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Part XI: Relocation Assistance

The following provisions apply to regular employees and are outlined in the brochure entitled "Relocation Assistance Benefits for Performance Paid Staff" (1995). Employees paid from Salary Schedule 04 will receive the treatment contained herein when appointed to regular positions, and required to relocate as a result of OPG business.

51 HOUSING ASSISTANCE PLAN
51.1 Intent
51.1.1 OPG's purchase of an employee's principal place of residence is designed to ensure that an employee who moves will not be forced to endure unreasonable periods of family separation or inconvenience due to inability to sell the employee's home at a fair market price.
51.1.2 It will be the prerogative of OPG to reject an employee's application for Housing Assistance if in Management's opinion the property is not an acceptable risk.
51.1.3 The employee must abide by all of the requirements of the Housing Assistance Plan. Failure to do so will result in the employee becoming ineligible for housing assistance from OPG.
51.2 Purchase Guarantee
51.2.1 OPG will provide a purchase guarantee based on an appraisal of the property's current worth by a group of up to three appraisers, to be selected by the Real Estate Division in conjunction with the employee.
51.2.2 OPG will not request appraisals until the employee is ready to list his/her house in the marketplace providing this is within one year of the employee's transfer to the new work location and the employee is prepared to abide by Subsection 51.2.4 and Subsection 51.3.1.
51.2.3 The employee must acknowledge acceptance or rejection of OPG's Purchase Guarantee within five days of its receipt. If the employee rejects the Purchase Guarantee, OPG has no further responsibility with regard to Housing Assistance or the Purchase Guarantee.
51.2.4 If the employee wishes to participate in the Housing Assistance Plan, the employee must not list the property for sale until the Purchase Guarantee has been accepted.
51.2.5 Home Appraisal Documentation
OPG will provide The Society with an initial six month report of home appraisal documentation prior to January 1, 1995. Representatives from OPG and The Society will meet to discuss the particular form and content of subsequent reports. Upon agreement on the form and content a Letter of Understanding will be developed which will require the report to be given to The Society on a semi-annual basis for the term of this Collective Agreement. Any anomalies in the report may be discussed by The Society and the OPG confidentially with full disclosure of information (including appraisals).
51.3 Listing of Property
51.3.1 If an employee chooses to participate in the Housing Assistance Plan, by accepting the Purchase Guarantee, the employee will immediately list the property for 90 days on MLS (where such service is available) at a price not exceeding 107% of the guaranteed price.
51.3.2 The employee will retain the right to sell to a third party until such time as the property is turned over to OPG for resale.
51.3.3 In order to assist the employee to dispose of the property expeditiously and at a fair market value, the employee should notify the Employee Relocation Administrator of all offers to purchase during the listing period. OPG may ask the employee to accept an offer which is lower than the Purchase Guarantee, whereupon the employee will be compensated for the difference between OPG's Purchase Guarantee and the amount of the offer. The employee's acceptance of any offer less than OPG's Purchase Guarantee is not mandatory and the employee will retain control of the sale of the residence throughout the listing period. All offers to purchase will be held in confidence by the Employee Relocation Administrator.
51.4 Sale of Property by OPG
51.4.1 The employee must be prepared to sign power of attorney authorizing OPG to sell property on the employee's behalf on the first day following the 90 day listing period. If the employee will be unable to vacate the premises at that time, the Employee Relocation Administrator must be notified.
51.4.2 OPG will pay to the employee the difference between the value of the property to OPG (Purchase Guarantee) and all existing encumbrances, including the advance of equity.
51.4.3 When an employee applies for assistance under this procedure, he/she must declare under oath, if required by OPG, all encumbrances of any nature or kind whatsoever, including executions, chattel mortgages, and notices of conditional sales contracts which the employee is obliged to pay.
51.4.4 In consideration of the payment to the employee of the amount established in Subsection 51.4.2, the employee will complete a deed of sale of the property, conveying the same by good and marketable title, but subject to all existing encumbrances, to OPG or its nominee.
51.5 Advance of Equity
In order to provide the employee with funds for a deposit or down payment on a residence at the new location, an advance of up to 100% of the employee's equity (Purchase Guarantee minus encumbrances) in the residence at the former location may be loaned to the employee by OPG. Advance of equity is interest free for employees who avail themselves of the Purchase Guarantee for 90 days for until the house is turned over to OPG or until the closing date of the sale of the house to a third party, whichever comes first. For employees who reject the Purchase Guarantee, the advance of equity is interest free for 90 days. Repayment is as set out in the Relocation Assistance Benefits brochure.
51.6 House Evaluation and Guarantee - Atikokan Thermal Generating Station (TGS)
51.6.1 Employees at Atikokan TGS who are declared surplus and terminated may avail themselves of the Housing Evaluation Guarantee provisions outlined in Article 54.

