Retroactive wage payment & rate increase
Published: February 22, 2008
Effective Date of Wage Rate Updates in CMA
Please be advised effective at 0001 on February 22nd, 2008 the CMA rate tables will be updated to reflect the 2007 and 2008 wage increases. These rates have been updated to coincide with the start of pay period 6 of 2008 and will now reflect the current rate.
NMC 006-08 - Information Bulletin – Retroactive Wage payment
This is to provide information concerning the retroactive payment as provided in the recent Memorandum of Settlement between the Company and the TCRC (Running Trades) dated December 5, 2007.
Please be advised that the retroactive payment from the settlement will be deposited into to employee accounts on April 17, 2008. Note that this will be made as part of your regular deposit for pay period 8.
The amounts for retroactive pay for 2007 and 2008 will be included as two separate line items on your pay advice for pay period 8. Payment for retroactive wages for 2007 will be for earnings January 1 to December 31, 2007. Payment for retroactive wages for 2008 will be for earnings from January 1 to February 21, 2008 only. The tax on the lump sum payment will be calculated independently from your regular pay.
This General Wage Increase portion of the retroactive payment is based on assessing the eligible earnings for each employee in each calendar year and applying the appropriate percentage increase; 3% for 2007 eligible earnings and 4% (compounded to 7.12%) for 2008 eligible earnings. These percentages only apply to eligible earnings, as the General Wage Increases (GWIs) do not apply to certain payments such as; length of run, length of train allowances, shift differential and any fixed dollar payments including the NR $80 premium, and local agreement dollar claims. Further, an increase to shift differential amounts for eligible afternoon and evening shifts was effective January 1, 2008. Retroactive amounts for shift differential paid from January 1, 2008 to February 21, 2008 will also be included in the 2008 retroactive payment. It should further be noted that Annual Vacation amounts are normally based on the previous year’s earnings. There will be no retroactive payment on 2007 AV as these amounts were based on 2006 earnings. 2008 AV taken before February 22, 2008 will have retro applied (3%). The remaining 2008 AV amounts will be adjusted and reconciled once the retroactive payments have been processed.
Deductions applicable to the retroactive amounts include Federal Income Tax and Provincial Income Tax (where applicable), Canada Pension Plan (Quebec Pension Plan), QPIP(Quebec only), Employment Insurance, Employee Share Purchase Plan (if applicable) and the Company Pension Plan. Note that the pension contribution will be reassessed as part of the annual pension statement process.
Should you have any concerns regarding your payment, within 30 days of receipt, submit a letter detailing your specific concerns along with a copy of your pay advice. Fax the letter to the CMC at 1-877-323-4056. This letter must include your name, employee number, address, phone number, outline your concerns and have a reference to Retroactive Payment in the heading. Letters submitted will be reviewed on an individual basis and responded to accordingly. Please do not call the Auditors as they have no information regarding the payment.