SUBMISSION OF THE TREASURY BOARD TO THE ARBITRATION BOARD IN

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							SUBMISSION OF THE

TREASURY BOARD TO THE

ARBITRATION BOARD

IN RESPECT OF THE

TECHNICAL SERVICES GROUP




CHAIRPERSON:   Mr. David Starkman

MEMBERS:       Mr. Jock Climie

               Mr. Jim Wolfgang




OTTAWA         July 6 - 8, 2009
Employer’s Arbitration Brief – Technical Services (TC) Group                             i




IN THE MATTER of the Public Service Labour Relations Act and a dispute affecting the
Public Service Alliance of Canada and Her Majesty In Right of Canada as represented
by the Treasury Board, in respect of all of the employees of the Employer in the
Technical Services bargaining unit as determined in a certificate issued by the former
Public Service Staff Relations Board on the tenth (10th) day of June, 1999.
Employer’s Arbitration Brief – Technical Services (TC) Group                             ii




                                         FOREWORD


This brief is being 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 Arbitration Brief – Technical Services (TC) Group                                                                                         iii



Table of Contents
     FOREWORD............................................................................................................................ II
     EXECUTIVE SUMMARY .........................................................................................................V
     INTRODUCTION ..................................................................................................................... 1
     PART I GENERAL INFORMATION........................................................................................ 5
            EMPLOYER BARGAINING TEAM ................................................................................................6
            GROUP DEFINITION ....................................................................................................................7
            BARGAINING UNIT CHARACTERISTICS ....................................................................................7
            SETTLEMENTS IN THE PUBLIC SERVICE ...............................................................................11
     PART II CURRENT NEGOTIATIONS .................................................................................. 13
            CURRENT ROUND OF BARGAINING........................................................................................14
            MATTERS RESOLVED ...............................................................................................................15
            OUTSTANDING ISSUES.............................................................................................................18
     PART III RATES OF PAY ..................................................................................................... 22
            6.1 ECONOMIC TRENDS ...........................................................................................................45
            6.2 ECONOMIC UNCERTAINTY AND IMPACT ON NEGOTIATIONS .......................................46
            6.3 GOVERNMENT FISCAL CIRCUMSTANCES .......................................................................47
     PART IV OTHER ISSUES IN DISPUTE............................................................................... 51
            ARTICLE 2 INTERPRETATION AND DEFINITIONS ..................................................................52
            ARTICLE 25 HOURS OF WORK.................................................................................................53
            ARTICLE 28 OVERTIME .............................................................................................................54
            ARTICLE 29 CALL-BACK PAY....................................................................................................55
            ARTICLE 30 STANDBY...............................................................................................................59
            ARTICLE 31 REPORTING PAY ..................................................................................................60
            ARTICLE 32 DESIGNATED PAID HOLIDAYS ............................................................................62
            ARTICLE 34 TRAVELLING TIME................................................................................................63
            ARTICLE 38 VACATION LEAVE WITH PAY...............................................................................70
            ARTICLE 41 INJURY-ON-DUTY LEAVE.....................................................................................76
            ARTICLE 54 EDUCATION LEAVE WITHOUT PAY, CAREER DEVELOPMENT LEAVE WITH PAY
            AND EXAMINATION LEAVE WITH PAY.....................................................................................78
            ARTICLE 62 DANGEROUS GOODS ..........................................................................................80
            ARTICLE 63 PART-TIME EMPLOYEES .....................................................................................81
            ARTICLE 67 DURATION .............................................................................................................82
            NEW ARTICLE HAZARDOUS SUBSTANCE HANDLING ALLOWANCE ...................................83
            NEW ARTICLE PRE-RETIREMENT LEAVE ...............................................................................84
            NEW MEMORANDUM OF AGREEMENT CONCERNING LAB AND X-RAY TECHNOLOGISTS IN
            THE ENGINEERING AND SCIENTIFIC SUPPORT GROUP WORKING IN PERCY MOORE AND
            NORWAY HOUSE HOSPITALS..................................................................................................85
            APPENDIX D MEMORANDUM OF AGREEMENT APPLICABLE TO CERTAIN EMPLOYEES IN
            THE GENERAL TECHNICAL GROUP, .......................................................................................87
Employer’s Arbitration Brief – Technical Services (TC) Group                                                                                             iv


            APPENDIX M HOURS OF WORK FOR EMPLOYEES IN THE PRIMARY PRODUCTS
            INSPECTION (PI) GROUP ..........................................................................................................91
     APPENDICES........................................................................................................................ 93
            APPENDICES..............................................................................................................................94
Employer’s Arbitration Brief – Technical Services (TC) Group                               v



                                EXECUTIVE SUMMARY
This brief presents the Employer’s perspective concerning the unresolved issues in this
round of bargaining for the Technical Services (TC) bargaining unit, as of March 31,
2007 which can be summarized as follows:

                Number of Employees                            10,158
                % Male Employees                               74%
                % Female Employees                             26%
                Average Salary                                 $61,522
                Payroll                                        $624,942,592
                Average Age                                    45.6 years
                Average Years of Service                       14.3 years
                Expiry Date of Agreement                       June 21, 2007


The parties have resolved and signed off a considerable number of articles. In addition
to pay, the following elements remain outstanding: Definition of Overtime, Hours of
Work, Overtime, Call-Back Pay, Standby, Reporting Pay, Designated Paid Holidays,
Travelling Time, Vacation Leave With Pay, Injury-on-Duty Leave, Education Leave
Without Pay, Career Development Leave With Pay and Examination Leave With Pay,
Dangerous Goods, Part-time Employees, Duration, Hazardous Substance Handling
Allowance, Pre-retirement Leave, Lab and X-Ray Technologists, Appendix D and
Appendix M. Information on these can be found in Part IV of this brief.

Recent economic and compensation indicators, as well as the current economic
situation, suggest that the Government’s final offer is appropriate for a settlement
concluded in the near to medium term for the TC Group.

This assessment is consistent with the legislated factors provided in Section 148 of the
Public Service Labour Relations Act, as follows:

(a) “the necessity of attracting competent persons to, and retaining them in, the public
service in order to meet the needs of Canadians”
Employer’s Arbitration Brief – Technical Services (TC) Group                              vi


    •   Current levels of compensation for the TC Group are sufficient as evidenced by
        the healthy recruitment and retention levels. The group does not have
        recruitment and retention problems as overall it has attracted and retained 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 TC Group from March 2000
        to March 2009 further supports the notion that there are no recruitment and
        retention problems. For this period, the TC population has increased by 18.8 %,
        averaging 1.9 % per year.


(b) “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 arbitration board considers relevant”

    •   The group’s last settlement provided gains in a four (4) year agreement. The
        general economic increases of 2.5%, 2.3%, 2.4% and 2.5%, as well as
        continuation of the existing allowances for the TI and PI Groups, resulted in a
        higher wage growth for TC employees compared to Canadian workers in
        general, and produced increases over and above general price increases in the
        economy (i.e. strong real wage growth).

    •   An external market compensation study shows that TC salary levels, as well as
        salary growth, compare well to those of their external labour market comparators
        and as such, are competitive with the market.

    •   Moreover, in terms of total compensation, TC employees have generous pension
        and paid benefits compared to their private and public sector counterparts.
Employer’s Arbitration Brief – Technical Services (TC) Group                                vii


(c) “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”

    •   An analysis of total cumulative economic increases shows that, in terms of salary
        increases, the TC bargaining unit has received increases equal to the increases
        received by the Core Public Administration (CPA) of 22% over the same period
        of time as well as those received by other technical category employees in the
        CPA.

(e) “the state of the Canadian economy and the Government of Canada’s fiscal
circumstances”

    •   Broad wage pressures remain muted. The economy is currently mired in a sharp
        recession, reflecting the worst world-wide economic slowdown since the Great
        Depression. The Canadian economy grew a meagre 0.4% in 2008 and is
        expected to contract by 2.3% in 2009, before resuming modest growth of 2.1% in
        2010.

    •   Reflecting the weak economic conditions, the unemployment rate is expected to
        progressively increase from 6.2% in 2008, to 8.5% in 2009, and to 9.0% in 2010.

    •   Despite the weakening economy, public sector wage rates put in place in the
        Expenditure Restraint Act will provide for real wage gains for public sector
        employees.

    •   Expected deficits will reach a cumulative $105 billion by 2012-13, with a deficit of
        $50.2 billion in 2009-10 alone, and federal debt will climb to $562 billion. This
        means the government has extremely limited fiscal flexibility in which to address
        emerging concerns and priorities of all Canadians especially during these
        uncertain times.
Employer’s Arbitration Brief – Technical Services (TC) Group                               1



                                      INTRODUCTION

This arbitration board has been established to deal with the items in dispute between
the Employer and the Public Service Alliance of Canada (PSAC) with respect to the
Technical Services (TC) Group.

Part I of the Employer’s brief gives general background information with respect to this
group such as the definition and characteristics of this bargaining unit including its
population and payroll distribution.

Part II of the brief deals with the history of the current negotiations.

Part III presents the Employer’s position on rates of pay.

Part IV deals with the other remaining outstanding issues.

Prior to proceeding to examine the specific issues in dispute, the Employer wishes to
submit comments concerning what the Employer views as fundamental to its approach
during the collective bargaining process and, to the proceedings before this board of
arbitration.

Section 148 of the Public Service Labour Relations Act (PSLRA)

Section 148 of the PSLRA (the “Act”) sets out the factors that an arbitration board must
consider in arriving at an award. It is our intention that the information and arguments
contained herein assist this Board in the performance of its duty as contemplated by
Section 148 of the Act.

Accordingly, included below are the provisions of Section 148 for ease of reference:

   In the conduct of its proceedings and in making an arbitral award, the arbitration
   board must take into account the following factors, in addition to any other factors
   that it considers relevant:


       (a) the necessity of attracting competent persons to, and retaining them in, the
       public service in order to meet the needs of Canadians;
Employer’s Arbitration Brief – Technical Services (TC) Group                                 2


       (b) 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 arbitration board considers relevant;


       (c) 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;


       (d) 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; and


       (e) the state of the Canadian economy and the Government of Canada’s fiscal
       circumstances.


Employer’s Policy on Compensation

The Treasury Board has approved the Policy Framework for the Management of
Compensation, effective February 22, 2007. This framework is reproduced in
Appendix A. It is consistent with previous articulation of the Employer’s compensation
policy. The Policy Framework establishes that all compensation decisions should be
guided by four (4) overarching principles:

        1. External Comparability: Compensation should be competitive with, but not
            lead compensation provided for similar work in relevant labour markets;

        2. Internal Relativity: Compensation should reflect the relative value to the
            Employer of the work performed;

        3. Individual/Group Performance: Compensation should reward performance,
            where appropriate and practicable, based on individual or group contributions
            to business results; and,
Employer’s Arbitration Brief – Technical Services (TC) Group                                         3


        4. Affordability: The cost of compensation must be affordable within the
            context of the commitments to provide services to Canadians, the fiscal
            circumstances, and the state of the Canadian economy.

Furthermore, 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.

In addition, the Policy Framework for the Management of Compensation defines
compensation as a “total compensation” concept. External comparability with relevant
labour markets is therefore to be based on all the elements of compensation, including
benefits.

Expenditure Restraint Act
In January 2009, in direct response to the global economic crisis, the Minister of
Finance tabled Budget 2009 before Parliament. Bill C-10, 1 the supporting legislation
to implement the budget was tabled for first reading on February 6, 2009 and received
royal assent on March 12, 2009. Part 10 of this bill contained the provisions of the
Expenditure Restraint Act (ERA) which for ease of reference is reproduced in
Appendix B.

The ERA provides a framework for economic increases during the restraint period that
covers the period of April 1, 2006 to March 31, 2011. The ERA period applicable to the
TC Group is from June 22, 2007 to June 22, 2011.

This Act applies to the TC Group as well as to more than 400,000 federal public sector
employees, including employees represented by a bargaining agent, employees not
represented by a bargaining agent and those excluded from a bargaining unit. The ERA
also applies to Crown Corporations and public bodies listed in Schedule 1 of the Act.




1
 An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and
related fiscal measures
Employer’s Arbitration Brief – Technical Services (TC) Group                              4


In accordance with Section 16 of the ERA, the maximum annual pay increases
applicable to this group are as follows:

        •   2.3% - April 1, 2007 and March 31, 2008;

        •   1.5% - April 1, 2008 and March 31, 2009;

        •   1.5% - April 1, 2009 and March 31, 2010; and

        •   1.5% - April 1, 2010 and March 31, 2011.

The ERA prohibits any increase in or introduction of any form of additional
remuneration, such as any allowance, bonus, differential or premium or any payment
that is similar to any of those payments. Lump-sum payments are deemed to be
bonuses under the ERA.

The restructuring of rates of pay during any period that begins during the restraint
period is of no effect. However, nothing in the ERA is to be construed as precluding the
entitlement of any TC employee to incremental increases, merit or performance
increases, in-range increases, performance bonuses or similar forms of compensation.

The Act prohibits any creation or increase during the restraint period to the amount or
rate of any additional remuneration that applied to employees governed by a collective
agreement.

The ERA precludes compensation in replacement of amounts that would have likely
obtained had it not being for the ERA .
Employer’s Arbitration Brief – Technical Services (TC) Group   5




                                              PART I


                              GENERAL INFORMATION
Employer’s Arbitration Brief – Technical Services (TC) Group                                 6


EMPLOYER BARGAINING TEAM

                     NAME                                      TITLE AND DEPARTMENT

Josée Lefebvre                                       Negotiator
                                                     Treasury Board Secretariat
John Park                                            Senior Compensation Analyst
                                                     Treasury Board Secretariat
Gerald Toupin                                        Director, Technical Services
                                                     Transport Canada

Mathieu Giroux                                       Labour Relations Advisor
                                                     Transport Canada

Marcel Ayeko                                         Director, Investigations - Marine
                                                     Transportation Safety Board of Canada
Gerald Poirier                                       Chief
                                                     Enforcement Training and Recruitment
                                                     Department of Fisheries and Oceans
Irene Arkorful                                       Senior Labour Relations Officer
                                                     Department of Fisheries and Oceans

Judith Spanglett                                     Section Head, Operational Protective
                                                     Equipment & Clothing
                                                     Department of National Defence
Dr. Paul McCaughey                                   Research Manager
                                                     Agriculture and Agri-Food Canada
Brian Howe                                           Manager
                                                     Environment Canada
Employer’s Arbitration Brief – Technical Services (TC) Group                                 7


GROUP DEFINITION

The group definition can be found at Appendix C of this brief.


BARGAINING UNIT CHARACTERISTICS

Employee Population and Payroll

For the purposes of collective bargaining, the payroll data and group demographics
used is as of March 31, 2007. As of this date, there were 10,158 employees in the TC
bargaining unit with an average salary of $61,522 (CPA salary average is $60,537) and
total payroll of $624,942,592. Six (6) classification groups are comprised in the TC
bargaining unit; DD, EG, GT, PY, PI, TI. The distribution of employees by group and
mean salary are shown in the table below.


                                                           Mean
Classification        # of        % of         # of        Salary     Payroll       % of
   Group             Empl.        Total       levels        ($)         ($)        Payroll

       DD              179        1.76%          9       $48,270     $8,640,399    1.38%

       EG             6,221      61.24%          8        $62,340   $387,818,247   62.06%

       GT             2,144      21.11%          8        $56,997   $122,201,552   19.55%

       PY              12         0.12%          7        $45,456   $545,474       0.09%

        PI             254        2.50%          6        $49,128   $12,478,502    2.00%

        TI            1,348      13.27%          8        $69,183   $93,258,418    14.92%

      Total          10,158       100%                    $61,522   $624,942,592   100%


Appendix D provides a detailed breakdown by actual salary, departments and
geographical employment location.
Employer’s Arbitration Brief – Technical Services (TC) Group                           8


Age Distribution

As of March 31, 2007, the average age for the Technical Services Group population
was 45.6 years old which is slightly ahead of the public service average age of 44 years
old. This bargaining unit is predominantly male (74%) dominated.