52 MOVING EXPENSES
52.1 Intent
52.1.1 Since OPG has province-wide operations, employees may be required to move about the Province as part of their jobs.
52.1.2 OPG recognizes that there may be a number of relatively costly expenditures associated with moving and will endeavour to ensure that such expenses will be adequately covered.
52.1.3 OPG will not assume responsibility to compensate for any upgrading in an employee's standard of living which may take place as a result of moving.
52.1.4 The Housing Assistance Plan will apply to the employee's principal place of residence and will not cover summer cottages, commercial real estate holdings or other secondary properties.
52.2 Minimum Moving Distance
52.2.1 Normally, an employee must move a minimum of 40 radius kilometers closer to the new work location to qualify for relocation assistance (see diagram). However, where an employee believes that this requirement creates a hardship, a joint Society-Management review at the Divisional or Business Unit level of the receiving unit shall consider the individual situation. This review shall consider the following criteria:
  • increase in commuting time;
  • increase in commuting cost;
  • access to public transit;
  • personal family considerations;
  • recognition that OPG is not responsible for upgrading the individual's standard of living;
  • permanence of move to the new work location;
  • relationship between road distance and radius distance;
  • comparability of eligibility in comparison to treatment of Society-represented employees in similar circumstances.
The review team will balance the results of this review with the business requirements of the unit and may decide to waive or amend the minimum distance rule. The decision of the review team is final and binding. If the review team is unable to reach consensus, the matter will be referred to the JSMC which will have the authority to make a decision or to have the issue resolved as they see fit without prejudice.
What is meant by 40 km closer to the new work location is shown in the diagram below.
52.2.2 The provisions set out in Subsection 52.2.1 will apply unless Mid-Term Agreements pursuant to Article 7 are in effect.
Moving distance
52.3 Expenses for Reimbursement
52.3.1 Household Effects
OPG will arrange for and shall pay the cost of packing, moving by freight or truck and insurance charges on household effects.
52.3.2 Home Buying and Legal Fees
Employees shall be reimbursed for legal disbursements and real estate brokerage fees associated with the purchase and/or sale of property valued up to five times the employee's annual base salary in the new location at the time of job transfer as follows:
Legal Fees
  • The employee will advise OPG of his/her preferred lawyer. OPG will request the lawyer for an estimate on what the fees will be to complete the sale and/or purchase transaction. If OPG finds the solicitor's estimate to be unreasonable, OPG will ask the employee to recommend another solicitor to close the transaction.

  • Legal fees and disbursements actually incurred in selling an old and buying a new residence will be paid by OPG.

  • Legal fees shall be defined to include fees for arranging or discharging a first mortgage when required and will include land transfer tax.

