Common use of Efficiencies Clause in Contracts

Efficiencies. 1. The Union agrees to provide additional concessions in the annualized amount of $15 million (total and not “per bargaining unit”) in a manner more specifically described herein. The Union agrees to propose operational efficiencies, defined as reductions in costs and/ or generation of new revenue (including 50% of the amounts received through the SEIU/▇▇▇▇▇▇▇-▇▇▇▇▇▇ Initiative), with the goal of reaching an annualized savings in the amount of $15 million dollars for each year of this Agreement. 2. Effective March 1, 2012, PL accrual shall be reduced by 1.54 hours per pay period (as reflected in the chart, below), subject to the other paragraphs of this Article. Full-time employees shall earn paid personal leave hours as follows: a. During the first five (5) years of employment, 0.09225 hours shall be earned for each hour in pay status per pay period up to a maximum of 7.38 hours (80 hours or more in pay status). This approximates 24 days per year. However, a full-time employee shall not be eligible to receive payment for personal leave days until after the first six (6) months of employment, except as outlined in Section 2. b. In order to recognize longevity of service, employees with more than five (5) years of continuous service shall earn personal leave hours as follows: Year of Employment Per Hr. In Pay Status Max. Hours Earned Per Pay Period Equivalent Day* Earned Per Year 6th .09615 7.692 25 7th .09995 7.996 26 8th .10385 8.308 27 9th .10765 8.612 28 10th-15th .11155 8.924 29 16th .11535 9.228 30 17th .11925 9.540 31 18th .12305 9.844 32 19th .12695 10.156 33 20th on .13075 10.460 34 *Calculations are based on 8-hour shifts. 3. In the event that on or before September 29, 2012 the Union does not meet its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then SEIU agrees to fill the shortfall through the implementation of a combination of the following concessions: the further reduction or adjustment of PL accrual described in paragraph B.2., above; modifications to the PTO program; and/or modifications to the Extended Illness Program. The shortfall may also be made up with other concessions as proposed by the Union and approved by management. The same procedure shall be utilized for fiscal years 2013 and 2014. 4. In the event that on or before September 29, 2012 the Union meets its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then the parties agree that $8 million of the $15 million may be utilized (at the Union’s election) to offset and restore retroactively the PL accrual described in paragraph B.2 above within four (4) pay periods of meeting the goal. In the event that on or before September 29, 2012 the Union exceeds its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value in excess of $15 million, then the parties agree that 50% of the overage shall be utilized to reduce employee contribution toward group health insurance, prospectively. The same procedure shall be utilized in fiscal years 2013 and 2014. 5. The parties recognize that these operational efficiency proposals can only be developed with the highest degree of cooperation between ▇▇▇▇▇▇▇ and Union leadership. ▇▇▇▇▇▇▇ agrees to provide appropriate support, access, and authority to the Union and its advisors and must provide a collaborative and efficient environment to evaluate and quantify operational efficiency proposals. The Employer commits that there will be no intentional delays or unreasonable denials or delays related to the vetting or approval of recommendations presented by the Union. The parties agree that any operational efficiencies originating from the Union that are vetted and approved by the Executive Steering Committee and validated by the PMO consistent with the process described in paragraph 6, below, will not be unreasonably denied approval or recognition by the Employer. 6. The Union and its advisors will present SEIU operational efficiency recommendations to an Executive Steering Committee as established by the Employer. This Committee shall consist of three voting members (the Chief Financial Officer, the Chief Medical Officer, and the Chief Operating Officer) and two non-voting members from the Union. This committee shall meet each month for the purpose of reviewing operational efficiency recommendations proposed by SEIU. Upon vetting and approval by management, which shall not be unreasonably withheld, the annualized value of the recommendations, as validated by the PMO, shall be counted as operational efficiencies as defined above. In addition, the SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall not be excluded as operational efficiencies in the event that they are approved in accordance with the process outlined herein, and only to the extent that they have not already been fully implemented as of ratification of this Agreement. 7. SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall be subject to gain sharing in accordance with the language of the March 18, 2010, Agreement, to the extent that they have been implemented as of ratification of this Agreement. The parties agree that any such gain sharing shall not count against or contribute towards the Union’s $15 million target for operational efficiencies as described in this Article.