            Age                  Number of Employees           % of Total

       Less than 18                            1                 0.01%

          18 – 20                              3                 0.03%

          21 – 30                            891                 8.77%

          31 – 40                           2,012               19.81%

          41 – 50                           3,838               37.78%

          51 – 60                           3,030               29.83%

          61 – 64                            267                 2.63%

          Over 64                            116                 1.14%

            Total                          10,158                100%

       Average Age                           45.6

Appendix E provides a detailed breakdown by age and gender for this group.
Employer’s Arbitration Brief – Technical Services (TC) Group                              9


Years of Service

The table below indicates that the average years of service for the group is 14.3 years
which is almost identical with the public service average of 13 years.

    Years of Service                  # of Employees              % of Total

         0-5 years                          2,923                  28.78%

        6-10 years                          1,746                  17.19%

        11-15 years                          869                    8.55%

        16-20 years                         1,361                  13.40%

        21-25 years                         1,425                  14.03%

        26-30 years                         1,135                  11.17%

   More than 30 years                        699                    6.88%

          TOTAL                            10,158                  100.0%

Appendix F provides a detailed breakdown by years of service and gender.


Overall, members of this group are slightly older than the average age of the public
service and they have slightly more years of service than the public service average.

Previous Rounds of Bargaining

Since the inception of collective bargaining in the public service in 1967 up until the
introduction of the compensation restraint program in 1991, the parties had engaged in
either thirteen (13) or fourteen (14) rounds of negotiations for each of the groups
comprising the Technical Services bargaining unit. In the vast majority of rounds, the
conciliation/strike route was selected as the dispute settlement mechanism.

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
Employer’s Arbitration Brief – Technical Services (TC) Group                                10


Act (PSCA). It ended strike action and extended all types of compensation plans in the
public service for a period of six (6) 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.

The PSCA also anticipated the return to collective bargaining at section 13 by placing a
prohibition on any compensation plan which would have the effect of bringing “wage
rates to a level that they would, but for this Act, have reached.” This is commonly
referred to as the “no catch up” clause.

Since the termination of the compensation restraint program, the parties have engaged
in five (5) rounds of bargaining. The first round, initiated in 1997, was settled through
conciliation and resulted in a two (2) year agreement expiring June 21, 1999. The
settlement included economic increases of 2.0% in the first period of the agreement and
2.0% in the second year as well as restructuring of the salary ranges through the
addition of a step worth 4% at the top of the range. This round of bargaining also
resulted in the introduction of terminable allowances (TA) for some employees in the
Technical Inspection (TI) Group and the Primary Products Inspection (PI) Group in
order to assist in rectifying recruitment and retention difficulties.

The second round of post restraint bargaining was resolved following the conciliation
board reports. This round provided for a single year agreement expiring on June 20,
2000. The settlement included economic increases of 2.0% and a lump sum payment,
as well as continuation of the terminable allowances.

The third round of post restraint negotiations initiated in 2000 was resolved in post-
conciliation board negotiations. The settlement covered a three (3) year period expiring
on June 21, 2003 and provided annual economic increases of 3.2%, 2.8% and 2.5%, as
well as continuation of the terminable allowances.

The fourth round of post restraint negotiations was initiated in 2003, and was also
resolved in post-conciliation board negotiations. The settlement covered a four (4) year
period expiring on June 21, 2007 and provided annual economic increases of 2.5%,
Employer’s Arbitration Brief – Technical Services (TC) Group                                   11


2.3%, 2.4%, and 2.5%, as well as continuation of the terminable allowance for TIs. The
TA for PIs was converted to a $2,000/year supplement for the performance of grain
inspection duties, for PIs in Vancouver and Prince Rupert.

The fifth and current round of bargaining is discussed in Part II 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 below.

                                                                                     Other
                                                                   CPA             Technical
  Date of Increase         Economic         Other Monetary                          Groups
                            Increase         Adjustments          (average
                                                                 economic           (average
                                                                 increase)         economic
                                                                                   increase)
 June 22, 1997                2.0%                                 2.3%              1.5%
 June 22, 1998                2.0%        Restructure – 4%         2.0%              2.1%
                                          step added to top of
                                          salary range;
                                          Allowances
                                          introduced for PIs
                                          and TIs


 June 22, 1999                2.0%        Lump sum payment        2.0%               2.0%
 June 22, 2000                3.2%                                 3.0%              3.0%
 June 22, 2001                2.8%                                 2.7%              2.8%
 June 22, 2002                2.5%                                 2.6%              2.5%
 June 22, 2003                2.5%                                 2.5%              2.5%
 June 22, 2004                2.3%                                 2.3%              2.3%
 June 22, 2005                2.4%                                 2.4%              2.4%

 June 22, 2006                2.5%                                 2.5%              2.5%

SETTLEMENTS IN THE PUBLIC SERVICE

The Employer believes that the arbitration board 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.
Employer’s Arbitration Brief – Technical Services (TC) Group                                12


The Employer’s view is that the arbitration board 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 parties. Nonetheless, these settlements
must be viewed in the context and timeline in which they were reached.

The table above contains a summary of settlements reached since 1997 with
employees for which Treasury Board is the Employer. Based on the comparison
provided, the TC Group has received cumulative economic increases on par with the
CPA and other technical groups.

Not included in the table is the settlement with the Public Service Alliance of Canada
(PSAC) for its four (4) other groups which were ratified and signed at 2.3% for 2007,
1.5% for 2008, 1.5% for 2009 and 1.5% for 2010.

In summary, the TC Group compares favourably with other groups within the public
service. The current salary structure clearly supports the achievement of operational
goals and objectives and ensures a healthy recruitment and retention. Therefore, no
justification exists to warrant the intervention of the Board under Section 148(c) of the
PSLRA beyond what is proposed by the Employer in this brief.
Employer’s Arbitration Brief – Technical Services (TC) Group   13




                                             PART II


                             CURRENT NEGOTIATIONS
Employer’s Arbitration Brief – Technical Services (TC) Group                            14


Current Round of Bargaining
The current round of bargaining can be summarized as follows:

•   The current round of negotiations was initiated on February 22, 2007, when the
    Public Service Alliance of Canada filed notice to bargain.

•   The collective agreement expired on June 21, 2007.

•   The parties exchanged proposals electronically on April 27, 2007 and met during the
    week of May 14 to provide clarification on respective proposals.

•   The parties met during the week of June 11, 2007, to discuss the renewal of articles
    for which no changes were proposed, as well as to discuss minor issues.

•   The parties continued discussions during the weeks of October 9 and November 6,
    2007.

•   Negotiations continued during the week of January 29 to February 1st and from
    February 26 to 29, 2008 where, amongst other issues discussed, the union
    submitted proposals on new and existing allowances.

•   Negotiations resumed on April 28 to 30, 2008 where the parties made significant
    progress in relation to outstanding proposals from both sides.

•   Negotiations continued on May 26, 27 and 28, 2008. During this session, the
    Employer tabled its pay proposal.

•   As there had been little progress in the last few negotiation sessions and faced with
    the cancellation of negotiation dates in June and August 2008 by the Public Service
    Alliance of Canada, the Treasury Board requested the appointment of a mediator by
    the Public Service Labour Relations Board (PSLRB) in order to help the parties
    reach agreement on the remaining outstanding issues. The PSLRB appointed a
    mediator and mediation was held from October 8 to 10, 2008 - little progress was
    made during those three (3) days.
Employer’s Arbitration Brief – Technical Services (TC) Group                           15


•   A final negotiation session was held November 20 to 23, 2008 with an effort to
    resolve this round of bargaining prior to the impending tabling of the 2008 Fall
    Economic Update.

•   As the parties were not successful in reaching an agreement, the PSAC filed for
    arbitration on November 27, 2008.

•   A second mediation session was scheduled on December 16 to 18, 2008 but was
    cancelled by the mediator as he did not see that progress would have been made.

Matters Resolved
The table below contains the list of articles and clauses that have been resolved along
with the nature of the agreement reached by the parties.


ARTICLE                          TITLE                              STATUS
     1        Purpose and Scope of Agreement                       Renewed
     3        Application                                          Renewed
     4        State Security                                       Renewed
     5        Precedence of Legislation and the                    Renewed
              Collective Agreement
     6        Managerial Responsibilities                          Renewed
     7        National Joint Council Agreements                    Modified
     8        Dental Care Plan                                     Renewed
     9        Recognition                                          Modified

    10        Information                                          Renewed
    11        Check-off                                            Modified
    12        Use of Employer Facilities                           Renewed
    13        Employee Representatives                             Renewed
    14        Leave With or Without Pay for Alliance               Modified
              Business
    15        Labour Disputes                                      Renewed
    16        Illegal Strikes                                      Modified
    17        Discipline                                           Modified
Employer’s Arbitration Brief – Technical Services (TC) Group              16



ARTICLE                          TITLE                         STATUS
    18        Grievance Procedure                              Modified
    19        No Discrimination                                Renewed
    20        Sexual Harassment                                Renewed
    21        Joint Consultation                               Renewed
    22        Health and Safety                                Renewed
    23        Job Security                                     Renewed
    24        Technological Change                             Renewed
    26        Shift Principle                                  Modified
    27        Shift and Weekend Premiums                       Modified
    33        Religious Observance                             Renewed
    35        Travelling Expenses on Leave or                  Renewed
              Termination
    36        Notice of Transfer                               Renewed
    37        Leave General                                    Renewed
    39        Sick Leave With Pay                              Modified
    40        Medical Appointment for Pregnant                 Renewed
              Employees
    42        Maternity Leave Without Pay                      Modified
    43        Maternity-Related Reassignment or                Renewed
              Leave
    44        Parental Leave Without Pay                       Modified
    45        Leave Without Pay for the Care of                Modified
              Family
    46        Volunteer Leave                                  Renewed
    47        Leave With Pay for Family Related                Renewed
              Responsibilities
    48        Leave Without Pay for Personal                   Renewed
              Needs
    49        Personal Leave With Pay                          Renewed
    50        Leave Without Pay for Relocation of              Renewed
              Spouse
    51        Bereavement Leave With Pay                       Modified
    52        Court Leave                                      Renewed
Employer’s Arbitration Brief – Technical Services (TC) Group                   17



ARTICLE                          TITLE                         STATUS
    53        Personnel Selection Leave                        Modified
    55        Leave With or Without Pay for Other              Renewed
              Reasons
    56        Restriction on Outside Employment                Renewed
    57        Statement of Duties                              Renewed
    58        Duty Aboard Vessels                              Renewed
    59        Employee Performance Review and                  Renewed
              Employee Files
    60        Penological Factor Allowance                     Renewed
    61        Wash-up Time                                     Renewed
    64        Severance Pay                                    Modified
    65        Pay Administration                               Modified
    66        Agreement Reopener                               Renewed
     B        GT – Fish Hatchery                               Pending 34.09
     C        GT – Offshore Surveillance                       Pending 34.09
     E        GT – DFO – Marine Traffic/Radio                  Renewed
              Services
     F        GT – DND Survival Instructors                    Renewed
     G        GT – DFO – Vessel Traffic                        Renewed
              Management Centres
     H        Joint Learning Program                           Modified
     I        Sea Lamprey                                      Pending 34.09
     J        EGs at DRDC                                      Renewed
     K        Diving Duty Allowance, etc.                      Renewed
     L        EGS at DND – Sea Trials                          Pending 34.09
     N        Work Force Adjustment Committee                  Deleted
     O        PI SUB Plan                                      Renewed
     P        TI Terminable Allowance                          Renewed
     Q        GT, TI, EG Employees at Defence                  Renewed
              Research Establishments
     R        Classification Review                            Deleted
     S        Aircraft Maintenance Engineers                   Pending 34.09
     T        Implementation                                   Renewed
Employer’s Arbitration Brief – Technical Services (TC) Group                                  18



ARTICLE                          TITLE                                   STATUS
     U        Whistleblowing                                            Deleted
     V        Social Justice Fund Joint Committee                       Deleted
    W         Work Force Adjustment                                     Modified
   New        Sessional Leave                                           New
   New        Salary Protection – Red Circling                          New
   New        Classification Reform                                     New



Outstanding Issues
The table below contains the list and the nature of the outstanding issues, with the
exception of pay. These issues are discussed in more detail in Part IV of this brief.


               ARTICLE                                         NATURE OF ISSUE

Article 2.01 – Overtime definition          The Employer is proposing new language that
                                            would define the overtime entitlement for part-time
                                            employees.

Article 25.08 – Hours of Work               The Employer is proposing to reduce the
                                            notification period of a shift change from 7 days to
                                            48 hours.

Article 28.12 – Overtime                    The Employer is proposing to move this clause to
                                            the Call-back article.

Article 29.01 – Call-back Pay               The Employer is proposing to cap the application
                                            of the minimum payment to one time during an 8-
                                            hour period.

Article 29.02 – Call-back Pay               The Employer is proposing to introduce a
                                            minimum period of work in order to qualify for
                                            compensation and is proposing to cap the
                                            application of the minimum payment to a single 8
Employer’s Arbitration Brief – Technical Services (TC) Group                                     19


                                            hour period.

Article 30 – Standby                        The Employer is proposing that employees on
                                            standby be readily available and able to return for
                                            work in a reasonable timeframe.

Article 31 – Reporting Pay                  The Employer is proposing to cap the application
                                            of the minimum payment to one time during an 8-
                                            hour period as well as clarify that the payment is
                                            for employees who are scheduled to report for
                                            work.

Article 32 – Designated Paid                The Employer is proposing to cap the application
Holidays                                    of the minimum payment to one time during an 8-
                                            hour period as well as clarify that the payment is
                                            for employees who are scheduled to report for
                                            work.

Article 34.04(d) – Travelling Time          The Employer is proposing to include language
                                            clarifying that continuous travel should be deemed
                                            to all take place on the day it commences.

Article 34.09 – Travel Status Leave         The Bargaining Agent is proposing to increase the
                                            quantum and application of this leave.

                                            The Employer is proposing an editorial correction
                                            at 34.09(a) as to previous round’s agreement.

Article 38.03 – Vacation Leave              The Employer is proposing a clarification
With Pay                                    specifying that vacation leave credits are only to
                                            be advanced from the current vacation year.

Article 38.04 – Vacation Leave              The Employer is proposing to delete a provision
                                            allowing for rounding up leave balances to the
                                            nearest half day.

Article 38.05 – Vacation Leave              The Employer is proposing to modify the current
Employer’s Arbitration Brief – Technical Services (TC) Group                                     20


                                            clause to bring it in line with other agreements
                                            between this Bargaining Agent and Employer.

Article 38.06 – Vacation Leave              The Employer is proposing to clarify that it also
                                            has the right to alter the employee’s leave plans.

Article 38.12 - Vacation Leave              The Employer is proposing to delete the provision
                                            of advancing payments of estimated net salary.

Article 38.13 – Vacation Leave              The Employer is proposing an editorial change to
                                            the title of this clause.

Article 38.17 – Vacation Leave              The Employer is proposing to delete the
                                            transitional provision for the one-time vacation
                                            leave entitlement. Deletion of (c) is also proposed
                                            in order for the one-time vacation leave to form
                                            part of the maximum vacation leave carry-over
                                            under 38.08.

Article 41 – Injury-on-Duty Leave           The Bargaining Agent is proposing to amend the
                                            administration of injury-on-duty situations.

