LOU -Variable Pay Plan-Salary Groups 306, 307 & 308

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Salary Groups 306, 307, 308



The following will confirm the understanding and agreement between the parties during negotiations regarding a Variable Performance Pay (VPP) for salary groups 306, 307 and 308 as follows:

1.   Incumbents of bargaining unit positions in salary group 306, 307 and 308 will be eligible to participate in VPP and receive a Target bonus of up to 7% based on regular wages, payable in the following calendar year. VPP payments are non-pensionable.

2.   It is understood and agreed that it shall be the Company’s sole and exclusive right to design the VPP Plan. Further, TEAM agrees that the Company shall have the sole and exclusive right to redesign the VPP Plan prior to the beginning of a new Plan year. Upon completion, the Company shall provide a copy of the VPP Plan to TEAM for information purposes.

3.   It is understood and agreed that it shall be the sole and exclusive function of the MTS Internal Audit Department to determine whether the Financial Targets of the VPP Plan have been met. Such determination shall normally be completed by March 31st of the following calendar year and shall be final.

4.   It is agreed and understood that this Letter of Understanding is not subject to any term or condition of the Collective Agreement, including Article 5 – Grievances and Article 6 – Arbitration. This notwithstanding, an employee can grieve his/her VPP Plan entitlement based on his/her personal performance.

5.   Employees in 301 through 305 positions who are promoted into 306, 307 or 308 level positions during a calendar year will be eligible to participate in the Salary Group 306, 307, 308 VPP Plan for that calendar year on a prorated basis.


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