March 21, 2014 – Bargaining Update – AD, AS, CS and PG Groups
The arbitration hearing took place on March 17, 2014. The Board will consider all representations and arguments and will render a written decision. The RCEA does not know how long this will take. Once the decision is rendered, it is final and binding. NRC will then have 90 days to implement the terms of the new agreement.
One of the employer’s demands is to eliminate the accumulation of voluntary severance. Should the employer’s demand be accepted by the Arbitration Board, employees will have 3 options: cash out their accumulated severance pay, cash out some and leave the rest until retirement, or leave it all in until retirement. Depending on how many years of service you have, this can be a sizable amount for many of you and the payout benefit is a taxable amount.
You may want to be aware and prepared for this possibility. Some of you may need to ensure you have sufficient RRSP space to avoid tax liability. On the RCEA website, under Latest News, there is a video entitled Your Severance Options, dated April 12, 2013. This is from a seminar hosted by the RCEA on that date. You may want to review this video before you make any decisions about your severance pay.