Bulletin # 31-19
November 19, 2019
PAY GUARANTEE PLAN (PGP)
The following information is for Class B registrants. This information is only a summary. For a detailed description of all PGP rules, please see Section 20 of the PCLCD. To the extent that anything in the following summary appears to contradict the PCLCD, the language of the PCLCD is controlling:
- The Pay Guarantee Plan (PGP) provides a guaranteed weekly income to industry registrants who meet certain eligibility criteria and are unable to obtain a 40-hour work week.
- The contingent PGP liability for registrants for each year is $30,000,000. This amount is divided into quarterly amounts. One-thirteenth of each quarter’s amount is available at the end of each payroll week to meet that week’s PGP obligation.
- Unused funds for a week are added to the next week and so on. If funds available during a given week are insufficient to pay all the guarantees on the coast in full, the payments to all are reduced proportionally. If funds remain at the end of a quarter, a lump sum make-whole payment is given to those whose PGP payment had been reduced.
- Assuming sufficient PGP funds are available, Class “B” registrants with 5 or more vacation qualifying years as of the preceding April 1st are guaranteed an income equivalent to a 40-hour week at the basic straight time hourly wage. Those Class “B” registrants with fewer than five vacation qualifying years as of the preceding April 1st are guaranteed income equivalent to a 32-hour week.
- Class “B” registrants are not eligible for PGP until after one year of registration.
- The benefits payable each week shall be the difference between the registrant’s earnings and the PGP benefits for that week. Earnings includes all compensation received during the payroll period including any vacation pay, holiday pay, jury duty pay, state unemployment benefits, PGP payments, payroll adjustments, pension plan benefits (65 and older) and social security benefits.
- To be eligible for PGP, a Class “B” registrant must, during the most recent four payroll quarters, have worked at least 50% of the average hours available in the home port or have been paid at least a basic 1 week vacation the preceding payroll year.
- Further, the Class “B” registrant must be available for work Monday through Friday in a given payroll week and may not refuse any work offered in their category (skilled, unskilled). Additionally, a Class B will be deemed unavailable if he/she did not accept work and a casual was employed (Monday through Friday).
- If there is a paid holiday which falls on Monday through Friday, Class B registrants must be available all days, Monday through Friday, except the paid holiday, to maintain eligibility for PGP.
- A Class “B” registrant who works one weekend day will only be required to work or be available for 4 days, Monday through Friday, to maintain eligibility for PGP. A Class “B” registrant who works both weekend days will only be required to work or be available 3 days, Monday through Friday, to maintain eligibility for PGP.
- A Class “B” registrant will NOT be eligible for PGP in a given week if:
- He/she has earnings from outside work which requires his/her attendance during any part of the day or night shift Monday through Friday.
- He/she is receiving disability benefits from the state or the ILWU-PMA Benefit Funds or is receiving any type of temporary workers’ compensation benefits.
- He/she is not eligible for State Unemployment Compensation due to outside employment. (Note: In practice this means that to be eligible for PGP, a Class “B” registrant must apply for State Unemployment Compensation when notified by PMA of eligibility for State Unemployment Compensation.)
If you have any questions in regards to PGP, please contact PMA at the One World Trade Center, Long Beach, CA 90831. Business Hours are 8:30am to 4:30 pm, with a lunch break at 12pm. PMA 562-495-7600
Fraternally,
Ray Familathe Gary Herrera Mark Williams
President Vice President Secretary/Treasurer