ARCHIVED CD 2010-004: Information Notice to Employees

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Lay-Day Payment in Lieu of Vacation Credits - Ships' Officers (SO) Group

The purpose of this notice is to advise you of a lump sum amount payable to eligible employees on the Lay-Day Operational Crewing System in the Ships' Officers (SO) group.

As a result of the arbitral award rendered on June 27, 2008, for the SO group, a payment of $25,000 in lieu of the "vacation leave factor" is payable in five equal annual installments to employees on the Lay-Day Operational Crewing System who were members of the bargaining unit on the date of the arbitration hearing, May 23, 2008, provided they remain employees within the bargaining unit. This includes indeterminate and term employees, as well as employees acting in a position eligible for this payment, as long as they satisfy the eligibility criteria. Excluded employees who meet the eligible criteria are also entitled to receive the payment.

Eligible part-time employees will receive the total amount of the lump sum payment (not prorated).

If an employee leaves the bargaining unit at any time, eligibility for the payment is no longer met. The payment will not be issued, nor will the employee ever be eligible for a future payment.

The first of the five annual installments is payable on April 1, 2010, and the remaining four on each April 1 thereafter (April 1, 2011, April 1, 2012, April 1, 2013 and April 1, 2014).

The lump sum payment 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 lump sum payment 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 Supplementary Death Benefit Plan (SDB), the Public Service Management Insurance Plan (PSMIP) and the public service pension plan deductions. It will not be used to calculate the 4% gratuity or other entitlements such as premium pay in lieu of statutory holidays.

Compensation advisors will be responsible for manually processing the payments for all eligible employees for each of the five annual installments, first payment effective April 1, 2010.

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