Efficiencies. 1. The Union agrees to provide additional concessions in the annualized amount of $15 million (total and not “per bargaining unit”) in a manner more specifically described herein. The Union agrees to propose operational efficiencies, defined as reductions in costs and/ or generation of new revenue (including 50% of the amounts received through the SEIU/▇▇▇▇▇▇▇-▇▇▇▇▇▇ Initiative), with the goal of reaching an annualized savings in the amount of $15 million dollars for each year of this Agreement. 2. Effective March 1, 2012, PL accrual shall be reduced by 1.54 hours per pay period (as reflected in the chart, below), subject to the other paragraphs of this Article. Full-time employees shall earn paid personal leave hours as follows: a. During the first five (5) years of employment, 0.09225 hours shall be earned for each hour in pay status per pay period up to a maximum of 7.38 hours (80 hours or more in pay status). This approximates 24 days per year. However, a full-time employee shall not be eligible to receive payment for personal leave days until after the first six (6) months of employment, except as outlined in Section 2. b. In order to recognize longevity of service, employees with more than five (5) years of continuous service shall earn personal leave hours as follows: Year of Employment Per Hr. Max. Hours Equivalent Employment In Pay Status Max. Hours Earned Per Pay Period Equivalent Day* Earned Per Year 6th .09615 7.692 25 7th .09995 7.996 26 8th .10385 8.308 27 9th .10765 8.612 28 10th-15th .11155 8.924 29 16th .11535 9.228 30 17th .11925 9.540 31 18th .12305 9.844 32 19th .12695 10.156 33 20th on .13075 10.460 34 *Calculations are based on 8-hour shifts. 3. In the event that on or before September 29, 2012 the Union does not meet its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then SEIU agrees to fill the shortfall through the implementation of a combination of the following concessions: the further reduction or adjustment of PL accrual described in paragraph B.2., above; modifications to the PTO program; and/or modifications to the Extended Illness Program. The shortfall may also be made up with other concessions as proposed by the Union and approved by management. The same procedure shall be utilized for fiscal years 2013 and 2014. 4. In the event that on or before September 29, 2012 the Union meets its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then the parties agree that $8 million of the $15 million may be utilized (at the Union’s election) to offset and restore retroactively the PL accrual described in paragraph B.2 above within four (4) pay periods of meeting the goal. In the event that on or before September 29, 2012 the Union exceeds its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value in excess of $15 million, then the parties agree that 50% of the overage shall be utilized to reduce employee contribution toward group health insurance, prospectively. The same procedure shall be utilized in fiscal years 2013 and 2014. 5. The parties recognize that these operational efficiency proposals can only be developed with the highest degree of cooperation between ▇▇▇▇▇▇▇ and Union leadership. ▇▇▇▇▇▇▇ agrees to provide appropriate support, access, and authority to the Union and its advisors and must provide a collaborative and efficient environment to evaluate and quantify operational efficiency proposals. The Employer commits that there will be no intentional delays or unreasonable denials or delays related to the vetting or approval of recommendations presented by the Union. The parties agree that any operational efficiencies originating from the Union that are vetted and approved by the Executive Steering Committee and validated by the PMO consistent with the process described in paragraph 6, below, will not be unreasonably denied approval or recognition by the Employer. 6. The Union and its advisors will present SEIU operational efficiency recommendations to an Executive Steering Committee as established by the Employer. This Committee shall consist of three voting members (the Chief Financial Officer, the Chief Medical Officer, and the Chief Operating Officer) and two non-voting members from the Union. This committee shall meet each month for the purpose of reviewing operational efficiency recommendations proposed by SEIU. Upon vetting and approval by management, which shall not be unreasonably withheld, the annualized value of the recommendations, as validated by the PMO, shall be counted as operational efficiencies as defined above. In addition, the SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall not be excluded as operational efficiencies in the event that they are approved in accordance with the process outlined herein, and only to the extent that they have not already been fully implemented as of ratification of this Agreement. 7. SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall be subject to gain sharing in accordance with the language of the March 18, 2010, Agreement, to the extent that they have been implemented as of ratification of this Agreement. The parties agree that any such gain sharing shall not count against or contribute towards the Union’s $15 million target for operational efficiencies as described in this Article.

