Volume 25, No. 3 Editor: Bob Rupert September, 1994 "SOCIAL CONTRACT" UPDATE The 1993 "Social Contract" affects CUASA members from May 1, 1993 to April 30, 1996. Collective bargaining is not permitted until 1996. During this period, with the exception of promotions, no scale, CDI or benefit improvements are permitted. The "Social Contract" calls for up to 12 days of unpaid leave each year. Unpaid leave has been ameliorated by using pension surplus to reduce pension premium deductions. The "Social Contract" year is April 1 to March 31. YEAR ADDITIONS REDUCTIONS 93-94 *scale 2.4% (effective May 1) 5.5 days to be *CDI 2.1% (estimate) (May 1) taken by March *Pension contribution reduction of 2.2% 30/94 = 2.11% from July 1 to September 1, 1993 salary reduction Pension reduction of a further 3.8% from September 1993 to April 30, 1994 20% reduction in LTDI premiums 94-95 scale 0% ("Social Contract") 4.5 days to be CDI 0% taken by March Pension reduction: 6^ May 1 - June 30, 31/95 = 1.73% 94; 12.5% from July 1/94 to April 30/95 salary reduction LTDI premium holiday July 1/94 to April 30/95 10% reduction in Optional Life Insurance premiums 95-96 scale 0% not yet determined CDI 0% Pension contribution reduction of 2.5% to continue to March 31, 1996 LTDI premium holiday for month of May/95 The increases form May 1/93 to April 30/94 was 2.4% (scale) plus 2.1% (CDI) plus 4.37% (average pension contribution reduction) = 9.87% plus LTDI savings. The Rae Days deduct 2.11% from this for a total increase of 7.75%. The increase in net pay for May 1/94 to April 30/95 was 3.08% (pension reduction) plus LTDI (est. between = and 1%) = 3.58 to 4.08% est plus Group Life reduction. The Raw Days deduct 1.73% from 3.58 to 4.08% for a total increase of between 1.85 and 2.35% plus Optional Group Life savings. The increase in net pay effective May 1/95 will be 2.29% minimum. This increase in pay results from the pension contribution being met from surplus and not from your paycheque. Effective April 1, 1996 you will resume paying 6% instead of 3.5% to the pension plan so your net pay will decrease at that point. The surplus has been used (instead of deductions from salary) to pay your pension contribution thereby fully protecting your pension. *Not affected by "Social Contract"