SUBMISSION OF THE
TREASURY BOARD
TO THE PUBLIC INTEREST COMMISSION
IN RESPECT OF THE
FOREIGN SERVICE GROUP
CHAIRPERSON: Yvon Tarte
MEMBERS: Jock Climie Dale Clark
OTTAWA October 4-5, 2012
Employer’s Conciliation Board Brief – Foreign Service Group i
IN THE MATTER of the Public Service Labour Relations Act and a dispute affecting the Professional Association of Foreign Service Officers and Her Majesty in Right of Canada as represented by the Treasury Board in respect of all of the employees in the Foreign Service Group bargaining unit as determined in the certificate issued by the Public Service Staff Relations Board on March 11, 1968 and subsequently amended on May 10, 1999.
Employer’s Conciliation Board Brief – Foreign Service Group ii
FOREWORD
This brief is presented without prejudice to the Employer’s right to present any additional facts or arguments it considers appropriate and relevant during the proceedings of the Board.
Employer’s Conciliation Board Brief – Foreign Service Group iii
TABLE OF CONTENTS
EXECUTIVE SUMMARY v PART I 1 GENERAL INFORMATION 1 INTRODUCTION...... 1 FOREIGN SERVICE GROUP DEFINITION ...... 2 CHARACTERISTICS OF THE FOREIGN OFFICERS GROUP...... 3 BARGAINING UNIT CHARACTERISTICS ...... 7 PREVIOUS ROUNDS OF BARGAINING ...... 10 RECENT SETTLEMENTS IN THE PUBLIC SERVICE...... 13 EMPLOYER’S SUBMISSION FOR RATES OF PAY AND DURATION ...... 16 PART II CURRENT NEGOTIATIONS 19 CURRENT ROUND OF BARGAINING...... 20 EMPLOYER BARGAINING TEAM ...... 21 MATTERS RESOLVED...... 22 OUTSTANDING ISSUES ...... 23 PART III RATES OF PAY 25 1.0 POLICY FRAMEWORK FOR THE MANAGEMENT OF COMPENSATION...... 26 PUBLIC SERVICE LABOUR RELATIONS ACT (PSLRA) AND THE COMPENSATION POLICY FRAMEWORK...... 26 2.0 ECONOMY AND FISCAL CIRCUMSTANCES ...... 28 ECONOMIC TRENDS...... 28 ECONOMIC UNCERTAINTY AND IMPACT ON NEGOTIATIONS...... 31 GOVERNMENT FISCAL CIRCUMSTANCES ...... 32 3.0 RECRUITMENT AND RETENTION ...... 36 4.0 TOTAL COMPENSATION...... 41 5.0 INTERNAL AND EXTERNAL RELATIVITY ...... 44 PART IV OTHER OUTSTANDING ISSUES 49 ARTICLE 6 – INFORMATION ...... 50 ARTICLE 9 – EMPLOYEE PERFORMANCE REVIEW ...... 51 ARTICLE 12 – HOURS OF WORK ...... 54 ARTICLE 15 – CALL-BACK PAY ...... 57 ARTICLE 16 – STANDBY ...... 59 ARTICLE 18 – TRAVELLING TIME...... 62
Employer’s Conciliation Board Brief – Foreign Service Group iv
ARTICLE 20 – SEVERANCE PAY ...... 66 COMPARISON ON SEVERANCE BENEFIT PROVISION...... 74 ARTICLE 22 – VACATION LEAVE...... 76 ARTICLE 28 – LEAVE WITH PAY FOR FAMILY-RELATED RESPONSIBILITIES...... 77 ARTICLE 31 – BEREAVEMENT LEAVE WITH PAY...... 79 ARTICLE 48 – TERM OF AGREEMENT...... 81 ARTICLE 51 – MATERNITY RELATED REASSIGNMENT OR LEAVE...... 82 NEW XX – FSDP TRAINING...... 84 NEW XX – MATERNITY AND/OR PATERNITY LEAVE WITHOUT PAY POLICY FOR LEAVE TAKEN ABROAD...... 86 NEW APPENDIX – TELEWORK POLICY...... 87 APPENDICES 91
Employer’s Conciliation Board Brief – Foreign Service Group v
EXECUTIVE SUMMARY
This brief presents the Employer’s perspective concerning the unresolved issues in this round of bargaining for the Foreign Service (FS) bargaining unit, which can be summarized as follows. The characteristics of the FS bargaining unit, as of December 31, 2010 can be summarized as follows:
Number of Employees 1,388 % Male Employees 54% % Female Employees 46% Mean Salary $86,274 Payroll $119,748,148 Average Age 40.2 years Average Years of Service 10.8 years Expiry Date of Agreement June 30, 2011
The parties have resolved and signed off a considerable number of articles. The following elements remain outstanding: Information, Employee Performance Reviews, Hours of Work, Call-Back Pay, Standby, Leave with Pay for Family-Related Responsibilities, Travelling Time, Severance Pay, Vacation Leave, Bereavement Leave, Maternity-related Reassignment Leave, Term of Agreement and Appendix A - Foreign Service Group, Rates of Pay. Also outstanding are proposals for three new Articles or Appendices proposed by the Bargaining Agent. Information on these can be found in Part III of this brief.
Recent economic and compensation indicators, as well as the current economic situation, suggest that modest economic increases would be appropriate for settlements concluded in the near to medium term for the FS Group.
This assessment is consistent with the legislated factors provided in Section 175 of the Public Service Labour Relations Act , as follows:
“the state of the Canadian economy and the Government of Canada’s fiscal circumstances”
Employer’s Conciliation Board Brief – Foreign Service Group vi
• The Canadian economy is operating below capacity. Forecasters expect that a fragile global economic environment will continue to be reflected in only modest growth in Canada over the near term. In addition, the outlook is now characterized mainly by risk and uncertainty. There are significant risks to the outlook which could quickly derail the economic recovery, resulting in a weakening of labour markets and wage growth. Specifically, the unsustainable fiscal situation of Canada’s trading partners in Europe and the U.S. has the potential to significantly derail global growth.
• In the current environment, affordability has become a dominant consideration in all aspects of government operation. The government is committed to restoring balanced budgets, in order to establish the conditions necessary for sustained economic growth and be prepared for any future deterioration in the global economic outlook. At the federal government level, expected deficits from 2008-09 to 2014-15 will reach a cumulative $152 billion and the federal debt will climb to almost $614 billion. The government needs to exercise more fiscal restraint to protect against the risk of a further economic deterioration, and, if needed, to preserve the flexibility to stimulate the economy again.
• Given the uncertain economic fiscal context, most provincial and territorial governments have also announced specific restraint measures to ensure sound management of public sector spending. In Ontario, for example, Budget 2012 included a commitment to manage public sector compensation by seeking an agreement from unions for a two-year compensation freeze. The Government has also proposed reforms to the framework of government public-sector defined benefit pension plans to make public sector plans more sustainable and affordable for plan members as well as all Ontarians. In order to reduce the growth in the cost of providing these benefits, the government is seeking to move all jointly sponsored pension plans to 50-50 funding between employers and employees. Several other reforms are also being proposed, including, in the case of a deficit, a requirement to reduce future benefits or ancillary benefits
Employer’s Conciliation Board Brief – Foreign Service Group vii
before further increasing employer contributions. Details on restraint measures taken by the provincial/territorial governments are provided in Appendix G.
• Recognizing the economic and fiscal risks that confront it, the federal government has taken action across the full range of its responsibilities to restore fiscal balance and ensure sound public finances. This includes tax integrity measures that will generate over $2.5 billion in annual savings by 2014-15, placing transfers to the provinces and territories on a sustainable track, making changes to the Old Age Security Program (OAS) to ensure that it remains sustainable, and taking action to reduce the rate of growth of its operating expenditures.
• In contrast to many provinces, the federal government has taken a measured approach to managing compensation growth, guided by the principle of bringing federal public service compensation in line with that of private and other public sector employers. The elimination of any further accumulation of severance pay benefits for voluntary resignation and retirement is one example of how the government aims to achieve this goal.
• On March 12, 2009, in response to the global economic recession, the Expenditure Restraint Act (ERA) came into force ensuring that compensation for the public sector would reflect the current economic and fiscal situation (i.e. affordable and appropriate). The economic increases provided to the FS group in their latest agreement were consistent with the rates as set out under the ERA.
• In the fall of 2010, in order to bring predictability to employees and departments and agencies, the government engaged in expedited bargaining with bargaining agents. Agreements have been reached and signed with a number of bargaining agents, representing about 234,000 unionized and non-unionized federal government employees, including members of the Royal Canadian Mounted Police, the Canadian Forces and all executives in the core public administration. The pattern of economic increases settled thus far has been 1.5% in year 1 (2011-12), 1.5% in year 2 (2012-13), and 1.5% in year 3 (2013-14). Additional to
Employer’s Conciliation Board Brief – Foreign Service Group viii
these increases are an extra 0.25% in year 1 and an additional 0.50% in year 3 in return to compensate for the termination of severance pay for voluntary resignation and retirement. Other federal public sector employers are pursuing similar approaches.
• Under the Cost Containment measures announced in Budget 2010, departmental salary and operating budgets were effectively frozen at their 2010-11 level for the 2011-12 and 2012-13 fiscal years. Departments are required to fund wage increases provided by collective bargaining agreements through reallocation and internal efficiencies.
“the necessity of attracting competent persons to, and retaining them in, the public service in order to meet the needs of Canadians”
• Current levels of compensation for the FS group are sufficient, as evidenced by competitive salary levels and the Employer’s ability to attract and retain a sufficient number of employees.
• The mobility analysis demonstrates that the Employer has consistently been able to recruit at a higher rate than the attrition rate.
• The strong growth in the number of employees in the FS Group from March 2000 to March 2010 further supports the notion that there are no recruitment and retention problems. For this period, the FS population has increased by 17.1 %, averaging 1.7 % per year.
“the necessity of offering compensation and other terms and conditions of employment in the public service that are comparable to those of employees in similar occupations in the private and public sectors, including any geographic, industrial or other variations that the public interest commission considers relevant”
• The FS group has received real gains over the last 5 years. The wage increases (including restructures) of 3.9% in 2006-07 and 2.3% in 2007-08, 1.5% in 2008-
Employer’s Conciliation Board Brief – Foreign Service Group ix
09, 1.5% in 2009-10, and 1.5% in 2010-11 provided for increases above inflation, thereby ensuring growth in real wages and their standard of living. Since 2000 total cumulative increases 1 received by the FS group (39.1%) have also significantly outpaced those received by the average CPA employee (28.1%).
• Moreover, in terms of total compensation, FS employees have generous pension and paid benefits.
“the need to maintain appropriate relationships with respect to compensation and other terms and conditions of employment as between different classification levels within an occupation and as between occupations in the public service”
“the need to establish compensation and other terms and conditions of employment that are fair and reasonable in relation to the qualifications required, the work performed, the responsibility assumed and the nature of the services rendered”
• An analysis of total cumulative economic increases shows that, in terms of salary increases, the FS bargaining unit has received increases which exceeded those increases received by the Core Public Administration (CPA) as a whole by a wide margin since 2000.
• Furthermore, when considering our ability to recruit and retain a number of qualified employees, it is clear that the appropriate relationship exists for this group.
1 Economic increases, restructures, terminable allowances and other pay adjustments.
Employer’s Conciliation Board Brief – Foreign Service Group 1
PART I
GENERAL INFORMATION
Employer’s Conciliation Board Brief – Foreign Service Group 1
INTRODUCTION
This Public Interest Commission has been established to deal with items in dispute between the Treasury Board and the Professional Association of Foreign Service Officers with respect to the Foreign Service (FS) Group Bargaining Unit.
As of December 31, 2010, the bargaining unit contained 1,388 employees with a payroll of more than $119,000,000. Employees of this bargaining unit are distributed in 10 different departments.
Part I of the Employer’s brief contains information in relation to this bargaining unit such as:
- Group definition
- Characteristics including payroll and group demographics
Part II of the brief will provide background information on the current round of bargaining.
Part III presents the Employer’s position on rates of pay.
Part IV deals with all other outstanding issues in dispute between the parties.
Appendices contain supplementary information.
Employer’s Conciliation Board Brief – Foreign Service Group 2
FOREIGN SERVICE GROUP DEFINITION
The Foreign Service Group comprises positions that are primarily involved in the planning, development, delivery and promotion of Canada’s diplomatic, commercial, human rights, cultural, promotional and international development policies and interests in other countries and in international organisations through the career rotational foreign service.
Inclusions
The bargaining unit includes positions that have, as their primary purpose, responsibility for one or more of the following activities:
1. commercial and economic relations and trade policy — the planning, development, delivery or management of policies, programs, services or other activities directed at Canada’s economic or trade relations with foreign countries, including the development, promotion or strengthening of Canada’s economic or trade interests in bilateral or multilateral forums;
2. political and economic relations — the planning, development, delivery or management of policies, programs, services or other activities directed at Canada’s political relationships with foreign countries;
3. immigration affairs — the delivery or management of immigration policies, programs, services or other activities in support of the Canadian immigration program abroad;
4. legal affairs — the provision of legal advice to the federal government on Canada’s international rights and obligations; the interpretation and application of international legal obligations; the negotiation of various bilateral and multilateral agreements, treaties and conventions; and the defence of Canada’s position respecting those obligations and agreements including dispute settlement;
Employer’s Conciliation Board Brief – Foreign Service Group 3
5. communications and culture — the planning, development, delivery or management of communications and cultural policies, programs, services or other activities in Canada and abroad to promote Canada’s foreign service role to Canadians and to promote Canada in the world; and
6. the provision of related advice.
Also included are positions occupied by members of the group on assignments in Canada.
Exclusions
Positions excluded from the Foreign Service Group are those whose primary purpose is included in the definition of any other group or those in which one or more of the following activities is of primary importance:
1. the provision of administrative or information services as described in the Program and Administrative Services Group; and
2. the representation in other countries of Canadian interests in a specialized field when the incumbent is not a career rotational foreign service officer.
CHARACTERISTICS OF THE FOREIGN OFFICERS GROUP
Activity Streams
Political and Economic Affairs
Political/Economic Officers promote Canadian political and economic interests abroad. They monitor and interpret world events and their implications for Canada, make policy recommendations based on solid analysis and negotiate with foreign and domestic interlocutors to advance Canadian objectives.
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At headquarters or abroad, Political/Economic Officers deal with subjects as diverse and multifaceted as human rights, peacekeeping, disarmament, environmental degradation, war crimes, macroeconomic policy, economic law, summit co-ordination, debt, treaty negotiation, technical assistance, cultural and academic programs, and reform of multilateral institutions.
Trade Commissioner Service
Canada’s Trade Commissioners are responsible for promoting our commercial and economic interest. As well as identifying and developing export markets, Trade Commissioners work to develop trade policies that protect and advance and maintain Canada’s international interests.
Trade Commissioners focus on the ins and outs of the global business environment. Their expertise helps Canadian companies to achieve their international marketing goals, overcome entry barriers to new and existing markets, obtain new technologies and funding, and identify international investment opportunities. They participate in the negotiation of bilateral and multilateral trade agreements in support of Canada’s trade and investment interests.