Article 54.05 – Education Leave             The Bargaining Agent is proposing that the
Without Pay, Career Development             approval of this leave will not be unreasonably
Leave With Pay and Examination              withheld.
Leave With Pay

Article 54.07 - New                         The Bargaining Agent is proposing to introduce a
                                            new clause related to TI certification.

Article 62 – Dangerous Goods                The Bargaining Agent is proposing to extent
                                            eligibility for this allowance.

Article 63 – Part-time Employees            The Employer is proposing that part-time
                                            employees who occupy more than one position in
                                            the Core Public Administration do not receive
Employer’s Arbitration Brief – Technical Services (TC) Group                                 21


                                            excessive overtime compensation.

Article 67 - Duration                       The Employer is proposing a four year agreement.

                                            The Bargaining Agent is also proposing a four
                                            year agreement.

New – Hazardous Substance                   The Bargaining Agent is proposing a new
Handling Allowance                          allowance related to the handling of different
                                            hazardous substances.

New – Pre-retirement Leave                 The Bargaining Agent is proposing a new leave
                                            entitlement for eligible employees.

New – Lab and X-Ray                        The Bargaining Agent is proposing new working
Technologists                               conditions for certain EG employees.

Appendix D                                 The Bargaining Agent is proposing to amend
                                            working conditions for certain GT employees.

Appendix M                                 The Employer is proposing to reduce the
                                            notification period of a shift change.
Employer’s Arbitration Brief – Technical Services (TC) Group   22




                                             PART III


                                      RATES OF PAY
Employer’s Arbitration Brief – Technical Services (TC) Group                               23



Analysis for the Technical Services (TC) Group

Summary
Recent economic and compensation data suggest that the government’s final offer is
appropriate for a settlement concluded in the near to medium term for the Technical
Services (TC) Group. This assessment is based on the following factors:

    •   The group’s last settlement provided gains in a four-year agreement (2003
        through 2006). Increases of 2.5%, 2.25%, 2.4%, and 2.5% for the TC Group
        resulted in a higher wage growth for TC employees compared to Canadian
        workers in general, and produced increases over and above general price
        increases in the economy (i.e. strong real wage growth).

    •   Overall, TC employees enjoy a favourable position when compared to the
        external labour market (both private and public sectors).

    •   Moreover, in terms of total compensation, TC employees have generous pension
        and paid benefits compared to their private sector counterparts.

    •   Current levels of compensation for the TC Group are sufficient as evidenced by
        healthy recruitment and retention levels. The TC Group does not have any
        recruitment and retention problems as it has attracted and retained a sufficient
        number of employees.

    •   Broad wage pressures remain muted. The economy is currently mired in a sharp
        recession, reflecting the worst world-wide economic slowdown since the Great
        Depression. The Canadian economy grew a meagre 0.4% in 2008 and is
        expected to contract by 2.3% in 2009, before resuming modest growth of 2.1% in
        2010.
    •   Reflecting the weak economic conditions, the unemployment rate is expected to
        progressively increase from 6.2% in 2008, to 8.5% in 2009, and to 9.0% in 2010.
    •   Despite the weakening economy, public sector wage rates put in place in the
        Expenditure Restraint Act will provide for modest real wage gains for public
        sector employees.
Employer’s Arbitration Brief – Technical Services (TC) Group                                24


    •   Expected deficits will reach a cumulative $105 billion by 2012-13, with a deficit of
        $50.2 billion in 2009-10 alone, and federal debt will climb to $562 billion. This
        means the government has extremely limited fiscal flexibility in which to address
        emerging concerns and priorities of all Canadians especially during these
        uncertain times.

1.0 Policy Framework for the Management of Compensation

Public Service Labour Relations Act (PSLRA) and Compensation Policy Framework


As indicated previously, the PSLRA provides for factors an arbitration board must take
into consideration in rendering an award. These are contained in Section 148 of the
Act. 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 (4) 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. Although no single specific Policy
Framework principle can be related to the factor identified under paragraph (d) of
Section 148 of the Act, this factor is directly related to the External Comparability and
Internal Relativity principles. The Employer’s framework contains an additional
component to recognize individual and group contribution where appropriate and
possible. The stated objective of the Policy Framework is to attract, retain, motivate and
renew the workforce required to deliver results to Canadians.
Employer’s Arbitration Brief – Technical Services (TC) Group                                    25




                    PSLRA                              Employer’s Policy Framework for the
                                                           Management of Compensation

(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;
Employer’s Arbitration Brief – Technical Services (TC) Group                                     26



                    PSLRA                              Employer’s Policy Framework for the
                                                           Management of Compensation

(d) the need to establish compensation               Addressed through the application of
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. External comparability with
relevant labour markets is therefore to be based on all the elements of compensation
including, for example: wages, salaries, overtime, pensions, Employer-paid insurance,
health, and dental premiums, severance pay, as well as leave usage.
Employer’s Arbitration Brief – Technical Services (TC) Group                              27


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
legislation and the Employer’s Policy Framework for the Management of Compensation.



2.0 Recruitment and Retention

Section 148(a) of the PSLRA provides…”the necessity of attracting competent persons
to, and retaining them in, the public service in order to meet the needs of Canadians”.

An effective way to assess whether there are any recruitment and retention problems is
to examine the hirings and the separations for the TC Group, as well as the changes in
population levels.


2.1 Hirings

Table 1 shows that the TC Sub-groups have experienced consistent levels of hirings
since 2002/2003. Overall, during the last six (6) fiscal years, an annual average of 911
new employees were hired into the TC bargaining unit. From 2004-05 to 2007-08,
overall hirings have increased by 87.3% (from 637 to 1,193), averaging 914 new
employees per year.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                 28




Table 1 - TC Hirings
DD Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
                                               14          11          9          10         20         11
Hirings from outside
Internal Hirings                                 5           1          3           4          4         3
Total DD Hirings                                19          23         23          14         24        14

EG Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
                                               442         344        318         432        449        389
Hirings from outside
Internal Hirings                                195        123        116         109        112       115
Total EG Hirings                                637        467        434         541        561       504

GT Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
                                               114         87         44          117        125        198
Hirings from outside
Internal Hirings                                140         90        63          130         94       148
Total GT Hirings                                254        177        107         247        219       346

PI Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
                                                7           5         12          20         11         41
Hirings from outside
Internal Hirings                                 0           0         6           4          2         2
Total PI Hirings                                 7           5         18          24         13        43

PY Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
                                                0           0          0           1          2          2
Hirings from outside
Internal Hirings                                 0           0          0          0           0        0
Total PY Hirings                                 0           0          0          1           2        2

TI Hirings                                    02/03       03/04      04/05       05/06      06/07      07/08
Hirings from outside                           88          59         56          54         62         69
Internal Hirings                               57          28         10          35         29         215
Total TI Hirings                               145         87         66          89         91         284

TC Group Total                                02/03       03/04      04/05       05/06      06/07      07/08
                                               665         506        439         634        669        710
Hirings from outside
Internal Hirings                               397         242        198         282        241        483
Total TC Hirings                              1,062        748        637         916        910       1,193
Note: Hirings included above are strictly into positions that are full-time and bargained (i.e., not
excluded from collective bargaining). Any hirings of term (less than 3 months) or casual
employees are not included.
Employer’s Arbitration Brief – Technical Services (TC) Group                           29


2.2 Separations

Table 2 indicates that there are currently few if any problems caused by the number of
separations experienced by the TC bargaining unit.

Included in the table below are voluntary separations (TC employees who separate from
the CPA for reasons such as outside employment and personal reasons), internal
separations (employees who separate from a TC Group to other groups within the
CPA), and external separations (TC employees leaving the CPA entirely for any
reason).

The figures show that the number of total separations has been low over the last six (6)
fiscal years, averaging 710 employees per year. This is substantially lower than the
average number of new hires of 911 per year over the same period, which has
contributed to the overall growth in population of the group.
Employer’s Arbitration Brief – Technical Services (TC) Group                              30




Table 2 - TC Separations
 DD Separations                            02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                        8          3        1       1       6       0
Internal Separations                         1          0        0       3       2       3
External Separations                        16         12       10      12      16       8
Total DD External and Internal              17         12       10      15      18      11
Separations

EG Separations                             02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                        78         68       77      91     106     108
Internal Separations                         64         21       22      15      29      35
External Separations                        453        388      419     416     426     437
Total EG External and Internal              517        409      441     431     455     472
Separations

GT Separations                             02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                        24        26       19      20      30      39
Internal Separations                        18         18        6      23      32      25
External Separations                        115        99       84      96      153     147
Total GT External and Internal              133        117      90      119     185     172
Separations

PI Separations                             02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                        4          2        7       5       6      11
Internal Separations                         0          0        1       0       0       0
External Separations                        71          9       18      20      15      42
Total PI External and Internal              71          9       19      20      15      42
Separations

PY Separations                             02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                        0          0        0       0       0       0
Internal Separations                         0          0        0       1       0       0
External Separations                         1          2        0       0       0       1
Total PY External and Internal               1          2        0       1       0       1
Separations

TI Separations                             02/03      03/04    04/05   05/06   06/07   07/08
Voluntary Separations                       12         10       21      18      19      17
Internal Separations                        34          5        2       6       2       5
External Separations                        51         65       71      60      80      71
Total TI External and Internal              85         70       73      66      82      76
Separations
Employer’s Arbitration Brief – Technical Services (TC) Group                                                                      31


Total TC Separations                                    02/03         03/04         04/05       05/06             06/07        07/08
Voluntary Separations                                    126           109           125         135               167          175
Internal Separations                                     117            44            31          48                65           68
External Separations                                     707           575           602         604               691          706
Total TC External and Internal                           824           619           633         652               756          774
Separations
Note: Separations consist of full-time bargained employees only. Any separations of term (less
than 3 months) or casual employees are not included above.


2.3 Separation Ratios

A valuable way to assess whether there are recruitment and retention problems is to
follow the evolution of the ‘hirings-to-voluntary separations ratio’ (Figures 1 and 2). This
ratio is defined as the number of people hired into the TC Group from outside the
federal public service in a given fiscal year divided by the number of people in the TC
Group who have voluntarily left the federal public service (for reasons such as outside
employment and personal reasons) in that same year. 2 When this ratio is greater than
1.0, the number of people hired is greater than that of those voluntarily leaving, and
recruitment and retention problems are unlikely. Conversely, when that ratio is below
1.0, voluntary separations are greater than hirings, which may suggest that recruitment
and retention problems exist.

                                                                  Figure 1: Hirings-to-Voluntary Separations
                                                                                Ratio: TC Group
As Figure 1 shows, there are no
recruitment and retention problems                            8

for the TC bargaining unit. Indeed,                           6      5.3
                                                                              4.6                4 .7
                                                                                                           4. 0      4.1
over the last six fiscal years, more                          4                         3.5

people were hired into the
                                                              2
bargaining unit than people who had
                                                              0
left voluntarily. For example, in the                               02/03 03/04 04/05 05/06 06/07 07/08
2007/2008 fiscal year, for every one                        Source: Mobility file. Hirings from outside the government
                                                            divided by voluntary separations. Bargained indeterminate,
TC employee who voluntarily left the                        seasonal or term (3 months +) employees (all full-time only) are




   2
       Bargained indeterminate, seasonal or term (3 months +) employees (all full-time only).
Employer’s Arbitration Brief – Technical Services (TC) Group                                                                 32


public service, 4.1 employees were hired from outside the Government on average.

Even the broader ‘hirings-to-total
                                                     Figure 2: Hirings-to-Total Separations Ratio:
separations ratio’ (all hirings from
                                                                                 TC Group
outside the public service and from
other groups within the public service           2
divided by all those leaving the TC                                                            1 .4
                                                                                                                       1.5
                                                          1 .3
                                                                       1 .2                                1 .2
bargaining unit for another group within                                             1.0
                                                 1
the public service or leaving the public
service entirely, for all reasons)
indicates that the TC bargaining unit            0
does not currently have a recruitment                   02/03 03/04 04/05 05/06 06/07 07/08

and retention problem. As indicated in
                                                 Source: Mobility file. All Hirings (internal, external) divided by all
Figure 2, for the 2007/2008 fiscal year,         separations (internal, external). Bargained indeterminate,
                                                 seasonal or term (3 months +) employees (all full-time only) are
                                                 included above.
for every one employee who separated
from the TC Group for any reason, 1.5
new employees were hired into the group on average.


2.4 Population

The strong growth in the number of
                                                                      Figure
                                                                   Figure 3: 17: TC Population
                                                                             TC Population
                                                       12,000                                          10,578
employees in the TC Group from                                                8, 901
                                                                                           9,890

                                                         9,000
March 2000 to March 2009 further
                                                         6,000
supports the notion that there are no
                                                         3,000
recruitment and retention problems
                                                              0
(Figure 3). From 2000 to 2009, overall,                                                     TC
                                                                              2000         2005       2009
the TC bargaining unit population has
                                                     Source: Incumbent file as of March 31st of each year. All full-time
increased by 18.8% (from 8,901 to                    bargained, indeterminate, seasonal or term (3 months or more)
                                                     employees are included above.
10,578), averaging 1.9% per year.
Employer’s Arbitration Brief – Technical Services (TC) Group                                33



3.0 External Comparability

Section 148(b) of the PSLRA provides for…”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 arbitration board considers
relevant”. It’s the Employer’s policy that this group should be competitive with, but not
lead the relevant external market in terms of compensation.


The analysis indicates that the TC Group salary levels, as well as salary growth,
compare well to those of their external comparators. As a result, TC salaries could still
keep up with inflation and would continue to compare very favourably to the wage
growth of Canadian workers in general with moderately low monetary increases
(economic increases, restructures, terminable allowances, etc.).


The external market compensation review conducted by Deloitte Inc. (Appendix G)
shows that the salary levels for the TC Group are competitive with their external
comparators. In addition, cumulative increases received by the TC Group over the last
four (4) years have more than compensated for CPI inflation, and have outpaced those
received by Canadian workers in general.



3.1 Comparison of Salary Levels: Deloitte Market Review


Figures 1 through 10 summarize the results of the external comparison for the TC
employees for 5 of the 6 TC Sub-groups. The shaded boxes in the figures depict the
TBS annual salary ranges for all levels for the TC occupational groups shown, while the
various geometric shapes depict private sector (annual salary surveys) and public
sector (provincial / territorial governments) average base salaries at various percentiles
(■ for P25, the 25th percentile, – for P50, the 50th percentile or the median, and, ▲for
P75, the 75th percentile).
Employer’s Arbitration Brief – Technical Services (TC) Group                                 34


The Employer considers its compensation levels to be competitive if they are
comparable to the market data at the 50th percentile. The 50th percentile is a generally
recognized and acceptable benchmark and is consistent with the Employer’s key
guiding compensation principle: compensation in the public service should be
competitive with, but not lead, that provided for similar work in relevant external labour
markets. Appropriate compensation should remain competitive to attract and retain
public servants. However, it must be affordable within the context of the Government’s
commitments to provide services to Canadians, its fiscal situation in the context of
competing demands, and the state of the Canadian economy.

Figures 1 through 10 show that public service base salaries for the TC Group are
comparable with the external labour market. All the market data used by Deloitte
originated from commercial salary surveys completed in 2007 and reflects salaries in
effect in April or May of 2007. Since the TC Group salary ranges were effective from
June 22, 2006 to June 21, 2007, no ageing of the data was required. The comparable
salary ranges from the provincial / territorial governments were in effect July or August
2008. Our data was not aged for comparison with provincial/ territorial data in order to
avoid any concerns related to the relevancy of the ageing factor. It is simply necessary
to consider this point when analyzing any shortfalls between government compensation
in the federal jurisdiction compared to the provincial/territorial realms.

