• 1. Definitions
  
• 2. Commencement of Coverage - Eligible Employees
  
• 3. Disability Benefits
  
• 4. Termination of Coverage
  
• 5. Amount of Disability Benefits
  
• 6. Limitations
  
• 7. Claims
  

SECTION 1 - DEFINITIONS

1.1 The terms used herein shall have the meanings as hereinafter provided and words implying the masculine gender include the feminine.

1.2 "Assigned Rest Day" means a rest day to which an Employee is entitled as defined by the terms of the applicable Collective Agreement.

1.3 "Base Pay" shall be as defined in Section 3.3 hereof.

1.4 "Canadian Pacific Limited" includes those subsidiary and jointly owned companies for which and on whose behalf Canadian Pacific Limited executed the Master Agreement.

1.5 "Disability Benefits" means the amounts to which an Eligible Employee is entitled pursuant to Sections 4 and 5 hereof.

1.6 "Disability and Life Insurance Plan for Running Trades employees of Canadian Pacific" (the Plan) means the agreement entered into between Canadian Pacific Limited and the unions on the th day of , 19 in respect of Disability and Life Insurance Benefits.

1.7 "Disability Benefit Plan" means the Disability Benefit Plan described herein.

1.8 "Doctor" means a qualified physician or surgeon duly licensed to practice medicine.

1.9 "Effective Date" means January 1, 1986.

1.10 "Eligible Employee" shall be as defined in Section 2 hereof.

1.11 "Elimination Period" means those days subsequent to the disability of an Eligible Employee for which such Eligible Employee is not entitled to Disability Benefits.

1.12 "Employee" means

(i) a Running Trades employee in the service of a Railway who qualified as an eligible employee in accordance with the provisions of Article III of the Plan, or

(ii) a Running Trades employee in the service of a Railway who is a member of a group admitted pursuant to Article VIII of the Plan. Such groups are listed in Schedule A attached hereto.

For the purpose of this Disability Benefit Plan, any reference to an eligible employee will be deemed to include an admitted employee.

1.13 "General Holiday" means any of the days defined in the applicable Collective Agreement as a General Holiday.

1.14 "Hospital" means a legally operated institution which

(a) is primarily engaged in providing, for compensation from its patients, medical, diagnostic and surgical facilities for the care and treatment of sick and injured persons on an in-patient basis, and

(b) provides such facilities under the supervision of a staff or Doctors with a 24 hour a day nursing service by registered nurses, and

(c) is not principally a home for the aged, rest home, nursing home or a place for the care and treatment of drug addicts or alcoholics.

1.15 "Memoranda of Agreement" means the Memorandum of Agreement signed between Canadian Pacific Limited and

(i) United Transportation Union on November 15, 1985, and

(ii) Brotherhood of Locomotive Engineers on November 22, 1985.

1.16 "Maximum Indemnity Period" shall be as defined in Section 3.6 hereof.

1.17 "Pay Period" means two weeks.

1.18 "Pregnancy" means pregnancy, childbirth, miscarriage, abortion and conditions which result directly or indirectly from any of these.

1.19 "Railway" means Canadian Pacific Limited and its subsidiaries and joint properties listed in the Master Agreement, Algoma Central Railway Company, and also includes an employer associated with one of the Railways, a group of whose Employees has been admitted as provided in Article VII of the Plan.

1.21 "Service Organization" means the institution which is responsible for the daily administration and operation of the Plan.

SECTION 2 - COMMENCEMENT OF COVERAGE - ELIGIBLE EMPLOYEES

2.1 An Employee whose Service commenced on or before the Effective Date of the Plan shall, subject to Section 2.3 hereof, become an Eligible Employee on the later of

(a) January 1, 1986, or

(b) the first day of the month following the particular month he has rendered compensated service as a Running Trades employee with an employing railway in a position subject to one or more of the collective agreements or an employing railway on such day.

2.2 An Employee whose Service commences after the Effective Date of the Plan (January 1, 1986) shall, subject to Section 2.3 hereof, become an Eligible Employee on the first day of the month following the particular month he has rendered compensated service as a Running Trades employee with an employing railway, in a position subject to one or more of the collective agreements, provided he is actively at work for an employing railway on such day.