  • Disbursements shall be defined herein as those items paid by a lawyer on behalf of the employee for services in connection with the purchase or sale of the employee's residence including land transfer tax and land surveys when required, Ontario New Home Warranty Program if required for a new house, GST, and penalty costs to a maximum of three months' interest payments involved in discharging a first mortgage on the residence in the former location when required.
52.3.3 Transfer Expenses
A transferred employee is expected to make arrangements to move expeditiously but this should not exceed a period of one year from date of transfer, except where there is a specific agreement between the employee and local management for an extension. The employee must provide in writing his/her intention to move to the supervisor, prior to receiving payment for any applicable living expenses. Reimbursement for actual costs incurred in the move will be allowed as follows:
  • All employees who are eligible for moving expenses shall be afforded 12 weeks from the date the employee reports to work in the new location (i.e., date of transfer) to decide whether or not they wish to move. Payment of the following expenses is predicated on the employee maintaining his/her previous principal residence:
    a) During this 12 week period, the employee shall have the option of either commuting to and from his/her new work location and receiving incremental travel expenses (i.e., additional travel costs beyond the employee's normal travel costs to the old work location), the total cost of which not to exceed living expense equivalent, or being paid living expenses in the new location. If the employee expressly indicates that he/she does not intend to relocate his/her residence, all expenses will cease at that time.
    b) All expenses will stop at the end of the 12 week decision period unless the employee has provided in writing his/her intention to move within one year of date of transfer. Providing that the employee demonstrates to Management's satisfaction that arrangements to move with employee's family to the new location are being made as quickly as possible, the employee's living expenses in the new location or incremental travel expenses will be paid until such time as the employee moves or for a period not to exceed a further nine months. The time limits mentioned above may be extended by a specific mutual agreement between the employee and line management for a total period not to exceed two years from the date of transfer.
    c) If an employee, after providing written notification of his/her intention to move fails to do so, all expenses paid on his/her behalf or travel expenses paid to him/her for any period beyond the initial 12 weeks from the date of transfer or the date of his/her written intent to move, whichever comes first, shall be repayable to OPG. Repayment shall be made within one month of a written communication stating his/her intention not to move or within one year of date of transfer whichever comes first.
    d) Exceptions to the repayment requirement should the employee fail to move may be made by reasonable exercise of the Business Leader's discretion (e.g., for reasons of significant unforeseen life hardships, OPG transfers, OPG international assignments, etc.).
  • Transportation to the new location and living expenses while in transit to the new location will be paid for the employee and family (spouse and dependent children) and any other dependents of the employee's household. A reasonable number of visits by the employee and family, to the new location to assist in the selection of a new principal residence will be paid at the discretion of local Management.

  • Living expenses of the employee and family during the period while household effects are in transit will be paid.

  • Reasonable upkeep costs including mortgage interest on the old residence will be paid for a period of up to three months after the employee has moved to the new residence but still retains title to the old residence due to an inability to sell. If closure of the sale is imminent, the period may be extended by up to six weeks.

  • Time off with pay to a maximum of one day's base earnings if the day of the move falls on a normally scheduled working day.

  • Employees may elect, subject to the negotiations of their availability through Business Unit Mid-Term Agreements (Article 7), to receive lump sum payments in lieu of the following:

    • temporary living expenses;

    • reimbursement for costs associated with return to residence headquarters;

    • benefits and expenses associated with house hunting trips;

    • temporary storage, etc.
52.3.4 Spousal Assistance
An employee will be reimbursed for his/her spouse's job search expenses, supported by receipts, up to a maximum of $750.
52.3.5 Rental Assistance
An employee who transfers to a higher cost rental area and who rents comparable rental accommodation will be provided with rental assistance by OPG as follows. The extent of this assistance will be the lesser of:
a) the monthly rent in the old location multiplied by OPG rental differential;
or
b) the amount of the monthly increase in rent.
An employee who rents in the former location and purchases in the new location will be eligible for the equivalent of rental assistance as will the employee who conversely owns a home in the former location and rents in the new location.
Rental assistance will be provided for a five year period, based on 100% assistance in the first year and decreasing by 10% annually over the next four years.
This assistance will cease if the employee transfers to a new work location, terminates his/her employment with OPG, ceases to rent, retires or dies.
52.3.6 Rental Management Program
Upon request, OPG will arrange for a rental management firm to rent an employee's house when he/she is expected to return within five years and will pay the costs associated with this arrangement if it is in OPG's financial interests to do so.
52.3.7 Miscellaneous Expenses
Employees will be reimbursed for miscellaneous expenses associated with the move up to the limit of one month's salary based on normal scheduled hours of work. These expenditures are intended to cover items such as:
  • cost of rental search assistance;