For the Drafting and Illustration (DD) Group, Deloitte surveyed one position. Figures 4
and 5 show that the DD-04 level is highly competitive with the market at the 50th
percentile.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                     35


                               Figure 4: Base Salary (Salary Surveys) Comparison

                                                        DD Group
                                                        (Annual ‘000$)

                     $65
                                                     TBS Range       Market P25
                                                     Market P50      Market P75


                     $55




                     $45




                     $35
                                                                DD-04


                  Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                  2006.




                        Figure 5: Base Salary (Prov. / Terr. Governments) Comparison

                                                        DD Group
                                                        (Annual ‘000$)

                     $65                             TBS Range       Market P25
                                                     Market P50      Market P75


                     $55



                     $45




                     $35
                                                                DD-0 4


                  Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                  2006.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                      36



                               Figure 6: Base Salary (Salary Surveys) Comparison

                                                          EG Group
                                                         (Annual ‘000$)

                     $100                             TBS Range       Market P25
                                                      Market P50      Market P75



                       $75



                       $50




                       $25
                                    E G-03              E G-04             E G-05              E G-06


                   Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                   2006.




In the case of the Engineering & Scientific Support (EG) Group, 4 levels, covering
13 different positions, were surveyed. Figures 6 and 7 show that this group leads the
market at the 50th percentile for all EG levels surveyed.


                        Figure 7: Base Salary (Prov. / Terr. Governments) Comparison

                                                          EG Group
                                                         (Annual ‘000$)

                     $100                             TBS Range       Market P25
                                                      Market P50      Market P75



                       $75



                       $50




                       $25
                                    E G-03              E G-04             E G-05              E G-06


                   Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                   2006.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                          37


In the case of the
                                          Figure 8: Base Salary (Salary Surveys) Comparison
General Technical
                                                                     GT Group
(GT) Group, 3 levels,                                              (Annual ‘000$)
covering 4 different
                                $80                             TBS Range       Market P25
positions, were                                                 Market P50      Market P75

surveyed. Figures 8             $70

and 9 show that this            $60
group is highly
competitive with the            $50

market at the 50th              $40
percentile for the GT-
                                $30
02 and GT-05 levels,                             GT-02                     GT-04                      GT-0 5

and leads the market         Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                             2006.
at the 75th percentile
for the GT-04 level for            Figure 9: Base Salary (Prov. / Terr. Governments) Comparison
the Salary Survey and
                                                                     GT Group
the Prov./ Terr.
                                                                   (Annual ‘000$)
Governments.
                                $80                             TBS Range       Market P25
                                                                Market P50      Market P75

                                $70


                                $60

                                $50

                                $40

                                $30
                                                 GT-02                     GT-04                      GT-0 5


                             Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                             2006.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                    38


For the Primary Products Inspection (PI) Group, one level was surveyed. Figure 10
shows that the public service is competitive with the market at the 50th percentile for the
PI-01 level. Figure 11 demonstrates that we are slightly behind P50 but we must take
into consideration that our data is a year behind; as previously noted.



                             Figure 10: Base Salary (Salary Survey) Comparison
                                                         PI Group
                                                       (Annual ‘000$)

                    $65                            TBS Range       Market P25
                                                   Market P50      Market P75

                    $55



                    $45


                    $35


                    $25
                                                               PI-0 1


                 Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                 2006.



                     Figure 11: Base Salary (Prov. / Terr. Governments) Comparison
                                                         PI Group
                                                       (Annual ‘000$)

                    $65                            TBS Range       Market P25
                                                   Market P50      Market P75

                    $55



                    $45


                    $35


                    $25
                                                               PI-0 1
                 Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                 2006.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                           39


Finally, for the Technical
                                              Figure 12: Base Salary (Salary Surveys) Comparison
Inspection (TI) Group, 4
                                                                          TI Group
levels, each covering a                                                 (Annual ‘000$)
different position, were             $120                             TBS Range      Market P25
surveyed. Figure 12                                                   Market P50     Market P75
                                     $100
shows that the public
service leads the market               $80
                             th
(salary surveys) at the 50
                                       $60
percentile for the TI-05 and
at the 75th percentile for             $40

the TI-06 level. In
                                       $20
reference to Figure 13,                             TI-0 4              TI-05               TI-06              TI-07
                                  Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
there were not enough             2006. The TBS TI-06 and TI-07 positions include the annual terminable allowance of $6,590.04
                                  and $7,317.96, respectively.
data points to calculate the
P25 and P75 for the TI-05
                                        Figure 13: Base Salary (Prov. / Terr. Governments) Comparison
position, and not enough
                                                                            TI Group
data points to calculate any                                             (Annual ‘000$)

percentiles for the TI-06             $120                             TBS Range       Market P25
and TI-07 positions. For                                               Market P50      Market P75
                                      $100
the purposes of this
comparison, the relevant                $80

terminable allowances were
                                        $60
applied to the TI-06 and TI-
07 rates of pay, as the                 $40

surveyed positions were
                                        $20
those of a Civil Aviation                            TI-0 4              TI-05               TI-06              TI-07


Inspector and a Senior             Deloitte “Wage Comparability Study”, March 31, 2009. TBS ranges are effective as of June 22,
                                   2006. The TBS TI-06 and TI-07 positions include the annual terminable allowance of $6,590.04
Marine Safety Inspector. It        and $7,317.96, respectively.

must be noted once more that TC Group data used in Figure 13 is 2007 and
Provincial/Territorial Governments data are 2008.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                            40


3.2 Comparison of Cumulative Monetary Increases

For presentation                                  Figure 14: Cumulative Monetary Increases
purposes, this
comparison is shown               30%
                                                   TC Gr oup - Weighted Av era ge
                                                   CPI
in two different                                   AWE (SEPH)

graphs. The data
                                  20%
presented in Figures
14 and 15 indicate
that the TC Group                 10%

would keep up with
cumulative inflation 3
                                   0%
and stay ahead of the                1998      1999     200 0    2 001     2002     2003     2004      200 5    2 006

cumulative wage
                                Calculated by TBS using Stat. Can.’s CPI, V737344, AWE excluding overtime, (v1597104), and
growth of Canadian              settlement rates for the TC Group (weighted average).

workers in general
with the Employer’s pay proposal.

Figures 14 and 15 show that the total cumulative increases 4 received by the different
TC Group (ranging from 23.9% to 33.2%), have more than compensated for the
cumulative price increases (19.7%) in the economy as represented by the change in
CPI inflation. In addition, they have outpaced the increase in Average Weekly Earnings
(AWE) of all Canadian workers, which reached 17.8% over the same period.




   3
       Assumes that inflation unfolds as forecasted by the Consensus Forecasts. See economic section below.
   4
       Economic increases, restructures, terminable allowances and other pay adjustments.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                           41


Furthermore, the TC agreements have also outpaced the increase in public and private
sector settlements (as measured by HRSDC 5), which reflected cumulative increases of
21.6% and 20.5%, respectively.


                                            Figure 15: Cumulative Monetary Increases

                            30%
                                              TC Group - We ighted Av erage
                                              Public Sector (HRSD C)
                                              Private Se ctor (HRSDC )

                            20%




                            10%




                             0%
                               1998      1999     200 0     2 001    2002      2003     2004     200 5     2 006
                          Calculated by TBS using Stat. Can.’s CPI, V737344, AWE excluding overtime, (v1597104), and
                          settlement rates for the TC group (weighted average).




3.3 Pensions and Paid Benefits

As noted in the Policy Framework for the Management of Compensation, it is important
to consider the full compensation package provided by the Employer when assessing
the compensation situation of the TC Group compared to the market. Besides 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.




   5
       Wage settlements as reported by HRSDC for bargaining units that have 500 or more 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 Arbitration Brief – Technical Services (TC) Group                                               42


This very significant advantage in favour of the TC employees is partly due to the
generous pension and paid benefits they receive when compared to other Canadian
workers. While the value of non-wage benefits is not available for the TC Group
specifically, measuring the generosity of the pensions and paid benefits package
provided to all federal government employees which is essentially universal across all
CPA Groups, compared to the market indicates that federal employees enjoy better
benefits. That is, pension and paid benefits represent a higher portion of wages relative
to the private sector. This is measured by comparing the ratio of supplementary labour
income to wages and salaries. According to Statistic Canada’s National Accounts
definition, supplementary labour income measures the amount Employers pay for
pension and benefits for their employees. Since pension and benefit programs are
almost entirely homogenous across the federal public service, this ratio for the federal
public administration is applicable to the TC Group.

The analysis of the above benefits summarized in Figure 16 clearly establishes that TC
benefits are higher when compared to the average Canadian worker. The ratio of
supplementary labour income to wages and salaries stood at 20.9% in the federal public
administration and 14.9% on average in all other sectors. This difference has been
relatively stable since 1995, as it has ranged between a low of 6.0 percentage points to
a high of 13.2 percentage points.

It is also important to note, especially
                                                   Figure 16: Supplementary Labour Income Ratio
during these economically uncertain                               2006 (in percent)

times, that non-wage benefits that the
                                                   25
TC employees receive, which are                                   20.9
                                                   20
supported and paid for by the Federal                                                       14.9
                                                   15
Government, are far more insolated                 10
from the effects of a recession than                5

non-wage benefits paid and received                 0
                                                          Fed. Public Admin.           All Other Sectors
for those who work in the private
                                                  Source: Statistics Canada
sector. The payment and continuity of             Source: 2006 National Accounts Data, Statistics Canada

non-wage benefits for private sector
Employer’s Arbitration Brief – Technical Services (TC) Group                                                    43


workers is dependent on the financial viability of their Employer. During economic
downturns, this viability is at risk, which could leave workers with reduced pension
benefits and little or no other benefits.


4.0 Internal Relativity

Section 148 (c) of the PSLRA provides…”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”.

4.1 Comparison of Cumulative Increases

An analysis of total                  Figure 17: TC Cumulative Economic Increases vs. CPA
cumulative economic          40%
                                                  TC Grou p - We ighted Ave rage
increases (Figure 17)                             CPA

shows that the TC            30%

Group has
experienced the same         20%

salary increases as
those received by the        10%

Core Public
                              0%
Administration (CPA)
                                1998       1999      2000     2001      2002       2003    2004   2005   2006
over the same time
period. Since 1998,          Calculated by TBS from settlement rates (weighted average).

total cumulative economic increases received by both the TC Group and the CPA have
been 22.0%.
Employer’s Arbitration Brief – Technical Services (TC) Group                             44




5.0 Fair and reasonable Terms and Conditions of
Employment

Section 148 (d) of the PSLRA provides…”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”.

Comments on Section 148(d) are included in the discussion under Sections 148(b) and
(c) above.


6.0 Economy and Fiscal Circumstances

Section 148 (e) of the PSLRA provides…”the state of the Canadian economy and the
Government of Canada’s fiscal circumstances”.

For the federal government in its role as Employer, the state of the economy and the
government’s fiscal circumstances are crucial considerations.

Overall, the weakness in the Canadian economy due to the ongoing worldwide
recession, together with corresponding declines in consumer demand, business
investment, and the collapse of commodities markets, indicate that the labour market
will continue to soften and that wage pressures will continue to weaken. Moreover, risks
associated with the outlook remain negative, which could lead to even weaker labour
markets and wage growth than is now broadly expected.
Employer’s Arbitration Brief – Technical Services (TC) Group                                                        45


6.1 Economic Trends

The Consumer Price Index (CPI) tracks the price of a typical basket of consumer
goods 6. Inflation, or the change in the CPI index, is an indication of the erosion of
purchasing power experienced by consumers over a specific period. In 2006, 2007,
and 2008, average CPI inflation remained modest at or just above 2.0% per year (Table
3). The increase in inflation for 2008 mainly reflects the impact of previously-higher
gasoline prices, which by April 2009 had fallen 25% from a year ago. Core inflation,
which excludes gasoline and other volatile components such as fresh fruits and
vegetables and is used by the Bank of Canada to direct monetary policy, was 1.7% in
2008, which indicates that inflation would have been even lower had the temporary
spike in gasoline prices not occurred. For the next two (2) years, Consensus forecasters
expect inflation to plunge to 0.3% in 2009 before rebounding to a modest 1.8% in 2010.


Real GDP growth, which is the standard measure of economic growth in Canada,
provides an indication of overall demand for goods, services, and labour. Lower real
GDP growth lowers demand for employment, which increases unemployment and
lowers wage increases. In some circumstances, sharply falling real GDP can lead to
wage reductions and rollbacks.


Table 3
Economic and Labour Market Indicators
                            2006     2007                                      2008          2009*          2010*
CPI (y/y%)                   2.0      2.2                                       2.3            0.3           1.8
GDP (y/y%)                   2.9      2.5                                       0.4           -2.3           2.1
Unemployment (%)             6.3      6.0                                       6.2            8.5           9.0
Source: Statistics Canada and Consensus Economics Inc (June 2009 Forecast)
Note: *Denotes forecast




   6
       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 Arbitration Brief – Technical Services (TC) Group                                                           46


Real GDP growth slowed significantly in                   Backgrounder: Use of Consensus Economics and the Bank
                                                          of Canada Forecasts
2008 to just 0.4%, largely reflecting
                                                          The employer has chosen to use the forecasts by Consensus
reduced demand for Canadian exports                       Economics and the Bank of Canada as its principal indicator of
                                                          future economic prospects.
due to the onset of the global economic
slowdown. Consensus forecasters                           Consensus Economics, a UK forecasting firm, develops
                                                          economic forecasts for major industrialized countries by
expect the recession to continue through                  surveying the prominent economic forecasters in each country.
                                                          The Canadian forecasts are based on a survey of 15 firms,
2009, with real GDP forecast to decline                   including the Conference Board of Canada, Merrill Lynch
                                                          Canada and the University of Toronto. The consensus forecast
2.3%. The Bank of Canada has forecast                     is widely regarded as one of the more reliable and unbiased
                                                          indicator of future economic prospects. By taking the average
even weaker GDP growth in 2009, with a                    of many different viewpoints, it is not unduly influenced by the
                                                          particular assumptions of individual forecasting firms. It is
contraction of 3.0%. 7                                    also transparent, as the forecasts of each firm are available.

                                                          The Bank of Canada is unique in that it has the power to
                                                          influence economic developments through its control interest
                                                          rates. The Bank of Canada’s view on the economic outlook is
Canada’s economy contracted 5.4%                          a key determinant of its monetary policy. For example, the
                                                          Bank is likely to raise interest rates (thereby increasing
(annual rate) in the first quarter of 2009,               unemployment, and reducing wage ) when it perceives that
                                                          inflationary pressures are developing due to, say, unsustainably
marking the largest quarterly decline in                  high economic growth. Knowledge of the Bank’s forecast is
                                                          important in understanding how it might act to influence the
economic growth since the first quarter of                economic outlook.
1991. Negative growth is expected to
continue through most of 2009, followed by a gradual recovery in 2010. As a result of
the weak economic conditions, unemployment is expected to progressively increase
from 6.2% in 2008 to 9.0% in 2010. Employment has already fallen by 363,000 to May
2009 since its peak in October 2008. Full-time employment has fallen even further, with
406,000 jobs lost over the same period.

6.2 Economic Uncertainty and Impact on Negotiations

It is noteworthy that Consensus expectations for most western economies have been
revised repeatedly downwards. Since information regarding the U.S. sub-prime
mortgage issue became available in August 2007, the Consensus forecast for Canadian
real GDP growth in 2009 has been revised down from 2.5% in January 2008 to -2.3% in




   7
       Bank of Canada Monetary Policy Report April 2009
Employer’s Arbitration Brief – Technical Services (TC) Group                                47


June 2009. The forecast for U.S. real GDP growth has also been revised down,
plummeting from 2.7% to -2.8% over the same period.

Going forward, despite the repeated downward revision to growth forecasts, even
slower economic growth and lower inflation remains quite possible. If this were to be
the case, labour markets and wage pressures would weaken even further than is
currently expected.

