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November 28, 2001
Answering members’ concerns about the special dues levy needed to replenish BCNU’s Defense Fund
BCNU issued a bulletin to members on October 25 that included information about a special dues levy to begin January 9, 2002. After the bulletin was posted at worksites around the province we received several question about the levy. We’ve responded to each of those questions below.
Why do we need a special dues levy to help replenish BCNU’s defense fund, when our job action included only a limited amount of picketing?
BCNU’s Defense Fund pays for much more than picketing. The vast majority of money was needed to pay for salary reimbursement for nurses who acted as strategic workers during job action. They were paid a replacement wage to perform a wide variety of duties including conducting workplace walkabouts to provide information to members, and helping to organize the ban on non-nursing duties and the ban on overtime.
When will the special dues levy go into effect?
The special dues levy will go into effect on January 9, 2002. BCNU Council estimates the levy will need to be assessed for three years in order for BCNU to fully replenish the Defense Fund to its previous maximum level of $4.5 million in time for the next round of bargaining.
How much will the special dues levy cost members?
The special dues levy will cost members one-quarter of one per cent of their gross wages until the Defense Fund is restored to its previous maximum level of $4.5 million.
From January 2002 until March 31, 2002, a level one, first-year nurse will be assessed $4.14 bi-weekly or $107.64 annually. A level one, eighth-year nurse will be assessed $5.37 bi-weekly or $139.62 annually.
From April 1, 2002 to March 31, 2003, a level one, first-year nurse will be assessed $4.46 bi-weekly or $115.96 annually. A level one, ninth-year nurse will be assessed $5.85 bi-weekly or $152.10 annually.
From April 1, 2003 to March 31, 2004 (based on a 1.5 per cent wage increase), a level one, first-year nurse will be assessed $4.53 bi-weekly or $117.78 annually. A level one, ninth-year nurse will be assessed $5.95 bi-weekly or $154.70 annually.
Why is the special dues levy not tax deductible?
Canada’s Income Tax Act states that funds received from members to repay a reserve, such as BCNU’s Defense Fund, are not eligible for a tax deduction. The government’s rationale is that BCNU members were given a tax deduction when they initially paid into our Defense Fund. Also, payments from the Defense Fund to members were not taxed. Therefore, Revenue Canada states that payments to replenish the funds cannot also be tax deductible.
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