  • costs incurred as a result of the move such as, cleaning, painting and decorating costs; adaptation, removal, installation or replacement of house furnishings and appliances;

  • costs for connecting water, natural gas, and electricity to a new house if charged to the employee as purchaser.
Employees will not be reimbursed for capital expenditures which tend to increase the market value of a house, major house repairs or renovations.
52.4 Second Related Move
If a suitable residence is not available at time of transfer, an employee may rent temporary premises for up to one year. Under these circumstances, OPG will reimburse the employee for costs incurred in accordance with all Sections of this Agreement for either one of the two moves. For the other move, only costs of transportation, moving household effects, and legal fees incurred will be paid.
52.5 On Retirement
52.5.1 If OPG requires an employee who occupies a house or trailer on OPG property or a site under OPG control to move on retirement, the employee will be reimbursed as outlined in Section 52.3 for the cost of a move to any location in Ontario in which he/she desires to settle.
52.5.2 If an employee is requested to undertake a change in work headquarters involving a change in principal residence, and is age 55 or older on the date of transfer, consideration shall be given to the reimbursement of some or all of the moving expenses of that individual upon eventual retirement from OPG. The extent and terms of the assistance to be provided upon retirement will be determined at the time of transfer.
52.5.3 Only moving expenses within the Province of Ontario or to the nearest exit point from the Province will be eligible for consideration.

53 FINANCIAL ASSISTANCE PLAN
OPG shall contribute towards the interest costs on the increase in capital expenditure for an employee who is transferred to a higher cost housing area. Eligibility for this assistance will be determined by using either:
a) the current Ontario Residential Locality Differential Chart (see attached chart for provisions in effect as of January 2005; OR
b) if either the employee's former location or his/her new location is not on this chart, a house-for-house comparison conducted by OPG.
The amount of assistance will depend upon the:
  • sale price of the residence in the former location;

  • relative value of comparable housing in the new location;

  • actual increase in housing costs (purchase price less sale price);

  • current interest costs.
Locality Differential chart

The locality differential will be based on the differential in effect as of the date of closing of the purchase of the residence in the new location. The interest rate used to calculate the level of assistance will be based on OPG's employee housing loan rate for a five year term as published by the Treasury Division (or the actual mortgage rate, whichever is less) as of the date of closing of the purchase of the residence in the new location.
The financial assistance will decrease annually in twenty (20) percent increments over a five year period.
An employee receiving financial assistance must advise OPG if he/she sells or rents his/her house in the new location within five years of purchase. Assistance provided to the employee will be reviewed and revised accordingly.
Financial Assistance ceases upon termination or retirement. However, should an employee die while receiving financial assistance associated with relocation, such assistance may continue as per the original entitlement based on a case-by-case review by the Business Unit providing the following condition is met:
  • the designated beneficiary provides affidavits on an annual basis that the principal residence for which the assistance is paid continues to be his/her principal residence and that no new revenues for renting any portion of the residence are being received.
54 HOUSE EVALUATION AND GUARANTEE PLAN
Upon subsequent transfer within OPG, an employee will be guaranteed his/her purchase price up to a maximum of four times his/her base salary at the time of the initial transfer (plus $1,500 for capital improvements on new homes, $15,000 for resale homes or minus $3,000 for damages to the property). This guarantee will be for a period of ten years from the date of purchase. Improvements must be verified by receipts and do not include normal painting, decorating and maintenance costs. An employee may not sell his/her house for less than the guaranteed amount without the consent of OPG.

