Unauthorized holiday pay slips through in equalized pay system

Company stops recognizing new holiday not included in collective agreement
By Jeffrey R. Smith
|Canadian Labour Reporter|Last Updated: 05/30/2016

A British Columbia company has agreed to stop pursuing overpayments it accidentally made to employees when it decided to stop voluntarily recognizing a new statutory holiday that wasn’t included in its collective agreement.

During collective bargaining in 2008, Richmond, B.C.-based pulp and paper company Catalyst Paper and its union, Unifor, negotiated an annualized pay system for employees at the company’s mill in Port Alberni, B.C.

The payment method was adopted from a similar technique used in New Zealand, which divided employees’ pay equally among 26 pay periods over the course of the year. Holiday pay and other elements were included in each employee’s total pay, which was then divided up.