We have been receiving calls from members enquiring why some have seen a substantial increase in their pension premium deduction for the current pay period. We have contacted the Canada Post Pension Centre and can tell you what they have advised would trigger an increase in premiums.
For the year 2013, the pension premiums payable are 7.5% on the first $51,100.00 of pensionable earnings. After our pensionable earnings exceed $51,100.00 in a year the premium is increased to 11%. Some of you will have exceeded the $51,100.00 in this pay period and that is why the premium increased.
Pensionable earnings include Basic Wages, Corporate Team Incentive, Rest Period Allowance, Bilingual Bonus and Lead Hand Differential.
The Pension Centre also advised us that effective January 1, 2014, our premiums will be payable at 8.1% for the first $52,500.00 and then at 11.6% on pensionable earnings over $52,500.00.
Another Unilateral Violation of the Collective Agreement
This decision to raise the rate of employee contributions was taken unilaterally by Canada Post management without consultation or agreement with the Union.
This is a clear violation of clause 37.01 of the Urban Collective Agreement which reads as follows:
37.01 Conditions Not Covered
- The existing working conditions concerning the payment of a premium, the payment of an allowance or the payment of any other financial benefit that are not covered by this collective agreement shall remain in effect until such time as they are otherwise renegotiated between the parties.
CUPW has already grieved the previous unilateral increase in pension contributions which was implemented in July 2013. As stated in previous bulletins the Union is prepared to discuss with management all aspects of the pension plan, including the current problems associated with the solvency deficit. However we have made it clear that the employer has no right to introduce unilateral changes. Management has absolutely no right to unilaterally take decisions that reduce our pay cheques without consultation and agreement