Immigration Program – Citizenship and Immigration Canada (CIC) and Canada Border Services Agency (CBSA)
Officers are responsible for the overseas delivery of Canada’s immigration program. Overseas, officers exercise the legal authority and manage the process of screening and accepting or rejecting applications for entry to Canada from potential immigrants, including refugees and investors, as well as visitors, including students and temporary workers. Officers assigned to the CBSA deter irregular migration through direct interdiction, liaison with authorities of other governments, training personnel of air carriers and gathering and disseminating intelligence. Officers contribute to the development of migration policy through reporting while abroad and through analysis and formulation while in Canada. In Canada, they also administer the operations
Employer’s Conciliation Board Brief – Foreign Service Group 5 abroad in order to meet the intake levels and other objectives, contribute to policy development and serve temporarily in a variety of positions classified in other groups.
Rotationality
Employees in the FS group are appointed to a pool of positions at each level. The position to which they are assigned for duty is not their position for appointment. They can be assigned for duty to any position, wherever that may be, a process known as rotationality.
Rotationality is the requirement that an employee serve at any location in Canada or elsewhere as determined by the Department. This is a condition of employment and Foreign Service officers make a commitment to work on a rotation basis in Ottawa and at any of Canada’s missions abroad.
The assignment and posting process through which employees are assigned within Headquarters and occasionally within missions; between Headquarters and abroad or elsewhere in Canada; or between missions depends on rotationality.
FS Development Program
The Foreign Service Development Program (FSDP) is a three-year program for new Foreign Service officers in the Political/Economic and Commercial/Economic streams. The program promotes foreign service and leadership competencies through diverse work and professional development experiences at headquarters and abroad. This includes a variety of assignments, mentoring, on-the-job learning and a formal training component.
The program’s objectives include rapid movement of officers through the entry level pay range, broader professional training, professional links with other government departments, and structured and development oriented assessments of performance during a longer probationary period.
Employer’s Conciliation Board Brief – Foreign Service Group 6
Foreign Affairs and International Trade Canada uses a competency-based approach to learning and assessment for the FSDP. Participants must master certain competencies over the three years.
FSDP participants remain on probation for the three years of the program, with up and out performance measurements at the 12, 24, and 36 month points.
Employer’s Conciliation Board Brief – Foreign Service Group 7
BARGAINING UNIT CHARACTERISTICS
Employee population and payroll
For the purposes of collective bargaining, the payroll and group demographics as of December 31, 2010 were used. As of this date, there were 1,388 employees in the FS bargaining unit with a mean salary of $ 86,274 and total payroll of $119,748,148 . The distribution of employees by level and mean salary are shown in the table below.
A more detailed breakdown of the salary data is attached to this Brief as Appendix A.
Summary of Bargaining Unit Payroll and Mean Salary As of December 31, 2010 Number of Level Mean Payroll Employees FS-01 216 $60,134 $12,989,022 FS-02 438 $75,542 $33,087,286 FS-03 558 $97,501 $54,405,516 FS-04 173 $110,103 $19,047,759 Sub-total 1,385 $86,303 119,529,583 Salary Protected FS-01 2 $65,934 $131,868 FS-02 1 $86,697 $86,697 Sub-Total 3 $72,855 $218,565 Weighted 1,388 $86,274 $119,748,148 Average
Demographic Data
Geographical Distribution
The majority of the bargaining unit is employed in Quebec and Ontario, as shown below, with 50.72% of employees working in the National Capital Region and 44.16% posted abroad.
Appendix B provides a detailed breakdown by actual provinces and groups.
Employer’s Conciliation Board Brief – Foreign Service Group 8
Summary of Bargaining Unit Geographic Distribution As of December 31, 2010 Quebec Ontario Posted Level Atlantic (excl. (excl. NCR Prairies B.C. Total Abroad NCR) NCR) 1 - 3 1 154 2 - 58 218 2 2 5 6 204 10 7 205 439 3 - 1 7 263 8 16 263 558 4 - - 3 83 - - 87 173 Total 2 9 17 704 20 23 613 1,388 % of 0.1% 0.7% 1.2% 50.7% 1.4% 1.7% 44.2% 100% Total
Departmental Distribution
Members of the Foreign Service (FS) bargaining unit are primarily working within 10 departmental organizations, the two largest being Foreign Affairs and International Trade (DFAIT), Citizenship and Immigration Canada (CIC). The FS population of these two departments represents over 96% of the bargaining unit. A complete departmental distribution is attached to this Brief as Appendix C.
Summary of Bargaining Unit Departmental Distribution As of December 31, 2010 Number of Departments % of Total employees Foreign Affairs and International Trade 1,006 72.48 Citizenship and Immigration 324 23.34 Canada Border Services Agency 44 3.17 Department of Agriculture and Agri-Food 7 0.50 Others 7 0.50 TOTAL 1,388 100.00%
Employer’s Conciliation Board Brief – Foreign Service Group 9
Years of Service and Gender Distribution
The table below indicates that 45.5% of the current FS bargaining unit has less than 8 years of service in the federal government. By contrast, the Public Service average year of service is 11.2 years. The complete breakdown of the years of service distribution is contained in Appendix D.
As of December 31, 2010, the FS Group was male dominant with the following distribution of employees: 54% males and 46% females.
Distribution of Bargaining Unit Gender and Years of Service As of December 31, 2010 # of Male # of Female Total # of Years of Service Employees Employees Employees 0 to 7 300 331 631 8 to 15 196 188 384 16 11 9 20 17 10 10 20 18 to 26 105 68 173 27 13 1 14 28 or more 113 33 146 Total 748 640 1,388 Weighted 12.5 8.7 10.8 Average
Age Distribution
As of December 31, 2010, the average age for the FS Group population was 40.2 years. Although it is not shown below, the average age for men is 42.1 years old, while the average age for women is 38.0 years old. By contrast, the Public Service average age for men is 44.1 while the average for women is 43.1.
Employer’s Conciliation Board Brief – Foreign Service Group 10
AGE DISTRIBUTION OF FS EMPLOYEES as of December 31, 2010 Age Population % of Total Less than 18 - - 18 – 20 - - 21 – 30 225 16.2 31 – 40 598 43.1 41 – 50 296 21.3 51 – 60 216 15.6 61 – 64 39 2.8 65 and over 14 1.0 Total 1,388 100.0
Average Age 40.2
Appendix E provides a detailed breakdown by age and gender for each group.
PREVIOUS ROUNDS OF BARGAINING
Since the inception of collective bargaining in the Public Service in 1967, the parties have engaged in eighteen rounds of negotiations with the Professional Association of Foreign Service Officer (PAFSO) as the bargaining agent for the FS group.
The FS group has mainly chosen the strike conciliation route however, from time to time, has changed the method of dispute settlement from conciliation strike to arbitration and vice-versa.
The history of negotiations cannot be adequately described without reference to the legislation introduced during this period. The statute which had the greatest impact on terms and conditions of employment in the 1990’s was the Public Sector Compensation Act (PSCA). It ended strike action and extended all types of compensation plans in the Public Service for a period of six years, providing an increase to rates of pay of 3% in the second year of the restraint program. The Budget Implementation Act , 1994, further amended the PSCA by suspending incremental movement within salary ranges for the period June 1994 to June 1996. And, finally, the Expenditure Restraint Act , 2009, which placed limits on economic increases during the restraint period, prohibited restructuring
Employer’s Conciliation Board Brief – Foreign Service Group 11 and precluded compensation in replacement of amounts that are thought to have been obtained had it not been for the ERA
The ERA anticipated future rounds of collective bargaining at section 57 by placing a prohibition on any compensation plan that “after the day on which this Act comes into force may provide for compensation for amounts that employees did not receive as a result of the restraint measures in this Act.” This is commonly referred to as the “no catch-up” clause.
Since the termination of the compensation restraint program, the parties have engaged in six rounds of bargaining. The first round, initiated in 1997, was settled through conciliation and resulted in a two-year agreement expiring June 30, 1999. Economic increases of 2.5% on May 1, 1997 and 2.0% in the second year and 0.33% on May 1, 1999.
The second round of post-restraint bargaining was resolved at the Conciliation Board stage. This round provided for a two year agreement expiring on June 30, 2001. The settlement included economic increases of 2.0% on July 1, 1999, 2.5% on July 1, 2000 and a restructure to the FS-02 level effective August 1, 2000.
The third round of post-restraint negotiations which was initiated in 2001 was resolved in post-Conciliation Board negotiations. The settlement covered a two year period expiring on June 30, 2003 and provided on July 1, 2001 an annual economic increase of 2.8% and on July 1, 2002, a restructure to the FS-01 level and an economic increase of 2.5%.
The fourth round of bargaining was resolved through a conciliation board. The settlement covered a four year period expiring on June 30, 2007 and provided on July 1, 2003, an annual economic increase of 2.5%, on July 1, 2004, an annual economic increase of 2.25%, on July 1, 2005, an annual economic increase of 2.4% and on July 1, 2006, an annual economic increase of 2.5%. As well, effective July 1, 2005, a classification conversion occurred.
Employer’s Conciliation Board Brief – Foreign Service Group 12
The fifth round of negotiations was distinguished by a critical factor as there was a global economic crisis which struck in September 2008. In response to the crisis, the Government of Canada implemented a number of measures which included the enactment of the Expenditure Restraint Act . The effect of this Act was to maintain collective bargaining with its established dispute resolution mechanisms intact while limiting increases to federal public sector employees to 2.3% in 2007-08 and 1.5% for each of the years 2008-09, 2009-10 and 2010-11.
As mentioned above, Section 57 of the Expenditure Restraint Act also contained a “no catch-up clause” that placed a prohibition on any compensation plan which would have the effect of providing “compensation for amounts that employees did not receive as a result of the restrain measures in this Act.”
The sixth and current round of bargaining is discussed in Part III of this brief.
Summary of Salary Adjustments
For ease of reference, increases to the annual salaries and other monetary adjustments negotiated during the post-restraint period are shown in tabular form.
Date of Increase Salary Increase Other Monetary Adjustments
May 1, 1997 0.75% and 2.5%
May 1, 1998 2.0%
May 1, 1999 0.33% Change in expiry date
July 1, 1999 2.0%
July 1, 2000 2.5% Restructure at the FS-02 level
Introduction of lock step July 1, 2001 2.8% structure
July 1, 2002 2.5% Restructure at the FS-01 level
July 1, 2003 2.5%
July 1, 2004 2.25%
Employer’s Conciliation Board Brief – Foreign Service Group 13
Conversion
Prior to the conversion the FS category had a Developmental Pay Structure consisting of 4 steps; and a single FS-1 pay level and finally an FS-2 level which consisted of 9 steps. July 1, 2005 2.4% After conversion the FSDP and FS-1 level were combined to three steps; the FS-2 was given 7 steps; and FS-3 level was created with 9 steps and an FS-4 level was created with 5 steps.
July 1, 2006 2.5%
July 1, 2007 2.3%
July 1, 2008 1.5%
July 1, 2009 1.5%
July 1, 2010 1.5%
RECENT SETTLEMENTS IN THE PUBLIC SERVICE
The Employer believes that Public Interest Commissions should consider the level of settlements pertaining to groups for which the Treasury Board is the employer since the expiration of the application of the Public Service Compensation Act (PSCA).
This Employer’s view is that Public Interest Commissions should not ignore the reality of the times nor current settlements. To do so would be a detriment to voluntary settlements achieved expeditiously without resort to third party.
Indeed, third parties should examine and give particular consideration to the trend of settlements that public sector employees have been accepting.
Employer’s Conciliation Board Brief – Foreign Service Group 14
The table below contains a summary of settlements reached with nine (9) groups in the CPA for 2011. The increase was 1.75%, 1.5% for 2012 and 2.0% for 2013. In addition, the parties agreed to the elimination of the accrual of severance benefits for resignation and retirement.
Bargaining Agent Group Public Service Alliance of Canada • Program and Administrative Services Group (PA); • Operational Services Group (SV); • Education and Library Science Group (EB). Professional Institute of the Public Service • Architecture, Engineering and Land of Canada Survey (NR) group; • Health Services (SH) group. Canadian Military Colleges Faculty • University Teaching (UT) group Association Canadian Auto Workers • Air Traffic Control (AI) group Canadian Auto Workers, Local 2182 • Radio Operations Group Communications, Energy and • Non-Supervisory Printing Operations Paperworkers Union of Canada (PR (NS)) group Professional Institute of the Public Service • Computer Systems (CS) Group of Canada (Tentative) The Federal Government Dockyards • Ship Repair (West) Trades and Labour Council (Tentative ) The Association of Justice Council • Lawyers (Tentative)
Finally, on July 12, 2012, an arbitral award was rendered with respect to the Economics and Social Science Services Group (EC). The economic increases were 1.75% in 2011, 1.5% in 2012 and 2.0% in 2013 for a three-year deal expiring in 2014, in addition to the elimination of the accrual of severance benefits for resignation and retirement.
On July 25, 2012, an arbitration board awarded to the Electronics Group (EL) increases of 1.5%, 1.75%, 1.5% and 2.0%, and eliminated the accrual of severance benefits for resignation and retirement. This was a four-year award, expiring in 2014 as well.
Employer’s Conciliation Board Brief – Foreign Service Group 15
On August 10, 2012, an arbitration board awarded to the Translation Group (TR) increases of 1.75%, 1.5% and 2.0%, and eliminated the accrual of severance benefits for resignation and retirement. This was a three-year award expiring in 2014.
Copies of these arbitral awards are attached to this Brief as Appendix H.
Employer’s Conciliation Board Brief – Foreign Service Group 16
EMPLOYER’S SUBMISSION FOR RATES OF PAY AND DURATION
The Employer’s proposal before this PIC is in keeping with the above analysis and is consistent with the overall proposal made to the Bargaining Agent in negotiations. The Employer is proposing a three (3) year duration to expire on June 30, 2014, with economic increases as follows:
Employer Proposal Union proposal On July 1, 2011, increase rates of pay by 1.5%. Effective July 1, 2011, restructure to FS-1/FSDP, FS-02 and FS-04 On July 1, 2012, increase rates of pay by 1.5%. Effective July 1, 2011, increase rates of pay by 2.5% On July 1, 2013, increase rates of pay by 1.5%. Effective July 1, 2012, restructure to FS-02. Effective July 1, 2012, increase rates of pay by 2.5%
Effective July 1, 2013, restructure to FS-02 Effective July 1, 2013, increase rates of pay by 2.5.%
The Employer proposes a general economic increase of one decimal five percent (1.5%) in each year of the agreement.
However, if the Employer’s proposal regarding the severance pay is awarded by the Board, in exchange for the changes to the severance provisions the general economic increases would be amended to reflect the wage settlement trend in the federal public sector:
July 1, 2011 – 1.75%
July 1, 2012 – 1.5%
July 1, 2013 – 2.0%
The Bargaining Agent proposes economic increases to 2.5% for years 2011/12, 2012/13 and 2013/14.
Employer’s Conciliation Board Brief – Foreign Service Group 17
The Bargaining Agent is also proposing a pay restructure to the FS-1/FSDP, FS-2 and FS-4 pay structures as follows: FS-1/FSDP • Effective July 1, 2011, in advance of the economic increase, adjust to reflect the MTP rates of pay. FS-2 • Effective July 1, 2011, in advance of the economic increase, delete the bottom step of the FS-2 pay scale and add a 4% step to the top • Effective July 1, 2012, in advance of the economic increase, delete the bottom step of the FS-2 pay scale and add a 4% step at the top • Effective July 1, 2013, in advance of the economic increase, delete the bottom step of the FS-2 pay scale and add a 4% step at the top FS-4 • Effective July 1, 2011, in advance of the economic increase, delete the bottom step of the FS-4 pay scale and add a 4% step at the top
The Employer submits that the Union’s proposals are not reflective of current established settlement patterns in the federal public service. In this context, only modest economic increases would be appropriate for the FS group.
