obligations, and neither UNOCH nor IBT shall be responsible for the debts, liabilities, or obligations of the other. Additionally, UNOCH and IBT shall each retain the assets held at the effective date of this Agreement and by this Agreement neither is given an interest in the assets of the other, except as expressly set forth herein. 16. Correction of Errors The parties have the right to correct any typographical, grammatical, or punctuation errors in this Agreement, provided that any such change does not change the meaning of the provision involved. 17. Supremacy Clause and Waivers In the event that this Agreement is in conflict or is inconsistent with the UNOCH Bylaws, in whole or in part, the terms of the Affiliation Agreement are controlling. Acceptance of this Agreement by UNOCH pursuant to Section 2 above, constitutes an amendment of the conflicting provisions of the UNOCH Bylaws to conform to the terms contained herein. IBT acknowledges receipt and approval of a copy of the UNOCH Bylaws, which are attached hereto as Attachment 1. UNOCH agrees that prospective amendments to its Bylaws shall not conflict with the IBT Constitution. 18. Temporary Waiver of Trusteeship Rights During the first three (3) years of this Agreement, IBT hereby waives Article VI, Section 5(a), Article X, Section 7(b), Article XII, Section 10, and Article XIX, Section 11, as they relate to trusteeship. IBT shall have no right to place UNOCH under trusteeship except upon the approval and written request of a majority of UNOCH s duly elected Executive Board. If, in the opinion of IBT, UNOCH is in violation of this Agreement or some provision of the IBT Constitution not waived or superseded herein, IBT s sole remedy shall be good faith discussions followed by an arbitration hearing utilizing the procedure as described in Section 19, Dispute Resolution herein, or at IBT s option, the revocation of UNOCH s charter and termination of this Agreement. After the first three (3) years following the effective date of this Agreement, all such provisions shall fully apply to UNOCH; provided that, a trusteeship shall be established and administered only in accordance with the IBT Constitution and only for the purposes of correcting corruption or financial malpractice, assuring the performance of collective bargaining agreements or other duties of a bargaining representative, restoring democratic procedures, or otherwise carrying out the legitimate objects of such labor organization. 19. Dispute Resolution During the first three (3) years after the effective date of this Agreement, any disputes arising during the term of this Agreement or its application shall be initially submitted to the Executive Director of UNOCH and the General President of IBT or their designated representatives, and any agreed-upon resolution will be subject to the approval of the UNOCH Executive Board and the IBT General Executive Board. If the dispute cannot be resolved, the 7

8 dispute will be referred to final and binding arbitration before an arbitrator mutually selected by the parties from a list of seven (7) names to be supplied by the American Arbitration Association. The parties will decide by lot who shall proceed first, and shall alternatively strike from this list of seven and the last remaining name shall be the arbitrator. The fees of the arbitrator shall be borne equally by the parties. Proceedings initiated under this section shall be held within the city limits of San Diego, California. Each party shall pay their own fees, costs, and expenses incurred. This provision shall sunset immediately after three (3) years from the effective date of this Agreement. 20. Severability The fact that any provision of this Affiliation Agreement is held illegal or unenforceable by a court or other tribunal of competent jurisdiction shall not affect the validity or enforceability of any other severable portions of this Agreement. In the event of such a finding of invalidity, the parties agree to meet to negotiate a provision that will reflect the intent and purpose of the invalid provision. 21. Entire Agreement and Successors This Agreement is the sole and complete Affiliation Agreement between the parties, and no other is made. This Agreement shall inure to the benefit of and be binding upon any successors of the parties. International Brotherhood of Teamsters Dated: James P. Hoffa, General President United Nurses of Children s Hospital Dated: Katie Langenstrass, Executive Director 8

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