ABX Air strives to provide its employees with secure and
stable employment. Staffing levels are carefully set to meet operational needs.
However, ABX Air is in a very competitive industry and must be able to adapt to
changing business conditions. When changes in economic, industry, or operating
conditions require a reorganization or reduction in the workforce, executive
management will work with Human Resources management to identify the positions
impacted and the employees affected. Careful planning, kept in strict
confidence, will be given to all aspects of any reduction in force before it is
implemented. A reduction in force may affect the entire company or individual
Before a reduction in force is implemented, management will
consider all other feasible options available to address changing business needs
before directing a reduction in force. These options may include voluntary
reductions, hour reductions, worksharing, or temporary leaves. However, should a
reduction in force be necessary, it will be accomplished through reassignments,
layoffs, and/or terminations. This policy will facilitate a reduction in force
with the least disruption to the operation and customer service, and with the
utmost consideration for employees.
This policy covers all non-union, hourly, non-exempt and most
ABX Air complies with all state or federal laws that govern
workforce reductions or layoffs.
Management will personally notify each employee affected by a
reduction in force. The employee also will receive written notice to include the
|reason for the reduction in force,
|notice of the last day to be worked,
|benefit coverage expiration,
|reassignment eligibility if applicable, and
|recall eligibility if applicable.
Affected employees will be given a minimum of 14 calendar days
of notice or two weeks of regular pay in lieu of notice.
In most cases, reductions in force are determined within a
department considering the positions, skills, and knowledge needed to support
the continuing business operations. The company will generally be guided by the
following criteria in determining which employees will be affected by a
reduction in force or layoff.
|Employees with documented performance issues will be
terminated first. For purposes of this policy, it would apply to those whose
employment record reflects a pattern of marginal or unsatisfactory
performance, including multiple or repeated counseling, or written discipline.
Conversely, this would not apply to employees with overall good employment
records who may have received discipline for a one-time event.
|Hourly employee reductions will follow these guidelines:
- The layoff will occur in the order of employees with the
least company seniority within the job classification being affected.
- Affected employees are able to exercise their company
seniority to displace the least senior employee within their job
classification. Within 5 days, employees must notify management of
their intent to exercise company seniority to displace a less senior
employee. The following criteria also apply:
|The employee must still meet the qualifications of the job
and may be required to successfully complete skill assessments that are
|The employee cannot displace a less senior employee when it
would result in a promotion.
|The employee must be able to relocate and/or work the
scheduled shifts and days off required.
|Company seniority cannot be exercised to displace leads.
|The employee will be paid at the step in scale that
corresponds most closely with the step in scale of their company seniority.
Step increases will be determined by established pay step intervals (e.g. 6 or
|Nonexempt employees, exempt professionals, supervisors and
managers will be selected on the basis of:
- Knowledge, skills, and experience necessary for the
continued operation of the organization, and
- Documented performance and overall employment record.
- Company seniority shall be a consideration; however, the
selection criteria above will be the primary considerations in determining
those affected by a reduction in force.
|Directors and Executives will be retained at the sole
discretion of the President, CEO, and the Board of Directors.
A reasonable good-faith effort will be made to internally
reassign productive, capable, experienced, well-performing employees whose
position has been eliminated in a reduction in force. If reassignment is
feasible, management will consider the following options in reassigning affected
employees to other positions. In all cases, employees must meet the minimum
qualifications of the positions to which they are reassigned and be able to
relocate and/or work the available shifts/days off.
|Reassignment to formerly held positions within their
department for which they remain qualified and willing to transfer.
|If there are less senior employees in positions that are
unaffected by a reduction, management may elect to replace those employees
with employees whose positions are being eliminated.
|Reassignment to vacant positions in or outside their
|Company seniority, in particular for nonexempt employees,
will be part of the consideration in reassignment of affected employees.
Layoff and Recall
A reduction in force may be a temporary or permanent
reduction. If staffing needs are expected to change within a year or less, the
reduction may only be needed for the short term. In that case, a layoff with
recall rights may be offered as an option to affected employees.
|Employees offered reassignments or layoff will be offered
recall to the similar pay and position they previously held, to the extent
such positions become available regardless of shifts/days off.
|Recall of hourly, laid-off employees will be in reverse
order (most senior) of company seniority. When openings become available in
the affected job classification, the employee with the most company seniority
in that job classification will be offered recall first, either from a layoff
or from the job classification the employee assumed through displacement.
Laid-off or reassigned employees will be recalled before new employees are
hired into the affected job classifications.
|Hourly employees retain recall rights for a period of seven
years from the date of layoff or reassignment.
|Recall notification will be mailed to the employee’s last
known address by certified mail.
|Company seniority will continue to accrue during a layoff
for a period of seven years from date of layoff.
|Upon recall, vacation will begin accruing based on the
employee’s company seniority date.
|Upon recall, the employee will return to work at the former
step in pay prior to the layoff.
|For pension and benefits, plan documents determine break in
|An employee may turn down the recall opportunity and remain
on the recall list. However, the employee will not be called again until all
other employees on the recall list have been called. The employee’s name will
move forward on the list as each person (in order of company seniority) is
offered a position.
|Recall rights and employment will be considered terminated
under any of the following conditions:
|The laid-off employee declines a recall to his or her
|Reasonable efforts to contact and recall the employee are
|The employee fails to maintain recall status.
|The employee does not to report to work by the
established return-to-work date.
|The employee has not been recalled within seven years
from date of layoff.
Should the reduction be deemed a long-term or permanent event,
no layoff will be offered and a termination will occur. If a waiver of claims is
signed, a severance agreement may be offered. Additional assistance in preparing
for job searches also may be offered to affected employees.
|Understand that in order to remain competitive, ABX Air
must respond quickly to economic, market, and operational changes.
|Recognize that ABX Air places a high priority on providing
stable employment but cannot guarantee permanent employment to any employee.
|Be considerate and respect the confidentiality of employees
who may be affected if a reduction occurs.
|Laid-off employees must keep a current address and
telephone number on file with Human Resources, and annually restate in writing
(between December 1-31) their desire to stay on the recall list.
|Employees who are recalled are expected to report to work
within 14 days of receipt of their recall notice.
|Manage staffing levels to meet operational needs but avoid
|A reduction in force requires the involvement and
authorization of executive management and Human Resources management.
|Be familiar with this policy and be able to effectively
implement the reduction in force process. Management directly involved in a
reduction will be provided additional guidance/training.
|Be considerate and maintain the confidentiality of
employees who may be affected if a reduction occurs.
|Develop a plan to cover the duties from eliminated
positions that are still necessary to perform, and update job descriptions
accordingly. Reassign job duties and clearly communicate changes to employees.
|Be prepared to communicate with employees the reasons for a
reduction in force.
|Be familiar with resources available for employees while
going through a reduction in force (e.g. Employee Assistance Program).
Employees who are selected for a reduction in force may appeal
the decision to an Appeals Committee for re-consideration. The Vice President of
Corporate Services and Human Resources will chair this committee. Members will
include one executive (from outside of the department of the employee filing the
appeal), one member of management, and two non-management employees. The
President will appoint the Appeals Committee at the time of the reduction in
All appeals must be filed within three working days of the
notification. The Appeals Committee will strive to render a decision within two
working days of receipt of the appeal. The decision of the Appeals Committee
shall be considered final.
Oct. 4, 2010
Feb. 20, 2008