Most of the downside risk to the Canadian economy comes from external factors. In
particular, growth in the United States and in other countries, industrialized and
developing, could be much slower than is currently expected as a result of continuing
financial sector difficulties or a slower transmission of supportive monetary and fiscal
policy actions taken by governments worldwide. This would have a direct negative
effect on the Canadian economy through a weaker export sector, as well as an indirect
negative effect through downward pressure on commodity prices – as already seen with
the price of oil – that would further curtail the Canadian economy and the Canadian
labour market.


6.3 Government Fiscal Circumstances

For the federal government in its role as Employer, financial capacity and ability to pay
are crucial considerations. With the economy in the midst of a sharp recession, the
government has extremely limited fiscal flexibility. Indeed, the government is facing
significant deficits over the next few years, with Budget 2009 showing expected deficits
that will reach a cumulative $105 billion by 2012-13 and a federal debt that will climb to
$562 billion. The weaker than expected economic performance since Budget 2009 was
announced in January has resulted in upward revisions of $2.9 billion and $8.1 billion to
the expected deficits in 2008-09 and 2009-10. Loans to the auto industry and a Canada
Health Transfer top-up have added an additional $8.5 billion to the deficit in 2009-10 8.
Together the weak economic performance and additional expenses have added $19.5


   8
       Canada’s Economic Action Plan- A Second Report to Canadians June 2009
Employer’s Arbitration Brief – Technical Services (TC) Group                                            48


billion in cumulative deficits since January and an expected deficit of $50.2 billion in
2009-10.


The government’s immediate priority is to support the economy. At the same time,
however, it must continue to carefully manage existing programs and costs. As such,
the government has taken a number of major steps to control spending in response to
the deteriorating economic and fiscal situation, including putting into place annual wage
increases for the public sector to ensure compensation costs are predictable and
sustainable in the coming years. These annual wage increases will result in a
cumulative 7.0% increase for public sector employees, which compares favorably with
Consensus forecast that has cumulative actual/expected inflation over the same period
at 6.6% 9. With the legislated wage increases, employees will see a modest increase in
real wages over this period of fiscal restraint.


The government is committed to returning to a surplus position. As such, the stimulus
measures set out in the budget are concentrated in the next two years, when the
economy is expected to be weak and the stimulus is most needed. Consistent with the
focus on near-term stimulus, if time-limited spending does not evolve as expected, the
money will not be rolled forward to be spent in later years. By 2013-14, a small surplus
is expected and the government is committed to use future budget surpluses first of all
to repay deficits expected in the upcoming years.


In terms of compensation, the needs of all Canadians must be weighed against the
costs of wage settlements. The government has the responsibility to manage its budget
in a manner that serves the public interest. Sound fiscal management goes beyond
mere prudent planning; it encompasses the responsible management of tax dollars as
well as the delivery of cost-effective and efficient government services.




   9
       Forecast assumes inflation in 2011Q1 is 2.0%, as a quarterly forecast is unavailable for 2011.
Employer’s Arbitration Brief – Technical Services (TC) Group                              49



7.0 Employer’s Submission for Rates of Pay

The Employer’s proposal before the Board is in keeping with the above analysis and is
consistent with the overall proposal made to the Alliance in November 2008.

The Employer is proposing four (4) year duration with an expiry of June 21, 2011, with
economic increases as follows:

            Effective June 22, 2007           2.3%

            Effective June 22, 2008           1.5%

            Effective June 22, 2009           1.5%

            Effective June 22, 2010           1.5%

No restructuring is proposed.

Recent economic and compensation data suggest that low economic increases would
be appropriate for settlements concluded in the near to medium term for the Technical
Services (TC) Group. This is in response to the deteriorating economic and fiscal
situation of the country in which Canadians should expect significant deficits over the
next few years.

The group enjoys a favorable position when compared to their external labour market
comparators (private and public sectors) as well as with the average increases of the
CPA. The current levels of compensation for the TC Group are sufficient as evidenced
by relatively healthy recruitment and retention levels where the overall population has
been in constant growth since year 2000.

As indicated in the 2009 Federal Budget, the Government has introduced legislation to
ensure that compensation for the public sector reflects the current economic and fiscal
situation and as such, public servants will receive economic increases of 2.3% for fiscal
year 2007/08, 1.5% for fiscal year 2008/09, 1.5% for fiscal year 2009/10 and 1.5% for
fiscal year 2010/11.
Employer’s Arbitration Brief – Technical Services (TC) Group                             50


As well, the Employer is of the opinion that the above position is consistent with the
Expenditure Restraint Act.
Employer’s Arbitration Brief – Technical Services (TC) Group   51




                                             PART IV


                            OTHER ISSUES IN DISPUTE
      TC Arbitration Board Brief                                                               52



                                          ARTICLE 2
                             INTERPRETATION AND DEFINITIONS

                Collective Agreement                          Employer Proposal

2.01       For the purpose of this Agreement:     2.01   For the purpose of this Agreement:

“overtime” (heures supplémentaires)               “overtime” (heures supplémentaires)
means:                                            means:

(a)        in the case of a full-time employee,   (a)    in the case of a full-time employee,
           authorized work in excess of the              authorized work in excess of the
           employee’s scheduled hours of                 employee’s scheduled hours of
           work,                                         work,

           or                                            or

(b)        in the case of a part-time employee,   (b)    in the case of a part-time employee,
           authorized work in excess of                  authorized work in excess of
           seven and one-half (7 1/2) hours              seven decimal five (7.5) hours at
           per day or thirty-seven and                   straight-time per day in the same
           one-half (37 1/2) hours per week,             position or thirty-seven decimal
           but does not include time worked on           five (37.5) hours at straight time
           a holiday,                                    per week in the same position, but

           or                                            does not include time worked on
                                                         a holiday,
(c)        in the case of a part-time employee
           whose normal scheduled hours of               or

           work are in excess of seven and        (c)    in the case of a part-time employee
           one-half (7 1/2) hours per day in             whose normal scheduled hours of
           accordance with the Variable Hours            work are in excess of seven
           of Work provisions (clauses 25.10             decimal five (7.5) hours per day in
           to 25.13), authorized work in excess          accordance with the Variable Hours
           of those normal scheduled daily               of Work provisions (clauses 25.10
           hours or an average of thirty-seven           to 25.13), authorized work in excess
  TC Arbitration Board Brief                                                                53


       and one-half (37 1/2) hours per                of those normal scheduled daily
       week,                                          hours at straight time in the same
                                                      position or an average of thirty-
                                                      seven decimal five (37.5) hours at
                                                      straight time per week in the
                                                      same position,


Comments:

The Employer is proposing to introduce language that would clarify the obligation of the
Employer to pay overtime when an employee has two part-time employments with
different departments. The existing language does not clearly state if the hours worked
at two (2) departments can be considered as one for total hours and as such, could
result in overtime payments though each department is clearly below the number of
hours required for overtime. As different collective agreements may contain different
overtime provisions, this would lead to administrative problems. This new language
would ensure one consistent application.


                                        ARTICLE 25
                                  HOURS OF WORK

           Collective Agreement                           Employer Proposal

25.08 If an employee is given less than        25.08 If an employee is given less than
seven (7) days’ advance notice of a            seven (7) days’ forty-eight (48) hours’
change in his or her shift schedule, the       advance notice of a change in his or her
employee will receive a premium rate of        shift schedule, the employee will receive a
time and one-half (1 1/2) for work             premium rate of time and one-half (1 1/2)
performed on the first shift changed.          for work performed on the first shift
Subsequent shifts worked on the new            changed. Subsequent shifts worked on the
schedule shall be paid for at straight time.   new schedule shall be paid for at straight
Such employee shall retain his or her          time. Such employee shall retain his or her
previously scheduled days of rest next         previously scheduled days of rest next
  TC Arbitration Board Brief                                                               54


following the change or if worked, such       following the change or if worked, such
days of rest shall be compensated in          days of rest shall be compensated in
accordance with the overtime provisions of    accordance with the overtime provisions of
this collective agreement.                    this collective agreement.

Comments:

The Employer is proposing to amend the notification period for a shift change. The
current 7 days’ advance notice is operationally too long and it denies management’s
flexibility to manage its staff. The proposed shorter notice period has an added benefit
to employees as it will provide greater flexibility to accommodate short notice requests
such as leave requests. The 48 hours’ advance notice is currently found in the CX
collective agreement.


                                        ARTICLE 28
                                        OVERTIME

            Collective Agreement                         Employer Proposal

28.12 An employee who receives a call to      28.12 Call-back from a remote location
duty or responds to a telephone or data       Move 28.12 to Article 29 – Call Back Pay
line call while on standby or at any other
time outside of his or her scheduled hours
of work, may at the discretion of the
Employer work at the employee’s
residence or at another place to which the
Employer agrees. In such instances, the
employee shall be paid the greater of:

(a)    compensation at the applicable
       overtime rate for any time worked,

       or

(b)    compensation equivalent to
  TC Arbitration Board Brief                                                                 55


        one (1) hour’s pay at the
        straight-time rate, which shall apply
        only the first time an employee
        performs work during an
        eight (8) hour period, starting when
        the employee first commences the
        work.


Comments:

This proposal is to consolidate all call-back provisions in a single article. As this
collective agreement contains a Call-Back Pay article, we believe that this existing
provision would be more appropriately located at article 29.


                                       ARTICLE 29
                                    CALL-BACK PAY

             Collective Agreement                            Employer Proposal

Alternate Provisions                            Alternate Provisions

Clauses 29.01 and 29.02 do not apply to         Clauses 29.01, 29.02 and 29.03 do not
employees covered by 29.03.                     apply to employees covered by 29.04.

29.01 If an employee is called back to          29.01 If an employee is called back to
work:                                           work:

(a)     on a designated paid holiday which      (a)     on a designated paid holiday which
        is not the employee’s scheduled                 is not the employee's scheduled day
        day of work,                                    of work,

        or                                              or

(b)     on the employee’s day of rest,          (b)     on the employee's day of rest,

        or                                              or
      TC Arbitration Board Brief                                                               56


(c)        after the employee has completed       (c)   after the employee has completed
           his or her work for the day and has          his or her work for the day and has
           left his or her place of work, and           left his or her place of work, and

           returns to work, the employee shall          returns to work, the employee shall

           be paid the greater of:                      be paid the greater of:

           (i)      compensation equivalent to          (i)     compensation at the

                    three (3) hours’ pay at the                 applicable overtime rate for

                    applicable overtime rate of                 overtime time worked,

                    pay for each call-back to a                 or
                    maximum of eight (8) hours’
                                                        (ii)    compensation equivalent to
                    compensation in an
                                                                three (3) hours' pay at the
                    eight (8)-hour period. Such
                                                                applicable overtime rate of
                    maximum shall include any
                                                                pay except that this
                    reporting pay pursuant to
                                                                minimum shall only apply
                    clause 32.06 and the
                                                                once during a single eight
                    relevant reporting pay
                                                                (8) hour period, starting
                    provisions,
                                                                when the employee first
                    or                                          commences the work.

           (ii)     compensation at the                         Such maximum shall include
                    applicable rate of overtime                 any reporting pay pursuant to
                    compensation for time                       clause 32.06 and the relevant
                    worked,                                     reporting pay provisions,

provided that the period worked by the                  provided that the period worked by
employee is not contiguous to the                       the employee is not contiguous to
employee’s normal hours of work.                        the employee's normal hours of
                                                        work.
(d)        The minimum payment referred to
           in 29.01(c)(i) above, does not apply   (d)   The minimum payment referred to in
           to part-time employees. Part-time            29.01(c)(ii) above, does not apply to
           employees will receive a minimum             part-time employees. Part-time
           payment in accordance with                   employees will receive a minimum
  TC Arbitration Board Brief                                                               57


       clause 63.06 of this collective              payment in accordance with clause
       agreement.                                   63.06 of this collective agreement.


Comments:

The Employer’s proposal is to apply the 3 hours compensation at the applicable
overtime rate the first time the employee is called back within an 8-hour period. The
principal of this proposal is that an employee is being inconvenienced by the first time
that he or she has to report back to work and a different compensation should be
applicable. Subsequent call-back situations will be compensated at the applicable
overtime rate. The proposed payment under 29.01 is a responsible and reasonable
level of compensation for the amount of time worked.

The addition of 29.03 under Alternate Provisions is a consequential change by the
relocation of article 28.12 to Article 29.

The Employer recommends that the Board amend the current language.


            Collective Agreement                          Employer Proposal

28.12 An employee who receives a call to      29.02 If an employee receives a call to
duty or responds to a telephone or data       duty and works a minimum of fifteen
line call while on standby or at any other    (15) minute period at his or her
time outside of his or her scheduled hours    residence or at another place to which
of work, may at the discretion of the         the Employer agrees:
Employer work at the employee’s
                                              (a)    on a designated paid holiday
residence or at another place to which the
                                                     which is not the employee's
Employer agrees. In such instances, the
                                                     scheduled day of work,
employee shall be paid the greater of:
                                                     or
(a)    compensation at the applicable
                                              (b)    on the employee's day of rest,
       overtime rate for any time worked,
                                                     or
       or
                                              (c)    after the employee has
(b)    compensation equivalent to
  TC Arbitration Board Brief                                                              58


       one (1) hour’s pay at the                     completed his or her work for the
       straight-time rate, which shall apply         day and has left his or her place
       only the first time an employee               of work, the employee shall be
       performs work during an                       paid the greater of:
       eight (8) hour period, starting when          i)    compensation at the
       the employee first commences the                    applicable overtime rate for
       work.                                               overtime time worked,

                                                           or

                                                     ii)   compensation equivalent to
                                                           one (1) hour’s pay at the
                                                           straight-time rate, which
                                                           shall only apply once only
                                                           the first time an employee
                                                           performs work during an
                                                           single eight (8) hour period,
                                                           starting when the employee
                                                           first commences the work

                                               provided that the period worked by the
                                               employee is not contiguous to the
                                               employee's normal hours of work.


Comments:

This new clause is formerly 28.12 of the Overtime article which we are proposing to
relocate under the Call-Back Pay article. The Call-back provision when working from a
remote location already exists in the TC collective agreement. The Employer is
proposing to maintain the entitlement with modified language.

The proposed language outlines the current situations when this provision would be
applicable. As identified in the Overtime article, the employee must work for 15 minutes
in order to receive compensation for 1 hour. This will ensure a minimum period of work
for overtime compensation.
  TC Arbitration Board Brief                                                                 59

The Employer’s proposal is to apply the 1 hour compensation at the applicable overtime
rate the first time the employee is called back within an 8-hour period. The principal of
this proposal is that an employee is being inconvenienced by the first time that he or
she has to perform work and a different compensation should be applicable.
Subsequent call-back situations will be compensated at the applicable overtime rate.
The proposed payment under 29.02 is a responsible and reasonable level of
compensation for the amount of time worked.

Consequently, the Employer recommends that the Board amend the current language.


                                       ARTICLE 30
                                        STANDBY

           Collective Agreement                            Employer Proposal

30.01 Where the Employer requires an           30.01 Where the Employer requires an
employee to be available on standby            employee to be available on standby
during off-duty hours, such employee shall     during off-duty hours, such employee shall
be compensated at the rate of                  be compensated at the rate of
one-half (1/2) hour for each four (4)-hour     one-half (1/2) hour for each four (4)-hour
period or part thereof for which the           period or part thereof for which the
employee has been designated as being          employee has been designated as being
on standby duty.                               on standby duty.

30.02 An employee designated by letter or 30.02 An employee designated by letter or
by list for standby duty shall be available    by list for standby duty shall be available
during his or her period of standby at a       during his or her period of standby at a
known telephone number and be available        known telephone number and be readily
to return for work as quickly as possible if   available to return for work as quickly as
called. In designating employees for           possible, and within a reasonable time
standby, the Employer will endeavour to        frame as determined by the Employer, if
provide for the equitable distribution of      called. In designating employees for
standby duties.                                standby, the Employer will endeavour to
                                               provide for the equitable distribution of
   TC Arbitration Board Brief                                                             60


                                              standby duties.