The Employer will also demonstrate, later in our brief , that the cumulative increases received by the Foreign Service group over a 10 year period have far surpassed those of the Core Public Administration as a whole, not to mention the cumulative increases in public and private sector settlements as measured by HRSDC, average weekly earnings (AWE) as measured by Statistics Canada and cumulative price increases as represented by the change in CPI inflation.
Finally, the Employer is prepared to discuss in greater detail its position with respect to the Bargaining Agents wage proposal through the conciliation board process.
Employer’s Conciliation Board Brief – Foreign Service Group 18
The Replication Principle
As for arbitration, the goal of a PIC is to replicate the result, as closely as possible, to that which would have been achieved had the parties negotiated a settlement.
The Employer submits that the Union’s proposed economic increases do not reflect what the parties would have bargained in a period of fiscal restraint.
Employer’s Conciliation Board Brief – Foreign Service Group 19
PART II
CURRENT NEGOTIATIONS
Employer’s Conciliation Board Brief – Foreign Service Group 20
CURRENT ROUND OF BARGAINING
The current round of bargaining can be summarized as follows:
The current round of negotiations was initiated on June 21, 2011, when the Professional Association of Foreign Service Officers (PAFSO) filed notice to bargain.
The collective agreement expired on June 30, 2011.
The parties exchanged bargaining proposals on August 31, 2011.
Bargaining sessions were held 3 days per month in the months of October, November, December 2011 and January 2012. The parties met a total of 5 times during this period.
While these negotiating sessions were productive and resulted in agreement on several issues, it was apparent that settlement of all of the remaining issues, most notably rates of pay, was not going to be possible.
Consequently, on February 3, 2012, the PAFSO applied under Section 161 of the Public Service Labour Relations Act for the establishment of a Public Interest Commission (PIC) to resolve the dispute between the parties. On July 17, 2012, the Public Service Labour Relations Board (PSLRB) proceeded with the establishment of the PIC.
In addition to rates of pay, there are fifteen (15) articles or clauses remaining. These are detailed in Part IV of the Brief.
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EMPLOYER BARGAINING TEAM
NAME TITLE AND DEPARTMENT Cynthia Nash Negotiator Treasury Board Secretariat Maryse Bernier Analyst Treasury Board Secretariat Barbara Diener Regional Manager, Human Resources Citizenship and Immigration Canada Kathleen Sigurdson Director – Workforce Management – International Region Citizenship and Immigration Canada Shannon Ross Manager - Labour Relations, Human Resources Citizenship and Immigration Canada Claude Houde Director - Labour Relations and Occupational Health and Safety Division Department of Foreign Affairs and International Trade Louise Blais Executive Director – Assignments Department of Foreign Affairs and International Trade
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The following tables are designed to assist the PIC by providing an overview of the status of the various proposals exchanged in this round of bargaining.
MATTERS RESOLVED
The table below contains the list of articles signed-off or renewed by the parties.
ARTICLE TITLE MODIFICATION 1 Preamble Article Renewed 2 Interpretations & Definitions Signed off with changes 3 Recognition Article Renewed 4 Check-Off Article Renewed 5 Information Article Renewed. 7 Joint Consultation Article Renewed 8 Suspension and Discipline Article Renewed 10 Grievance Procedure Article Renewed 11 Outside Employer Article Renewed 13 Variable Hours of Work Article Renewed 14 Overtime Article Renewed 17 Designated Paid Holidays Article Renewed 19 Part-time Employees Article Renewed 21 Leave General Article Renewed 24 Injury on Duty Leave with Pay Article Renewed 25 Maternity Leave Without Pay Article Renewed 26 Parental Leave Without Pay Article Renewed 27 Leave Without Pay for the Care of Immediate Signed off with changes Family 29 Leave Without Pay for Personal Needs Article Renewed 30 Leave Without Pay for Relocation of Spouse Article Renewed 33 Personnel Selection Leave With Pay Article Renewed 34 Education Leave Article Renewed 35 Attendance at Conferences and Conventions Article Renewed 36 Professional Development Article Renewed
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ARTICLE TITLE MODIFICATION 37 Examination Leave Article Renewed 38 Volunteer Leave Article Renewed 39 Leave With or Without Pay for Other Signed off with changes Reasons 40 Foreign Service Directives and National joint Signed off with changes Council Agreements 41 No Discrimination Article Renewed 42 Sexual Harassment Article Renewed 43 Registration Fees Article Renewed 44 Job Security Article Renewed 45 Labour Disputes Article Renewed 46 Pay Administration Signed off with changes 47 Agreement Reopener Article Renewed 49 Religious Observance Article Renewed 50 Medical Appointment for Pregnant Article Renewed Employees
OUTSTANDING ISSUES
The following issues are being brought before this PIC:
Status of Proposals Article Nature of Issue 6 - Information The Employer is proposing to provide access to an electronic version of the collective agreement. 9 - Employee Performance The Employer is proposing to add language in order to have Reviews more flexibility when there are issues overseas. (Clauses 9.03, New 9.06) The Union is proposing new add language on demoting or releasing an employee for poor work performance. 12 - Hours of Work The Employer is proposing to add language for more flexibility in hours of work when employees work at missions abroad and (Clauses 12.01, 12.03) proposing to amend the notice period when there is a change in the hours of work.
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Status of Proposals Article Nature of Issue 15 - Call-Back Pay The Union is proposing to delete the exclusion clause. (Clause 15.01) 16 - Standby The Union is proposing to delete the exclusion clause and the clause regarding compensation for employees responding to (Clauses 16.01, 16.05b)) calls outside their working hours without returning to the workplace. 18 - Travelling Time The Employer is proposing language to clarify the total travel period and to amend language consistent to that of other (Clause 18.04) collective agreements. 20 - Severance Pay The Employer is proposing to remove provisions relating to voluntary separations (resignation and retirement) 22 - Vacation Leave The Employer is proposing to add language in regards to the severance proposal. 28 - Leave with pay for The Union is proposing to add language that mirrors other Family-Related collective agreements regarding the granting of 7.5 hours to Responsibilities attend school functions, appointments with legal representative and provide for child in case of unforeseeable of closure of care (Clauses 28.03e i), 28.03e ii) facilities. and 28.03e iii)) 31 - Bereavement Leave The Union is proposing to increase the quantum of With Pay bereavement leave from 5 to 7 consecutive days. 48 - Term of Agreement The Employer and Union are proposing that the expiry of the collective agreement be June 30, 2014. 51 - Maternity-Related The Union is proposing to add language for employees to Reassignment or Leave continue to receive regular pay for the duration of job modification, reassignment, deployment or transfer. New FSDP The Union is proposing to include DFAIT's "Foreign Service Development Program" in the collective agreement New Maternity and /or The Union is proposing to include DFAIT’s own policy on Paternity Leave without Pay "Maternity and/or Paternity Leave without Pay Policy for Leave Policy for Leave Taken Taken Abroad” in the collective agreement. Abroad New Telework Policy The Union is proposing to include the Employer's "Telework policy" in the collective agreement.
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PART III
RATES OF PAY
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1.0 POLICY FRAMEWORK FOR THE MANAGEMENT OF COMPENSATION
Public Service Labour Relations Act (PSLRA) and The Compensation Policy Framework
The PSLRA provides for factors a Public Interest Commission must take into account in the conduct of its proceedings and in making a report to the Chairperson. These are contained in Section 175 of the PSLRA. As shown in the table below, those factors are clearly reflected in the Employer’s Policy Framework for the Management of Compensation. The Policy Framework outlines four overarching principles that are to guide compensation decisions by the Treasury Board in its various roles: External Comparability, Internal Relativity, Affordability, and Individual/Group Performance.
Employer’s Compensation Policy PSLRA Framework
(a) the necessity of attracting competent Stated Objective of Policy Framework: persons to, and retaining them in, the Compensation serves, with other key public service in order to meet the needs frameworks, to attract, retain, motivate and of Canadians; renew the workforce required to deliver results to Canadians.
(b) the necessity of offering compensation External Comparability: Compensation and other terms and conditions of should be competitive with, but not lead employment in the public service that are compensation provided for similar work in comparable to those of employees in relevant external labour markets; similar occupations in the private and public sectors, including any geographic, industrial or other variations that the arbitration board considers relevant;
(c) the need to maintain appropriate Internal Relativity : Compensation should relationships with respect to compensation reflect the relative value to the employer of and other terms and conditions of the work performed; employment as between different classification levels within an occupation and as between occupations in the public service;
(d) the need to establish compensation Addressed through the application of
Employer’s Conciliation Board Brief – Foreign Service Group 27 and other terms and conditions of External Comparability and Internal employment that are fair and reasonable in Relativity principles relation to the qualifications required, the work performed, the responsibility assumed and the nature of the services rendered; and
(e) the state of the Canadian economy and Affordability: The cost of compensation the Government of Canada’s fiscal must be affordable within the context of circumstances. the commitments to provide services to Canadians, the fiscal circumstances, and the state of the Canadian economy.
Individual/Group Performance: Compensation should reward performance, where appropriate and practicable, based on individual or group contributions to business results;
The Policy Framework notes that these guiding principles need to take into account relevant legislation and be balanced against other government responsibilities such as its economic policy objectives, social policy objectives and public expectations and pressures. Furthermore, the Policy Framework for the Management of Compensation defines compensation as a “total compensation” concept. Thus, the external comparability with relevant labour markets is based on all the elements of compensation including, for example: wages, salaries, overtime, pensions, employer-paid insurance, health, and dental premiums, as well as severance pay.
The application of the Individual/Group Performance principle is currently being explored by the Employer. At this time, it is not one of the factors used by the Employer in its decision making process.
The analysis presented in this Brief has been developed in accordance with the factors and principles outlined in the PSLRA and the Employer's Framework. A copy of the Policy Framework is attached to this Brief as Appendix F.
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2.0 ECONOMY AND FISCAL CIRCUMSTANCES
The PSLRA identifies the state of the Canadian economy and the Government of Canada’s fiscal circumstances as considerations that must be taken into account by a Public Interest Commission.
Compensation arrangements must be affordable and consistent with the broader objectives of sustainable finances and ongoing economic growth.
The global recovery is fragile. Forecasters expect that this fragile global economic environment will continue to be reflected in only modest growth in Canada over the near term. As well, the global economic outlook is particularly uncertain. There are significant risks to the outlook which could quickly derail the Backgrounder: Use of Consensus Economics and the economic recovery, resulting in a weakening of Bank of Canada Forecasts The employer has chosen to use the forecasts by Consensus labour markets and wage growth. Specifically, a Economics and the Bank of Canada as its principal indicator of future economic prospects. sovereign debt crisis in Europe has the potential to Consensus Economics , a UK forecasting firm, develops significantly derail global economic growth. economic forecasts for major industrialized countries by surveying the prominent economic forecasters in each country. The Canadian forecasts are based on a survey of Economic trends 17 firms, including the Conference Board of Canada, JP Morgan and the University of Toronto. The Consensus Economics forecast is widely regarded as one of the most Real GDP growth reliable and unbiased indicator of future economic prospects. By taking the average of many different viewpoints, it is not unduly influenced by the particular assumptions of individual forecasting firms. It is also Real GDP growth, which is the standard measure transparent, as the forecasts of each firm are available. of economic growth in Canada, provides an The Bank of Canada can influence economic developments through its control of interest rates. The Bank of Canada’s indication of overall demand for goods, services, view on the economic outlook is a key determinant of its monetary policy. For example, the Bank is likely to raise and labour. Lower real GDP growth reduces interest rates (thereby increasing unemployment, and reducing wages) when it perceives that inflationary demand for employment, which increases pressures are developing. Knowledge of the Bank’s forecast is important in understanding how it might act to unemployment and lowers wage increases. Sharply influence the economic outlook. falling real GDP leads to wage reductions and rollbacks, despite the extraordinary fiscal and monetary stimulus applied during the recession.
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The economy was in recession in 2009, shrinking by 2.8% before returning to growth in 2010 and 2011. Looking ahead, economic growth is expected to be modest over the near term in Canada, as European markets continue to suffer from a growing debt crisis. In fact, the Bank of Canada projects that the Canadian economy will continue to operate below capacity until mid 2013. Consensus forecasters expect real GDP to increase by a modest 2.0% in 2012 and 2.1% in 2013.
The unemployment rate is currently higher and wage growth much lower than rates observed before the recession. In 2008, prior to the recession, the unemployment rate was 6.2%, and reached a low of 5.9% in March of that year. The forecast for the unemployment rate in 2013 is 7.2%, a full percentage point higher than the pre- recession level.
The Consumer Price Index
The Consumer Price Index (CPI) tracks the price of a typical basket of consumer goods 2. Inflation, or the change in the CPI index, is an indication of the erosion of purchasing power experienced by consumers over a specific period. Core inflation excludes the prices of gasoline and seven of the other most volatile components of CPI and is commonly used by the Bank of Canada to see through temporary changes in total CPI inflation and to focus on underlying inflation trends, which are a better indicator of where total CPI inflation is headed.
In 2009 and 2010, average inflation as measured by the CPI, was below midpoint of the Bank of Canada’s 1 to 3 per cent target range (Table 1). While inflation in 2011 was above 2%, this temporary increase in inflation was concentrated in energy prices. Core inflation has been averaged 1.7% per year for the last four consecutive years, which
2 The basket includes the following items: food, shelter, household operations, furnishings and equipment, clothing and footwear, transportation, health and personal care, recreation, education and reading, and alcoholic beverages and tobacco products. Source: Statistics Canada
Employer’s Conciliation Board Brief – Foreign Service Group 30 indicates that inflation would have been even lower had the rapid jump in gasoline prices not occurred.
In fact, CPI inflation rose a more modest 1.3% in July 2012, as the temporary pressure resulting from the surge in gasoline prices began to ease. For the next two years, Consensus Economics forecasters expect inflation rates of 1.9% in 2012 and 2.0% in 2013.
Table 1 Economic and Labour Market Indicators
2009 2010 2011 2012* 2013*
CPI (y/y %) 0.3 1.8 2.9 1.9 2.0 Core CPI (y/y %) 1.8 1.7 1.7 - - GDP (y/y %) -2.8 3.2 2.5 2.0 2.1 Unemployment (%) 8.3 8.0 7.5 7.3 7.2 Source : Statistics Canada and Consensus Economics Inc. (August 2012) Note: * denotes forecast period
There are a number of factors in addition to economic increases that have contributed to increases in average salaries for federal government employees, including those in the FS group. These include increases in the average level of employees within an occupation, as well as restructures to paylines.
Taking all factors into account, the average salary growth for federal government workers has exceeded that of private sector employees, on average, over the past 20 years.
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• Based on Statistics Canada tables 183-0002 (Public sector employment, wages and salaries) and 326-0020 (Consumer Price Index), average weekly earnings in all sectors increased roughly 12%, in real terms, over the past 20 years;
• In comparison, federal employees’ salary increased 42% over the same period.
ECONOMIC UNCERTAINTY AND IMPACT ON NEGOTIATIONS
There are significant downside risks to the outlook. Should these risks come to light, the impact on economic growth would be significant.
