On May 25th, the GTSWCA signed an agreement with Local 793 that will allow them to establish an additional fund within the collective agreement to go alongside the Benefit and Pension funds. This new Fund is called the Supplementary Unemployment Benefit (SUB) Fund. The SUB Plan does not come with any additional financial cost, it merely allows Local 793 to redirect a small portion ($0.05) of its existing remittances into a new Fund.
What is a SUB Plan?
A SUB Plan acts as an unemployment "top up" fund. In this case, when a Local 793 member is on layoff, this Fund will allow them to collect $250 per week over and above their existing employment insurance payments for up to six weeks. The Plan will be managed and administered by Local 793.
Why did GTSWCA need to sign via LOU to establish this SUB Plan?
There is a narrow set of rules for how SUB plans can be financed, based on Service Canada regulations. This is the reason why Local 793 could not simply shift its own existing funds around to establish this Plan. Local 793 is seeking to utilize the "trust fund" option that requires a separate fund with a distinct flow of income (i.e. via remittance) as a means of demonstrating to government how the plan will remain viable and have a consistent income stream. To do this, they must modify the collective agreement in order to officially establish a separate fund for accounting purposes, which requires our consent.
The GTSWCA undertook an extensive legal and policy review of how SUB Plans operate and the legal ramifications of establishing this SUB Plan in our collective agreement. We are satisfied that the impacts are insignificant, while the intent of the Plan is sound. The Letter of Understanding outlining the Plan is attached to this notice for your records.