Comments:

The Employer is proposing new language which would emphasize that when an
employee is designated to be on standby, he or she should be available to report for
work within a reasonable period of time in order to assume the duties. The Employer’s
decision to determine if the employee is readily available, would be based on the
urgency of the matter, ie. within the next hour or during the course of the day.


It is the Employer’s interpretation that ‘readily’ means to be prompt, in a timely manner,
willing, without hesitation and difficulty.

Similar language can be found in the newly negotiated Computer Systems
Administration (CS) and the Economics and Social Science Services (EC) collective
agreements.

The Employer recommends that the Board amend the current language, based on the
proposal.


                                         ARTICLE 31
                                    REPORTING PAY

            Collective Agreement                          Employer Proposal

31.01                                         31.01

(a)     When an employee is required to       (a)     When an employee is required
        report and reports to work on the             scheduled to report for work and
        employee’s day of rest, the                   reports to work on the employee’s
        employee is entitled to a minimum             day of rest, the employee is entitled
        of three (3) hours’ pay at the                to a minimum of three (3) hours’
        applicable overtime rate of pay;              pay at the applicable overtime rate
                                                      of pay shall be paid the greater of:
  TC Arbitration Board Brief                                                              61


                                                     i)     compensation at the
                                                            applicable overtime rate for
                                                            overtime worked,

                                                           or

                                                     ii)    compensation equivalent to
                                                            three (3) hours’ pay at the
                                                            applicable overtime rate of
                                                            pay except that this
                                                            minimum shall only apply
                                                            once during a single eight
                                                            (8) hour period, starting
                                                            when the employee first
                                                            commences the work.


Comments:

There are two elements at play in 31.01(a). The first one is the adoption of the 8-hour
period within which the call-back can take place. The second element deals with
minimum compensation of 3 hours at applicable overtime rate to occur only once in this
8-hour period, as currently found in clause 29.01, 29.02 and 32.06. The proposed
payment under 31.01(a) is a responsible and reasonable level of compensation for the
amount of time worked.

The proposed change of language from “required to report” to “scheduled to report for
work” is to clarify when this provision would be applicable and to advise the employee
that this provision is applicable only when he or she is scheduled to report for work.

The Employer requests that the Board approves the amendment to the language and
the modification to the provision.
  TC Arbitration Board Brief                                                              62


                                      ARTICLE 32
                               DESIGNATED PAID HOLIDAYS

            Collective Agreement                           Employer Proposal

32.06 When an employee is required to        32.06 Reporting for Work
report for work and reports on a             (a)      When an employee is required
designated holiday, the employee shall be
                                             scheduled to report for work and reports
paid the greater of:                         on a designated holiday, the employee
(a)    compensation equivalent to            shall be paid the greater of:
       three (3) hours’ pay at the
                                                (i)   compensation in accordance with
       applicable overtime rate of pay for
                                                      the provisions of clause 32.05;
       each reporting to a maximum of
                                                      or
       eight (8) hours’ compensation in an
       eight (8) hour period;                   (ii) compensation equivalent to
                                                      three (3) hours’ pay at the
       or
                                                      applicable overtime rate except
(b)    compensation in accordance with
                                                      that this minimum shall only
       the provisions of clause 32.05.
                                                      apply once during a single eight
                                                      (8) hour period, starting when the
                                                      employee first commences the
                                                      work.

                                             (b)      The minimum payment referred
                                             to in (a)(ii) above, does not apply to
                                             part-time employees. Part-time
                                             employees will receive a minimum
                                             payment in accordance with 63.09.


Comments:

As previously identified in the above proposals, the Employer’s proposal is to apply the
3 hours compensation at the applicable overtime rate the first time the employee is
called back within an 8-hour period. The principal of this proposal is that an employee
  TC Arbitration Board Brief                                                                 63

is being inconvenienced by the first time that he or she has to perform work and a
different compensation should be applicable. Subsequent call-back situations will be
compensated at the applicable overtime rate. The proposed payment under 32.06 is a
responsible and reasonable level of compensation for the amount of time worked.

The proposed change of language from “required to report” to “scheduled to report for
work” is to clarify when this provision would be applicable and to advise the employee
that this provision is applicable only when he or she is scheduled to report for work.

The Employer recommends the adoption of this proposal.


                                        ARTICLE 34
                                  TRAVELLING TIME

           Collective Agreement                            Employer Proposal

34.03 For the purposes of clauses 34.02       34.03      For the purposes of clauses 34.02
and 34.04, the travelling time for which an   and 34.04, the travelling time for which an
employee shall be compensated is as           employee shall be compensated is as
follows:                                      follows:

For travel by public transportation, the time (a)     For travel by public transportation,

between the scheduled time of departure               the time between the scheduled

and the time of arrival at a destination,             time of departure and the time of

including the normal travel time to the               arrival at a destination, including the

point of departure, as determined by the              normal travel time to the point of
                                                      departure, as determined by the
Employer.
                                                      Employer.
For travel by private means of
                                               (b)    For travel by private means of
transportation, the normal time as
                                                      transportation, the normal time as
determined by the Employer, to proceed
                                                      determined by the Employer, to
from the employee’s place of residence or
                                                      proceed from the employee’s place
work place, as applicable, direct to the
                                                      of residence or work place, as
employee’s destination and, upon the
                                                      applicable, direct to the employee’s
employee’s return, direct back to the
  TC Arbitration Board Brief                                                                     64


employee’s residence or work place.                       destination and, upon the
                                                          employee’s return, direct back to
In the event that an alternate time of
                                                          the employee’s residence or work
departure and/or means of travel is
                                                          place.
requested by the employee, the Employer
may authorize such alternate                      (c)     In the event that an alternate time of

arrangements, in which case                               departure and/or means of travel is

compensation for travelling time shall not                requested by the employee, the

exceed that which would have been                         Employer may authorize such

payable under the Employer’s original                     alternate arrangements, in which

determination.                                            case compensation for travelling
                                                          time shall not exceed that which
34.04 If an employee is required to travel
                                                          would have been payable under the
as set forth in clauses 34.02 and 34.03:
                                                          Employer’s original determination.
(a)    On a normal working day on which
                                                  34.04 If an employee is required to travel
       the employee travels but does not
                                                  as set forth in clauses 34.02 and 34.03:
       work, the employee shall receive
       his or her regular pay for the day.        (a)     On a normal working day on which
                                                          the employee travels but does not
(b)    On a normal working day on which
                                                          work, the employee shall receive
       the employee travels and works, the
                                                          his or her regular pay for the day.
       employee shall be paid:
                                                  (b)     On a normal working day on which
       (i)      his or her regular pay for the
                                                          the employee travels and works, the
                day for a combined period of
                                                          employee shall be paid:
                travel and work not
                exceeding his or her regular               (i)     his or her regular pay for the

                scheduled working hours,                           day for a combined period of
                                                                   travel and work not
                and
                                                                   exceeding his or her regular
       (ii)     at the applicable overtime                         scheduled working hours,
                rate for additional travel time
                                                                   and
                in excess of his or her
                regularly scheduled hours of            (ii)       at the applicable overtime

                work and travel, with a                            rate for additional travel time
      TC Arbitration Board Brief                                                                 65


                    maximum payment for such                     in excess of his or her
                    additional travel time not to                regularly scheduled hours of
                    exceed twelve (12) hours                     work and travel, with a
                    pay at the straight-time rate                maximum payment for such
                    of pay.                                      additional travel time not to
                                                                 exceed twelve (12) hours pay
(c)        On a day of rest or on a designated
                                                                 at the straight-time rate of
           paid holiday, the employee shall be
           paid at the applicable overtime rate                  pay.

           for hours travelled to a maximum of      (c)   On a day of rest or on a designated
           twelve (12) hours pay at the                   paid holiday, the employee shall be
           straight-time rate of pay.                     paid at the applicable overtime rate
                                                          for hours travelled to a maximum of
                                                          twelve (12) hours pay at the
                                                          straight-time rate of pay.

                                                    (d)   For the purpose of clauses 34.04
                                                          (b) and (c), should a period of
                                                          work and travel continue into the
                                                          next day, the employee’s total
                                                          travel period will be deemed to
                                                          have taken place on the day it
                                                          started.


Comments:

Under clause 34.03, the Employer’s proposal is to facilitate the reference to these
paragraphs by allocating letters a, b and c.


At 34.04 (d), 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
  TC Arbitration Board Brief                                                                66

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 recommends that the Board awards this new language.




           Collective Agreement                           Employer Proposal

34.09 Travel Status Leave                      34.09 Travel Status Leave

Exclusions                                     Exclusions
This clause does not apply to employees
                                               This clause does not apply to employees
covered by Appendix I - Engineering and
                                               covered by Appendix I - Engineering and
Scientific Support Group.
                                               Scientific Support Group.
(a)    An employee who is required to
                                               (a)   An employee who is required to
       travel outside his or her
                                                     travel outside his or her
       headquarters area on government
                                                     headquarters area on government
       business, as these expressions are
                                                     business, as these expressions are
       defined by the Employer, and is
                                                     defined by the Employer, and is
       away from his or her permanent
                                                     away from his or her permanent
       residence for forty (40) nights
                                                     residence for forty (40) nights
       during a fiscal year shall be granted
                                                     during a fiscal year shall be granted
       fifteen (15) hours off with pay. The          fifteen (15) hours off with pay. The
       employee shall be credited with one           employee shall be credited with one
       additional period of                          additional period of seven decimal
       seven decimal five (7.5) hours for
                                                     five (7.5) hours for each additional
       each additional twenty (20) nights
                                                     twenty (20) nights that the
       that the employee is away from his            employee is away from his or her
       or her permanent residence to a
                                                     permanent residence to a maximum
       maximum of eighty (80) additional
                                                     of eighty (80) sixty (60) additional
       nights.                                       nights.
  TC Arbitration Board Brief                                                               67




Comments:

This proposal is a correction to a consequential change that was made during the
previous round of negotiation. The Travel Status Leave entitlement was changed from
7.5 hours to 15 hours off with pay for being away for 40 nights from his or her
permanent residence. As such, employees were entitled to a greater quantum earlier.
Although, the maximum time off remained at 37.5 hours and when doing the math, it
meant a maximum of 60 additional nights away in order to attain that maximum.

Unfortunately, the parties at that time omitted to change the 80 additional nights to 60
additional nights for qualifying for the 37.5 hours in a fiscal year.

What the Employer is asking has in no way any impact on the entitlement but to correct
the appropriate numbers.




          Collective Agreement                        Bargaining Agent Proposal

34.09 Travel Status Leave                       34.09 Travel Status Leave

Exclusions                                      Exclusions

This clause does not apply to employees         This clause does not apply to employees

covered by Appendix I - Engineering and         covered by Appendix I - Engineering and

Scientific Support Group.                       Scientific Support Group.

(a)    An employee who is required to           (a)    An employee who is required to

       travel outside his or her                       travel outside his or her

       headquarters area on government                 headquarters area on government

       business, as these expressions are              business, as these expressions are

       defined by the Employer, and is                 defined by the Employer, and is

       away from his or her permanent                  away from his or her permanent

       residence for forty (40) nights                 residence for forty (40) nights during

       during a fiscal year shall be granted           a fiscal year shall be granted

       fifteen (15) hours off with pay. The            fifteen (15) zero decimal five (0.5)
      TC Arbitration Board Brief                                                                  68


           employee shall be credited with one              hours off with pay for each night
           additional period of                             away from his or her permanent
           seven decimal five (7.5) hours for               residence. The employee shall be
           each additional twenty (20) nights               credited with one additional period
           that the employee is away from his               of seven decimal five (7.5) hours for
           or her permanent residence to a                  each additional twenty (20) nights
           maximum of eighty (80) additional                that the employee is away from his
           nights.                                          or her permanent residence to a
                                                            maximum of eighty (80) additional
(b)        The maximum number of hours off
                                                            nights.
           earned under this clause shall not
           exceed thirty-seven decimal              (b)    The maximum number of hours off
           five (37.5) hours in a fiscal year and          earned under this clause shall not
           shall accumulate as compensatory                exceed thirty seven decimal five
           leave with pay.                                 (37.5) hours in a fiscal year and shall
                                                           accumulate as compensatory leave
(c)        This leave with pay is deemed to be
                                                           with pay.
           compensatory leave and is subject
           to paragraphs 28.02(c) and (d).          (b)     This leave with pay is deemed to be
                                                            compensatory leave and is subject
The provisions of this clause do not apply
                                                            to paragraphs 28.02(c) (d).
when the employee travels in connection
with courses, training sessions,                    The provisions of this clause do not apply
professional conferences and seminars,              when the employee travels in connection
unless the employee is required to attend           with courses, training sessions,
by the Employer.                                    professional conferences and seminars,
                                                    unless the employee is required to attend
                                                    by the Employer.

                                                    Remove all other exclusions under this
                                                    article, including:

                                                    •     Appendix B – employees in the GT
                                                          Group, employed by the
                                                          Department of Fisheries and
  TC Arbitration Board Brief                                                               69


                                                  Oceans at a Fish Hatchery

                                              •   Appendix C – Fishery Officers in the
                                                  GT Group, working on off-shore
                                                  surveillance in the Department of
                                                  Fisheries and Oceans

                                              •   Appendix I – Employees in the EG
                                                  Group in the Sea Lamprey Control
                                                  Unit

                                              •   Appendix L – Employees in the EG
                                                  Group, employed by the
                                                  Department of National Defence
                                                  engaged in sea trials

                                              •   Appendix S – Certain aircraft
                                                  maintenance engineers


Comments:

The Bargaining Agent is proposing significant expansion to the provisions under Travel
Status Leave. They are requesting to amend the entitlement in order that each night
away from the headquarters area shall be recognized with an entitlement of 0.5 hours
off with pay, with no maximum number of hours and the removal of all exceptions that
were previously agreed to by the parties.

This proposal goes against the fundamental reasons when this provision was
negotiated which was to recognize and compensate employees that were away from
their residence for what was considered to be an excessive number of nights.

The Board should note that the level of benefit currently available to employees in this
bargaining unit is better than the majority of collective agreements which the Employer
is a party. The TC and the Electronic (EL) Groups currently provide for 15 hours of paid
leave for being away for 40 nights. Other agreements, such as the Program and
Administration Services (PA), Border Services (FB), Operational Services (SV), Radio
  TC Arbitration Board Brief                                                                 70

Operators (RO) and the Air Traffic Control (AI), are entitled to 7.5 hours when away for
40 nights.

The Employer recommends the Board to renew the current entitlement.


                                        ARTICLE 38
                               VACATION LEAVE WITH PAY

             Collective Agreement                           Employer Proposal

Entitlement to Vacation Leave With Pay          Entitlement to Vacation Leave With Pay

38.03 An employee is entitled to vacation       38.03 An employee is entitled to vacation
leave with pay to the extent of the             leave with pay to the extent of the
employee’s earned credits but an                employee’s earned credits but an
employee who has completed                      employee who has completed
six (6) months of continuous employment         six (6) months of continuous employment
may receive an advance of credits               may receive an advance of credits
equivalent to the anticipated credits for the   equivalent to the anticipated credits for the
vacation year.                                  current vacation year.

38.04 If at the end of a fiscal year, an        38.04 If at the end of a fiscal year, an
employee’s entitlement to vacation leave        employee’s entitlement to vacation leave
with pay includes a fractional entitlement      with pay includes a fractional entitlement
of less or more than one-half (1/2) day, the    of less or more than one-half (1/2) day, the
entitlement shall be increased to the           entitlement shall be increased to the
nearest half (1/2) day.                         nearest half (1/2) day.

