Calculating Overtime

Posted: July 13, 2011 in Uncategorized

We sent out a wage benefit survey recently, the confidential information will assist the IATSE 891 VFX department sub-committee in the upcoming Master Agreement negotiations. While reviewing the responses, I noticed that those who indicated they are working under Side Letter No. 12 reported that they do not get paid overtime until after 12 hours worked. This is erroneous.

Let me explain:

The wages identified under the Side Letter No. 12 are inclusive of overtime. This means you are paid for 14 pay hours if you worked the entire 12 hour day or 70 pay hours if you worked 60 hours in the week.

How do we get to 14 hours? The 12 hour day is broken into 8 hours at straight time and 4 hours of overtime. Those four hours are paid at the going overtime rate of time and a half equaling 6 straight time hours. Add 8 and 6 you arrive at 14 straight time hours.

Now if you actually worked 13 hours per day you would take your weekly rate and divide that number by 70, the number of straight time pay hours in a 60 hr work week. Then this number is doubled to give you the hourly rate for hours worked past 12. For example:

$1600 for a 60 hour work week (5 x 12) is equivalent to 70 pay hours, $1600 divided by 70 = $22.86 per hour. If you worked 65 hours you will be paid an additional $228.60 for the five extra hours. This is your hourly rate doubled for the five additional hours.

Your minimum daily or weekly rate under the side letter is inclusive of overtime.
Remember the week rate or day rate are guaranteed pay whether you work, 8 hours, 10 hours, or 12 hours.

This is dry stuff, and is not really easily understood, that’s why contracts and collective agreements end up being misinterpreted. Somehow the boss likes it like that which makes getting clear language such a struggle. If we had easily understood language a few labour relations and HR folks would be out of a job, and there would be less billable hours for the lawyers too.

Here’s more on overtime.

The VFX sub-committee will be meeting again this weekend, dates have been set aside for formal bargaining to commence in October.

SIGGRAPH 2011 is fast approaching. I will be at the IATSE booth in the exhibition hall. Come and meet IATSE’s Jimmy Goodman from Los Angeles, Peter Daprato from Toronto, and Julia Neville from Vancouver.

If you are in Vancouver and are not able to make it down to the Trade and Convention Center, IATSE 891 will be hosting a summer BBQ with live music, Wednesday, August 8, and Jimmy, Peter and Julia will be there too. Details to come.

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