Vacation Schedule

gman042

Been around the block a few times
We ran into a little trouble last year covering sick days and option days. The reason being is because too many vacation weeks were allowed.

So this year the vacation schedule was by the contract. Now there are 6 guys with 33 weeks of vacation between them that do not get to take their entitlements that they earned.

Answer from center manager. Those entitlements are guaranteed pay not guaranteed time off.
 
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chuchu

Guest
We ran into a little trouble last year covering sick days and option days. The reason being is because too many vacation weeks were allowed.

So this year the vacation schedule was by the contract. Now there are 6 guys with 33 weeks of vacation between them that do not get to take their entitlements that they earned.

Answer from center manager. Those entitlements are guaranteed pay not guaranteed time off.
We run into trouble every year with the same issue. Feel lucky if it was only last year.
Where's your steward in this picture and how is it that you got "extra weeks" last year?
 

gman042

Been around the block a few times
We run into trouble every year with the same issue. Feel lucky if it was only last year.
Where's your steward in this picture and how is it that you got "extra weeks" last year?


Because we had more weeks needed as a group than were allowed by contract is where the extra weeks of vacation came from. So they restrict us to "by the contract" which causes the bottom seniority drivers to lose any vacation weeks they are entitled to. They must be cashed out. Typically when vacation or option days are cashed out then there is a 40% penalty. Guys are going to lose out on a lot of money by this management move.
 

1989

Well-Known Member
We ran into a little trouble last year covering sick days and option days. The reason being is because too many vacation weeks were allowed.

So this year the vacation schedule was by the contract. Now there are 6 guys with 33 weeks of vacation between them that do not get to take their entitlements that they earned.

Answer from center manager. Those entitlements are guaranteed pay not guaranteed time off.
Tell them old farts to retire.
 

Inthegame

Well-Known Member
We ran into a little trouble last year covering sick days and option days. The reason being is because too many vacation weeks were allowed.

So this year the vacation schedule was by the contract. Now there are 6 guys with 33 weeks of vacation between them that do not get to take their entitlements that they earned.

Answer from center manager. Those entitlements are guaranteed pay not guaranteed time off.
In the Central Region the language clearly states "all employees who meet the eligibility rules herein set forth shall be entitled to a vacation with pay as follows..." That means time off. Percentages off each week in the contract are minimums. Talk to your BA NOW.
 
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chuchu

Guest
Because we had more weeks needed as a group than were allowed by contract is where the extra weeks of vacation came from. So they restrict us to "by the contract" which causes the bottom seniority drivers to lose any vacation weeks they are entitled to. They must be cashed out. Typically when vacation or option days are cashed out then there is a 40% penalty. Guys are going to lose out on a lot of money by this management move.
Ever heard of "blowing smoke"?

You mean the checks are taxed higher by saying 40%?

Inthegame is right. There's an escape hatch for the lesser seniority drivers if you'll look it up.

Its almost Feb. Maybe someone should have fought that fight in November/December?
 

Kae3106

Well-Known Member
Why is there a 40% penalty?

It's not really a 40% penalty...it's a tax issue. The IRS considers cashed out vacation time to be supplemental pay. This triggers supplemental tax which is a flat 25% federal rate. Add that 25% to the 6.2% FICA and 1.45% Medicare and your state's supplemental rate, and it starts to approach 40%.

If you know that your normal tax rate is less than this, you can tweak your W-4 for a while and have less federal or state tax taken out of your regular pay to offset it.
 

superballs63

Well-Known Troll
Troll
It's not really a 40% penalty...it's a tax issue. The IRS considers cashed out vacation time to be supplemental pay. This triggers supplemental tax which is a flat 25% federal rate. Add that 25% to the 6.2% FICA and 1.45% Medicare and your state's supplemental rate, and it starts to approach 40%.

If you know that your normal tax rate is less than this, you can tweak your W-4 for a while and have less federal or state tax taken out of your regular pay to offset it.

I come up with 32.65%, It's hardly the 40% which was mentioned further up
 

Kae3106

Well-Known Member
I come up with 32.65%, It's hardly the 40% which was mentioned further up

That doesn't account for state tax which varies. The California supplemental tax rate is a flat 6.6%. There is also a 1% California SDI tax. That adds another 7.6% for Cali employees which puts taxes at just over 40%. Employees in other states might have state and/or local taxes as well.

Supplemental wages (payoffs) are taxed heavier than normal wages so it feels like you are losing money because you aren't taking home as much as you would on a normal check.
 
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chuchu

Guest
We bid our vacations the end of January until the end of February. Did not have this info to fight the fight
OK. File on it to stop the process if you are willing. You can always withdraw it. Not sure where you're from but your BA should have the answers you need.
It's better to get the clarification before all the vacations are done being bid.
 
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