Efficiencies. 1. The Union agrees to provide additional concessions in the annualized amount of $15 million (total and not “per bargaining unit”) in a manner more specifically described herein. The Union agrees to propose operational efficiencies, defined as reductions in costs and/ or generation of new revenue (including 50% of the amounts received through the SEIU/▇▇▇▇▇▇▇-▇▇▇▇▇▇ Initiative), with the goal of reaching an annualized savings in the amount of $15 million dollars for each year of this Agreement. 2. Effective March 1, 2012, PL accrual shall be reduced by 1.54 hours per pay period (as reflected in the chart, below), subject to the other paragraphs of this Article. Full-time employees shall earn paid personal leave hours as follows: a. During the first five (5) years of employment, 0.09225 hours shall be earned for each hour in pay status per pay period up to a maximum of 7.38 hours (80 hours or more in pay status). This approximates 24 days per year. However, a full-time employee shall not be eligible to receive payment for personal leave days until after the first six (6) months of employment, except as outlined in Section 2. b. In order to recognize longevity of service, employees with more than five (5) years of continuous service shall earn personal leave hours as follows: Year of Employment Per Hr. In Pay Status Max. Hours Earned Per Pay Period Equivalent Day* Earned Per Year Status Pay Period (except ECC Physicians) 6th .09615 7.692 25 7th .09995 7.996 26 8th .10385 8.308 27 9th .10765 8.612 28 10th-15th .11155 8.924 29 16th .11535 9.228 30 17th .11925 9.540 31 18th .12305 9.844 32 19th .12695 10.156 33 20th on .13075 10.460 34 *Calculations are based on 8-hour shifts. 3. In the event that on or before September 29, 2012 the Union does not meet its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then SEIU agrees to fill the shortfall through the implementation of a combination of the following concessions: the further reduction or adjustment of PL accrual described in paragraph B.2., above; modifications to the PTO program; and/or modifications to the Extended Illness Program. The shortfall may also be made up with other concessions as proposed by the Union and approved by management. The same procedure shall be utilized for fiscal years 2013 and 2014. 4. In the event that on or before September 29, 2012 the Union meets its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value of $15 million, then the parties agree that $8 million of the $15 million may be utilized (at the Union’s election) to offset and restore retroactively the PL accrual described in paragraph B.2 above within four (4) pay periods of meeting the goal. In the event that on or before September 29, 2012 the Union exceeds its goal of providing operational efficiencies consistent with the process described in paragraph 6, below, in an annualized value in excess of $15 million, then the parties agree that 50% of the overage shall be utilized to reduce employee contribution toward group health insurance, prospectively. The same procedure shall be utilized in fiscal years 2013 and 2014. 5. The parties recognize that these operational efficiency proposals can only be developed with the highest degree of cooperation between ▇▇▇▇▇▇▇ and Union leadership. ▇▇▇▇▇▇▇ agrees to provide appropriate support, access, and authority to the Union and its advisors and must provide a collaborative and efficient environment to evaluate and quantify operational efficiency proposals. The Employer commits that there will be no intentional delays or unreasonable denials or delays related to the vetting or approval of recommendations presented by the Union. The parties agree that any operational efficiencies originating from the Union that are vetted and approved by the Executive Steering Committee and validated by the PMO consistent with the process described in paragraph 6, below, will not be unreasonably denied approval or recognition by the Employer. 6. The Union and its advisors will present SEIU operational efficiency recommendations to an Executive Steering Committee as established by the Employer. This Committee shall consist of three voting members (the Chief Financial Officer, the Chief Medical Officer, and the Chief Operating Officer) and two non-voting members from the Union. This committee shall meet each month for the purpose of reviewing operational efficiency recommendations proposed by SEIU. Upon vetting and approval by management, which shall not be unreasonably withheld, the annualized value of the recommendations, as validated by the PMO, shall be counted as operational efficiencies as defined above. In addition, the SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall not be excluded as operational efficiencies in the event that they are approved in accordance with the process outlined herein, and only to the extent that they have not already been fully implemented as of ratification of this Agreement. 7. SEIU recommendations already approved and quantified through the Joint Efficiency Task Force shall be subject to gain sharing in accordance with the language of the March 18, 2010, Agreement, to the extent that they have been implemented as of ratification of this Agreement. The parties agree that any such gain sharing shall not count against or contribute towards the Union’s $15 million target for operational efficiencies as described in this Article.