Letter of Understanding EI SUB Benefits¶

Letter of Understanding

Between

Employer name

(Hereinafter referred to as the "Employer")

And

UNION

(Hereinafter referred to as the "Union")

This letter of understanding is made without prejudice and without precedent to the interpretation or application of the Collective Agreement, or any other agreements between the Parties, or to any similar dispute between the Parties.

RE: COVID-19 Employment Insurance SUB Plan

WHEREAS the Parties have a mutual desire to support the goals and direction of Public Health Ontario to minimize the impact of the COVID-19 on our workplaces and the community, and

WHEREAS the Employer and the Union recognize the importance of protecting Employee wellbeing during the current pandemic, and

WHEREAS income security is a crucial component of well being,

THEREFORE, the Parties agree that the Employer will establish a Supplementary Unemployment Benefits (SUB) Plan with the following terms, and will register the plan with Service Canada as [in the next three (3) days]:

[Draft example plan for UNION at EMPLOYER, based on the sample plan provided by Service Canada. Website says 95% maximum allowable].

1. The following group(s) of employees is/are covered by the plan: All employees represented by UNION at EMPLOYER

2. The plan will supplement EI benefits for periods of unemployment caused by: temporary work stoppage.

3. Verification that the employees have applied for and are in receipt of EI benefits will be made before SUB payments are paid.

4. The SUB is payable at 95% of the employee's normal weekly earnings while the employee is serving the one-week EI waiting period.

5. Please choose one of the following options: REQUESTING OPTION B

   • Option A (percentage or fixed amount): The benefit paid under this plan is set at* 40% of the employees' normal weekly earnings or $300 (fixed amount). The weekly SUB payment, plus the gross amount of EI benefit from this employment will not exceed 95% of the employee's normal weekly earnings.

   • Option B (automatic adjustment): The plan provides that the gross amount of EI benefit from this employment plus the SUB payment will equal* 95% of the employee's normal weekly earnings.

   • Option C (other earnings considered): The plan provides that the SUB payment, any other earnings, plus the EI benefit from this employment will equal 95% of the employee's normal weekly earnings.

6. The SUB benefit will be paid for Duration of the temporary work stoppage.

7. a) The duration of the plan is from May 1, 2020 to December 31, 2020.
   b) Service Canada - SUB Program will be informed in writing of any change to the plan within thirty (30) days of the effective date of the change.

8. a) The plan is financed by the employer's general revenues.
   b) A separate record of all the SUB payments will be kept.

9. Payments of guaranteed annual remuneration, deferred remuneration, or severance pay will not be reduced or increased by payments received under the SUB plan.

10. This plan provides for an offset of EI benefits that may have to be repaid as part of the employee's income tax return. The weekly gross EI benefit from this employment, the SUB payments previously paid plus this offset amount will not exceed 95% of the employee's normal weekly earnings.

11. On termination of the plan, all remaining assets will revert to the employer, be used for SUB payments and/or be used for the administrative costs of the plan.

12. Employees do not have a right to SUB payments except during the period of unemployment specified in the plan.

Signature(s) of authorized officer(s).

Date date of signing.

The Parties agree that these terms are a temporary response to COVID-19 Public Health concerns.

All of which is agreed, this ______ day of March, 2020, By:

On Behalf of the Union / Date

On Behalf of the Employer / Date