Terminable Allowances at Table 3 Negotiations

I am writing in response to a number of inquires we have received from TIs with regards to the PSAC position at Table 3 negotiations, and in particular the issue of Terminable Allowances.

In this round of bargaining as in other rounds, we believe that our members are entitled to a fair wage that reflects the work they provide to Canadians. The wage freezes or general wage increases that fell well below the cost of living that you were forced to accept over the last decade were, for the most part, not arrived at through a process of true negotiations but by means of legislation or the threat of legislation. The net effect has been that all public sector workers have fallen behind in their standard of living relative to workers in other sectors of the economy. This erosion in member income, as well as the massive government downsizing, resulted not only in a reduction in the cost of providing the services but in a severe shortage of workers in many areas.

In an attempt to deal with the problems being experienced as a result of these shortages, UCTE, in late 1996/97, held a number of meetings with Transport Canada. The departments "problem of hiring and retention" is not the problem but " a symptom of not compensating employees what they are worth". Our message to the department at that time is the same as it is today: compensate employees fairly and the problems will be resolved. However, fair compensation is a relative term and there are a number of factors that determine what is fair. Two factors are value related to other positions and market comparability.

The new Universal Classification Standard (UCS) system was to address the issue of value. Over the past several years the PSAC, UCTE. and our members have invested a lot of time and resources into trying to put in place a classification system that reflects current realities. Unfortunately, the employer seems to have abandoned this exercise, thereby forcing us to work with a system that is incapable of determining relative value. Your union is doing everything it can to get this process back on track.

In the area of market comparability, without the Pay Research Bureau, which the government dissolved in the early 1990s, there is no objective body responsible for compiling and comparing pay levels across the public service and other sectors of the economy. Transport Canada’s solution to market comparators was to hire Price Waterhouse to conduct a study to deal with one particular segment of the Technical Inspector Community. While the study, released to the department in early 1998, accurately quantified the wage disparity in some areas of the TI group, we do not believe it accurately identified wage disparities within the whole community, or those disparities that exist outside the TI classification. This study was done in isolation and identified only those areas that the department wanted to identify.

Contrary to popular belief during the round of negotiations which followed the study it was your union, not the employer, that brought some of the figures forward, in an attempt to justify the pay position we had at the table. I emphasize some of the figures because Transport Canada and Treasury Board did everything in their power to keep this pay information from the union and our negotiating team. Although UCTE filed an Access to Information request through the department and a complaint to the Access to Information Commissioner we were not provided with a copy of the report until after negotiations were completed. The employer’s position in that round of bargaining was to pay terminable allowances to some members of the TI group. Our position was the same as it is today: compensation should not be terminable, it should be part of an employee’s salary that is negotiated and revised in each successive round of collective bargaining. During that round, the negotiating team gauged the mood of the members and determined that the employer’s last position on Terminable Allowances was the best that could be achieved. Clearly, that was not what we wanted as a portion of salaries. During the next round of negotiations, while our position was once again to try and achieve fair wages for all of our members, much the same process played out. The employer wasn’t going to move on some salaries being terminable and was not prepared to address the disparities that exist for all. Your negotiation team weighed the situation and determined that this was the best they could achieve. While it wasn’t everything they wanted, your team did its best based on the support the membership was prepared to give them.

The past is the past. During the current round of negotiations we have an opportunity to move forward.. Our position has certainly not changed: fair wages for all members. If we are to be successful in achieving this position we must have the support of all members. UCTE has two TI members on the negotiations team. It’s time to throw your support behind them. This support is particularly critical during Conciliation Board meetings in August. Keep abreast of what is happening by checking out the PSAC website at www.psac.com. or through the PSAC Regional Offices or UCTE Locals. If you have questions or concerns bring them to our attention so that we can deal with them.

In Solidarity,

Mike Wing