The Union acknowledges that it is the exclusive function and responsibility of the Company to manage its affairs, to direct its working forces, to hire, classify, promote, demote, transfer, layoff, discipline, suspend, and discharge any employee; to increase or decrease its working force; to re-organize, close or disband any department or section thereof from time to time as circumstances and necessity may require; and to maintain order, discipline, and efficiency. This includes the right to determine the employee's ability, skill, competence and other qualifications for the job. All matters concerning the operation of the Company’s business not specifically dealt with in this Agreement shall be reserved to the Company and shall be its exclusive responsibility.

18.02

The Company has the right to make and alter from time to time, rules and regulations to be observed by employees provided that such rules and regulations do not violate or conflict with the provisions of this Agreement.

The Union acknowledges that nothing in this Collective Agreement shall limit the Company’s right to layoff employees covered by this Agreement.

In exercising its Corporate Rights in administering this Agreement, the Company shall act reasonably, fairly, and in good faith.