days until our Collective Agreement expires, we are preparing, we are united and we will make change.

LOU#41 – Reporting Hrs of Work for the Purposes of EI ROE





Based on an analysis of the collective agreement, work rules and the pay credit system, the parties agree that this Letter of Understanding has been prepared to fulfill the reporting requirements of Section 10.(1) of the Employment Act Regulations to provide evidence of the hours worked by Air Canada cabin personnel for which they have been remunerated.


The parties agree that the simple formulas provided in this Letter of Understanding is necessary for this task of government reporting because:


a)    The current Air Canada pay system, which is based upon a Monthly Minimum Guarantee (MMG) and associated pay credits does not make it feasible to report all cabin personnel hours of work for which there has been remuneration; and


b)    The current Air Canada pay system is a longstanding compensation structure designed to deal with extremely complex work rules.  The existing pay and operational tracking systems which are based on industry-wide systems were never intended nor designed to report all hours worked covered by this type of pay system.


As a result, and in order to report insurable hours on EI Records of Employment for cabin personnel, the parties agree that the following formulas will be used:


a)    All flight credit hours (regardless of rate of Pay) times a factor of 2.0 reflecting on average, the sum of duty periods hours operated and paid, plus hours of work paid through MMG.  For the purposes of this determination, Average Earnings credits applied to Reserve Sick credits will be converted at 1 day equals 175 minutes.


Example: 70 hours paid at full rate, plus 4 hours paid at half rate of pay, will result in 74 recognized hours times 2.0, equalling 148 hours.


b)    Cabin personnel on Special Assignment ground duties, (other than Maternity / Alternate) will be credited at 5 hours per calendar day in the block month.


Example:  In a 30 day block month, 5 hours x 30 equals 150 hours.


c)    Maternity / Alternate assignments will be credited with the actual hours worked.


The parties agree that this Letter of Understanding is without prejudice or precedent to any other matter.  The parties further agree that this Letter of Understanding clarifies the rights of employees but does not amend or re-interpret the collective agreement in any way.


Signed this 19th day of March, 2004



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                 For CUPE                                                                        For Air Canada