Sample Collective Agreement Language for the Humanity Fund

Supporting the Steelworkers Humanity Fund: Negotiating the Steelworkers Humanity Fund Clause

At the bargaining table there are five issues that need to be addressed in collective agreement language:

1. Who is contributing to the Steelworkers Humanity Fund?

There are three possibilities:

The ideal situation is where both the employer and the members contribute.

2. What is the annual amount to be contributed?

The minimum contribution is one cent per hour worked, or $20 per year.   The objective of the SHF is to increase contribution rates above the minimum (which was established 25 years ago when the SHF was created).

The objective in bargaining should be in the range of $30 to $50 per year per member.  A contribution of $50 per year is the equivalent of less than one cup of coffee per week.

3. How is the contribution calculated?  

The simplest contribution is a flat amount to be paid once per year.  For example:  for a unit of 100 members, the employer might contribute $5,000 once per year.

Other options are:

4. Tax Reporting:  By Employers on the T-4

Individual members' contributions are tax deductible. Since the employer is making payroll deductions it is very easy for the employer to report the contributions on the annual T-4. Employer reporting avoids the administrative costs for the SHF of issuing charitable tax receipts at the end of each year. Collective agreement language must require the employer to report charitable contributions on the T-4.

5. Sending the Contributions & Verification

Collective agreement language must identify that contributions are sent directly to the Steelworkers Humanity Fund, and are not to be submitted as part of the dues payments.

 We need to be sure the employers actually make the contributions that are provided for in the collective agreement.  The SHF has no way of knowing if the contributions are correct or not.  For that reason, the employer should report contributions to the local union and / or bargaining unit (as well as to the SHF).  We would ask that the local union representatives notify the SHF of any shortfalls in contributions.

April 2010

Model Collective Agreement Language for the Steelworkers Humanity Fund

Employer-only contribution:

Steelworkers Humanity Fund

The Steelworkers Humanity Fund is a charitable organization which provides emergency food aid and assistance in response to international humanitarian disasters, supports food banks in Canada, and funds international development projects and development education.

The Company agrees to contribute to the Steelworkers Humanity Fund $10 ($20 or $25) per employee two times per year.  Such contribution shall be made semi-annually each April 15th and September 15th by separate cheque and statement and remitted to the "Steelworkers Humanity Fund", at the United Steelworkers, Suite 800, 234 Eglinton Avenue East, Toronto, Ontario, M4P 1K7.  The Company will forward a copy of the statement to the Local Union president or Bargaining Unit Chair.

The Steelworkers Humanity Fund is a registered charity and will provide the Company with a charitable receipt for the contribution.

Alternate Language - employee contribution:

Steelworkers Humanity Fund

The Steelworkers Humanity Fund is a charitable organization which provides emergency food aid and assistance in response to international humanitarian disasters, supports food banks in Canada, and funds international development projects and development education.

 Each pay period, the Company agrees to deduct one dollar ($1) from the wages of all employees in the bargaining unit to be contributed to the Steelworkers Humanity Fund (SHF).  By agreement with the Union, the Company may make remittance to the SHF 2, 3, or 4 times per year (rather than monthly or each pay period).  à [see options below].

The Contribution will be transferred to the Steelworkers Humanity Fund via electronic bank transfer, with an email notification to the SHF, the local union and staff representative indicating the amount of the transfer and the number of employees contributing. à [if employer is not able to make electronic transfer, cheque should be mailed to Steelworkers Humanity Fund, Suite 800, 234 Eglinton Avenue East, Toronto, ON M4P 1K7].

At year end, the Company agrees to provide the Humanity Fund with the names of all employees for whom deductions have been made, together with the amount deducted.  

The Company agrees to report the amount of the employee contribution on the employee's annual T-4 as a charitable contribution. 

It is understood and agreed that participation by any employee in the program of deductions for the Humanity Fund may be discontinued by an employee after the receipt by the Company and the local union of a written statement from the employee.

Not later than January 15th the Company agrees to match the employee contributions made in the prior calendar year.

Alternate paragraph #2 setting the amount of the contribution:

The Company agrees to deduct the amount of $0.01 per hour worked from the wages of all employees in the bargaining unit for all hours worked, and prior to the 15th day of the following month to remit the amount deducted to the "Steelworkers Humanity Fund" at the United Steelworkers, Suite 800, 234 Eglinton Avenue East, Toronto, Ontario, M4P 1K7.  By agreement with the Union, the Company may remit the deductions 2, 3, or 4 times per year (rather than every pay period or every month).

April 2010