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Letter of Understanding (08-1)
June 16, 2008
Mr. Lorne Brown
National President
Federal Government Dockyard Trades
& Labour Council (East)
Building D-125
Fleet Maintenance Facility Cape Scott
P.O. Box 99000 Stn Forces
Halifax, Nova Scotia
B3K 5X5
Dear Mr. Brown:
Subject: Vehicle/Liability
This will confirm that the Employer will, subject to this letter, waive its claim against any employee in the bargaining unit for reimbursement of damages paid by it to a third party for bodily injury, death or property damage caused by an accident involving a motor vehicle owned or rented by the Employer and driven by the employee in the normal course of performing his/her duties.
The Employer agrees to indemnify an employee in the bargaining unit against any liability imposed upon him/her, by a court of competent jurisdiction, to pay any damages arising from bodily injury, death or property damage suffered by a third party and caused by an accident which occurs while the employee is driving a motor vehicle owned or rented by the Employer, while in the normal course of performing his/her duties. No employee in the bargaining unit will be eligible for such indemnification, unless he/she has, prior to the occurrence of such an accident, executed and delivered to the Employer, an instrument in writing in a form acceptable to the Employer, having the following effect:
1. constituting and appointing the Employer as irrevocable attorney to appear and defend in any court of competent jurisdiction in which an action is brought against him/her claiming damages allegedly arising out of such an accident, and
2. authorizing the Employer to conduct all negotiations in respect of such damages and to effect any settlement relating to the payment thereof.
None of the undertakings described in this letter will apply where the accident occurred while the employee was driving a vehicle owned or rented by the Employer outside the scope of his/her employment.
This Letter of Understanding will expire on December 31, 2009.
