ARCHIVED CD 2010-004

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• Information Notice to Employees

March 12, 2010

SUBJECT: New Entitlement Code -- Lay-Day Payment in Lieu of Vacation Credits - Ships' Officers (SO) Group

1. PURPOSE

1.1 The purpose of this directive is to provide you with information regarding the new Payment in Lieu of Vacation Credits for employees on the Lay-Day Operational Crewing System in the Ships' Officers (SO) group, as per provision 20 of the arbitral award for this group, rendered on June 27, 2008.

1.2 A notice of information to employees has been included with this Compensation Directive.

2. BACKGROUND

2.1 In accordance with the arbitral award for the SO group, rendered on June 27, 2008, a payment of $25,000 in lieu of the "vacation leave factor" shall be payable in five equal annual installments of $5,000 to eligible employees on the Lay-Day Operational Crewing System.

2.2 The first of the five annual installments is payable on April 1, 2010, and the remaining four on April 1 of the following years.

3. POLICY

3.1 The Payment in Lieu of Vacation Credits is payable to Ships' Officers on the Lay-Day Operational Crewing System, Bargaining Unit Designator (BUD) codes 41006, 41007 and 41008, all levels.

3.2 To be eligible for this payment, the employee must have been working on the Lay-Day Operational Crewing System on May 23, 2008, the date of the arbitration hearing, and have remained an employee within the bargaining unit thereafter. 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 eligibility criteria are also entitled to receive the payment.

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.

3.3 The lump sum payment is subject to the following deductions:

• federal/provincial income tax
• employment insurance (EI)
• Quebec Parental Insurance Plan (QPIP)
• Canada Pension Plan (CPP) or Quebec Pension Plan (QPP)

3.4 The lump sum payment is not subject to the Disability Insurance (DI) Plan, the Long-term Disability Insurance (LTD) Plan, the Supplementary Death Benefit (SDB) Plan, the Public Service Management Insurance Plan (PSMIP) and the public service pension plan deductions.

3.5 This payment is not considered part of salary for pay purposes. As a result, entitlements related to pay situations (such as promotions or acting pay) will not be recalculated. This payment is not to be used in calculating the 4% gratuity or premium pay in lieu of statutory holidays.

3.6. Acting Pay

Employees on the Lay-Day Operational Crewing System who, on May 23, 2008, were acting in a position outside the bargaining unit are not entitled to the lump sum payment.

Employees from other bargaining units who, on May 23, 2008, were acting in a Lay-Day Operational Crewing System position are entitled to the lump sum payment, provided they meet the eligibility criteria.

3.7. Part-time

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

3.8. Salary protection

The lump sum is payable to employees in a salary protection situation provided they meet the eligibility criteria.

3.9. Dual employment

Eligible employees occupying two positions within the bargaining unit and on leave without pay (LWOP) from one of the positions shall receive the payment once.

3.10. Dual remuneration

Eligible employees working in two positions within the bargaining unit and receiving dual remuneration shall receive the payment once.

3.11. Pre-retirement transition leave (PRL), leave with income averaging (LIA) and leave without pay (LWOP)

Eligible employees on PRL , LIA or for which there is an ongoing LWOP transaction are entitled to receive the lump sum payment.

4. PROCEDURES/INSTRUCTIONS

4.1 The new entitlement code 1F3 " SO Lay-day payment in lieu of vacation credits" will be created in the Regional Pay System (RPS) on March 16, 2010.

4.2 Compensation advisors will be responsible for manually processing this payment for all eligible employees by completing an "Entitlement Commence" (ENC - PAC 18C) transaction with entitlement code 1F3, rate base 0 (lump sum), for each of the five annual installments commencing on April 1, 2010, and continuing each year until April 1, 2014.

4.2.1. On-Line Pro Forma

The on-line pro forma identified in the Compensation Directive 2001-016 and in the Job Aids can be used to enter the transactions in the RPS.

4.3 For pay input requirements, please refer to the Personnel-Pay Input Manual (PPIM) chapter 22 (On-line Pro Forma) as well as sections 4-4-18-3-1 and 14-6-1.

4.4 The PPIM will be updated to incorporate the relative information contained in this directive.

5. INQUIRIES

5.1 Any inquiries on the information contained in this document should be addressed to your PWGSC Compensation Services Office.

Original Signed by
B. Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): ENT 1F3