Much of the risk to the Canadian economy stems from external sources. There are significant risks to future growth stemming from further deterioration in the U.S. as well as European markets. A sovereign debt crisis in Europe, fiscal austerity measures, and weakened consumer and investor confidence has resulted in ongoing and deepening global economic weakness.
The situation in Europe is changing daily. Just as investor confidence is boosted from the somewhat improved situation in Greece, the stability of the banking system in Spain and the fiscal situation in Italy come into question. The financial risks and their impact on investor confidence are fuelling further uncertainty as weakening growth prospects are making fiscal consolidation more challenging for a number of European economies.
In it’s June 2012 Financial System Report, the Bank of Canada noted that if these dynamics were to intensify further and spread across Europe, the spillover effects to Canadian financial institutions would be substantial. If these areas grow more slowly than currently expected, this would result in lower demand for Canadian produced goods, lower commodity prices and therefore lower profits and income.
In addition to the risks that the Canadian economy faces from abroad, there is a risk that fallout from a sudden housing market correction in Canada could result in reduced
Employer’s Conciliation Board Brief – Foreign Service Group 32 consumer confidence and domestic demand. In fact, concern over inflated housing markets in Toronto and Vancouver in part led to the recent government decision to tighten lending standards.
All of these risks and uncertainty have led to continued revisions to the outlook over the past year. The Consensus Economics forecast for economic growth in 2012 for most western economies has been revised repeatedly downwards, including for Canada. The Consensus Economics forecast for Canadian real GDP growth in 2012 has been revised downwards from a high of 2.7% in May 2011 to just 2.0% in August 2012. The forecast for U.S. real GDP growth has also been revised down, from 3.2% to 2.2% over the same period. In addition, the Bank of Canada revised its forecast of GDP down by 0.3 percentage points in 2012 and 0.1 percentage points in 2013 in the July Monetary Policy Report.
Going forward, even slower economic growth and lower inflation remains a significant risk. If this were to be the case, labour markets and wage pressures would weaken even further than is currently expected.
GOVERNMENT FISCAL CIRCUMSTANCES
Rationale for the government’s current fiscal planning framework
The government’s medium-term fiscal plan is founded on returning to balanced budgets. Achieving a balanced budget is not an ideological commitment of a particular government, but rather it has been supported by the actions of previous governments, by other levels of government in Canada, and by a strong public consensus over the past two decades regarding the need for prudent fiscal management. It is based on an assessment of actions required to manage current global economic uncertainty, as well longer-term fiscal pressures that will emerge with an aging population.
Sound fiscal management, including debt reduction, provides the following benefits:
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• frees up resources that would be otherwise absorbed by interest costs, which can be reinvested in other priorities such as public services or lower taxes.
• helps keep interest rates low, which will in turn encourage businesses to invest thereby fostering long-term economic growth.
• provides room to manoeuvre when the economy is negatively affected by developments outside our borders.
Prudent fiscal management is one reason why the restraint measures required to restore balanced budgets are modest in Canada, and why Canada has avoided the severe action needed by others in the G-7. A relaxation of Canada’s prudent approach to fiscal management would put Canada at risk to the same pressures that currently challenge other G-7 countries.
The fiscal forecast and government actions to achieve balanced budgets
The government is currently in a deficit position. In response to the unprecedented global crisis in 2008, the government invested massively in the economy as part of a global effort to stimulate spending and avoid another great depression. This, in combination with deteriorating economic growth, resulted in the government incurring significant budget deficits. These deficits are expected to total over $152 billion from 2008-09 to 2014-15. In addition, program expenses-to-GDP ratio also peaked at 16 per cent in 2009-10.
The government’s ability to achieve fiscal balance is based on its consistent focus on expenditure restraint and sound fiscal management.
• The stimulus measures introduced under the Economic Action Plan were temporary, and were not renewed when they expired.
• Tax integrity measures introduced in recent budgets are expected to provide $2.5 billion in fiscal savings in 2014-15.
• Budget 2010 and 2011 included actions to restrain the growth in defence spending, cap the International Assistance Envelope, engage in strategic reviews
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of government spending as well as introducing a freeze on departmental operating budgets.
• In addition, the spending review introduced in the 2011 budget and subsequently announced in the 2012 budget is expected to generate ongoing savings of $5.2 billion.
In the same manner that the government has taken action across all areas of its operation, it needs to ensure that public service compensation growth is modest if it is to achieve its goal of balanced budgets.
As a result of these and other measures, the budgetary balance is projected to improve from a $24.9-billion deficit in 2011-12 to a surplus of $7.8 billion in 2016-17. Over the medium-term, the ratio of debt to GDP is projected to fall from 33.9% in 2010-11 to 28.5% in 2016-17, which is in line with its level before the recession.
Implications of economic uncertainty on the government’s fiscal situation
While the government is committed to achieving balanced budgets, it is important to understand how quickly the fiscal situation can be derailed by sudden economic shocks such as that which occurred in advance of the last recession.
While stimulus spending by governments was crucial to prevent a global economic catastrophe, it was not sustainable. The government has a plan to return to fiscal balance, but this plan must take account of the risks associated with the uncertain global economic outlook. This underlines the need for the government to maintain its focus on prudent fiscal management.
Provincial/Territorial Compensation Restraint Measures
Given the uncertain global economic and fiscal context, provincial and territorial governments have also announced restraint measures to ensure sound management of public sector spending. A review of these actions demonstrates the reasonableness of the federal government’s wage proposals.
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• In Ontario, Budget 2012 included a commitment to manage public sector compensation by seeking an agreement from unions for a two-year compensation freeze. The Government has also proposed reforms to the framework of government public-sector defined benefit pension plans to make public sector plans more sustainable and affordable for plan members as well as all Ontarians. In order to reduce the growth in the cost of providing these benefits, the government is seeking to move all jointly sponsored pension plans to 50-50 funding between employers and employees. Several other reforms are also being proposed, including, in the case of a deficit, a requirement to reduce future benefits or ancillary benefits before further increasing employer contributions.
• In British Columbia’s 2012 budget the government stated that the bargaining mandate will allow public sector employees to negotiate modest compensation increases if equivalent savings can be realized within existing budgets.
Further details concerning restraint measures taken by other provincial and territorial governments are provided in Appendix G.
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3.0 RECRUITMENT AND RETENTION
The PSLRA identifies the necessity for the public service to attract and retain competent persons to meet the needs of Canadians as a factor that must be taken into consideration by a Public Interest Commission.
An effective way to assess whether there are any recruitment and retention problems facing an employer is to examine the hirings and the separations for the occupational group being studied, as well as the changes in population levels for the group.
3.1 Hirings
Table 2 shows that the Foreign Service (FS) group has experienced an increase in the level of hirings since 2006-07, primarily made up of internal hires. The average number of hirings into the FS group over the last five fiscal years has averaged approximately 124 employees per year.
Table 2 Hiring Statistics 1 for the FS Group
Hirings 2006-07 2007-08 2008-09 2009-10 2010-11
Total Internal Hirings 2 No. 86 30 67 103 39
Total External Hirings No. 44 30 59 125 35
Total Hirings No. 130 60 126 228 74 Notes: 1. Total Hirings refer to the total number of employees (active and leave without pay; bargained and excluded; employee types A, C, G, S). 2. Total Internal Hirings include any re-classifications of employees from another Core Public Administration (CPA) group into the FS classification that may have taken place in a given fiscal year.
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3.2 Separations
Table 3, located on the following page, indicates that there are currently few if any separation problems with the FS group. Separations for the FS group have been lower than hirings over the last 5 fiscal years, averaging 99 since 2006-07, compared to 124 hirings per year on average over the same period.
Separations are comprised of both internal separations (employees who separate from the FS group to other groups within the Core Public Administration) and external separations (FS employees leaving the Core Public Administration entirely for any reason). FS internal separations have remained low over the last five fiscal years. External separations, which are comprised of voluntary separations (both retirement and non-retirement) and involuntary separations have also remained low over the same time period. A key retention indicator, the percentage of non-retirement voluntary separations as a share of the total FS population, has remained well below 1% for the past five fiscal years.
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Table 3 Separation Statistics 1 for the FS Group
Reason for Separations 2006-07 2007-08 2008-09 2009-10 2010-11
Voluntary: non-retirements 2 No. 10 8 4 11 6 % 0.8% 0.6% 0.3% 0.8% 0.4% Voluntary: retirements 2 No. 30 28 39 36 31 % 2.4% 2.2% 3.0% 2.6% 2.1% Total Voluntary Separations 2 No. 40 36 43 47 37 % 3.1% 2.8% 3.3% 3.4% 2.5%
Total Non-voluntary Separations 2 No. 1 9 2 4 3 % 0.1% 0.7% 0.2% 0.3% 0.2% Total External Separations No. 41 45 45 51 40 % 3.2% 3.5% 3.5% 3.7% 2.7% Internal Separations 3 No. 88 28 45 65 46 % 6.9% 2.2% 3.5% 4.7% 3.1% Total Separations 4 No. 129 73 90 116 86 % 10.1% 5.6% 6.9% 8.4% 5.7% Population (as at end of FY) 5 No. # 1,302 1,300 1,378 1,499 1,494
Notes: 1. Separation rates are calculated by dividing the number of separations in a given fiscal year by the number of employees (active and 2. LWOP;Voluntary: bargained non-retirements and excluded; include A, the C, followingG, S employee reasons: types) resignation as at the to end outside of the employment; previous fiscal return year. to Thschool;e employee personal types reasons; are Voluntary:abandonment Retirements of position includes and movement all retirements to an organiza due to illness,tion where age, TB or election.is not the employer. Total Non-voluntary Separations include the following reasons: resignation under the Work Force Adjustment Program; discharge or misconduct; incompetence or incapacity; rejected during probation; lay off and death. 3. Internal separations include the total number of employees (active and leave without pay; bargained and excluded; A, C, G, S employee types only). 4. Note that the total separation rates may not add up exactly due to rounding. 5. All population figures are based on total employees (active and leave without pay; bargained and excluded; A, C, G, S employee types only) as at the end of the fiscal year.
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3.3 Hiring to Separation Ratios
A valuable way to assess whether there are Figure 1: Total Hirings-to-Total Separations Ratio: FS recruitment and retention pressures is to examine the evolution of the ‘total hirings to 3 total separations ratio’ (all hirings from 2.0 outside the CPA and from other groups 2 1.4 within the CPA divided by all those leaving 1 0.9 1 0.8 the FS (CPS) group for another group within the CPA or leaving the CPA entirely, for all 0 reasons) indicates that there are no 2006-07 2007-08 2008-09 2009-10 2010-11 recruitment and retention problems. When Source: Mobility file. All Hirings (internal, external) divided by all separations (except retirement). Indeterminate, seasonal or term (3 this ratio is greater than 1.0, the number of months +) employees (all full-time only). people hired is greater than those leaving; recruitment and retention problems are unlikely. It is important to note that downward pressure on the hirings to separations ratio due to departmental reductions announced in Budget 2012. To the extent possible, departments are managing workforce reductions through attrition.
As indicated in Figure 1, in 2009-10, for every one employee who separated from the FS group for any reason, 2.0 new employees were hired into the group on average. The ‘total hirings to total separations ratio’ averaged 1.2 over the last 5 fiscal years. Though the ‘total hirings to total separation ratio’ is less than 1.0 in 2010-11, a high proportion of separations during the period were due to voluntary retirements. Again, it is important to note downward pressure on the hirings to separations ratio due to departmental reductions announced in Budget 2012. To the extent possible, departments are managing workforce reductions through attrition.
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3.4 External Job Advertisements
Another way to assess whether recruitment pressures exist is to examine the average number of applications received per external job advertisement for the Foreign Service (FS) group and the average number of applicants screened in per application. As Table 4 shows, the average number of applications received per external job advertisement for the FS from fiscal year 2007-08 to 2011-12 was 6,262. The average percentage of applicants meeting the essential requirements of the position has also been very high, ranging from 97.6% to 100% over the same time period.
The results suggest that the government is not having any issues with attracting a sufficient number of high quality applicants to a given job advertisement, which provides further evidence that there are no recruitment pressures within the FS group.
Table 4 - FS Group External Job Advertisements Average Number Fiscal External Job Average Screened Applications Screened-In of Applications per Year Advertisements in per Application Job Advertisement
2006-07 0 n/a n/a n/a n/a 2007-08 1 5,444 5,311 5,444 97.6% 2008-09 2 12,820 12,771 6,410 99.6% 2009-10 1 8,041 8,041 8,041 100.0% 2010-11 1 7,487 7,487 7,487 100.0% 2011-12 3 11,788 11,788 3,929 100.0%
3.5 Population
As demonstrated in Figure 2, the FS group population has averaged 1,386 employees per year over the past 7 fiscal years. The relatively stable number of employees in the FS group from 2005-06 to 2011-12 further supports the notion that there are no recruitment and retention problems.
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Figure 3: FS Population
1499 1494 1600 1272 1302 1300 1378 1456 1400 1200 1000 800 600 Population 400 200 0 2006 2007 2008 2009 2010 2011 2012
Source: Incumbent File as of March 31st of each year. All employees who were full-time indeterminate, full-time seasonal, or term (3 months +) are included above.
4.0 TOTAL COMPENSATION
As noted in the Policy Framework for the Management of Compensation, compensation comparisons should be based on a total compensation assessment. That is, all terms and conditions of employment – including supplementary benefits -- need to be taken into account in evaluating external comparability, even if they are not subject to negotiation.
In addition to wages, total compensation is composed of paid and unpaid non-wage benefits, such as employer contributions to pensions, other employee benefit programs (i.e., health and dental) and flexible working arrangements, such as telework, variable work hours (compressed work week), leave with income averaging, and pre-retirement transition leave.
Federal public sector workers enjoy significant advantages relative to private sector comparators, partly due to the generous pension and other benefits offered to federal employees compared to other Canadian workers.
• Pension and other paid benefits represent a higher portion of wages relative to the workers outside the federal public administration. According to Statistics Canada data, the ratio of supplementary labour income to wages and salaries
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was 25.0% in 2009 for the federal public administration, compared to an average of 13.8% for all other sectors.
• Since pension and benefit programs are largely homogenous across the federal public service, this ratio for the federal public administration is applicable to the FS group.
A detailed breakdown of total compensation for a typical employee in the Foreign Service (FS) bargaining unit, in fiscal year 2011-12, indicates that base pay represented 67.8% of total compensation for a typical FS employee (Figure 1) 3.
• About 18% of total compensation was accounted for by pension and benefits, including life and disability insurance, health and dental plans, and paid leave accounts for a further 8%.
• Overtime, allowances and premiums accounted for the remaining 4% of total compensation for the FS bargaining unit (Figure 1).
Note that Foreign Service Allowances are not included in the allowances and premiums presented in Figure 1. Allowances and premiums that represent a reimbursement of expenses, such as Post Specific Allowance, are not treated as a part of employee’s
3 The pay elements in Figure 1 are not directly comparable to the Statistics Canada definition of ‘wages and salaries’ and of ‘supplementary income’ cited previously, due to conceptual differences. However, a rough correspondence may be made as follows:
• The Statistics Canada definition of wages and salaries includes the following elements from Figure 1: paid time worked during regular hours, paid leave, as well as allowances and premiums. Together these comprise 79.4% of compensation. • The Statistics Canada definition of supplementary labour income includes pensions and benefits from Figure 1, which represents 17.6% of total compensation. In addition, the Statistics Canada definition includes employer payments for Employment Insurance and Workers Compensation, which are not shown in Figure 1. Even with employer payments for Employment Insurance and Workers Compensation excluded, the ratio of supplementary labour income to wages and salaries for a typical Foreign Service employee is 22% (0.22 = 17.6/79.4). The exclusion of employer-paid premiums from the calculation, as well as the use of different time periods, accounts for the difference with the Statistics Canada estimate.
