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Message from the Chairperson

Elizabeth MacPherson, Chairperson

I am pleased to present to Parliament and Canadians the annual Performance Report of the Canada Industrial Relations Board (the CIRB or the Board) for the period ending March 31, 2010. This is the twelfth such report since the CIRB was created in 1999.

I have now completed half of my five-year mandate as Chairperson of the CIRB and I am pleased to report that considerable progress has been achieved in reaching the objectives I established when I took office. These objectives are to reduce the delays in dealing with outstanding complaints and applications and to improve the timeliness of Board decisions.

When I was appointed in January 2008, there were 643 matters pending before the CIRB; 23.6% of these matters had been pending for more than two years. Two years later, this backlog has been reduced to 428 pending matters, with less than 15% outstanding for more than two years. In addition, the average processing time has been reduced by 30% during the last two fiscal years. The challenge in the coming years will be to maintain this momentum and to develop and implement practices and procedures that will further assist the Board in improving the timeliness of its decisions.

I am proud of the CIRB's accomplishments to date and confident that the dedicated efforts of the CIRB's members and staff will enable it to provide fair and expeditious dispute resolution services and meet its commitments to the labour relations community. We will continue to emphasize initiatives that build positive working relationships and support harmonious labour management relations in the federally regulated private sector.

Elizabeth MacPherson
Chairperson



SECTION I: DEPARTMENTAL OVERVIEW

Raison d'être and Responsibilities

Raison d'être

To contribute to and promote a harmonious industrial relations climate in the federally regulated sectors through the impartial, effective and appropriate administration of the rules of conduct that govern labour and management in their representational and bargaining activities.

Responsibilities

The CIRB is an independent, representative, quasi-judicial tribunal, responsible for the interpretation and application of the Canada Labour Code (the Code), Part I, Industrial Relations, and certain provisions of Part II, Occupational Health and Safety. It was established in January 1999, to replace the previous Canada Labour Relations Board, through amendments to Part I of the Code.

Part I of the Code establishes the framework for collective bargaining, the acquisition and termination of bargaining rights, unfair labour practices and protection of public health and safety in the event of work stoppages affecting essential services.

The CIRB has jurisdiction in all provinces and territories with respect to federal works, undertakings or businesses in the following sectors:

  • Broadcasting
  • Chartered banks
  • Postal services
  • Airports and air transportation
  • Shipping and navigation
  • Interprovincial or international transportation by road, railway, ferry or pipeline
  • Telecommunications
  • Grain handling and uranium mining and processing
  • Most public and private sector activities in the Yukon, Nunavut and the Northwest Territories
  • Band Councils and some First Nations undertakings
  • Federal Crown corporations (including, among others, Atomic Energy of Canada Limited and the national museums)

The federal jurisdiction covers some 825,000 employees and their employers, and includes enterprises that have a significant economic, social, and cultural impact on Canadians from coast to coast. The variety of activities conducted in the federally regulated sector, as well as its geographical spread and national significance, contribute to the uniqueness of the federal jurisdiction and the role of the CIRB.

The Board's role is to exercise its powers in accordance with the Preamble and provisions of the Code, which state that Parliament considers "the development of good industrial relations to be in the best interests of Canada in ensuring a just share of the fruits of progress to all." To that end, the Board aims to be responsive to the needs of the industrial relations community across Canada.

Strategic Outcome and Program Activity Architecture (PAA)

Strategic Outcome

In pursuing its mandate, the CIRB seeks to achieve the following strategic outcome:

Resolution of labour relations issues in sectors regulated by the Canada Labour Code in a timely, fair and consistent manner

The CIRB's strategic outcome is aligned with the government's Economic Affairs and supports the government's desired outcome of ensuring a Fair and Secure Marketplace through the impartial, effective and appropriate administration of the rules governing the conduct of employers and unions, in order to ensure stable labour-management relations and productive workplaces.

Program Activity Architecture

Based on its legislated mandate and its currently approved PAA, the CIRB has a single strategic outcome and two program activities.

Program Activity Architecture

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Summary of Performance

The following table provides a summary of the total spending for the Canada Industrial Relations Board for 2009–10.

