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What Is Strike Pay
What is Strike Pay?
Generally in huge organizations when there is a difference of opinion between the management and the workers, there are many ways for dispute resolution. If none of these methods resolve the dispute and the management is unsympathetic to the workers’ plight, then the extreme step of resorting of strike is taken. When the labor force downs its tools and the production floor of the factory comes to a grinding halt, then a strike is on. But the question remains, how much and when will the striking labor force get paid? There are many guidelines and precedents to resolve this question but usually it is arrived at after talks between the management and labor union representatives. This is called strike pay and as a general rule is exempted from tax, in Canada. Mostly the strike pay will be around 65% of the worker’s salary.
Generally the strike pay is paid out by the union and not the company’s management. So it is not considered a part of the regular salary and hence the government’s lenience in taxation. As a rule, all full-time employees, whether permanent or temporary are eligible for strike pay. Also current part-time, casual and temporary employees will qualify to get paid while on strike. Strike pay normally starts from the day it was declared to the day the workers return to regular duty. Most unions require employees to become members to be eligible for strike pay.
Also depending on the union involved and its rules, striking workers may be required to picket management offices and not report for regular duty, etc. to be eligible for strike pay. In cases of prolonged strike or employer lock-out, the Public Service Credit Union will defer its payments dues. The missed payments will be simply added to your term, eliminating financial stress and leaving your credit rating unaffected. Also some members with a good credit history can even borrow form the Union to tide them over during such times as strikes and lock-outs. Some banks and financial institutions even have special provisions for public sector employees where home mortgages are allowed grace time during strikes as they have set up an emergency fund just for such contingencies.
Most industry experts advise unionized workers to start contributing towards a strike contingency plan as you never know when you may need it as by definition a strike can occur anytime. If you have a contingency or emergency funds saved it can really help you face any such crises without your and your family’s livelihood affected. You can meet your payments due in relative comfort, without being totally dependent on the strike pay. In Canada whenever any lawful strike happens, the Public Service Terms and Conditions of Employment Regulations or any other regulation that the TBS may prescribe under the Financial Administration Act comes into effect to govern the strike pay to workers. The Work Disruption Plan contained in the Personnel Pay Input Manual (PPIM) outlines the legally allowed payments to striking employees.
Generally in huge organizations when there is a difference of opinion between the management and the workers, there are many ways for dispute resolution. If none of these methods resolve the dispute and the management is unsympathetic to the workers’ plight, then the extreme step of resorting of strike is taken. When the labor force downs its tools and the production floor of the factory comes to a grinding halt, then a strike is on. But the question remains, how much and when will the striking labor force get paid? There are many guidelines and precedents to resolve this question but usually it is arrived at after talks between the management and labor union representatives. This is called strike pay and as a general rule is exempted from tax, in Canada. Mostly the strike pay will be around 65% of the worker’s salary.
Generally the strike pay is paid out by the union and not the company’s management. So it is not considered a part of the regular salary and hence the government’s lenience in taxation. As a rule, all full-time employees, whether permanent or temporary are eligible for strike pay. Also current part-time, casual and temporary employees will qualify to get paid while on strike. Strike pay normally starts from the day it was declared to the day the workers return to regular duty. Most unions require employees to become members to be eligible for strike pay.
Also depending on the union involved and its rules, striking workers may be required to picket management offices and not report for regular duty, etc. to be eligible for strike pay. In cases of prolonged strike or employer lock-out, the Public Service Credit Union will defer its payments dues. The missed payments will be simply added to your term, eliminating financial stress and leaving your credit rating unaffected. Also some members with a good credit history can even borrow form the Union to tide them over during such times as strikes and lock-outs. Some banks and financial institutions even have special provisions for public sector employees where home mortgages are allowed grace time during strikes as they have set up an emergency fund just for such contingencies.
Most industry experts advise unionized workers to start contributing towards a strike contingency plan as you never know when you may need it as by definition a strike can occur anytime. If you have a contingency or emergency funds saved it can really help you face any such crises without your and your family’s livelihood affected. You can meet your payments due in relative comfort, without being totally dependent on the strike pay. In Canada whenever any lawful strike happens, the Public Service Terms and Conditions of Employment Regulations or any other regulation that the TBS may prescribe under the Financial Administration Act comes into effect to govern the strike pay to workers. The Work Disruption Plan contained in the Personnel Pay Input Manual (PPIM) outlines the legally allowed payments to striking employees.
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