Employer’s Conciliation Board Brief – Foreign Service Group 43 total compensation. The Foreign Service Premium is excluded on the assumption that that a typical FS employee had worked less than 120 consecutive days on her/his current assignment, as of March 31, 2012, and, thus, was not eligible for this premium. While there may be other Foreign Service allowances and premiums that represent a part of Foreign Service employee’s total compensation, they are not captured in Figure 1.
Figure 1: Average Compensation of FS positions in FY 2011-12
2011-12 population: 1,355
Statutory holidays Sick leave Parental leave and and vacation leave 1.1% other paid leave 8.0% 1.6%
Overtime pay 3.0%
Allowances and premiums 1.0%
Paid time worked during regular hours Pension and 67.7% benefits 17.6%
Note: This pie chart excludes Foreign Service Allowances. Sources: Incumbent System, Entitlement and Deductions System, Leave Reporting System, Pensions and Benefits Sector
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5.0 INTERNAL AND Figure 3: FS Cumulative Increases vs. CPI and other Sectors EXTERNAL
RELATIVITY FS CPI HRSDC Private HRSDC Public 5.1 Comparison of External AWE Cumulative Increases
50% Unlike other groups such as 40% doctors, welders, administrative 30% support, etc., it is difficult to find 20% external market comparators for 10% a group that performs Foreign 0% Service duties in support of the 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Federal Government in foreign locations. However despite an inability to find specific comparisons, overall wage growth comparisons provide a compelling comparison.
Figure 3 shows total cumulative wage increases for the FS group 4 from 2000 to 2010. It is important to note that wage growth across the core public administration has been constrained by the Expenditure Restraint Act (ERA). The ERA set all increases prior to December 8, 2008 that had not yet been set, and provided for all increases to rates of pay due after December 8, 2008 to 1.5% in 2008-09, 1.5% in 2009-10 and 1.5% in 2010-11. Despite the effects of the ERA, wage growth from 2000 to 2010 in the FS group (39.1%) have more than compensated for cumulative increases in public and private sector settlements as measured by HRSDC 5. They have also outstripped cumulative average weekly earnings (AWE) as measured by Statistics Canada (30.2%) and cumulative price increases as represented by the change in CPI inflation (22.1%).
4 Economic increases, restructures, terminable allowances and other pay adjustments. 5 Wage settlements as reported by HRSDC for employers that have more than 500 unionized employees. These data are weighted averages of the annual percentage ‘adjustments’ in ‘base rates’ during the period covered by the settlements. The ‘base rate’ is the wage rate of the lowest paid classification containing a significant number of qualified workers in the bargaining unit. The ‘adjustments’ include such payments as restructures and estimated cost-of-living allowance.
Employer’s Conciliation Board Brief – Foreign Service Group 45
5.2 Internal Relativity
Measures of internal cumulative wage growth are complicated by the fact that no internal groups in the CPA are directly comparable to FS employees. To address this issue, an examination of internal mobility has been conducted below to establish which employees typically move into and exit the FS occupational group. The results of this assessment are provided in Tables 5 and 6. The results show that the occupational groups that FS employees typically leave to and enter into are the Administrative Services (AS), Commerce (CO), Economics and Social Services (EC) and Program Administration (PM) groups.
Though it is acknowledged that the overall roles and responsibilities of the employee groups identified vary to that of employees in the FS group, in the absence of any direct comparators, it would be reasonable to consider these groups as adequate benchmarks for this comparison.
Table 5: FS Internal Hirings 1 over the last 5 FY Total internal % of total internal Occupational Group Fiscal Year hirings over the last hirings over the last hired from 2 5 FY 5 FY 2007-08 2008-09 2009-10 2010-11 2011-12 - - PM 6 20 17 6 11 60 26.8% EC 3 2 14 27 10 5 58 25.9% CO 2 12 8 0 4 26 11.6% AS 1 5 14 0 3 23 10.3% Other 5 12 18 17 5 57 25.4% Total internal 16 63 84 33 28 224 100.0% hirings 1 Internal Hirings include the total number of employees (bargained and excluded active and LWOP employee types). 2 Internal hirings does not take into account rotational movement from EX to FS. EX rotational movement is not included in the internal hiring figures 3 EC occupational group includes ES and SI employes prior to 2009-2010
Employer’s Conciliation Board Brief – Foreign Service Group 46
Table 6: FS Internal Separations 1 over the last 5 FY Total internal % of total internal Occupational Group Fiscal Year separations over separations over the separated to 2 the last 5 FY last 5 FY 2007-08 2008-09 2009-10 2010-11 2011-12 - - EC 3 5 9 11 2 4 31 30.1% PM 2 6 6 3 1 18 17.5% CO 7 3 4 2 0 16 15.5% AS 0 5 1 5 3 14 13.6% Other 3 1 10 8 2 24 23.3% Total internal 17 24 32 20 10 103 100.0% separations 1 Internal Separations include the total number of employees (bargained and excluded active and LWOP employee types). 2 Internal hirings does not take into account rotational movement from EX to FS. EX rotational movement is not included in the internal hiring figures 3 EC occupational group includes ES and SI employes prior to 2009-2010
Figure 4: FS Cumulative Increases vs. CPA Groups As in shown in Figure 4, cumulative increases FS AS CO EC PM CPA received by the FS group (39.1%) have far 50% outstripped the AS 40% (26.6%), CO (26.6%), EC (23.8%) and PM 30% (25.3%) groups since 20%
2000. Additionally, FS 10% cumulative increases 0% have exceeded those in 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 the CPA as a whole (27.8%) by a wide margin. The internal relativity data, coupled with the external wage growth data, shows that this group has fared extraordinarily well in the 10 year period examined.
Employer’s Conciliation Board Brief – Foreign Service Group 47
Table 7 below shows the relativity in pay when comparing the EX minus 1 rate of pay of the comparator groups to the EX minus 1 rate of pay for the FS group at the maximum pay step. The results show that the pay relativity that existed in 2000 between the EX minus equivalent of the FS group and the EX minus 1 equivalent level of the comparator occupational groups has improved significantly by 8.36%.
In order to maintain internal pay relativity and support internal mobility and career progression of FS employees, only modest increases to the FS group would be appropriate.
Table 7: Internal relativity at the EX minus 1 level: FS-02/03* vs. CPA ACCUMULATED DIFFERENCES DIFFERENCES DIFFERENCES 2000 2010 2000-2010 Occupational Occupational FS-02 Base Occupational FS-03 Base Group and Group Base Wage % Group Base wage % Relativity Level Wage maximum maximum difference Wage maximum maximum difference gains/losses
PM-06 $73,437 $75,423 2.63% $96,725 $104,026 7.02% 4.39% CO-03 $80,261 $75,423 -6.41% $102,975 $104,026 1.01% 7.42% AS-07 $77,632 $75,423 -2.93% $96,725 $104,026 7.02% 9.95% ES-06/EC-07 $84,006 $75,423 -11.38% $103,707 $104,026 0.31% 11.69% Average 8.36% * Due to FS conversion in 2005, the EX minus 1 designate position for the FS group changed from FS-02 to FS-03
Employer’s Conciliation Board Brief – Foreign Service Group 48
Specific Compensation for Assignments Abroad (Foreign Service Directives)
The Foreign Service Directives (FSD) are designed to provide a system of allowances, benefits and conditions of employment that, in combination with salary, will enable departments and agencies to recruit, retain and deploy qualified employees in support of government programs outside Canada. These Directives are deemed to be part of collective agreements between the parties to the National Joint Council and employees are to be afforded ready access to this policy.
The fundamental premise upon which the FSD’s are based is the recognition that employees serving abroad, to the extent that it is possible and practicable, should not be in a less favourable situation than they would be otherwise if they were serving in Canada. Regardless of where the employee is serving, the purpose is to put the employee in a comparable situation.
Employer’s Conciliation Board Brief – Foreign Service Group 49
PART IV
OTHER OUTSTANDING ISSUES
Employer’s Conciliation Board Brief – Foreign Service Group 50
ARTICLE 6 – INFORMATION
Current Agreement Employer Proposal Union Proposal
6.02 The Employer agrees to 6.02 The Employer agrees to Status quo provide each employee with a provide each employee with a copy of this Agreement. copy of this Agreement. For the purpose of satisfying the Employer’s obligation under this clause, employees may be given electronic access to the Collective Agreement.
Remarks:
The Employer proposes language which removes our obligation to provide each and every employee with a hard copy - or pocket version - of collective agreements. The fact is that we live in a technological age with electronic access provided to all employees. Research has indicated that the majority of end users prefer an electronic version of the collective agreement over the printed copy. This allows the employee to print out only the sections that are of interest; only the articles that have been amended, or finally, only in their preferred language. The Employer submits that this proposal is in line with several other groups and aims at modernizing the way the government is doing business. Eight groups in total already have this language in their collective agreement (NR, AI, AV, FI, SH, PR(NS), EC, TR and SR-C) and the employer has proposed it during bargaining for all remaining groups except those that reached agreement during “exploratory discussions” due to the cap placed on items each side could discuss during the session. The proposed language causes no detriment to the Bargaining Agent as employees wishing to receive a printed copy would still be able to do so upon request. An electronic agreement sends a positive message in Government that Bargaining Agents and the Employer alike are promoting a green environment. The Employer asks that the Public Interest Commission include this proposal in its report
Employer’s Conciliation Board Brief – Foreign Service Group 51
ARTICLE 9 – EMPLOYEE PERFORMANCE REVIEW
Current Agreement Employer Proposal Union Proposal 9.03 9.03 a. At the beginning of an employee's assignment and annually thereafter, the manager in consultation with the employee, will establish the employee's objectives for the year. b. If during an b. If during an employee's Status quo employee's assignment a assignment a concern concern arises with respect arises with respect to the to the employee's employee's performance, performance, the Employer the Employer will bring will bring those concerns to those concerns to the the attention of the attention of the employee in employee in a timely a timely manner. Except in manner. Except in cases of cases where there is of adverse impact on adverse impact to the Canadian's interests abroad, operations of the mission, the employee shall be given on Canadian's interests a reasonable opportunity to abroad, the employee shall bring the performance up to be given a reasonable the performance standard. opportunity to bring the performance up to the performance standard.
(New) 9.06 Prior to demoting or releasing an employee for poor work performance, the employer will ensure: - it has acted in good faith; - it has set appropriate standards of performance which were clearly communicated to the employee; - it has given the employee the necessary tools, training, and mentoring
Employer’s Conciliation Board Brief – Foreign Service Group 52 Current Agreement Employer Proposal Union Proposal to achieve the set standards in a reasonable period of time; - it has warned the employee in writing that failure to meet the set standards by a reasonably set date would lead to demotion or his/her termination of employment; and the employee failed to meet these standards; - it has made reasonable efforts to find alternative employment within the competence of the employee prior to demoting or releasing the employee for poor work performance.
Remarks:
By adding the words "to the operations of the mission", the Employer seeks greater clarification as to that which is an adverse impact while working abroad. It was felt that the current language is too vague and not necessarily measurable. The proposed language offers greater flexibility for mission management when there is a realization that the assignment is not a good fit, or when there are unexpected circumstances that prevent the employee from meeting the expectations of the job package. An employee’s behaviour could have an impact on the function of a mission, but it would be much more difficult to assess the impact on Canadian interest abroad.
With a new paragraph 9.06, the Bargaining Agent is requesting the inclusion of principles already set out in the Employer’s Guidelines for termination or demotion for unsatisfactory performance and recently confirmed in jurisprudence: Plamondon v. Deputy Head (Department of Foreign Affairs and International Trade) - 2011 PSLRB 90; Mazerolle v. Deputy Head (Citizenship and Immigration) - 2012 PSLRB 6 . Copies of these guidelines and the decisions are attached as Appendix I. The purpose of collective agreements is to set out terms and conditions of employment and to establish an orderly bargaining relationship. It should not be used as a vehicle to educate employees on already existing Employer Guidelines, Directives or Policies.
Employer’s Conciliation Board Brief – Foreign Service Group 53 The Employer submits that no other agreement contains such language and asks that the Public Interest Commission not include the Bargaining Agents proposal it in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 54
ARTICLE 12 – HOURS OF WORK
Current Agreement Employer Proposal Union Proposal
12.01 Normal Work Week 12.01 Normal Work Week Status quo
a. The normal work week (a) The normal work week shall shall be thirty-seven decimal be thirty-seven decimal five five (37.5) hours from Monday (37.5) hours from Monday to to Friday inclusive, and the Friday inclusive, and the normal normal work day shall be work day shall be seven decimal seven decimal five (7.5) five (7.5) hours, exclusive of a hours, exclusive of a lunch lunch period, between the hours period, between the hours of of 7 6 :00 a.m. and 6 7:00 p.m. 7:00 a.m. and 6:00 p.m. b. Subject to operational (b) Subject to operational requirements as determined requirements as determined from from time to time by the time to time by the Employer, an Employer, an employee shall employee shall have the right to have the right to select and select and request flexible hours request flexible hours between 7 6:00 a.m. and 6 7:00 between 7:00 a.m. and 6:00 p.m. and such request shall not p.m. and such request shall be unreasonably denied. not be unreasonably denied. (c) Notwithstanding paragraphs (a) and (b), an employee’s work week and work day may be determined by specific local employment laws or regulations at missions abroad. In such cases, the employee’s work week shall be determined by the Employer to meet the requirements of the operations of the mission. 12.03 Special Hours of Work 12.03 Special Hours of Work
a. When hours of work (a) When hours of work other other than those provided in than those provided in clause clause 12.01 are in existence 12.01 are in existence when this when this Agreement is Agreement is signed, the signed, the Employer, on Employer, on request, will request, will advise the advise the Association of such Association of such hours of hours of work. work. b. Where hours of work (b) Where hours of work which were in existence when which were in existence when this Agreement was signed this Agreement was signed are are to be changed so that to be changed so that they are they are different from those different from those specified in specified in clause 12.01, the clause 12.01, the Employer,
Employer’s Conciliation Board Brief – Foreign Service Group 55 Current Agreement Employer Proposal Union Proposal Employer, except in cases of except in cases of emergency, emergency, will consult in will consult in advance with the advance with the Association Association on such hours of on such hours of work and, in work and, in such consultation, such consultation, will will establish that they are establish that they are required to meet the needs of required to meet the needs of the public and/or the efficient the public and/or the efficient operation of the Foreign Service. operation of the Foreign Service. c. If, as a result of the (c) If, as a result of the application of paragraph (b), application of paragraph (b), an an employee's hours of work employee’s hours of work are are changed to extend before changed to extend before or or beyond the stipulated beyond the stipulated hours of 7 hours of 7:00 a.m. and 6:00 6:00 a.m. and 6 7:00 p.m. ., as p.m., as provided in clause provided in clause 12.01, and 12.01, and the employee has the employee has not received not received at least five (5) at least forty-eight (48) hours’ days notice in advance of notice in advance of such such change, he shall be paid change, he shall be paid for the for the first (1st) day worked first (1st) day worked subsequent to such change at subsequent to such change at time and one-half (1 1/2). time and one-half (1 1/2). Subsequent days worked on Subsequent days worked on the the revised hours shall be revised hours shall be paid for at paid for at straight time, straight time, subject to the subject to the overtime overtime provisions of this provisions of this Agreement. Agreement. The above notice The above notice requirement requirement does not apply does not apply when the when the change in hours of change in hours of work work results from a posting results from a posting abroad abroad or an assignment in or an assignment in Canada, Canada, pursuant to a rotational pursuant to a rotational pattern, or from temporary duty pattern, or from temporary abroad or in Canada, if posted duty abroad or in Canada, if abroad. posted abroad.
d. Employees whose work (d) Employees whose work schedules vary from seven schedules vary from seven decimal five (7.5) hours per decimal five (7.5) hours per day day and/or vary from five (5) and/or vary from five (5) days days per week shall be per week shall be subject to the subject to the Variable Hours Variable Hours of Work of Work provisions provisions established in Article established in Article 13 of 13 of this Agreement. this Agreement.