2.3 If an Employee is not actively at work on the date he would have become an Eligible Employee pursuant to Sections 2.1 or 2.2 hereof, such Employee shall become an Eligible Employee

(a) on such day if the sole reason for his absence from work is that such day is a General Holiday or an Assigned Rest Day, or

(b) on the date on which he returns to full-time active work if his absence from work is for some reason other than that it is a General Holiday or an Assigned Rest Day.

2.4 An Employee who has ceased to be an Eligible Employee pursuant to Section 4 hereof by reason of temporary lay-off, leave of absence, off-duty account mileage regulations, vacation, suspension or strike, shall become an Eligible Employee on the date of his return to full-time active work.

3.1 On receipt by the Service Organization of proof as herein required that an Eligible Employee has become wholly and continuously disabled from bodily injury or from sickness or disease so as to be prevented from performing the duties of his occupation or employment, a benefit will be paid to such Eligible Employee equal to one-seventh of the Amount of Disability Benefits to which the Eligible Employee was entitled on the date he became so disabled for each day that he continues to be so disabled and does not engage in any occupation or employment for wage or profit, subject to the limitations set out in Section 6 hereof. Such benefit will commence:

(a) with the first (1st) such day if disability is due to bodily injury effected directly and independently of all other causes through accidental means;

(b) with the fourth (4th) such day if disability is due to sickness or disease;

(c) with the first (1st) such day if the Eligible Employee is confined to Hospital at any time during one period of disability; and

(d) with the fourth (4th) day for the second and subsequent programs for rehabilitation from alcohol and/or drug abuse.

Benefits will continue for not more than the Maximum Indemnity Period set out in Section 3.6 hereof during any one period of disability whether the disability is due to one or more causes. Benefit payments will be made weekly.

3.2 It is provided that:

(a) if an Eligible Employee becomes so disabled and his 15th week of benefit payment ends on any day other than a Saturday, the benefit payments will be extended until the Saturday following the end of the benefit payments.

(b) if an Eligible Employee becomes so disabled and while so disabled there is a General Holiday, he will be entitled to benefit payments for such General Holiday only if the Eligible Employee receives no pay for the General Holiday.

(c) if an Eligible Employee becomes so disabled and while so disabled there is an Assigned Rest Day, he will be entitled to benefit payments for the Assigned Rest Day.

(d) if an Eligible Employee becomes so disabled and while so disabled is subsequently laid-off, he will be entitled, while laid-off and still disabled, to benefit payments as they fall due as if he had not been laid-off.

(e) if an Eligible Employee is laid-off, on leave of absence, off duty on account of mileage regulations, on vacation, on suspension or on strike, and subsequently becomes disabled and if while so disabled such Eligible Employee is due to return to work with the Company but because of his disability he cannot return to work, he will be entitled to benefit payments on the date he would have returned to work had it not been for such disability.

(f) if after the termination of a disability, other than related to a program of rehabilitation for abuse of alcohol and/or drugs, for which an Eligible Employee was entitled to a benefit, such Eligible Employee again becomes disabled due to the same or related cause or causes, such later disability will be considered as a continuation of the previous disability for the same amount of Disability Benefit and subject to the same Maximum Indemnity Period but without the application of another Elimination Period unless such Eligible Employee had completely recovered from the previous disability and had been at work with a Railway on full time as required by such Railway for a period of at least two consecutive weeks after termination of the previous disability. If the disability is for a different and unrelated cause, the disability will be considered as a new disability.

(g) if after termination of a disability, related to a program of rehabilitation for abuse of alcohol, for which an Eligible Employee was entitled to a benefit, such Eligible Employee again becomes disabled due to the same or related cause or causes, such later disability will not be considered as a continuation of the previous disability.

(h) if an Eligible Employee entitled to benefits hereunder in respect of a period of disability qualifies, by virtue of being insured under any other scheme whether arranged with an insurer or provided by any association, for daily, weekly or monthly indemnity benefits, excluding any private insurance plan the claimant may have, for all or any portion of such period of disability, benefits payable to such Eligible Employee will be reduced by such part of the amount of benefits payable under such other scheme for such period or portion of such period of disability as may be deemed by the Service Organization to constitute over-insurance in respect of such Eligible Employee.

