LETTER OF UNDERSTANDING
VOLUNTARY RETIREMENT TERMINATION INCENTIVE PROGRAM (VRTIP)
Program Details
| Category | Description | Incentive | |
|
1 |
Employees must be Regular Full-time or Regular Part-time* Age 55 or greater plus years of service is equal to or greater than 80 |
30 week lump sum payment |
|
|
2 |
Employees must be Regular Full-time or Regular Part-time* Age 55 or greater plus 10+ years of service with age plus service less than 80 |
30 week lump sum payment |
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|
3 |
Employees must be Regular Full-time or Regular Part-time* Age less than 55 however, age plus service is equal to or greater than 80 |
Bridging Allowance (up to a maximum equivalent of 52 weeks base salary) and a 26 week lump sum payment; OR If age is less than 53, at the employees option, 65 week lump sum payment |
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|
4 |
All other Regular Full-time or Regular |
Two (2) weeks per year completed net credited years of service up to a maximum of 65 weeks |
*Lump sum payment for Regular Part-time employees shall be prorated as follows: For severance purposes, service is represented as the sum of (i) any period or periods of Regular Full-Time employment and (ii) any period or periods of Regular Part-Time employment, pro-rated accordingly.
Terms & Conditions
This Voluntary Retirement/Termination Incentive Program (VRTIP) shall be offered on a Vice President (VP) Group basis during the life of the renewed Collective Agreement prior to invoking Article 27 – Layoffs.
a. The VP Group to which the VRTIP Program will be offered.
b. The number of reductions required within the VP Group.
c. The specific position(s) affected and the number of corresponding reductions.
For the purpose of determining the specific positions affected by a VRTIP, any single incumbent position(s) identified will be combined with a multiple incumbent position(s) which in the Company’s opinion, compares closest to the single incumbent position on the basis of duties and responsibilities. The Company maintains the right to determine the location of the reduction.
Employees within the VP Group who are not in an affected position(s) may also make application to the VRTIP.
Nothing in this Letter of Understanding shall restrict the Company’s right to layoff within the affected position(s) should the required reductions in the affected position(s) not be achieved through the VRTIP.
It is understood and agreed that the final approval of all applications rests solely with the Company.
Employees in affected VP Groups will be provided with a thirty (30) calendar day window of opportunity to make application to the VRTIP.
Departure dates for approved applicants will be established by the Company based on business and operational requirements.
Category eligibility will be determined by the employee’s approved departure date. As a result, some employees may qualify under a different category incentive at their approved date of departure as opposed to their date of application. Where the employee’s departure date is delayed by the Company beyond the program departure date, the employee’s incentive payout will not be reduced as a result of such delay.
Any employee that departs the Company under the VRTIP shall be required to execute, as a condition of receiving the Incentive, a Confidentiality and Non-Compete Agreement in a manner as prescribed by the Company. The term of the Agreement shall not exceed the number of weeks of the incentive, with a maximum term of 52 weeks. The company maintains its confidentiality rights under the common law beyond the expiry of this Agreement.
Upon the expiry of the Collective Agreement this VRTIP Letter of Understanding shall terminate and therefore have no effect.