Explanation of Overtime Provision in Collective Agreement
Brothers and Sisters,
There have been lots of questions and concern about Overtime payout; I hope the following explanation clarifies things for members.
It was never a right in the language of the 2012-2015 Collective Agreement to allow OT to be banked beyond December 31st of the year it was earned. It was a past practice that the Employer allowed to continue; to correct it they served the Union with an Estoppel.
Estoppel means that the Employer is putting the Union on notice that they are stopping a past practice and reverting to the clear language as stated in the Collective Agreement.
Article 8.2 of the 2012-2015 Collective agreement states……. “Overtime which is not used by the end of each calendar year shall be paid out the first pay period in the year following at the rate prevailing as of December 31st of the year the OT was worked.”
Through negotiations, the Union extended the payout date from December 31st to April 30th ……”if an employee elected to carry unused banked overtime to the following calendar year and it is not taken as time off prior to April 30th of the following calendar year, it shall be paid out the first pay period following April 30th at the rate prevailing as of December 31st of the year in which the overtime was worked.”
To summarize, previous language stated if you did not use your OT by December 31st it would be paid out the first pay period of January… The Union negotiated to extend the date and now any banked overtime not used by April 30th will be paid out in May
CUPE Local 403