38.05 In scheduling vacation leave with         Scheduling of Vacation Leave With Pay
pay to an employee, the Employer shall,         Delete current 38.05 and replace with:
subject to the operational requirements of
                                                38.05
the service, make every reasonable effort:
                                                (a)     Employees are expected to take
(a)    to grant the employee his or her
                                                        all their vacation leave during the
       vacation leave during the fiscal year
                                                        vacation year in which it is
       in which it is earned, if so requested
      TC Arbitration Board Brief                                                                71


           by the employee not later than                 earned.
           June 1;
                                                   (b)    Subject to the following
(b)        to comply with any request made by             subparagraphs, the Employer
           an employee before January 31 that             reserves the right to schedule an
           the employee be permitted to use in            employee’s vacation leave
           the following fiscal year any period           earned in the current or prior
           of vacation leave of four (4) days or          year(s) but shall make every
           more earned by the employee in the             reasonable effort:
           current year;
                                                         (i)     to provide an employee’s
(c)        to ensure that approval of an                         vacation leave in an
           employee’s request for vacation                       amount and at such time
           leave is not unreasonably denied;                     as the employee may

(d)        to schedule vacation leave on an                      request;

           equitable basis and when there is             (ii)    not to recall an employee
           no conflict with the interests of the                 to duty after the employee
           Employer or the other employees,                      has proceeded on vacation
           according to the wishes of the                        leave;
           employee.
                                                         (iii)   not to cancel nor alter a
                                                                 period of vacation or
                                                                 furlough leave which has
                                                                 been previously approved
                                                                 in writing.

38.06 The Employer shall give an                   38.06 The Employer shall give an
employee as much notice as is practicable          employee as much notice as is practicable
and reasonable of approval, denial or              and reasonable of approval, denial,
cancellation of a request for vacation or          alteration or cancellation of a request for
furlough leave. In the case of denial,             vacation or furlough leave. In the case of
alteration or cancellation of such leave, the denial, alteration or cancellation of such
Employer shall give the written reason             leave, the Employer shall give the written
therefor, upon written request from the            reason therefore, upon written request
  TC Arbitration Board Brief                                                              72


employee.                                     from the employee.

Advance Payments                              Advance Payments

38.12 The Employer agrees to issue            38.12 The Employer agrees to issue
advance payments of estimated net salary      advance payments of estimated net salary
for vacation periods of two (2) or more       for vacation periods of two (2) or more
complete weeks, provided a written            complete weeks, provided a written
request for such advance payment is           request for such advance payment is
received from the employee at least           received from the employee at least
six (6) weeks prior to the last pay day       six (6) weeks prior to the last pay day
before the employee’s vacation period         before the employee’s vacation period
commences.                                    commences.

Providing the employee has been               Providing the employee has been
authorized to proceed on vacation leave       authorized to proceed on vacation leave
for the period concerned, pay in advance      for the period concerned, pay in advance
of going on vacation shall be made prior to   of going on vacation shall be made prior to
departure. Any overpayment in respect of      departure. Any overpayment in respect of
such pay advances shall be an immediate       such pay advances shall be an immediate
first charge against any subsequent pay       first charge against any subsequent pay
entitlements and shall be recovered in full   entitlements and shall be recovered in full
prior to any further payment of salary.       prior to any further payment of salary.

Cancellation of Vacation Leave                Cancellation or Alteration of Vacation

38.13 When the Employer cancels or            Leave

alters a period of vacation or furlough       38.13 When the Employer cancels or
leave which it has previously approved in     alters a period of vacation or furlough
writing, the Employer shall reimburse the     leave which it has previously approved in
employee for the non-returnable portion of    writing, the Employer shall reimburse the
vacation contracts and reservations made      employee for the non-returnable portion of
by the employee in respect of that period,    vacation contracts and reservations made
subject to the presentation of such           by the employee in respect of that period,
documentation as the Employer may             subject to the presentation of such
      TC Arbitration Board Brief                                                                 73


require. The employee must make every               documentation as the Employer may
reasonable attempt to mitigate any losses           require. The employee must make every
incurred and will provide proof of such             reasonable attempt to mitigate any losses
action to the Employer.                             incurred and will provide proof of such
                                                    action to the Employer

38.17                                               38.17

(a)        Employees shall be credited a one-       (a)     Employees shall be credited a one-
           time entitlement of thirty-seven                 time entitlement of thirty-seven
           decimal five (37.5) hours of                     decimal five (37.5) hours of
           vacation leave with pay on the                   vacation leave with pay on the
           first (1st) day of the month following           first (1st) day of the month following
           the employee’s second (2nd)                      the employee’s second (2nd)
           anniversary of service, as defined in            anniversary of service, as defined in
           clause 38.02(h).                                 clause 38.02(h).

(b)        Transitional Provision                   (b)     Transitional Provision

           Effective on March 14, 2005,                     Effective on March 14, 2005,
           employees with more than two (2)                 employees with more than two (2)
           years of service, as defined in                  years of service, as defined in
           clause 38.02(h), shall be credited a             clause 38.02(h), shall be credited a
           one-time entitlement of                          one-time entitlement of
           thirty-seven decimal five (37.5)                 thirty-seven decimal five (37.5)
           hours of vacation leave with pay.                hours of vacation leave with pay.

(c)        The vacation leave credits provided      (c)     The vacation leave credits provided
           in clauses 38.17(a) and (b) above                in clauses 38.17(a) and (b) above
           shall be excluded from the                       shall be excluded from the
           application of paragraph 38.08                   application of paragraph 38.08
           dealing with the Carry-over and/or               dealing with the Carry-over and/or
           Liquidation of Vacation Leave.                   Liquidation of Vacation Leave.


Comments:
  TC Arbitration Board Brief                                                              74

Under clause 38.03, the Employer is proposing to clarify the language in a situation
when an employee is entitled to receive an advance of vacation leave credits. The
proposal is to reinforce the present practice of advancing credits to the extent of what is
anticipated for that current vacation year. Advancing vacation leave credits from future
years is far too great a liability for the Employer and for the employee as well if the
employment is terminated and the employee would have to repay the credits used but
not earned. This language is found three (3) other PSAC agreements (Program and
Administrative Services, Border Services and Operational Services) and other
agreements within the CPA such as the Research (RE), Computer Systems
Administration (CS) and Applied Science and Patent Examination (SP) collective
agreements.

The Employer is proposing to delete the rounding up of the vacation leave fractional
entitlement under 38.04 as this provision is obsolete as to the time that it was
introduced in collective agreements. Vacation leave entitlements (clause 38.02 –
accumulation of vacation leave credits) are granted in hours and not ½ days anymore.
As such, the requirement to increase a fractional entitlement of less or more than ½ day
is no longer necessary. The Employer’s systems are such that one can track vacation
leave usage in hours, whereas, at one time, such was not the case. Any rationale that
may have existed in the past to round up the fractional entitlement has long since
disappeared. This provision was deleted from all other collective agreements with other
Bargaining Agents and the PSAC for their groups.

At 38.05(a), the Employer is proposing such language in order to clarify that vacation
leave should be taken in the vacation year in which it is earned. The Bargaining Agent
has bargained vacation leave credits on behalf of its members for obvious reasons and
as such, they should be taken in the year they are earned. Vacation leave credits
should not be another source of income for the employee at the end of the fiscal year.
Employees should be taking advantage of their leave entitlements for health reasons
and in order to have a good work/life balance. This language is found in three (3) other
PSAC agreements (Program and Administrative Services, Border Services and the
Operational Services Groups) and many other collective agreements such as the
  TC Arbitration Board Brief                                                                 75

Research (RE) Group, the Computer Systems Administration (CS) Group, the Audit,
Commerce and Purchasing (AV) Group.

The proposed language at clause 38.05(b) is basically the same as in the current TC
agreement but presented in the same fashion as other PSAC agreements (PA 34.05)
with the exception that would further clarify that the Employer has the right to schedule
an employee’s vacation leave for the credits earned in that fiscal year and previous
fiscal years as well. The scheduling should include the credits that the employee has
been carrying over from year after year.

At clause 38.06, the proposal consists of the addition of the word ‘alteration’ which is
reflective of the possible options for the Employer which can also be found under clause
38.13 of the TC agreement. It is also found in the PA agreement, under clause 34.06.

The Employer’s proposal at 38.12 is to delete a provision that is no longer required and
is not being used. Employees now receive their pay through direct deposit and as such,
cheques are no longer issued and would not be requested in advance when he or she
proceeds on vacation of 2 weeks or more.

The addition of the word ‘Alteration’ to the title of clause 38.13 commensurates with the
language of the clause itself.

As the one-time entitlement of 37.5 hours at clause 38.17 was introduced in the
previous collective agreement, a transitional provision was required in order to provide
the entitlement to employees who were already part of the bargaining unit on March 14,
2005 and who had more than 2 years of service. As March 14, 2005 has passed, the
transitional provision is no longer required. As such, the Employer proposes to delete
clause 38.17 (b).

The Employer proposes to delete the provision at clause 38.17 (c) where currently, the
one-time entitlement is excluded from the carry-over of vacation leave. This entitlement
has been treated and perceived by employees as additional vacation leave credits and
as such, it should then be included in the 262.5 hours carry-over limit if it has not been
taken in the fiscal year that it was earned. These additional hours to the carry-over
credits won’t have a negative impact as the average carry-over credits for the TC Group
  TC Arbitration Board Brief                                                            76

is 136.45 hours per employee. These numbers demonstrate that the group will be well
below the maximum carry-over even with the incorporation of the additional 37.5 hours.
The Employer request that the board delete clause 38.17(c).


                                       ARTICLE 41
                               INJURY-ON-DUTY LEAVE

            Collective Agreement                    Bargaining Agent Proposal

41.01 An employee shall be granted            Replace current Article 41 with the
injury-on-duty leave with pay for such        following:
period as may be reasonably determined
                                              41.01 When an employee is unable to
by the Employer when a claim has been
                                                  work because of:
made pursuant to the Government
                                                    (a)    a personal injury received
Employees’ Compensation Act, and a
                                                           in the performance of his
Workers’ Compensation authority has
                                                           or her duties,
notified the Employer that it has certified
that the employee is unable to work                        or
because of:                                         (b)    an industrial illness or a
(a)    personal injury accidentally                        disease arising out of and
       received in the performance of his                  in the course of the
       or her duties and not caused by the                 employee’s employment,
       employee’s willful misconduct,               for which the employee has made
       or                                           a claim to the applicable workers’
                                                    compensation authority in
(b)    an industrial illness or a disease
                                                    accordance with the Government
       arising out of and in the course of
                                                    Employees Compensation Act,
       the employee’s employment,
                                                    he or she shall be granted injury-
if the employee agrees to remit to the
                                                    on-duty leave with pay for the
Receiver General of Canada any amount
                                                    period of time that the workers’
received by him or her in compensation for
                                                    compensation authority has
loss of pay resulting from or in respect of
                                                    recognized that the employee
  TC Arbitration Board Brief                                                            77


such injury, illness or disease providing,          was unable to work because of
however, that such amount does not stem             an injury, illness or disease as
from a personal disability policy for which         described in (a) or (b).
the employee or the employee’s agent has
                                              41.02 Should the employee receive
paid the premium.
                                                    compensation for loss of pay
                                                    from the relevant workers’
                                                    compensation authority in
                                                    relation to his or her claim, the
                                                    employee will remit the full
                                                    amount to the Receiver General
                                                    of Canada.


Comments:

The Employer proposes to renew this article. The current language is identical to all
collective agreements in the CPA and it is consistent with the Employer’s policy. The
Employer has an internal structure that is managed by the Disability Management
Committee who consults with Bargaining Agents. Then, there is the external structure
that is managed by the provincial Workers’ Compensation boards where each province
is capable of accommodating the employee.

There are plans and systems in place in order to assist injured or ill employees when
they are absent from work. If it was the Employer’s intention to modify the
administration of injury-on-duty leave, it would do so through a consultative process
where the policy would be amended and would be applicable to all employees of the
CPA. As such, we recommend that the Bargaining Agent bring their issues/concerns to
the consultative process of the Disability Management Committee as this would be the
proper forum instead of wanting to amend within this collective agreement.
  TC Arbitration Board Brief                                                                78


                                        ARTICLE 54
EDUCATION LEAVE WITHOUT PAY, CAREER DEVELOPMENT LEAVE
                WITH PAY AND EXAMINATION LEAVE WITH PAY

            Collective Agreement                       Bargaining Agent Proposal

54.05                                          54.05

(b)     Upon written application by the        (b)     Upon written application by the
        employee, and with the approval of             employee, and with the approval of
        the Employer, career development               the Employer, career development
        leave with pay may be given for any            leave with pay may be given for any
        one of the activities described in             one of the activities described in
        paragraph 54.05(a) above. The                  paragraph 54.05(a) above. Such
        employee shall receive no                      approval will not be
        compensation under Article 28,                 unreasonably withheld. The
        Overtime, and Article 34, Travelling           employee shall receive no
        Time, of this collective agreement             compensation under Article 28,
        during time spent on career                    Overtime, and Article 34, Travelling
        development leave provided for in              Time, of this collective agreement
        this clause.                                   during time spent on career
                                                       development leave provided for in
                                                       this clause.


Comments:

The Employer requests to renew the current clause as it is our submission that this
proposal is not required. The current clause is identical to many other collective
agreements such as the those represented by the PSAC (PA, SV, FB), the Electronics
(EL) and Non-Supervisory Printing Services (PR(NS)), just to name a few.
  TC Arbitration Board Brief                                                              79




           Collective Agreement                        Bargaining Agent Proposal

NEW                                            54.07

                                               For employees in the TI Classification:

                                               An employee shall be granted leave
                                               with pay to maintain their certification
                                               as required in his/her Statement of
                                               Qualifications. The employer will pay
                                               all associated tuition fees on
                                               successful completion of the course,
                                               and, if required, any travel costs
                                               associated with attending the course.


Comments:

The Employer does not support the Bargaining Agent’s proposal. Qualifications
necessary for entry into the TI Group and for appointment to a position within the group
is the responsibility of the employee. Certification is not a requirement for the
continuation of the performance of the duties of the position. If specific training is
required or mandatory for the performance of the duties, such is provided by the
Employer.

Such matters should be discussed in the context of the employee’s learning plan with
his or her manager as it is no different than any other training.
  TC Arbitration Board Brief                                                                  80


                                       ARTICLE 62
                                DANGEROUS GOODS

           Collective Agreement                        Bargaining Agent Proposal

62.01 An employee certified pursuant to        62.01
the Transportation of Dangerous Goods          (a)   An employee certified pursuant to the
Act and who is assigned the responsibility
                                               Transportation of Dangerous Goods Act
for packaging and labeling of Dangerous        and who is assigned the responsibility for
Goods for shipping in accordance with the      packaging and labeling of Dangerous
above Act, shall receive a daily allowance     Goods for shipping in accordance with the
of three dollars and fifty cents ($3.50) for
                                               above Act, shall receive a daily allowance
each day he or she is required to package      of three dollars and fifty cents ($3.50) for
and label Dangerous Goods for shipping,
                                               each day he or she is required to package
to a maximum of seventy-five dollars ($75)     and label Dangerous Goods for shipping,
in a month where the employee maintains
                                               to a maximum of seventy-five dollars ($75)
such certification.
                                               in a month where the employee maintains
                                               such certification.

                                               b)    Notwithstanding a) above, any
                                               Ammunition Technicians, who are
                                               qualified by the employer to mark and
                                               pack explosives and ammunition shall
                                               receive this allowance.


