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Summary of the Arbitration Decision by Mr. William Kaplan dated September 14, 2023

This resource web page has been created jointly by the Ontario Teaching Hospitals and PARO to assist payroll centres. Please note that the calculators on this web page are intended to assist in the projection of retroactive payments. The calculators should be used as tools to understand retroactive payments resulting from the Kaplan Arbitration Award. Individual circumstances should be taken into consideration when determining retroactive payments.

Please note that in addition to the retroactive payments outlined on this web page, an additional retroactive amount is to be paid using the new July 1, 2023 pay scale for work between July 1, 2023 and the date that a payroll centre implements these new rates. As well, for residents in PGY1, PGY7 and PGY8, retro is to be paid for the July 1, 2023 to September 13, 2023 period using the new July 1, 2023 pay scale, and the September 14, 2023 pay scale is to be used for work between September 14, 2023 and the date a payroll centre implements the September 14, 2023 rates.

Background

On September 14, 2023, Mr. William Kaplan decided that over and above the 1% increase that residents received in each of the three years of the 2020-2023 OTH-PARO Collective Agreement, that they should receive:

• an additional 0.75% for July 1, 2020 – June 30, 2021;
• an additional 2.0% for July 1, 2021 -June 30, 2022; and  
• an additional 3.75% for July 1, 2022 – June 30, 2023

These increases are to be paid retroactively to all residents who were employed during the specified time period.

In addition to the increases awarded by Mr. Kaplan for all PGY levels, he also awarded additional specific targeted increases to PGY1, PGY7 and PGY8 pay levels that come into effect September 14, 2023.

Mr. Kaplan decided that these general increases also apply to the Chief and Senior Administrative bonuses. 

The award also included changes to the benefits program and changes to the call stipend amounts.

New Salary Grid

New Call Stipend Grid

Mr. Kaplan awarded targeted increase of 22% to the Weekday In-Hospital and Weekday Home Call/Qualifying Stipends and an increase of 36% to the Weekend In-Hospital and Weekend Home Call/Qualifying Stipends. These new stipend rates come into effect as of September 14, 2023. Retroactive pay is to be paid for call shifts done between September 14, 2023 and the date a payroll centre implements the new call stipend rates.

_{* for the period Jul 01, 2020 – Jun 30, 2021, the above obligation for the increase in call stipends was accommodated with a lump sum payment of $105 for each resident}

New Administrative Bonus

Mr. Kaplan awarded increases to the Chief and Senior Administrative Bonus as outlined in the following table. Retroactive pay applies to Administrative Bonuses paid between 2020-2023.

Dues & LTD

Retroactive Dues are to be collected and submitted to PARO on all income, including retroactive salary, retroactive Administrative Bonuses and any retroactive call stipend income. LTD premiums are not to be collected on retroactive income.

New Benefits – effective November 13, 2023

Increase vision care from $375 to $450 (every 24 months)

Increase mental health coverage, including psychotherapists from $1000 to $2000

Retroactive Pay Methodology

Residents Working a Full Year On-Cycle (July 1 to June 30)

The three tables below illustrate the methodology used to calculate the amount of retroactive pay owing to a resident in each of the three years. Please keep in mind that residents normally move up the pay scale in each successive year. These tables assume a resident working full time in the given year.

Table 1 shows the amount residents were paid as a result of the 1% increase.

Table 2 shows the amount residents would have been paid had they received the 1% increase and the additional increases awarded by Mr. Kaplan over and above the 1%.

Table 3 shows the difference between what residents should have been paid and what they were paid. This is the amount of retroactive pay owing in a given year at a given PGY level. To determine the total amount of retroactive pay owing, add the amount of pay specified for a resident’s PGY year in each of the three years that they worked. (The calculator below can be used to calculate or confirm your calculation.)

Residents Working Less than a Full Year or receiving pregnancy and/or parental top up

Table 4 shows the percentage difference between the amount owing in a given year and what was paid. These percentages can be used to multiply the amount a resident was paid in the corresponding year to determine the retroactive pay owing. (The calculator below can be used to calculate or confirm your calculation.)

Retroactive Pay After July 1, 2023

Retroactive pay for salary earned between July 1, 2023 and the date at which the new pay scale is implemented is calculated by multiplying the salary paid x 6.552%.

This same formula can be used to calculate the retroactive owing for PGY1, PGY7 and PGY8 residents for the period July 1, 2023 to September 13, 2023. To calculate the retroactive pay owing for these residents between September 14, 2023 and when the new pay scale is implemented, use the following percentages in your calculations: PGY1 = 7.7412%; PGY7 = 7.6198% and PGY8 = 8.1401%. (Calculator 2 below can be used to calculate retroactive pay at the 6.552% rate and Calculator 3 can be used to calculate the amount of retro owing for PGY1, PGY7 and PGY8 after September 14th.)

Retroactive Pay Calculators

Calculator 1 – Use this calculator to determine the retroactive amount owing for a resident working a full year July 1 – June 30. For the corresponding year, enter the resident’s PGY level for that year.

Calculator 2 – Use this calculator to determine the retroactive amount owing for a resident who worked a partial year or who received pregnancy and/or parental top up. Enter the amount paid in the given year to determine the retroactive amount owing. For residents who earned income after July 1, 2023, the 2022 line with the 6.552% rate can be used. Use Calculator 3 for PGY1, PGY7 and PGY8 for work after September 14, 2023.

Calculator 3 – Use this calculator to determine the retroactive amount owing for a PGY1, PGY7 or PGY8 resident who earned income for the period between September 14, 2023 and the time the new pay scale is implemented.

Retroactive Call Stipend Calculator

The new call stipend rates come into effect on September 14, 2023. This calculator can be used to determine the amount of retroactive owing on any call worked between September 14, 2023 and the date at which call is paid at the new rate.

Retroactive Administrative Bonus Calculator

The new rates awarded by Mr. Kaplan are eligible for retroactive pay. You can use the calculator below to determine the administrative bonus retroactive amount.