Financially Preparing for a Strike or Lockout
Last week, AUFA provided a brief introduction to strikes and lockouts in anticipation that this round of bargaining may well entail a work stoppage. This week, we’re providing some basic information about making financial preparation for a strike or lockout.
Financial Impact
During a strike or lockout, AU will discontinue your regular pay for the duration of the work stoppage. The nature of AU’s payroll system means, however, that we should still get a paycheque for a short period of time after a work stoppage begins. This is easiest to illustrate with an example.
The October 5, 2021 paycheques compensate us for work performed between September 11 and 25.
If we went on strike on October 4, we’d each still be entitled to a full paycheque on October 5.
On October 19, we’d get another paycheque for work performed September 26 to October 3.
This delay means AU would be paying us while we’re on strike or locked out! But it also means that, once a work stoppage is over, there would be a similar delay in receiving our next paycheque.
Planning to Mitigate Impact
Planning can help mitigate the interruption of our regular pay. The key things we need to know to plan effectively are:
The weekly value of our expenses that cannot be deferred. This includes regular payments, such as rent or mortgage, utilities, car payments and car insurance, childcare, and groceries.
The weekly value of our household income from sources other than AU (e.g., rental income, spousal wages). This value may be zero dollars (but see Strike Pay below).
The difference between these two numbers is the weekly income gap we’ll need to plan to cover. We can cover this gap from personal savings or making arrangements to access a line of credit. We may also be able to shrink this gap through deferring expenses (e.g., some mortgages are flexible and allow for skipping a payment).
Strike Pay
During any work stoppage, AUFA members will receive strike pay from the CAUT Defence Fund. Strike pay is presently $88 per person per calendar day starting on the fourth day of a strike. Strike pay is tax free and will not subject to any other deductions.
This strike pay works out to $616 per week and will partially offset our wage losses. AUFA will direct deposit strike pay into our bank accounts. AUFA will be collecting direct-deposit information as we move closer to a work stoppage.
Benefits
AUFA has set aside funds to maintain our benefits (i.e., health, pharmaceuticals, dental, vision, life insurance, long-term disability) during a strike. We should experience no interruption to these benefits.
Pension premiums will not be paid during a strike or lockout. See last week’s introduction to strikes and lockouts for more information.
Member Emergency Fund
In September, AUFA’s executive established a Member Emergency Fund (MEF). The MEF makes available to all AUFA members no-interest loans of up to $2000 when a member experiences a financial emergency during a work stoppage.
A committee will discretely accept and adjudicate applications. Loans must be repaid within six months of the cessation of the work stoppage. Other faculty associations typically receive six to 10 applications for emergency loans during a work stoppage.
The Job Action Committee hopes this brief overview will help you to begin financially planning for a possible work stoppage. Please direct any questions to Bob Barnetson (barnetso@athabascau.ca). Next week, AUFA will be providing information about making practical and professional preparations for a work stoppage.
Bob Barnetson, Chair
AUFA Job Action Committee