Employer’s Conciliation Board Brief – Foreign Service Group 56
Remarks:
The Employer’s proposes flexibility to vary the hours of work abroad to allow for adaptation in countries where the normal hours of business are not necessarily Monday to Friday and not between 7 a.m. to 6 p.m. As an example, in Saudi Arabia the work week is between Saturday and Wednesday. In Peru, it is customary that the Mission closes on Friday at noon. This is to meet the clients needs and ensure that services are within the normal local practices.
The Employer's proposal to amend the hours of work from 7:00 a.m. - 6:00 p.m. to 6:00 a.m. - 7:00 p.m. provides the Department with greater flexibility when communicating from Headquarters to missions abroad.
The Employer also proposes that 48 hours advance notice is sufficient.
The Employer asks that the Public Interest Commission include this proposal in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 57 ARTICLE 15 – CALL-BACK PAY
Current Agreement Employer Proposal Union Proposal
15.01 Exclusion Status quo (Delete)
An employee who receives a call 15.01 Exclusion to duty or responds to a telephone or data line call at any An employee who receives a call time outside of his or her to duty or responds to a scheduled hours of work, may, at telephone or data line call at any the discretion of the Employer, time outside of his or her work at the employee's residence scheduled hours of work, may, or at another place to which the at the discretion of the Employer, Employer agrees. In such work at the employee's instances, the employee shall be residence or at another place to paid the greater of: which the Employer agrees. In such instances, the employee shall be paid the greater of:
a. compensation at the (a) compensation at the applicable overtime rate for any applicable overtime rate for time worked, any time worked, or or
b. compensation equivalent to (b) compensation equivalent one (1) hour's pay at the to one (1) hour's pay at the straight-time rate, which shall straight -time rate, which shall apply only the first (1st) time an apply only the first (1st) time employee performs work during an employee performs work an eight (8) hour period, starting during an eight (8) hour when the employee first (1st) period, starting w hen the commences the work. employee first (1st) commences the work.
Remarks:
The Bargaining Agent wishes to remove a provision which provides more flexibility to both the Employer and the employee by allowing an employee to respond to a call without physically returning to work.
This language was introduced to recognize that today’s technology permits work to be performed in the comfort of an employee’s home or at another off-site location through the use of cell phones, pagers and home computers, rather than suffering the inconveniences involved in physically returning to the work place.
Employer’s Conciliation Board Brief – Foreign Service Group 58
The Employer firmly believes that work flowing from phone calls and data line transmissions at home should not incur the same minimum compensation as a physical return to the work place. The three-hour minimum under clause 15.02 was intended to compensate in part for the additional time and inconvenience involved in physically returning to the workplace.
On March 29, 2012, the Federal Government tabled its 2012 Budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity . As anticipated, the Budget announced cost-cutting measures and reform of the federal public service. With future funding levels unpredictable, it is important for the Board to consider the impact of the economy on funding when awarding a provision that limits the Employer’s discretion in regard to expenses and/or increased benefits.
The Employer asks that the PIC not include the Union demand in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 59 ARTICLE 16 – STANDBY
Current Agreement Employer Proposal Union Proposal
16.01 Exclusion Status quo (Delete)
An employee who is on 16.01 Exclusi on standby and receives a call to duty or is required to respond An employee who is on to telephone calls or data line standby and receives a call to calls, may at the discretion of duty or is required to respond the Employer work at the to telephone calls or data line employee's residence or at calls, may at the discretion of another place to which the the Employer work at the Employer agrees, and receive employee's residence or at compensation for time worked another place to which the in accordance with paragraph Employer agrees, and recei ve 16.05(b). In such instances, compensation for time worked the employee shall not be in accordance with paragraph entitled to compensation 16.05(b). In such instances, under subparagraph the employee shall not be 16.05(a)(ii). entitled to compensation under subparagraph 16.05(a)(ii).
16.02 When the Employer 16.02 When the Employer Status quo requires an employee to be requires an employee to be available on standby during readily available on standby off-duty hours an employee during off-duty hours an shall be compensated at the employee shall be rate of one-half (1/2) hour for compensated at the rate of each four (4) hour period or one-half (1/2) hour for each portion thereof for which he four (4) hour period or portion has been designated as being thereof for which he has been on standby duty. designated as being on standby duty.
16.03 An employee 16.03 An employee Status quo designated for standby duty designated for standby duty shall be available during his shall be available during his period of standby at a known period of standby at a known telecommunications link telecommunications link number and be able, as number and be readily able, specified by the Employer: as specified by the Employer:
a. to return for duty to a (a) to return for duty to a workplace designated by workplace designated the Employer within a by the Employer period of time specified by within a period of time the Employer, if called; specified by the or Employer, if called;
b. to respond to or telephone calls or data line
Employer’s Conciliation Board Brief – Foreign Service Group 60 Current Agreement Employer Proposal Union Proposal
calls received from (b) to respond to Employer authorized telephone calls or sources. data line calls received from Employer authorized sources.
16.05 Status quo (Delete)
b. An employee who 16.05 receives a call to duty or responds to a telephone b. An employee who or data line call while on receives a call to duty or standby or at any other responds to a telephone time outside of his or her or data line call while on scheduled hours of work, standby or at any other may at the discretion of time outside of his or her the Employer work at the scheduled hours of work, employee's residence or may at the discretion of at another place to which the Employer work at the the Employer agrees. In employee's residence or such instances, the at another place to which employee shall be paid the Employer agrees. In the greater of: such instances, the employee shall be paid i. compensation at the the greater of: applicable overtime rate for any time worked, i. compensation at the or applicable overtime rate for any time worked, ii. compensation equivalent or to one (1) hour's pay at the straight-time rate, ii. compensation which shall apply only equivalent to one (1) the first (1st) time an hour's pay at the employee performs work straight -time rate, which during an eight (8) hour shall apply only the first period, starting when the (1st) time an employ ee employee first (1st) performs work during an commences the work. eight (8) hour period, starting when the employee first (1st) commences the work.
Employer’s Conciliation Board Brief – Foreign Service Group 61
Remarks:
Articles 16.02 & 16.03
The Employer is proposing to add the words “readily” because when working abroad, it is important. Employees may be available, but if they have to travel outside the city (something that happens often when abroad), they might not be within a short period of time. If there is crisis abroad, the employee must be readily available because reaction time must be very quick.
The Employer asks that the Public Interest Commission include this proposal in its report.
Article 16.01 & 16.05
The Bargaining Agent wishes to remove a provision which provides more flexibility to both the Employer and the employee by allowing an employee to respond to a call without physically return to work.
This language was introduced to recognize that today’s technology permits work to be performed in the comfort of an employee’s home or at another off-site location through the use of cell phones, pagers and home computers, rather than suffering the inconveniences involved in physically returning to the work place.
The Employer firmly believes that work flowing from phone calls and data line transmissions at home should not incur the same minimum compensation as a physical return to the work place. The three-hour minimum under paragraph 16.05(a) was intended to compensate in part for the additional time and inconvenience involved in physically returning to the workplace.
On March 29, 2012, the Federal Government tabled its 2012 Budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity . As anticipated, the Budget announced cost-cutting measures and reform of the federal public service. With future funding levels unpredictable, it is important for the Board to consider the impact of the economy on funding when awarding a provision that limits the Employer’s discretion in regard to expenses and/or increased benefits.
The Employer asks that the PIC not include the Union proposal in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 62 ARTICLE 18 – TRAVELLING TIME
Current Agreement Employer Proposal Union Proposal
18.04 Subject to clause 18.01, if 18.04 Subject to clause 18.01, if Status quo an employee is required to travel an employee is required to travel as set forth in clauses 18.02 and as set forth in clauses 18.02 and 18.03: 18.03:
a. on a normal working day (a) on a normal working day on on which the employee which the employee travels travels but does not work, he but does not work, he shall shall receive his regular pay receive his regular pay for for the day, the day,
b. on a normal working day (b)on a normal working day on on which the employee which the employee travels travels and works, he shall be and works, he shall be paid: paid: i. his regular pay for the day i. his regular pay for the day for a combined period of for a combined period of travel and work not travel and work not exceeding his regular exceeding his regular scheduled working hours, scheduled working hours, and and ii. at the applicable overtime ii. at the applicable overtime rate for each completed rate for each completed period of fifteen (15) period of fifteen (15) minutes travelled in minutes travelled in excess of his regularly excess of his regularly scheduled hours of work scheduled hours of work and travel, to a maximum and travel, to a maximum payment of twelve (12) payment of twelve (12) hours pay at the straight- hours pay at the straight- time hourly rate of pay, time hourly rate of pay,
c. on a day of rest or on a (c) on a day of rest or on a designated paid holiday, the designated paid holiday, the employee shall be paid at the employee shall be paid at applicable overtime rate for the applicable overtime rate each completed period of for each completed period of fifteen (15) minutes travelled fifteen (15) minutes travelled to a maximum of twelve (12) to a maximum of twelve (12) hours' pay at the straight-time hours' pay at the straight- hourly rate of pay. time hourly rate of pay.
(d) for the purpose of paragraphs 18.04 (b) and (c), should a period of work and
Employer’s Conciliation Board Brief – Foreign Service Group 63 Current Agreement Employer Proposal Union Proposal travel continue into the next day, the employee’s total travel period will be deemed to have taken place on the day it started. 18.05 Subject to clause 18.01, if 18.05 Subject to clause 18.01, if an employee is required to travel an employee is required to travel outside Canada or Continental outside Canada or Continental USA as set forth in clauses 18.02 USA as set forth in and 18.03: clauses 18.02 and 18.03:
a. on a normal working day on (a) on a normal working day which the employee travels on which the employee but does not work, he shall travels but does not work, he receive his regular pay for shall receive his regular pay the day, for the day,
b. on a normal working day on (b) on a normal working day which the employee travels on which the employee and works, he shall be paid: travels and works, he shall i. his regular pay for the day be paid: for a combined period of (i) his regular pay for the travel and work not day for a combined period exceeding his regular of travel and work not scheduled working hours, exceeding his regular and scheduled working hours, ii. at the applicable overtime rate for each completed and period of fifteen (15) minutes travelled in (ii) at the applicable excess of his regularly overtime rate for each scheduled hours of work completed period of and travel, to a maximum fifteen (15) minutes payment of fifteen (15) travelled in excess of his hours pay at the straight- regularly scheduled hours time hourly rate of pay, of work and travel, to a maximum payment of twelve (12 ) hours pay at the straight-time hourly rate of pay,
c. on a day of rest or on a (c) on a day of rest or on a designated paid holiday, the designated paid holiday, the employee shall be paid at the employee shall be paid at applicable overtime rate for the applicable overtime rate each completed period of for each completed period of fifteen (15) minutes travelled fifteen (15) minutes travelled to a maximum of fifteen (15) to a maximum of twelve (12 )
Employer’s Conciliation Board Brief – Foreign Service Group 64 Current Agreement Employer Proposal Union Proposal hours' pay at the straight-time hours’ pay at the hourly rate of pay. straight-time hourly rate of pay.
18.06 Compensatory Leave 18.06 Compensatory Leave
Upon request of an employee Upon request of an employee and with the approval of the and with the approval of the Employer, compensation at the Employer, or at the request of overtime rate earned under this the Employer and the Article may be granted in concurrence of the employee, compensatory leave with pay and compensation at the overtime subject to clause 14.07 rate earned under this Article Compensatory leave. may be granted in compensatory leave with pay and subject to clause 14.07 Compensatory leave.
Remarks:
Article 18.04
By adding paragraph (d) to clause 18.04 the Employer’s intention is to clarify the current application of this provision as many interpretation requests were received. The proposed language identifies that a period of travel that begins on a day and continues to the following day, shall be considered to have taken place on the day which travel began for compensation purposes. The use of the word ‘period’ reinforces that it is viewed as such and not in relation to the hours of the day.
The introduction of such language will confirm the current application of compensation for traveling time and as such, will eliminate questions or confusion.
The Employer asks that the Public Interest Commission include this proposal in its report.
Article 18.05
The proposed amendments 18.05 (b) ii) and (c) align language found in other collective agreements such as : AO, RO, SR-C, SR-E, SR-W.
Article 18.06
Finally, the Employer proposes that determination of the form of payment for overtime earned under this article, whether cash or compensatory leave, be extended to the manager, with the concurrence of the employee rather than
Employer’s Conciliation Board Brief – Foreign Service Group 65 solely at the request of the employee. The current language provides for payment in cash, unless the employee requests equivalent compensatory leave and the manager agrees to this request.
The discretion sought would permit the Employer to more effectively carry out its functions, allowing the manager to adapt to high and low periods of activity. In some instances, it may be more financially prudent to provide compensatory leave while in other situations, payment in cash may be more appropriate.
The Employer asks that the Public Interest Commission include this proposal in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 66 ARTICLE 20 – SEVERANCE PAY
Current Agreement Employer Proposal Union Proposal
20.01 When calculating 20.01 When calculating Status quo entitlements under this Article, entitlements under this Article, the the weekly rate of pay referred weekly rate of pay referred to in this to in this Article shall be the Article shall be the weekly rate of weekly rate of pay to which pay to which the employee is the employee is entitled for his entitled for his classification. classification.
