It’s not the ideal start to the school year, but unfortunately, there is a risk of a teacher’s strike in Ontario this fall.
The Elementary Teachers’ Federation of Ontario (ETFO), the union representing Ontario elementary teachers and education workers, is moving on to the next step in its bargaining process. ETFO recently announced that it plans to hold strike votes in September and October, just days after the union representing secondary school teachers and education workers reached a tentative agreement to avoid a strike.
The situation is not ideal for teachers striking, either. Not only does a strike disrupt classes for kids, but it also puts striking educators in a financial predicament. While on strike and away from the workplace, educators are sacrificing their regular pay until their union and the province reach a deal. Until then, striking educators will have to come up with a plan to manage their finances.
What Happens To Your Pay During A Strike?
When you withdraw your services and go on strike, you won’t be paid for the time that you are not at work. The number of hours that you are absent from work will be deducted from your regularly scheduled work day and coded as Leave Without Pay (LWOP).
What Is Strike Pay?
While you won’t get paid by your employer while you’re on strike and withdraw your services from your job, you may receive “strike pay” from your union. Different unions pay their members different rates during a strike.
For instance, CUPE pays its members a strike pay rate of $15 per hour, with a maximum of 20 hours a week. OPSEU pays $150 per week for the first three weeks of striking, then $240 per week during the fourth week. Members of PSAC in Ontario receive $75 per day, up to a maximum of $375 per calendar week.
You will need to consult with your union representative to find out how much you will be compensated if you go on strike.
Can You Get EI During The Teacher’s Strike In Ontario?
Generally speaking, you won’t be eligible for Employment Insurance (EI) benefits if you refuse to work due to strike action. Exclusion from entitlement to EI benefits takes effect on the first day you refuse to work to participate in a strike. However, you may qualify for EI maternity, parental, or sickness benefits.
Can You Get A Loan When You Are On The Teacher’s Strike In Ontario?
It’s possible to get approved for a loan while you’re on strike, but it will be difficult. That’s because employed income is typically one of the main requirements needed to secure a loan.
Lenders want to ensure that borrowers have a stable income from a reliable job. Without this, the lender’s risk increases. As such, being on strike will make it more difficult for you to get a loan, particularly with big banks.
That said, some alternative or private lenders will still qualify you for a loan despite the temporary stoppage of work and income from your job. They may accept strike pay and other non-traditional income as part of your loan application.
It’s also important to note that borrowing while receiving significantly reduced pay isn’t the best option. It may be more difficult for you to keep up with loan payments with less money coming in. Plus, you’ll be increasing your debt load which you’ll eventually need to pay down.
However, taking out a loan is necessary in some cases. If you need to borrow money, make sure your credit score is healthy, as it can help you secure a lower interest rate. This will make your loan more affordable and manageable.
How To Manage Your Money During The Teacher’s Strike In Ontario
Odds are that the money you’re paid by your union while on strike pales in comparison to your regular wages. It’s during times like these that you really need to be disciplined with your finances. Here are a few tips to help you effectively manage your money during a strike.
Defer Your Loan Payments
If your reduced pay affects your ability to cover your bills, reach out to your creditors to request a loan payment deferral. Some lenders and creditors may allow loan deferrals. This can buy you some time to make your payments and help you avoid a payment default.
To qualify, your loan account must be in good standing, and you’ll need to apply before the payment due date. It’s also important to note that interest will continue to accrue, which means you’ll still need to pay the accumulated interest by the loan’s repayment due date.
Re-Evaluate Your Budget
Review your budget to see where you can cut costs and expenditures. Start by slashing unnecessary spending. Keep in mind that these spending reductions are only temporary, so you won’t have to make these sacrifices in the long run if you choose not to.
If you don’t already have a budget, consider using one of the many budgeting apps available, like Mint, YNAB, or Moka. Once you create your budget, try to make some reductions to your spending where possible.
Push Out Major Expenses
In addition to slashing everyday expenses, you may also want to postpone any major expenditures you’ve been planning to make, such as a vacation, vehicle purchase, or home renovation project. Wait until the strike ends and your regular paycheques start rolling in before making a big financial commitment.
Contact Your Union
Some unions offer additional financial assistance or a benevolent fund to members while on strike and away from work. Other unions may also keep employee benefits throughout a strike.
There may be specific qualifications that members must meet to be eligible for union financial assistance programs, such as being in good standing with the union. Reach out to your union representative to find out what type of assistance is offered if you find yourself in a difficult situation and whether or not you qualify.
Use Food Banks
If your financial situation is dire as a result of being away from work during an extended strike period. You may find it difficult to cover the cost of basic necessities, including groceries. In this case, consider visiting a local food bank to ensure you and your family have enough to eat until the strike ends and your regular pay resumes.
Final Thoughts On The Teacher’s Strike In Ontario
No one wants to go on strike, but sometimes it may be what’s required to ensure workers are treated fairly. Teachers and education workers with ETFO are moving forward in the bargaining process ahead of an upcoming strike vote in the fall, which could pull roughly 83,000 educators out of the classroom. If you’re one of these educators, be sure to consider how it will impact your finances and take the necessary steps to keep yourself out of financial trouble.
Teacher's Strike In Ontario FAQs
Why are Ontario teachers on strike?
How long will the strike last?
Can I decide not to strike?
Will a strike affect my government benefits?
- Disability Insurance
- Public Service Health Care
- Public Service Dental Care
- Public Service Management Insurance
- Long-Term Disability
