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LICO PAYMENTS ERRORS FOR
FISCAL YEAR 1999-2000
Mike Donaldson
Applicable to former CUPE 1580 members only
Members who earned less than $30,000 during that fiscal year (April
01,1999-March 31,2000) are entitled to a retroactive payment. The
Low Income Cut Off (LICO) payments have been in place since Bob
Rae's Social Contract wage freeze. These payments are calculated
by multiplying your hours paid by the difference between your step
on the LICO and HICO scales.
ex: A GDT employee on Step 6 - HICO rate $21.53
LICO
rate $21.74
Employee was paid for 1000 hours of part time work.
(LICO rate - HICO rate) X 1000 = $210.00
For the GDT scales only, the percent differences between them
are varied as a result of an arbitration award in April 1998. This
will result in significantly larger LICO payments, the higher you
are on the scale. The 6.7% difference at the top of the GDT scale
was applied evenly to all other pay scales.
In February of 2001, the hospital paid the LICO amounts for the
previous fiscal year. Because the hospital could not find any documentation
in payroll as to how the calculations for C.U.P.E. 1580 had been
done previously, they decided to use the formula in place for C.U.P.E.
576. Their formula was a flat 1%, a far cry from up to 6.7%.
The union is challenging this. The L.I.C.O. payment differences
will cease to as of Jan. 05, 2000. This is the start date for the
wage standardization. If you qualified for these payments and received
nothing please contact Mike Donaldson at the Civic Campus.
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