(i) if an Eligible Employee, while on maternity leave is eligible for Unemployment Insurance Maternity Benefits, that employee will have such Benefits supplemented (topped-off) by this Plan so as to equal the amount of Disability Benefits under this Plan for a maximum period of 15 weeks.

3.3 The amount of benefits shall be determined in accordance with Section 5 hereof.

3.4 If an Eligible Employee is not actively at work on full time on the date an increase would otherwise take effect, it will take effect only when he is again actively at work.

3.5 The Elimination Period for a disability due to accident is nil. The Elimination Period for a disability due to sickness is three days or if the Eligible Employee is hospitalized during the period of disability for which claim is being made, nil, unless such disability is related to a second or subsequent program of rehabilitation for abuse of drugs and/or alcohol, in which case the Elimination Period is three (3) days, subject to Section 6 (j )

3.6 The Maximum Indemnity Period for:

(a) a disability due solely to alcohol and/or drug abuse is 26 weeks for any period of disability.

(b) a disability due to any cause other than alcohol and/or drug abuse is 26 weeks plus the number of weeks the Employee is entitled to Unemployment Insurance Sickness Benefits, but not to exceed 41 weeks for any one period of disability.

(c) Maternity Leave, in respect of an Eligible Employee who is in receipt of UIC Maternity Benefits from the Canada Employment and Immigration Commission, is 15 weeks.

4.1 An Employee who has become an Eligible Employee pursuant to Section 2 hereof shall cease to be an Eligible Employee on the earliest of the following termination dates:

(a) the date the Eligible Employee's employment with a Railway terminates,

(b) the last day worked prior to a strike in which the Eligible Employee ceases to work, or

(c) in the event of an employee ceasing to be eligible for insurance hereunder for any reason other than termination of service with a Railway, the date on which he ceases to be eligible, or

(d) the date of termination of this Plan.

4.2 Termination of an Eligible Employee's employment shall, for the purposes of this Disability Benefit Plan, be deemed to occur on the date on which such Eligible Employee discontinues active work (including retirement) with a Railway, except that employment will be deemed to continue:

(a) during any period the Eligible Employee is entitled to Disability Benefits or Unemployment Insurance Sickness Benefits,

(b) during any period the Eligible Employee is entitled to benefits under Workers' Compensation legislation, or

(c) during any period the Eligible Employee is on bereavement leave or Railway-compensated jury duty, or for union officers on temporary leave of absence to perform union duties and who have Service in the current or previous month.

5.1 Subject to Section 6 hereof, the benefits to which an Eligible Employee is entitled under Section 3 hereof shall be as follows:

Employees eligible for Unemployment Insurance Sickness or Maternity Benefits will continue to have such benefits supplemented (topped-off) so that the benefits equal the amount of their new National Life Disability Benefits.

Employees whose disability originated prior to July 1, 1995, and whose disability extends beyond fifteen weeks, and who are eligible for U.I.C. Sickness Benefits, will still be eligible to have their U.I.C. Benefits supplemented (topped-off), but only so that the benefits equal the amount of their National Life Disability Benefits calculated prior to July 1, 1995.

Employees in receipt of U.I.C. Maternity Benefits prior to July 1, 1995 will also continue to be eligible to have their U.I.C. Maternity Benefits supplemented (topped-off) to equal the amount of their National Life Disability, calculated prior to July 1, 1995 and only for the time they are in receipt of U.I.C. Maternity Benefits.

6.1 Payment will NOT be made under the Disability Benefit Plan:

(a) for any period of disability during which the Eligible Employee is not under the care of a Doctor.

(b) for any period for which indemnity or compensation is payable under Workers' Compensation legislation, unless such indemnity or compensation is payable in respect of a previously incurred partial disability which permits continuation of employment by the Eligible Employee.

