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How to treat unionized employees during upcoming holidays

November 22, 2010

Attorneys for Franczek Sullivan, which represents the CATA and its dealers in employment matters, summarized the coming holiday schedule for employees working under the Teamsters Local 731 collective bargaining agreement and the Auto Mechanics’ Local 701 Standard Automotive Agreement.


Teamsters Local 731

Thanksgiving                  Thursday, Nov. 24

Day Before Christmas    Friday, Dec. 23 or

                                     Saturday, Dec. 24 (see below)

Christmas Day               Monday, Dec. 26

Day Before New Year’s  Friday, Dec. 30 or

                          &n​bsp;          Saturday, Dec. 31 (see below)

New Year’s Day             Monday, Jan. 2


Because the Day before Christmas and the Day before New Year’s this year fall on a Saturday, the Teamsters contract states that the dealership may specify whether Friday (Dec. 23/Dec. 30) will be designated as the holiday or as a regular workday. If the dealership designates Friday as the holiday, the employee will receive the day off with pay. 

If the dealership designates Saturday as the holiday and requires employees to work on these Fridays, the employee will receive an extra day’s pay for the week (i.e., six days’ pay for five days’ work). The dealership must make this designation by the Wednesday preceding the holiday (Dec. 21 for the Day before Christmas; Dec. 28 for the Day before New Year’s).


Payment: Holiday pay equals the number of straight-time hours the employee ordinarily works on a regular day times the employee’s hourly rate. For most employees, this will equate to 8 times the employee’s regular hourly rate. Where an employee works on a designated holiday, the employee receives time-and-one-half in addition to holiday pay.  

Eligibility: Holiday pay is required only for employees who have passed their probationary period by working at least thirty (30) working days. Also, in order to qualify for holiday pay, an employee must work their scheduled workday immediately before and after the holiday.


Auto Mechanics’ Local 701

Thanksgiving                     Thursday, Nov. 24

Day Before Christmas      Friday, Dec. 23

Christmas Day                  Monday, Dec. 26

Day Before New Year’s    Friday, Dec. 30

New Year’s Day                Monday, Jan. 2 

Employees may not be required to work on a designated holiday. Where an employee volunteers to work a holiday, and the dealership agrees to allow the employee to work, the employees receives two times (2x) the employee’s applicable rate of pay for hours worked (hours booked for incentive technicians) in addition to the holiday pay. Alternatively, the dealership and its employees may agree to substitute another day(s) in lieu of working on the Day before Christmas and/or the Day before New Year’s. In such instances, the holiday overtime premium need not be paid to employees who work on the Day before Christmas or the Day before New Year’s.


Tuesday to Saturday Employees: The contract explicitly designates Friday Dec. 23, Monday Dec. 26, Friday, Dec. 30, and Monday, Jan. 2 as the designated holidays. As a result, employees working a Tuesday-to-Saturday workweek receive a Friday off with pay on both Dec. 23 and Dec. 30, and then report to work as usual the following Saturdays (Dec. 24 and Dec. 31) because these days are not designated holidays under the contract. With respect to the Monday holidays (Dec. 26 and Jan. 2), Tuesday-to-Saturday employees receive an additional day’s pay for these holidays (i.e., 6 days’ pay for 5 days’ work).  

Auto Mechanics’ Local 701 has advised that it will agree to an alternative holiday schedule for Tuesday-to-Saturday employees on an individual dealer basis. Under this alternative plan, Tuesday-to-Saturday employees would work their normal schedule on the designated Friday holidays (Dec. 23 and Dec. 30), but the dealership would not be required to pay the holiday premium pay for those days. The employees would then be given Saturday off as the recognized holiday. With regard to the Monday holidays (Dec. 26 and Jan. 2), the dealership may either: 1) provide 6 days’ pay for 5 days’ work (i.e., require the employee to work the following Tuesday); or 2) allow the employee to take Tuesday off with pay as the recognized holiday.


Dealers who are interested in an alternative holiday schedule must discuss it and reach agreement with their Union representative in advance of the holidays.


Payment: Holiday pay equals eight (8) or ten (10) hours times the employee’s regular rate of pay, depending upon whether the employee normally works an eight (8) or ten (10) hour workday. Incentive journeymen at the standard contract rate receive the holiday pay designated in Appendix A of the contract, which is $216 (8 hour day) or $270 (10 hour day). 


Eligibility: Holiday pay is required only for employees who have been employed at least thirty (30) calendar days. Also, in order to qualify for holiday pay, the employee must work his scheduled work day immediately before and after the holiday, unless excused by the dealership.