State of Emergency Clarification

February 6, 2014

Dear Fellow Employees,

This is indeed a difficult winter and I know everyone is looking forward to spring! I hope you saw my letter of gratitude (posted on the Portal) to all of you for your determination to do your job through difficult weather circumstances. We have been trying to get timely information to everyone about decisions and plans regarding weather events through emails, SPIN Portal and website as well as verbally through your managers.

Today a question came forward from a Union staff concerning the “State of Emergency” called by Governor Corbett on Wednesday evening February 5th related to the extensive power outages and damage from the ice storm. To clarify, within SPIN’s contract with the Union, the following is in effect:

“In the event that a government authority declares a state of emergency where a program is located, requiring that only essential personnel report to work, employees in the affected programs, (excluding residential employees), will not be expected to report to work and will be paid for that day at straight time exclusive of leave time. However qualified employees in programs that are closed may be required to work if deemed necessary. All employees who are required to work (including residential employees) during the emergency will be compensated at one and one-half (1 1/2) times their regular rate of pay for all hours worked.”

Wednesday night (2/5) Governor Corbett signed a disaster emergency proclamation in response to the storm earlier that day that left nearly 850,000 people without power. The declaration allowed Pennsylvania to tap into emergency state funds to assist with the costs of the storm including the National Guard and emergency shelters. There was no declaration from the Governor or any other Government official that only essential people should report to work.

The conditions of the State of Emergency called by the Governor are clearly not relevant to the agreement with the union regarding this part of the contract. Please contact HR or your Corporate Officer if you would like any further clarification.

Thank you and please continue to be careful out there.

Kathy