NR Settlement, Supplemental Information on the Terminable Allowance.
The recent tentative NR settlement, renewing the collective agreement having expired September 30, 2011, provides for the incremental disappearance of the Terminal-Retention Allowance (TA).
The Institute-NR has for numerous rounds of bargaining held the following position: the TA must be rolled into base, as over time TA became pay in disguise; in October 2011 this was achieved over a period of one year, and in the following manner:
1- October 1, 2011 50 % of the TA is integrated into the pay scale, before the economic increase of 1.75%
1.1 The remaining 50% continues to be paid out till October 1, 2012.
2- On October 1, 2012, the last 50% of the TA is rolled into base pay, once again before the 1.5% economic increase.
3- The terminable allowance being 100% integrated into pay, it ceases to exist on October 1, 2012.
4- On October 1, 2013, the last economic increase of 2.0% is applied. No TA applies as it will have been fully integrated one year prior.
To our knowledge, the NR is the only Group to have achieved this result, i.e. full integration of the TA into base pay, impacting positively on the value of benefits, while compounding the value of economic increases.