Comments:

Without discussing the actual merit of the proposal, it must be noted that awarding such
proposal would be in conflict with the parameters of the Expenditure Restraint Act as
this allowance meets the definition of Additional Remuneration found within the
Expenditure Restraint Act. Section 27 of the Act precludes the creation and payment of
new additional remuneration which is one that did not previously exist or apply to a
specific group of employees. Since this proposal was created because the Ammunition
  TC Arbitration Board Brief                                                               81

Technicians presently do not qualify under the existing Dangerous Goods allowance,
changing the scope is considered to be a new allowance under the Act.

Awarding such proposal is above the restraint level in the ERA.


                                        ARTICLE 63
                               PART-TIME EMPLOYEES

           Collective Agreement                           Employer Proposal

63.01 Definition                               63.01 Definition

Part-time employee means an employee           Part-time employee means an employee
whose weekly scheduled hours of work on        whose weekly scheduled hours of work on
average are less than those established in     average in the same position are less
Article 25 but not less than those             than those established in Article 25 but not
prescribed in the Public Service Staff         less than those prescribed in the Public
Relations Act.                                 Service Labour Relations Act.
General                                        General
63.02 Unless otherwise specified in this       63.02 Unless otherwise specified in this
Article, part-time employees shall be          Article, part-time employees shall be
entitled to the benefits provided under this   entitled to the benefits provided under this
Agreement in the same proportion as their      Agreement in the same proportion as their
normal weekly hours of work compare with       normal weekly hours of work in the same
thirty-seven and one-half (37 1/2).            position compare with thirty-seven
63.04 The days of rest provisions of this      decimal five (37.5).
Agreement apply only in a week when a          63.04 The days of rest provisions of this
part-time employee has worked                  Agreement apply only in a week when a
five (5) days or thirty-seven and              part-time employee has worked five (5)
one-half (37 1/2) hours.                       days at straight time or thirty-seven
Designated Holidays                            decimal five (37.5) hours at straight time

63.07 A part-time employee shall not be        in the same position in the week.

paid for the designated holidays but shall,    Designated Holidays
instead be paid four and one-quarter per       63.07 A part-time employee shall not be
  TC Arbitration Board Brief                                                              82


cent (4 1/4%) for all straight-time hours      paid for the designated holidays but shall,
worked.                                        instead be paid four decimal twenty-five
                                               per cent (4.25%) for all straight-time hours
                                               worked.

Comments:

As identified in the Employer’s proposal under Overtime definition, the Employer is
proposing to introduce language that would clarify the obligation of the Employer to pay
overtime when an employee has two part-time employments with different departments.
The existing language does not clearly state if the hours worked at two (2) departments
can be considered as one for total hours and such could result in overtime payments
though each department is clearly below the number of hours required for overtime. As
different collective agreements may contain different overtime provisions, this would
lead to administrative problems. This new language would ensure one consistent
application.

                                        ARTICLE 67
                                        DURATION

       Bargaining Agent Proposal                           Employer Proposal

67.01 The duration of this collective          67.01 This agreement shall expire on
agreement shall be from the date it is         June 21, 2011.
signed to June 21, 2011.


Comments:

As clearly identified by both parties in their submissions to the arbitration board, an
expiry date of June 21, 2011 is proposed and as such, we can assume that a four (4)
year agreement is agreed by the Employer and the PSAC.

It is noteworthy that all other PSAC recent agreements have a four (4) year duration,
ending in the same year as was proposed by the Employer and the PSAC.
  TC Arbitration Board Brief                                                           83


                                   NEW ARTICLE
            HAZARDOUS SUBSTANCE HANDLING ALLOWANCE

           Collective Agreement                     Bargaining Agent Proposal

New                                          Employees who are trained, maintain
                                             their qualifications and are assigned to
                                             perform duties in one or more of the
                                             areas listed below, shall receive a
                                             monthly allowance of one hundred and
                                             fifty dollars ($150) for each month the
                                             employee may be required by the
                                             Employer to perform one or more of the
                                             following:

                                             a) Nuclear Emergency Response

                                             b) Hazardous Material (HAZMAT)
                                             Response

                                             c) Chemical Emergency Response
                                             Team (CERT)

                                             d) Radiation Safety Officer duties


Comments:
This new allowance exceeds the parameters of the Expenditure Restraint Act as it
meets the definition of Additional Remuneration found within the Expenditure Restraint
Act. Section 27 of the Act precludes the creation of any additional remuneration that is
new in relation to the additional remuneration that applied to employees governed by
this collective agreement.


Awarding such proposal is above the restraint level in the ERA.
  TC Arbitration Board Brief                                                            84


                                   NEW ARTICLE
                               PRE-RETIREMENT LEAVE

           Collective Agreement                        Bargaining Agent Proposal

                                             Effective on the date of signing of this
                                             collective agreement, the Employer will
                                             provide five (5) days of paid leave per
                                             year, up to a maximum of twenty-five
                                             (25) days, to employees who have the
                                             combination of age and years of
                                             service to qualify for an immediate
                                             annuity without penalty under the
                                             Public Service Superannuation Act.


Comments:

The Bargaining Agent is requesting 5 additional days of paid leave up to a maximum of
25 days for all employees who qualify for an immediate annuity without penalty. This
proposal was tabled as a claim that this would act as a retention mechanism for
employees with many years of service. The Employer has demonstrated in this brief
that the TC Group is not one that faces recruitment and retention issues. The current
available leave package is competitive and adequate and as such, is sufficient as it
stands. The average carry-over of vacation leave credits for the TC Group is 136.45
hours per employee which means that employees are not taking all of their vacation
leave credits per fiscal year.

The Employer recommends that this new article not be included in the arbitral award as
this clearly would be precedent setting for the CPA.
 TC Arbitration Board Brief                                                       85


                                   NEW
 MEMORANDUM OF AGREEMENT CONCERNING LAB AND X-RAY
TECHNOLOGISTS IN THE ENGINEERING AND SCIENTIFIC SUPPORT
     GROUP WORKING IN PERCY MOORE AND NORWAY HOUSE
                                 HOSPITALS

          Collective Agreement                 Bargaining Agent Proposal

                                      29.01 If an employee is called back to
                                      work:

                                      (a) on a designated paid holiday which
                                          is not the employee's scheduled
                                          day of work,

                                          or

                                      (b) on the employee's day of rest,

                                          or
                                      (c) after the employee has completed
                                      his or her work for the day and has left
                                      his or her place of work,

                                      and returns to work, the employee shall
                                      be paid the greater of:


                                          (i) compensation equivalent to four
                                                (4) three (3) hours' pay at the
                                                applicable overtime rate of pay
                                                for each such call-back to a
                                                maximum of eight (8) hours'
                                                compensation in an eight (8)
                                                hour period. Such maximum
                                                shall include any reporting pay
                                                pursuant to clause 32.06 and
 TC Arbitration Board Brief                                             86


                                       the relevant reporting pay
                                       provisions,

                                  or

                                  (ii) compensation at the applicable
                                       rate of overtime compensation
                                       for time worked,

                              provided that the period worked by the
                              employee is not contiguous to the
                              employee's normal hours of work.

                              (d) The minimum payment referred to in
                              29.01 (c)(i) above, does not apply to
                              part-time employees. Part-time
                              employees will receive a minimum
                              payment in accordance with clause
                              63.06 of this collective agreement.

                              29.02 Other than when required by the
                              Employer to use a vehicle of the
                              Employer for transportation to a work
                              location other than the employee's
                              normal place of work, time spent by the
                              employee reporting to work or
                              returning to his or her residence shall
                              not constitute time worked.

                              Change article 29:

                              Alternate Provisions

                              Clauses 29.01 and 29.02 do not apply to
                              employees covered by 29.03 or by
                              Appendix XX.

Comments:
  TC Arbitration Board Brief                                                               87

This proposal is caught by the ERA as Section 24 prohibits any increase to the amount
or rate of any additional remuneration. An increase is considered to be an increase in
the value of the additional remuneration. As this group of employees are presently
entitled to this call-back provision, the Act precludes this increase.

Furthermore, this proposal by the Bargaining Agent is identical to the original proposal
under clause 29.01 which was not referred to arbitration. We do not support the
rationale that this call-back provision be any different from the other call-back
provisions.

The Employer recommends that the board dismiss this new proposal.

                                      APPENDIX D
        MEMORANDUM OF AGREEMENT APPLICABLE TO CERTAIN
              EMPLOYEES IN THE GENERAL TECHNICAL GROUP,
WORKING ON ROTATING OR IRREGULAR BASIS (COAST GUARD MARINE
              SEARCH AND RESCUE (SAR) CONTROLLERS OF THE
RESCUE COORDINATION CENTRES AND MARINE RESCUE SUB-CENTRES
                               AND HOVERCRAFT PERSONNEL)

           Collective Agreement                           Bargaining Agent Proposal

1. Delete Clause 25.09 except 25.09(c)         Delete current article 25.09 and add the
and add as follows:                            following:

25.09                                          25.09

For employees who work on a rotating or        (a) Where hours of work are scheduled
irregular basis, the normal hours of work of for employees on a rotating or irregular
thirty seven and one-half (37 1/2) hours       basis, they shall be averaged so that
per week and seven and                         employees over a period not exceeding
one-half (7 1/2) hours per day may be          sixty three (63) days:
arranged so that employees are
                                                    (i)    work an average of thirty-seven
scheduled:
                                                           decimal five (37.5) hours per
    (a)    to work an average of                           week.
  TC Arbitration Board Brief                                                               88


           thirty-seven and
                                                   (ii) work shifts of twelve (12) hours
           one-half (37 1/2) hours per
                                                       duration (except as may be
           week;
                                                       otherwise agreed), where a shift
    (b)    to obtain an average of                     is defined as the continuous
           two (2) days of rest per week.              duration of time between the

2. The Employer will make every                        employee's scheduled start

reasonable effort:                                     time and the scheduled stop
                                                       time.
    (a)    to avoid excessive fluctuations;
                                                   (iii) The shift durations in place at
    (b)    to provide at least
                                                       each centre shall not be altered
           two (2) consecutive days of rest,
                                                       except by mutual agreement
           except when days of rest are
                                                       between the Employer and the
           separated by a designated paid
                                                       authorized union representative
           holiday that is not worked;
                                                       at the regional level.
    (c)    to consider the wishes of the
                                                   (iv) work consecutive shifts of not
           majority of the employees
                                                       more than four (4) twelve (12)
           concerned in the arrangement of
                                                       hour shifts.
           shifts within a shift schedule;
                                               (b) An employee's days of rest shall be
    (d)    to provide a meal break during
                                               consecutive and not less than four (4)
           the employee’s full shift and,
                                               when working a twelve (12) hour shift
           where operational requirements
                                               schedule. The first (1st ) day of rest will
           do not permit a meal break, the
                                               start immediately after midnight of the
           employee will remain at work
                                               calendar day in which the employee
           and eat the meal on the job.
                                               worked, or was scheduled to work,
3. Employees to whom this memorandum           his/her last regular shift.
applies shall be subject to clauses 25.10 to
                                               (c) Notwithstanding clauses (a) and (b)
25.13 of this collective agreement.
                                               above, the Employer

                                                   (i) may, no more than twice in a
                                                       fiscal year, require an employee
                                                       to work five (5) twelve (12) hour
TC Arbitration Board Brief                                               89


                                     shifts;

                                     and

                                 (ii) may, no more than twice in a
                                     fiscal year, schedule three (3)
                                     consecutive days of rest when
                                     working a twelve (12) hour shift
                                     schedule.

                             (d) Notwithstanding clause (b) above,
                             the Employer may change days of rest
                             as specified in sub-clause (c)(ii) above,
                             as a result of employee-requested
                             training.

                             (e) Every reasonable effort shall be
                             made by the Employer to avoid
                             excessive fluctuation in hours of work.

                             Scheduling

                             (f) The Employer agrees to consult with
                             the Union representatives in the
                             establishment of shift schedules.

                             (g) The Employer agrees that, before a
                             schedule of working hours is changed,
                             the change will be discussed with the
                             appropriate representative of the Union,
                             if the change will affect a majority of the
                             employees governed by the schedule.

                             (h) Provided sufficient advance notice
                             is given and with the approval of the
                             Employer, employees may exchange
                             shifts if there is no increase in cost to
                             the Employer. Once an exchange of
TC Arbitration Board Brief                                            90


                             shifts has been approved, it will be the
                             responsibility of the employees
                             involved to report for duty in
                             accordance with the approved
                             exchange

                             (i) An employee's shift schedule shall
                             cover a period of at least sixty-three

                             (63) days and shall be posted thirty (30)
                             days in advance of its starting date.
                             Every reasonable effort will be made by
                             the Employer to minimize changes to
                             an employee's days of rest. If an
                             employee is given less than fifteen (15)
                             days' advance notice of a change in
                             his/her shift schedule, s/he will receive
                             a premium rate of time and one-half (1
                             1/2) for work performed on the first shift
                             changed. Subsequent shifts worked on
                             the new schedule shall be paid for at
                             the hourly rate of pay. Such employee
                             shall retain his/her previously
                             scheduled days of rest next following
                             the change or if worked, such days of
                             rest shall be compensated in
                             accordance with the overtime
                             provisions of this Agreement.

                             Rest Periods -Operating Employees

                             (j) Where operational requirements
                             permit, the Employer will provide
                             operating employees with meal and
                             relief breaks. Where operational
  TC Arbitration Board Brief                                                                  91


                                                 requirements do not permit a meal
                                                 break, the employee will remain at work
                                                 and eat the meal on the job.

                                                 Other

                                                 (k) Employees to whom this
                                                 memorandum applies shall be subject
                                                 to clauses 25.10 to 25.13 of this
                                                 collective agreement.


Comments:

The Employer submits that the current language is satisfactory. The Bargaining Agent
has not provided sufficient justification for the significant changes being proposed. The
current appendix meets operational needs.

The Employer’s position is to renew the appendix with no amendments.


                                         APPENDIX M
  HOURS OF WORK FOR EMPLOYEES IN THE PRIMARY PRODUCTS
                                 INSPECTION (PI) GROUP

               Collective Agreement                           Employer Proposal

25.05                                            25.05

(b)     Every reasonable effort shall be         (b)     Every reasonable effort shall be
        made by the Employer:                            made by the Employer:

        (iv)      to arrange shifts over a             (iv)    to arrange shifts over a
                  period of time not exceeding                 period of time not exceeding
                  two (2) months and to post                   two (2) months and to post
                  schedules at least                           schedules at least forty-
                  seven (7) days in advance of                 eight (48) hours
                  the starting date of the new                 seven (7) days in advance of
                  schedule.                                    the starting date of the new
  TC Arbitration Board Brief                                                              92


                                                              schedule.

25.10 If an employee is given less than        25.10 If an employee is given less than
seven (7) days’ advance notice of a            forty-eight (48) hours seven (7) days’
change in that employee’s shift schedule,      advance notice of a change in that
the employee will receive a premium rate       employee’s shift schedule, the employee
of time and one-half (1 1/2) for work          will receive a premium rate of time and
performed on the first (1st) shift changed.    one-half (1 1/2) for work performed on the
Subsequent shifts worked on the new            first (1st) shift changed. Subsequent shifts
schedule shall be paid for at straight time.   worked on the new schedule shall be paid
                                               for at straight time.


Comments:

This Employer proposal is in conjunction with another Employer proposal at clause
25.08 – Hours of Work.
TC Arbitration Board Brief                93




                             APPENDICES
 TC Arbitration Board Brief                                               94




APPENDICES

      A        Policy Framework for the Management of Compensation


      B        Expenditure Restraint Act


      C        TC Group Definition


      D        Payroll / Department / Geographic Data


      E        Distribution of Employees by Age and Gender


      F        Distribution of Employees by Years of Service and Gender


      G        Deloitte TC Compensation Study

						
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