20.02 Under the following Effective date of signing , circumstances and subject to paragraphs 20.02 (c) and (d) are clause 20.03 an employee deleted from the collective shall receive severance agreement. entitlements calculated on the basis of his weekly rate of 20.02 Under the following pay: circumstances and subject to clause 20.03 an employee shall a. On first lay-off, two (2) receive severance entitlements weeks' pay for the first calculated on the basis of his year of continuous weekly rate of pay: employment and one (1) week's pay for each (a) On first lay-off, for the first additional complete year complete year of continuous of continuous employment, two (2) weeks’ employment, and in the pay, or three (3) weeks’ pay for case of a partial year of employees with ten (10) or more continuous employment, and less than twenty (20) years one (1) week's pay of continuous employment, or multiplied by the number four (4) weeks’ pay for of days of continuous employees with twenty (20) or employment divided by more years of continuous three hundred and sixty- employment, plus one (1) five (365). week’s pay for each additional complete year of continuous employment, and in the case of a partial year of continuous employment, one (1) week’s pay multiplied by the number of days of continuous employment divided by three hundred and sixty-five (365).
b. On second or (b) On second or subsequent subsequent lay-off, one lay-off, one (1) week’s pay for (1) week's pay for each each complete year of complete year of continuous employment, and in continuous employment, the case of a partial year of and in the case of a partial continuous employment, one (1) year of continuous week’s pay multiplied by the employment, one (1) number of days of continuous week's pay multiplied by employment divided by three
Employer’s Conciliation Board Brief – Foreign Service Group 67 Current Agreement Employer Proposal Union Proposal the number of days of hundred and sixty-five (365), continuous employment less any period in respect of divided by three hundred which the employee was and sixty-five (365), less granted severance pay under (a) any period in respect of above. which the employee was granted severance pay under (a) above.
c. On resignation, subject to (c) On resignation, subject to paragraph 20.02(d) and paragraph 20.02(d) and with with ten (10) or more ten (10) or more years of years of continuous continuous employment, employment, one-half one-half (1/2) week’s pay for (1/2) week's pay for each each complete year of complete year of continuous employment with a continuous employment maximum entitlement of with a maximum thirteen (13) weeks. entitlement of thirteen (13) weeks. d. On retirement, when (d) On retirement, when an an employee is entitled to employee is entitled to an an immediate annuity immediate annuity under the under the Public Service Public Service Superannuation Superannuation Act or Act or when the employee is when the employee is entitled to an immediate annual entitled to an immediate allowance, under the Public annual allowance, under Service Superannuation Act , the Public Service one (1) week’s pay for each Superannuation Act , one complete year of continuous (1) week's pay for each employment and, in the case of complete year of a partial year of continuous continuous employment employment, one (1) week’s pay and, in the case of a multiplied by the number of days partial year of continuous of continuous employment employment, one (1) divided by three hundred and week's pay multiplied by sixty-five (365), with a maximum the number of days of benefit of thirty (30) weeks. continuous employment divided by three hundred and sixty-five (365), with a maximum benefit of thirty (30) weeks. e. If an employee dies, (e) If an employee dies, there shall there shall be paid to his be paid to his estate, one (1) estate, one (1) week's pay week’s pay for each year of for each year of continuous employment and, in continuous employment the case of a partial year of and, in the case of a continuous employment, one (1) partial year of continuous week’s pay multiplied by the
Employer’s Conciliation Board Brief – Foreign Service Group 68 Current Agreement Employer Proposal Union Proposal employment, one (1) number of days of continuous week's pay multiplied by employment divided by three the number of days of hundred and sixty-five (365), to continuous employment a maximum of thirty (30) weeks, divided by three hundred regardless of any other and sixty-five (365), to a entitlements payable. maximum of thirty (30) weeks, regardless of any other entitlements payable. f. When an employee has (f) When an employee has completed more than one completed more than one (1) (1) year of continuous year of continuous employment employment and ceases and ceases to be employed by to be employed by reason reason of termination for cause of termination for cause for reasons of incapacity or for reasons of incapacity when an employee has or when an employee has completed more than ten (10) completed more than ten years of continuous employment (10) years of continuous and ceases to be employed by employment and ceases reason of termination for cause to be employed by reason for reasons of incompetence, of termination for cause pursuant to section 12(l)(d) or for reasons of (e) of the Financial incompetence, pursuant to Administration Act , one (1) week section 12(l)(d) or (e) of of pay for each complete year of the Financial continuous employment with a Administration Act , one (1) maximum benefit of week of pay for each twenty-eight (28) weeks. complete year of continuous employment with a maximum benefit of twenty-eight (28) weeks.
g. On rejection on (g) On rejection on probation, when probation, when an an employee has completed employee has completed more than one (1) year of more than one (1) year of continuous employment and continuous employment ceases to be employed, one (1) and ceases to be week’s pay for each complete employed, one (1) week's year of continuous employment pay for each complete with a maximum benefit of year of continuous twenty-seven (27) week’s pay employment with a and, in the case of a partial year maximum benefit of of continuous employment, twenty-seven (27) week's one (1) week’s pay multiplied by pay and, in the case of a the number of days of partial year of continuous continuous employment divided employment, one (1) by three hundred and sixty-five week's pay multiplied by (365). the number of days of continuous employment
Employer’s Conciliation Board Brief – Foreign Service Group 69 Current Agreement Employer Proposal Union Proposal divided by three hundred and sixty-five (365).
20.03 The period of 20.03 The period of continuous continuous employment used employment used in the calculation in the calculation of severance of severance entitlements payable entitlements payable to an to an employee under this Article employee under this Article shall be reduced by any period of shall be reduced by any continuous employment in respect period of continuous of which he was already granted employment in respect of any type of termination benefit by which he was already granted the public service, a Federal Crown any type of termination benefit Corporation, the Canadian Forces by the public service, a or the Royal Canadian Mounted Federal Crown Corporation, Police. Under no circumstances the Canadian Forces or the shall the maximum severance pay Royal Canadian Mounted provided under this article be Police. Under no pyramided. circumstances shall the maximum severance pay provided under clause 20.02 be pyramided.
For greater certainty, payments made pursuant to 20.05 to 20.08 or similar provisions in other collective agreements shall be considered as a termination benefit for the administration of 20.03.
20.04 Appointment To A Separate Agency
An employee who resigns to accept an appointment with an organization listed in Schedule V of the Financial Administration Act shall be paid all severance payments resulting from the application of 20.02 (c) (prior to date of signing) or 20.05 – 20.08 (commencing on date of signing).
20.05 Severance Termination
(a) Subject to 20.03 above, indeterminate employees on date of signing shall be entitled to severance termination benefits equal to
Employer’s Conciliation Board Brief – Foreign Service Group 70 Current Agreement Employer Proposal Union Proposal one (1) week’s pay for each complete year of continuous employment and, in the case of a partial year of continuous employment, one (1) week’s pay multiplied by the number of days of continuous employment divided by three hundred and sixty-five (365), to a maximum of thirty (30) weeks.
(b) Subject to 20.03 above, term employees on date of signing shall be entitled to severance termination benefits equal to one (1) week’s pay for each complete year of continuous employment, to a maximum of thirty (30) weeks.
Terms of Payment
20.06 Options
The amount to which an employee is entitled shall be paid, at the employee’s discretion, either:
(a) as a single payment at the rate of pay of the employee’s substantive position as of date of signing, or
(b) as a single payment at the time of the employee’s termination of employment from the core public administration, based on the rate of pay of the employee’s substantive position at the date of termination of employment from the core public administration, or
(c) as a combination of (a) and (b), pursuant to 20.07 (c).
20.07 Selection of Option
(a) The Employer will advise the employee of his or her years of continuous employment no
Employer’s Conciliation Board Brief – Foreign Service Group 71 Current Agreement Employer Proposal Union Proposal later than three (3) months following the official date of signing of the collective agreement.
(b) The employee shall advise the Employer of the term of payment option selected within six (6) months from the official date of signing of the collective agreement.
(c) The employee who opts for the option described in 20.06 (c) must specify the number of complete weeks to be paid out pursuant to 20.06 (a) and the remainder shall be paid out pursuant to 20.06 (b).
(d) An employee who does not make a selection under 20.07 (b) will be deemed to have chosen option 20.06 (b).
20.08 Appointment from a Different Bargaining Unit
This clause applies in a situation where an employee is appointed into a position in the FS bargaining unit from a position outside the FS bargaining unit where, at the date of appointment, provisions similar to those in 20.02 (c) and (d) are still in force, unless the appointment is only on an acting basis.
(a) Subject to 20.03 above, on the date an indeterminate employee becomes subject to this Agreement after date of signing, he or she shall be entitled to severance termination benefits equal to one (1) week’s pay for each complete year of continuous employment and, in the case of a partial year of continuous employment, one (1) week’s pay multiplied by the number
Employer’s Conciliation Board Brief – Foreign Service Group 72 Current Agreement Employer Proposal Union Proposal of days of continuous employment divided by three hundred and sixty-five (365), to a maximum of thirty (30) weeks, based on the employee’s rate of pay of his substantive position on the day preceding the appointment.
(b) Subject to 20.03 above, on the date a term employee becomes subject to this Agreement after date of signing, he or she shall be entitled to severance termination benefits equal to one (1) week’s pay for each complete year of continuous employment, to a maximum of thirty (30) weeks, based on the employee’s rate of pay of his substantive position on the day preceding the appointment.
(c) An employee entitled to severance termination benefits under paragraph (a) or (b) shall have the same choice of options outlined in 20.06, however the selection of which option must be made within three (3) months of being appointed to the bargaining unit.
(d) An employee who does not make a selection under 20.08 (c) will be deemed to have chosen option 20.06 (b).
Remarks:
The Employer proposes to delete severance pay provisions for voluntary resignation and retirement and offers a severance termination pay-out.
Employer’s Conciliation Board Brief – Foreign Service Group 73 This is in line with the Federal Government budget, Economic Action Plan 2012 – A Plan for Jobs, Growth and Long-Term Prosperity 6 , and is no different than implementing other provisions that Parliament has provided such as the Compassionate Care benefits and increases to the maternity and parental provisions ( Employment Insurance Act).
Eliminating the accumulation of severance benefits for voluntary resignation and retirement will bring federal public compensation in line with that of other public and private sector employers, such, as the Ontario Provincial Government and those subject to the Canada Labour Code .
The goal of the Public Interest Commission board is to replicate the results, as closely as possible, which would have been achieved had the parties negotiated a settlement and must base the award on objective factors, such as the terms and conditions of employment freely negotiated within the relevant community and the economic situation.
For this round of bargaining, nine (9) new collective agreements have been ratified, all of which have accepted the elimination of severance benefits for voluntary separation, namely for retirement or resignation. This means that more than 100,000 unionized employees in the Core Public Administration have accepted the elimination of severance benefits for voluntary separation. The Treasury Board subsequently eliminated severance benefits for voluntary separation for approximately 13,000 executives and non-represented employees for a total of approximately 115,700 employees in the core public administration. Further, this benefit has been eliminated for the Canadian Forces and RCMP members. A pie chart illustrating these results is attached to this Brief as Appendix J.
Of those 115,700 employees, 83,000 employees (71.73%) have opted for an immediate single payment of their entitlement. As of February 2012, more than 90,000 payments have been processed for employees who have opted for an immediate single or partial severance payment.
The Employer’s proposes the following:
Severance pay for retirement or resignation will cease to accumulate for employees on date of signing of the collective agreement.
Severance pay continues to accumulate for reasons of death, lay-off, or termination for reasons of incapacity or incompetence. The Employer also proposes to enhance severance pay for Lay-off reasons.
7 “ The Government is also taking specific action to bring federal public service compensation in line with that of other public and private sector employers. This includes eliminating the accumulation of severance benefits for voluntary resignation and retirement, which to date has been eliminated for about 230,000 unionized and non-unionized federal government employees, including members of the Royal Canadian Mounted Police, the Canadian Forces and all executives in the core public administration. Other federal public sector employers are pursuing similar approaches .”
Employer’s Conciliation Board Brief – Foreign Service Group 74 Under the severance termination proposal employees will have the option of immediately cashing out the severance accumulated, or keep the accumulated severance and have it paid out at termination of employment, or immediately cash out part of the accumulated severance and keep the balance to be paid out at termination of employment.
Indeterminate employees and term employees will be entitled to a severance payment.
The Employer asks that the Public Interest Commission include this proposal in its report.
Comparison on Severance benefit provision
Under the Current Severance Provision Proposal on Severance Provision
Indeterminate employees with less than ten Indeterminate employees will have access to (10) years of continuous employment are not severance Pay, in proportion to their years of entitled to Severance Pay other than in continuous employment. circumstances of retirement with an immediate Indeterminate employees with less than one annuity. year of continuous employment are entitled to Employees who resign before reaching 10 a pro-rated week for their partial year of years of continuous employment are not continuous employment. entitled to a severance pay. For example, with the current provision, an indeterminate employee who has 9 years of continuous employment and resigns is not entitled to severance pay. Under the Employer’s proposal for severance termination, that employee who is earning $50,000 per year would be entitled to an immediate single payment of $8,625.
Under the current provision, an indeterminate employee with 20 years of continuous employment earning $55,000 per year who resigns is entitled to 10 weeks severance pay ($10,540). Under the Employer’s proposal for severance termination, the employee would now be entitled to 20 weeks, or $21,080.
Currently, employees who resign with less Indeterminate and term employees with at than 10 years of continuous employment least one year of continuous employment will receive no severance at all. receive a severance payment equal to one (1) week's pay at their substantive pay rate for If they resign with 10 years or more, they each complete year of continuous receive half (½) week's pay for each year of employment. continuous employment to a maximum of 13 weeks' pay. For indeterminate employees with 10 years or more of continuous employment who would
Employer’s Conciliation Board Brief – Foreign Service Group 75 Under the Current Severance Provision Proposal on Severance Provision
have resigned before retirement, this represents a doubling of their accumulated entitlement.
Term employees are not eligible to receive Term employees who have completed one full severance pay when their terms come to an year of continuous employment will be eligible end. for payment in lieu of severance under the severance termination provision.
Severance pay provisions for Lay-off are enhanced:
Employees with over 10 years of employment will get an additional week's pay of severance in the event of lay-off; Employees with over 20 years of employment will get two additional week's pay of severance on lay-off.
Severance payments taken under the service termination proposal do not reduce the calculation of service for persons who have not yet left the public service. What this means is that vacation leave entitlements will not be affected.
Employer’s Conciliation Board Brief – Foreign Service Group 76 ARTICLE 22 – VACATION LEAVE
Current Agreement Employer Proposal Union Proposal
22.03 For the purpose of clauses 22.03 For the purpose of Status quo 22.02 and 22.16 only, all service clauses 22.02 and 22.16 only, within the public service, whether all service within the public continuous or discontinuous, shall service, whether continuous or count toward vacation leave except discontinuous, shall count where a person who, on leaving the toward vacation leave except public service, takes or has taken where a person who, on leaving severance pay. However, the the public service, takes or has above exception shall not apply to taken severance pay. However, an employee who receives the above exception shall not severance pay on lay-off and is apply to an employee who reappointed to the public service receives severance pay on within one year following the date lay-off and is reappointed to the of lay-off. public service within one year following the date of lay-off. For greater certainty, severance termination benefits taken under clauses 20.05 to 20.08, or similar provisions in other collective agreements, do not reduce the calculation of service for employees who have not left the public service .
Remarks:
The proposed change of language should be considered in conjunction with the Employer’s proposal to eliminate severance for voluntary departures.
The introduction of such language will confirm the current application and as such, will eliminate questions and confusion during implementation.
The proposed language is also identical to the amended “severance language” contained in agreements where severance accumulation for voluntary departure has been eliminated.
The Employer asks that the Public Interest Commission include this proposal in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 77 ARTICLE 28 – LEAVE WITH PAY FOR FAMILY-RELATED RESPONSIBILITIES
Current Agreement Employer Proposal Union Proposal 28.03 Subject to clause 28.02, Status quo 28.03 Subject to clause 28.02, an an employee shall be granted employee shall be granted leave leave with pay under the with pay under the following following circumstances: circumstances: a. to take a family member (a) to take a family member for for medical or dental medical or dental appointments, appointments, or for or for appointments with school appointments with school authorities or adoption agencies, authorities or adoption if the supervisor was notified of agencies, if the supervisor the appointment as far in was notified of the advance as possible; appointment as far in advance as possible; b. to provide for the (b) to provide for the immediate immediate and temporary and temporary care of a sick care of a sick member of member of his family and to his family and to provide provide him with time to make him with time to make alternative care arrangements alternative care where the illness is of a longer arrangements where the duration; illness is of a longer duration; c. to provide for the (c) to provide for the immediate immediate and temporary and temporary care of an elderly care of an elderly member member of his family; of his family; d. for needs directly related (d) for needs directly related to to the birth or to the the birth or to the adoption of his adoption of his child, child, which may be divided into which may be divided into two (2) periods and granted on two (2) periods and separate days. granted on separate days.
