Ontario teachers win retirement gratuity

Calculation of gratuity effectively altered the collective agreement
|Canadian Labour Reporter|Last Updated: 10/13/2015

Elementary teachers in Kingston, Ont., are celebrating after an arbitrator decided retirement gratuity was being miscalculated.

The Elementary Teachers’ Federation of Ontario (ETFO) filed a grievance against the Limestone District School Board after a disagreement arose surrounding a "gratuity wind-up payment" for teachers with less than 10 years of service, otherwise known as the non-vested retirement gratuity.

According to the union, the school board’s calculation of the gratuity via the memorandum of understanding (MOU) effectively altered or amended the collective agreement. The MOU provides for the elimination of old sick leave provisions, which were replaced by a new sick leave plan. The old accumulated sick leave banks were frozen and those teachers who had vested entitlements (10-plus years), were to have their retirement gratuities paid out upon their retirement.