ARCHIVED CD 2006-003: Information Notice to Employees

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Signing Bonus for employees in the Electronics (EL) Group

The purpose of this notice is to advise you of a Signing Bonus payable to employees in the Electronics (EL) group.

As a result of an arbitral award, a signing bonus in the amount of $500 is payable to all employees in the bargaining unit on October 6, 2005.

The signing bonus is a lump sum amount payable to all active and temporarily struck off strength (T-SOS) employees in the affected group on the date of signing of the arbitral award. This includes employees acting in an affected position as well as casuals, terms of less than three months and excluded employees. Part-time employees will receive the total amount of the bonus (not prorated).

The signing bonus is subject to income tax, the Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP), the Employment Insurance Plan (EI) and the Quebec Parental Insurance Plan (QPIP) deductions.

The signing bonus is not considered as salary for recalculation purposes. It is not subject to the Disability Insurance Plan (DI), the Long-term Disability Insurance Plan (LTD), the Public Service Pension Plan (PSPP), Supplementary Death Benefit Plan (SDB) and the Public Service Management Insurance Plan (PSMIP) deductions. It will not be used to compute the 4% gratuity or other entitlements such as premium pay in lieu of statutory holidays.

This arbitral award must be implemented within 150 calendar days after the date of signature of the arbitral award. Consequently, employees in the EL group shall receive the signing bonus by March 4, 2006.

Public Works and Government Services Canada (PWGSC) issued automated payments on January 9, 2006, for employees in the EL group, including employees receiving dual remuneration. Compensation advisors will be responsible to manually process payments for employees in dual employment situations.

Any request for information regarding the foregoing should be addressed to your compensation advisor.