(e) seven decimal five (7.5) hours out of the thirty-seven decimal five (37.5) hours stipulated in clause 28.02 above may be used: (i) to attend school functions, if the supervisory was notified of the functions as
Employer’s Conciliation Board Brief – Foreign Service Group 78 Current Agreement Employer Proposal Union Proposal far in advance as possible; (ii)to provide for the employee’s child in the case of an unforeseeable closure of the school or daycare facility; (iii) to attend an appointment with a legal or paralegal representative for non- employment related matters, or with a financial or other professional representative, if the supervisor was notified of the appointment as fair in advance as possible.
Remarks: The Union is proposing language that was negotiated by the employer and other unions in recent settlements. This clause is tied to the severance pay proposal. Should the Union agree to the removal of severance pay for voluntary separations, the employer might agree to this demand from the Union.
Employer’s Conciliation Board Brief – Foreign Service Group 79 ARTICLE 31 – BEREAVEMENT LEAVE WITH PAY
Current Agreement Employer Proposal Union Proposal
31.01 For the purpose of this Status quo 31.01 For the purpose of this Article, immediate family is Article, immediate family is defined as father, mother, (or defined as father, mother, (or alternatively stepfather, alternatively stepfather, stepmother, or foster parent), stepmother, or foster parent), brother, sister, spouse (including brother, sister, spouse (including common-law partner), child common-law partner), child (including child of common-law (including child of common-law partner), stepchild or ward of the partner), stepchild or ward of the employee, grandchild, grand- employee, grandchild, grand- parent, father-in-law, mother-in- parent, father-in-law, mother-in- law and relative permanently law and relative permanently residing in the employee's residing in the employee's household or with whom the household or with whom the employee permanently resides. employee permanently resides.
a. When a member of his (a) When a member of his immediate family dies, an immediate family dies, an employee shall be entitled to employee shall be entitled to a a bereavement period of five bereavement period of five (5) (5) consecutive calendar seven (7) consecutive days. Such bereavement calendar days. Such period, as determined by the bereavement period, as employee, must include the determined by the employee, day of the memorial must include the day of the commemorating the memorial commemorating the deceased or must begin deceased or must begin within within two (2) days following two (2) days following the the death. During such death. During such period he period he shall be paid for shall be paid for those days those days which are not which are not regularly regularly scheduled days of scheduled days of rest for rest for him. In addition, he him. In addition, he may be may be granted up to three granted up to three (3) days' (3) days' leave with pay for leave with pay for the purpose the purpose of travel related of travel related to the death. to the death.
Remarks:
The Union is proposing language that was negotiated by the employer and other unions in recent settlements. This clause is tied to the severance pay proposal.
Employer’s Conciliation Board Brief – Foreign Service Group 80 Should the Union agree to the removal of severance pay for voluntary separations, the employer might agree to this demand from the Union.
Employer’s Conciliation Board Brief – Foreign Service Group 81 ARTICLE 48 – TERM OF AGREEMENT
Collective Agreement Employer Proposal Union Proposal
48.01 The duration of this 48.01 The duration of this Agreement shall be from the Agreement shall be from the date it is signed to June 30, date it is signed to June 30, 2011. 2011 .14.
Remarks:
The Employer recommends a three-year duration, noting that every single agreement that has been negotiated or gone to arbitration has resulted in an expiry date in 2014/15.
Therefore, the Employer asks that the PIC include a three year duration in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 82 ARTICLE 51 – MATERNITY RELATED REASSIGNMENT OR LEAVE
Collective Agreement Employer Proposal Union Proposal 51.03 An employee who has Status quo 51.03 An employee who has made made a request under clause a request under clause 51.01 is 51.01 is entitled to continue in entitled to continue in her current her current job while the job while the Employer examines Employer examines her request, her request, but, if the risk posed but, if the risk posed by by continuing any of her job continuing any of her job functions so requires, she is functions so requires, she is entitled to be immediately entitled to be immediately assigned alternative duties until assigned alternative duties until such time as the Employer: such time as the Employer:
a. modifies her job functions (a) modifies her job functions or or reassigns her, reassigns her, or or b. informs her in writing that (b) informs her in writing that it is it is not reasonably not reasonably practicable to practicable to modify her job modify her job functions or functions or reassign her. reassign her. The employee will continue to receive her regular pay and benefits pending a decision and for the duration of her job modification, reassignment, deployment or transfer.
Remarks:
The Bargaining Agent proposes to include wording which was contained in a previous Employer policy that was rescinded in July 19, 2010.
The rescinded policy is attached as Appendix I.
In that policy the following was included under Employee Status:
Status of employee
An employee making such a request is to be immediately assigned alternative duties until such time as the manager modifies her job functions, reassigns her, or informs her in writing that it is not reasonably practicable to do so. The employee will continue to receive her regular pay and benefits pending a decision and for the duration of her job modification, reassignment, deployment or transfer.
Employer’s Conciliation Board Brief – Foreign Service Group 83 Should accommodation not be reasonably practicable or should the pregnant or nursing employee refuse such accommodation, the employee may be required to take leave without pay in addition to other leaves provided for in her collective agreement or in Treasury Board policies. The policy requirement indicated that this “can be accomplished by means of a modification of job functions, an assignment, a deployment or a transfer. In the case of deployments and transfers, the employing department must have another position available and must comply with the staffing requirements of the Public Service Commission.”
As assignments, transfers and deployments are at level, there was no need to include language in regards to the continuation of regular pay and benefits.
All mechanisms that deal with staffing in the Public Service are guided by the he Public Service Employment Act (PSEA) and the policies and guidelines that flow from it.
Staffing matters are prohibited from inclusion in the collective agreement due to wording contained in Section 113 b) of the Public Service Labour Relations Act (PSLRA).
Finally, the language currently contained in Article 51 is consistent with that of all other collective agreements.
Employer’s Conciliation Board Brief – Foreign Service Group 84 NEW XX – FSDP TRAINING
Collective Agreement Employer Proposal Union Proposal (New) FSDP Training
The employer agrees that successful competition of the FSDP or equivalent training (e.g. Learning Roadmap for new Political\Economic and Trade FS officers) will be a condition of employment for appointment to the FS2 level or higher levels of the FS group.
Length of Program
The FSD program will be for an 18- month period with graduation conditional upon satisfactory performance assessments.
Consultation
The departments agree to consult with the bargaining agent whenever they propose changes to the FSDP program that is in place when this agreement is signed.
Continuous Service / Employment
Employees who have successfully completed the official language training requirement prior to being appointed to the FS group, may count time spent on official language training as continuous service for the purpose of vacation leave credits an severance pay and may buy back pensionable service covering the period of tem spent on language training.
Remarks:
The Foreign Service Development Program is a Departmental program with its own policies, guidelines and directives. The FSDP has and continues to be a successful program. The Department which administers this program has always meaningfully consulted PAFSO and other bargaining agents on all its HR policies, guidelines and
Employer’s Conciliation Board Brief – Foreign Service Group 85 directives. The Employer asks that the Public Interest Commission not include this proposal in its report.
In regards to the unions proposal regarding continuous service, new recruits entering the FSDP whose proficiency in either of Canada's official language is not sufficient will receive official language training on "ab initio status" . During this period, participants are not employees of the federal government but instead receive a stipend of 80% of the starting salary for the training period. If they cannot achieve the required proficiency within the 52 weeks allotted, they will not receive an offer of employment into the Federal Government.
The matter of continuous service, this has been dealt with at the Federal Court, therefore the Employer strongly recommends that the Public Interest Commission not include this is its report.
Most importantly, the FSDP is a staffing process setting out qualifications and appointment mechanisms. Staffing matters are prohibited from inclusion in the collective agreement due to wording contained in Section 113 b) of the Public Service Labour Relations Act (PSLRA).
Employer’s Conciliation Board Brief – Foreign Service Group 86 NEW XX – MATERNITY AND/OR PATERNITY LEAVE WITHOUT PAY POLICY FOR LEAVE TAKEN ABROAD
Current Agreement Employer Proposal Union Proposal
New The employer agrees that the policy on maternity and/or paternity leave abroad effective on the date this agreement is signed will remain in effect for the duration of the collective agreement.
Remarks:
In the Bargaining Agents submission to the PSLRB (Annex D) they indicate that they propose that DFAIT’s policy on Maternity and Parental Leave without Pay Policy For Leave Taken Abroad be incorporated into the collective agreement, however the proposal submitted to the Employer and discussed during negotiations (as referenced under New Articles in their proposals submitted to the PSLRB) was solely to receive DFAIT confirmation that the current policy will remain in effect for the duration of the collective agreement.
The Employer would like to state that DFAIT (who administers all assignments abroad) and is the owner of this policy, has always consulted PAFSO and other bargaining agents on all its HR policies, guidelines and directives.
The Employer asks that the PIC not include this proposal in its report.
Employer’s Conciliation Board Brief – Foreign Service Group 87 NEW APPENDIX – TELEWORK POLICY
Union Proposal Preamble The Treasury Board, as Employer of the Public Service, is committed to providing policies and provisions designed to help employees balance their work, personal, and family responsibilities. In keeping with our goal of being a workplace of choice, this policy will assist in meeting both business and sustainable development objectives while satisfying the growing needs of employees to improve their overall quality of life. Changes are occurring in the Public Service workforce with a shift towards more knowledge workers, as well as changes to traditional family structures, employees’ expectations of work, and the definition of career aspirations and job satisfaction. Flexibility in the workplace to accommodate work, personal and family needs can result in benefits to organizations such as: a competitive edge for attracting and retaining highly skilled individuals; reduced levels of employee stress and conflict; higher levels of productivity and reduced absenteeism; higher levels of employee satisfaction and motivation; a more satisfying work environment; ability to accommodate employment related needs for employment equity designated group members. The impact of flexible work arrangements can also reach beyond the benefits derived by the organization and contribute to the development of a sustainable society. For example, opportunities for reducing traffic congestion and air pollution and for supporting regional economic development can be realized at the same time the employer’s objectives are met. Both managers and employees are responsible to ensure that operational needs of the organization are met and that neither productivity nor costs are negatively impacted by the application of this policy. Policy Objective To allow employees to work at alternative locations, thereby achieving a better balance between their work and personal lives, while continuing to contribute to the attainment of organizational goals. Policy Statement
Employer’s Conciliation Board Brief – Foreign Service Group 88 The employer recognizes the opportunities that a flexible working arrangement such as the telework option can present, and encourages departments to implement telework arrangements where it is economically and operationally feasible to do so, and in a fair, equitable and transparent manner. Application This policy applies to the departments and agencies listed under Schedule 1, Part 1 of the Public Service Staff Relations Act. Definitions Telework : a flexible work arrangement whereby employees have approval to carry out some or all of their work duties from a telework place Designed workplace : the employee’s designated workplace or business address where the employee would work if there were no telework situation Telework place : the alternative location where the employee is permitted to carry out the work otherwise performed at or from their designated workplace. Policy requirements The approval of each telework situation shall be made on a case-by-case basis at the discretion of management. Departments are encouraged to clarify and publicize their approval criteria for telework requests. Participation in telework is voluntary, that is no employees shall be required to telework. Prior to approving requests from employees to telework, whether for some or all of the regular workweek, managers shall ensure that the following conditions apply: the nature of the work to be performed at the teleworkplace is operationally feasible; the overall quality and quantity of work carried out in the designated workplace shall be sustained by the teleworkers in the telework place; the work done at the telework place should be cost effective. Certain up- front costs are permissible, provided they can be recouped over a reasonable period; the terms and conditions of employment, provisions of relevant collective agreements and the application of existing policies and legislation will continue to apply in telework situations; official language requirements and service to the public are not compromised by the telework arrangements; the details of the telework arrangement must be discussed and agreed upon between the employee participating in the telework situation and the supervisor and at the request of either party these details will be put in
Employer’s Conciliation Board Brief – Foreign Service Group 89 writing. These details must as a minimum include: the voluntary nature of the arrangement; the duration of the arrangement; the specific days the employee will telework; hours of work; whether the arrangement will be regular or episodic; the telework location; work objectives and expected results; issues of liability (personal and equipment); responsibility for costs associated with telework (utilities and insurance); safety and health responsibilities; impact on colleagues; and the requirement to adhere to all aspects of government policies, rules and regulations; A telework arrangement can be terminated at anytime, with reasonable notice by either party. Once requests are approved, the manager should ensure employees who will be teleworking and their colleagues understand the impacts and practical considerations of the telework situation. Equipment and electronic network requirements for any telework arrangement shall be decided upon on a case by case basis and an agreement reached between the employer and the employee prior to undertaking a telework situation. Where the employer provides the equipment, the employer will assume the responsibility for normal maintenance and repair; If, the employee requests to telework using his/her own equipment, then he/she is responsible for the maintenance and repair unless otherwise agreed to by the employer. Employees who participate in telework are responsible for: The costs of maintaining the telework place (such as insurance, heat, and hydro) Ensuring that a telework arrangement is in accordance with the municipal zoning regultions and in accordance with the employee’s residential ease, if applicable; Adequately equipping the telework place from a safety and health point of view; Respecting the terms and conditions of employment, relevant collective agreements, legislation and Treasury Board and departmental policies, at the telework place; and Using supplies, equipment and electronic networks belonging to the employer only for the purposes of carrying out the employer’s work unless otherwise authorized by the deputy head. Departments shall encourage employees to consult their bargaining agent before undertaking a telework arrangement. Employees shall be encouraged to share the details of the arrangement with their bargaining agent. Accountability and Monitoring
Employer’s Conciliation Board Brief – Foreign Service Group 90 In order to create and sustain a work environment that promotes and encourages work-life balance there is a requirement for deputy heads to implement effective and efficient human resource practices such as accommodating telework request, where it is economical and operationally feasible to do so. Departments must periodically evaluate the implementation of this policy to ensure it contributes to the well-being of their organizations and be able to demonstrate that teleworking arrangements comply with the conditions outlined in this policy. Treasury Board may undertake to monitor the effectiveness of this policy by measuring is use, benefits to organizations and adherence to the policy requirements.
Remarks:
The union seeks to incorporate the Employer’s Telework Policy in its entirety into the collective agreement.
In this policy the Employer recognizes the advantages of a system of flexible work such as telework, and invites departments to implement telework plans when they are cost effective and achievable operational plan, in a fair, equitable and transparent manner.
During negotiations the Bargaining Agent did not raise a concern with the Employers application of its own policy, instead proposed the inclusion of this policy into the collective agreement solely due to their concern that it may be eliminated in the future.
It is important to mention that in 2002, the Association of financial managers in the public service representing the FI group had requested, in arbitration, that an article on telework be included in the collective agreement. More recently the Canadian Association of Professional Employees (CAPE) made a similar demand with respect to the TR group at arbitration. In both cases the Arbitration Board did not include the demand in the arbitration awards.
No other collective agreement in the CPA contains sections or protocols on telework. This would create a precedent not only for the entrenchment of this policy in the collective agreements, but, eventually, the inclusion of any human resource policies that currently exist in the public service.
The Employer strongly opposes the inclusion of this demand in the collective agreement.
Employer’s Conciliation Board Brief – Foreign Service Group 91
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