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OPS Issue Sheet #3 – Termination pay: Terminated

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The language: Employer’s proposal is to limit the accrual of termination pay entitlements upon retirement to service accrued up to December 31, 2015, payable at the rates applicable on December 31, 2015 and eliminate termination pay thereafter.

What you have now: Under the current collective agreement, if you were hired prior to January 1, 2013, when you retire you will receive one week of pay for every year of service to a maximum of 26 weeks (if you have more than five years’ service).

What this new language means: You will only earn one week of pay for every year of service up to December 31, 2015. At this point, your termination pay is capped and you will not accrue any further termination pay. As well, when you do eventually retire, your termination pay will be paid at the salary you were earning on December 31, 2015.

For example: If you have 20 years of service as of December 31, 2015, you will lose six weeks’ pay when you eventually retire. To make it worse, you will be paid out at the 2015 salary rate, regardless of any increases, promotions or salary adjustments you may have received after that. This is a double hit…at a time in your life when every dollar will count.

In monetary terms, this can add up to thousands of dollars. An OAD 8, for example, currently earns $945.76 per week gross. A loss of six weeks’ pay equals $5,674.58. And whatever termination pay that was accrued would be paid out at that rate, if the employer succeeds in another two-year wage freeze. 

In the last round of bargaining, new hires in the OPS lost the ability to accrue termination pay. In this round, the employer wants to cap it, make it worth less, and then eliminate it COMPLETELY.

This is just another indicator about how much value this employer places on their long-serving employees. A big “thank you” from the government for your years of dedication and service.

We are fighting for your demands, and for the respect you deserve. Please support your Bargaining Teams!

Original authorized for distribution:

Roxanne Barnes, Chair, Central/Unified Team

Tom O’Neill, Chair, Corrections Team

Warren (Smokey) Thomas, President, Ontario Public Service Employees Union

Related: OPS Bargaining 2014 Index Page