55 COMPENSATION WHEN ASSIGNED TO TEMPORARY WORK HEADQUARTERS
55.1 Intent
a) When there is an assignment to a Temporary Work Headquarters, the employee and his/her supervisor must have a mutual understanding of the terms of the assignment prior to its commencement using the following provisions.
b) Employees assigned to a Temporary Work Headquarters should not be separated from their families for exceptionally long periods of time due to work requirements and should be compensated for all reasonable out-of-pocket expenses and travel costs.
c) When an employee is assigned to a Temporary Work Headquarters, the employee will normally remain at the Temporary Work Headquarters. If there is mutual agreement between the supervisor and employee to commute daily, then the employee may do so.
d) Employees will be reimbursed for all reasonable out-of-pocket expenses associated with being assigned to the Temporary Work Headquarters.
e) Employees will be reimbursed for any additional travel costs beyond their normal travel costs to their Regular Work Headquarters.
f) Travel time on the first trip to, and on the last trip from, the Temporary Work Headquarters shall be either during normal scheduled hours or compensated in accordance with Article 58 (Travel Time) if outside normal scheduled hours.
g) Selections for Temporary Work Headquarters assignments should not be made on the basis of travel cost considerations.
55.2 Definitions
"Regular Work Headquarters": The location to which the employee normally reports in order to receive work assignments or to perform regular duties.
"Temporary Work Headquarters": The location to which an employee is directed in order to carry out assigned duties away from Regular Work Headquarters.
"Periodic Return": The return to the employee's principal residence once every two weeks.
55.3 Compensation When Remaining at Temporary Work Headquarters (TWHQ)
a) When the employee resides at the TWHQ and does not commute, the employee shall be reimbursed for all reasonable out-of-pocket expenses incurred while at the TWHQ.
b) An employee who resides at the TWHQ will be allowed a periodic return once every two weeks.
The employee shall be reimbursed for travel costs associated with the periodic return for the distance between his/her principal residence and his/her TWHQ, less normal travelling costs. Travel time associated with periodic return, outside normal scheduled hours and in excess of one hour each way, shall also be compensated. Compensation will be either in equivalent time off, or in pay, at straight time rates. Time spent in obtaining a meal will not be compensated.
c) On intermediate weekends, if the cost of remaining at the TWHQ would be less than the cost of a return trip, the employee may claim actual travel costs up to the cost of remaining at the TWHQ. If the cost of remaining at the TWHQ is greater than the cost of a return trip, the employee may be reimbursed for all travel costs incurred for a return trip on that weekend.
d) For employees who reside in rental or leased accommodation at the TWHQ, cost of travel on intermediate weekends will be based on the lesser of a per diem rate based on the daily costs of normally used local hotel/motel accommodation (meals included) or actual travel costs (less normal travelling costs).
e) Travel time will not be paid for return trips to home on intermediate weekends.
55.4 If the temporary assignment appears to cause the employee to reside separately from his/her family for a long duration, and for long distances, i.e., more than 100 kilometers, the supervisor may permit the employee to rent accommodation for his/her family near the TWHQ. In this situation, the employee will be reimbursed for all reasonable out-of-pocket costs, including the difference in rent paid out in the temporary location and any rent received from the principal residence.
55.5 Compensation for Daily Commuting To, and From, Temporary Work Headquarters
a) When an employee and supervisor have mutually agreed that the employee may commute to the TWHQ on a daily basis, the employee shall be compensated for his/her travel time in accordance with the provisions of Article 58 ("Travel Time").
The use of an OPG vehicle will be one of the commuting options considered.
If an OPG vehicle is not used, the employee shall be compensated for his/her travel costs (i.e., public transportation costs or cents per kilometer, whichever, in the Supervisor's opinion, is the most reasonable considering the travel time and transportation expenses involved) in addition to his/her travel time.
The total amount of reimbursement for the employee's travel time and travel costs will be up to a maximum of the expenses that would have been incurred if the employee were to remain at the Temporary Work Headquarters (lodging and meals). In determining this maximum, consideration will also be given to the expenses that would have been incurred if the employee had used an OPG vehicle.
b) When an employee commutes daily, he/she is required to be at the Temporary Work Headquarters at normal starting time and remain until normal quitting time.
Note: Where the planned duration of the assignment at a Temporary Work Headquarters is greater than one year, the employee will be eligible for full relocation assistance.
55.6 Exception
This Article does not apply to employees who on a daily or short-term basis may be required to work at a number of different work headquarters. In these cases, local management will determine the appropriate compensation treatment, but such compensation will not be less than that applicable to other employees under this Article.