(c) for that portion of any period of disability during which the Eligible Employee is in receipt of retirement pension from a Railway, or General Holiday or vacation pay is payable. However, an Eligible Employee who becomes disabled during his annual vacation may temporarily terminate the vacation to qualify for Disability Benefits.

(d) for any period of disability commencing after the time the Eligible Employee goes on strike.

(e) for any period more than 15 weeks from the date of disability, if subsequent to disability the Eligible Employee's union goes on strike.

(f) for any period during which the Eligible Employee is engaged in any occupation for wage or profit.

(g) in respect of total disability as a result of Pregnancy:

(i) for any period commencing with the tenth week prior to the expected week of confinement and ending with the sixth week after the week of confinement, or

(ii) during any period of formal maternity leave taken by the Eligible Employee pursuant to provincial or federal law or pursuant to mutual agreement between the Eligible Employee and her Railway except that during any period for which the Eligible Employee is paid maternity benefits under the Unemployment Insurance Act, benefits are payable subject to Section 6.1 c) hereof for a maximum period of 15 weeks.

(h) for any period solely due to the abuse of alcohol and/or drugs unless:

(i) the Eligible Employee has, on his own initiative sought adequate treatment, and

(ii) a Doctor has declared the Eligible Employee unable to perform his duties due to alcoholism or drug abuse, and

(iii) the Eligible Employee is recommended by the Chief of Health and Medical Services for a program of rehabilitation, and

(iv) the Eligible Employee is satisfactorily participating in a program of rehabilitation deemed appropriate by a Railway.

(i) in respect of disability directly or indirectly due to or resulting from any of the following:

(i) bodily injury sustained while doing any act or thing for wage or profit other than on behalf of a Railway,

(ii) intentionally self-inflicted injury while sane or insane,

(iii) war, insurrection or the hostile action of the armed forces of any country, or participation in any riot or civil commotion,

(iv) any cause for which indemnity or compensation is payable under Workers' Compensation legislation.

(j) in respect of a disability, related to a program of rehabilitation for abuse of alcohol and/or drugs, if the Eligible Employee has, at any time in the 30 consecutive calendar day period preceding the date of disability, been in receipt of benefits under the terms of this Plan for a disability related to a program or rehabilitation for abuse of alcohol or drugs.

(k) during any period during which the employee is on vacation, off duty on account of mileage regulations, on leave of absence, suspended or laid-off.

(l) During any period during which the Eligible Employee does not suffer a wage loss.

7.1 An Eligible Employee shall be responsible for the completion of the claim forms and shall furnish proof of disability as shall be deemed necessary and appropriate.

7.2 Payment of any benefit under the Plan will be subject to the Service Organization being given written proof of claim satisfactory to it within thirty days after the date of the accident causing the injury or the date of commencement of the disability from sickness or disease and subsequent proofs of claim as the Service Organization may require at intervals not more often than weekly. Failure to furnish proof within the time specified will not invalidate the claim if it is shown that it was not reasonably possible to furnish proof within such time and that proof was furnished as soon as reasonably possible.

7.3 Any proof of claim involving medical evidence in respect of an Employee shall be furnished without expense to the Service Organization and shall be signed by the physician or surgeon personally attending the Employee. The Service Organization will have the right at its own expense to have physicians designated by it examine any person in respect of whom a claim is being made when and as often as it may reasonably require.

7.4 In the event of the death or total mental or physical incapacity of the Participating Employee all accrued disability benefit shall be payable to the estate of the Participating Employee, provided, however, that the Service Organization may, with the approval from the Railway, pay such accrued disability benefit to any one of the following: wife, mother, father, child or children (if of the full age of majority), or any other person who is entitled to such payment by reason of having incurred expense for the maintenance, medical attendance or burial of the deceased.

7.5 The Service Organization is under no obligation to see to the application of any moneys so paid and any such payment shall constitute a complete discharge to the Service Organization to the extent of the amount of the payment.

7.6 No action or proceeding against the Service Organization in connection with any claim under the Plan may be commenced earlier than sixty days nor later than two years from the expiration of the time within which proof of such claim is required.

Copyright © 1997 Brotherhood of Locomotive Engineers - National Legislative Board - Canada