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4. Final Offer - Vacation and Banking Examples

TEAM MEMO
To:         TEAM-IFPTE Local 161 Members
From:     TEAM Office
Date:      September 11, 2019
Re:        Final Offer - Vacation and Banking Examples

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The changes in the Final Offer relating to vacation and the banking of vacation credits have given rise to numerous questions from the membership. The below seven examples will hopefully answer many of those questions. Select a situation that best matches your particular circumstance.

Points to note:

1. The window for banking vacation days is February 1, 2020 to April 30, 2020, inclusive.
2. Any vacation days not banked by April 30, 2020 cannot be banked, ever.
3. The maximum number of days that can be in the bank is 50.
4. Subject to having room in the vacation bank:
          - A maximum of 10 days carried over from the 2019 vacation year can be banked.
          - All of the vacation days accrued between May 1, 2019 and December 31, 2019 can be banked.

5. Unused earned vacation days (including the 2019 vacation days, accrued days, and days in the vacation bank) will be paid out on a member’s departure from the Company.  Some of it may have to be taken as vacation.
   
   

Example 1 – No 2019 vacation days carried over, lots of room in the bank

Member is not going to carry over any of their 2019 vacation days into 2020, they have 20 days in the bank already, and their vacation entitlement in 2020 is 25 days. In addition, the member will have accrued approximately 16.5 vacation days (25 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 41.5 vacation days (25 + 16.5) available to them:

• All 16.5 of their accrued vacation days can be banked. Any unbanked accrued days must be used by December 31, 2022.
• None of their 25 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank 16.5 accrued vacation days, they will have a total of 36.5 days (20 + 16.5) in the bank.

Example 2 – No 2019 vacation days carried over, little room in the bank

Member is not going to carry over any of their 2019 vacation days into 2020, they have 45 days in the bank already, and their vacation entitlement in 2020 is 25 days. In addition, the member will have accrued approximately 16.5 vacation days (25 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 41.5 vacation days (25 + 16.5) available to them:

• Only 5 of their accrued vacation days can be banked. Any unbanked accrued days must be used by December 31, 2022.
• None of their 25 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank 5 accrued vacation days, they will have the maximum of 50 days (45 + 5) in the bank.

Example 3 – Some 2019 vacation days carried over, lots of room in the bank

Member is going to carry over 6 of their 2019 vacation days into 2020, they have 5 days in the bank already, and their vacation entitlement in 2020 is 30 days. In addition, the member will have accrued approximately 20 vacation days (30 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 56 vacation days (6 + 30 + 20) available to them:

• All 20 of their accrued vacation days can be banked. Any unbanked accrued days must be used by December 31, 2022.
• All 6 of their vacation days carried over from 2019 can be banked. Any unbanked carried over days must be used by April 30, 2020.
• None of their 30 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank 20 accrued days and 6 days carried over from 2019, they will have a total of 31 days (5 + 20 + 6) in the bank.

Example 4 – Some 2019 vacation days carried over, little room in the bank

Member is going to carry over 10 of their 2019 vacation days into 2020, they have 40 days in the bank already, and their vacation entitlement in 2020 is 30 days. In addition, the member will have accrued approximately 20 vacation days (30 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 60 vacation days (10 + 30 + 20) available to them:

• It would be best to prioritize banking of the vacation days carried over from 2019, so none of their accrued vacation days should be banked. The unbanked accrued days must be used by December 31, 2022.
• All 10 of their vacation days carried over from 2019 can be banked. Any unbanked carried over days must be used by April 30, 2020.
• None of their 30 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank their 10 days carried over from 2019, they will have the maximum of 50 days (40 + 10) in the bank.

Example 5 – Lots of 2019 vacation days carried over, lots of room in the bank

Member is going to carry over 18 of their 2019 vacation days into 2020, they have 15 days in the bank already, and their vacation entitlement in 2020 is 30 days. In addition, the member will have accrued approximately 20 vacation days (30 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 68 vacation days (18 + 30 + 20) available to them:

• All 20 of their accrued vacation days can be banked. Any unbanked accrued days must be used by December 31, 2022.
• Only 10 of their vacation days carried over from 2019 can be banked. Any unbanked carried over days must be used by April 30, 2020.
• None of their 30 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank 20 accrued days and 10 days carried over from 2019, they will have a total of 45 days (15 + 20 + 10) in the bank.

Example 6 – Lots of 2019 vacation days carried over, limited room in the bank

Member is going to carry over 23 of their 2019 vacation days into 2020, they have 35 days in the bank already, and their vacation entitlement in 2020 is 35 days. In addition, the member will have accrued approximately 23.5 vacation days (35 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 81.5 vacation days (23 + 35 + 23.5) available to them:

• It would be best to prioritize banking of the vacation days carried over from 2019, so only 5 of their accrued vacation days should be banked. Any unbanked accrued days must be used by December 31, 2022.
• Only 10 of their vacation days carried over from 2019 can be banked. Any unbanked carried over days must be used by April 30, 2020.
• None of their 35 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

If the member did bank 5 accrued days and 10 days carried over from 2019, they will have the maximum of 50 days (35 + 5 + 10) in the bank.

Example 7 – Lots of 2019 vacation days carried over, no room in the bank

Member is going to carry over 25 of their 2019 vacation days into 2020, they have 50 days in the bank already, and their vacation entitlement in 2020 is 35 days. In addition, the member will have accrued approximately 23.5 vacation days (35 / 12 x 8) between May 1, 2019 and December 31, 2019.

On January 1, 2020 this member will have 83.5 vacation days (25 + 35 + 23.5) available to them:

• None of their accrued vacation days can be banked, and they must be used by December 31, 2022.
• None of their vacation days carried over from 2019 can be banked, and they must be used by April 30, 2020.
• None of their 35 days of 2020 vacation entitlement can be banked, and they must be used by December 31, 2020.

This member already had the maximum of 50 days in the bank.

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