June 29, 2021
After fielding numerous complaints from our members about how vacation pay was paid out this week – this is what we’ve learned;
The Company has 2 methods for processing our vacation pay.
1) Legal vacation pay according to the ESA.
2)Vacation Pay Hours – according to our contract.
The Legal Vacation Equation – takes the Gross pay from July 1st to June 30th. Eg. $50,628.17 gross * 6% = $3,037.68
Contractual VN pay of someone with 3 weeks vacation at 6% -120hrs * $29.86/hr = $3,583.20 with 80 hrs deferred. The Company is bound by the ESA to pay whichever is greater.
In the case above the contractual VN pay is greater. 40 hours will be paid out at the end of June, And the 80hrs is differed for the 2 weeks of shutdown.If the Legal equation is greater then a lump sum is paid out with no deferral because the ESA won’t allow employers to defer those monies to a later time frame. If your service time in total is less than 5yrs (tpt time, full time or both) the same formula is used but your vacation percentage is 4%, not 6.
Hope this helps.
Trevor Longpre, GM Unit Chairperson
On behalf of the Bargaining Committee
Ken Naldjieff, Glenn Currie, Kevan Anderson, Bill Newburgh
UNIFOR Local 199