2009–10 Financial Resources ($ thousands)
Planned Spending Total Authorities Actual Spending
12,587 13,765 13,326


2009–10 Human Resources Full-Time Equivalents–FTEs
Planned Actual Difference
110 105 -05


Strategic Outcome: Resolution of labour relations issues in sectors regulated by the Canada Labour Code in a timely, fair and consistent manner
Performance Indicators Targets 2009–10 Performance
Number of applications and complaints resolved as a percentage of applications/complaints received 100% Exceeded

The Board disposed of more cases than it received during the period

The number of applications/complaints resolved as a percentage of application/complaints received represents 102%

($ thousands)
Program Activity 2008–09
Actual
Spending
2009–101 Alignment to Government of Canada Outcome
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending2
Adjudicative and Dispute Resolution Program 10,570 9,188 9,188 9,774 9,546 Fair and Secure Market Place

The CIRB promotes stable industrial relations within the industrial sectors that fall under federal jurisdiction, thus ensuring safe, fair and productive workplaces that contribute positively to the Canadian economy
Internal Services 3,153 3,399 3,399 3,992 3,780  
Total 13,723 12,587 12,587 13,766 13,326  

The variance between planned spending and total authorities is $1.1 million and consists of $414,000 carried forward from the previous fiscal year; and $765,000 transferred from Treasury Board to offset employee salary increases as a result of collective agreements and contributions to employee benefits.

Contribution of Priorities to Strategic Outcome


Operational Priorities Type3 Status Linkages to Strategic Outcome
Deliver on the Board's statutory mandate under the Canada Labour Code Ongoing Met all All of these priorities are linked to our sole strategic outcome:
  • Resolution of labour relations issues in sectors regulated by the Canada Labour Code in a timely, fair and consistent manner
and are directly linked to our program activity:
  • Adjudicative and Dispute Resolution Program
By resolving matters, through mediation or adjudication, the Board effectively and directly contributes to its strategic outcome
Maintain accelerated reduction in the number of backlog cases Ongoing Met all
Reduce average case disposition time Ongoing Met all
Monitor and fine tune new duty of fair representation (DFR) complaint process and disposition Ongoing Met all
Client consultations Ongoing Met all
Management Priorities Type3 Status Linkages to Strategic Outcome
Prepare action plan following the Board's Management Accountability Framework Evaluation New Mostly met. Action plan was developed and work began on implementing corrective measures
  • Internal Services-Supports Strategic Outcome

Volume of Matters

While the nature of the demand for Board services may vary, depending on the state of the economy and other factors, the absolute number of incoming applications/complaints has remained relatively constant over the last four fiscal years. A total of 692 applications/complaints were received in 2009–10, which represents 20 more cases than in 2008–09 (see Chart 1). This level is much lower than the average of 823 per year in the earlier part of the decade.

Chart 1-Volume of Matters

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Unfair labour practice (ULP) complaints represented almost 41% of incoming matters in 2009–10. This is further broken down, with DFR complaints representing 24.3% of cases and other ULP complaints representing 16.6% of cases. Applications for certifications and reviews also represent a significant portion of incoming matters at 15.6 and 18% respectively.

With respect to the number of cases that were resolved, the Board disposed of 706 matters in 2009–10, which is 114 fewer than the previous fiscal year (see Chart 1). The reason for this 13.9% decline is the fact that the Board conducted a blitz in 2008–09 to resolve a large number of DFR complaints that had accumulated over the years. This resulted in the Board disposing of more matters in 2008–09 than it would otherwise have done. In 2009–10, the Board disposed of 74 fewer DFR cases, which represents 65% of the decrease in matters disposed. Also, it should be noted that the rate of disposition for 2009–10 is more indicative of the Board's sustainable level given its current resources and volume of matters.

Reducing the backlog of pending cases and improving average case disposition time are, to a certain extent, related and highly dependent on various initiatives that were introduced over the years to improve the processing of cases. These initiatives have reduced the number of backlog cases to its lowest level in over 23 years, as well as lowered the average processing time of applications/complaints by more than 25%.

As more cases were disposed than received in 2009–10, the number of pending matters declined to 428 at the end of March 2010.

Complex Matters

The CIRB's workload and disposition rate continues to be affected by the relative large number of more complex matters, which typically involve lengthy hearings and numerous provisions of the Code. Such cases are both longer to process and require more of the Board's resources for their disposition. Complex cases accounted for 89 of the number of matters received in 2009–10, representing close to 13% of the total. Applications involving a sale of business are usually particularly complex and account for more than a third of all complex matters.

Expedited Matters

In addition to more complex cases, the Canada Industrial Relations Board Regulations, 2001 (the Regulations) stipulate that certain types of matters require priority attention. These cases include requests for an interim order/decision, requests to file Board orders in Court, referrals to the Board by the Minister of Labour relating to the maintenance of activities during a legal work stoppage, applications alleging an invalid strike or lockout vote, applications for a declaration of unlawful strike or lockout, and ULP complaints alleging the use of replacement workers or dismissal for union activities. Such matters are scheduled, heard and decided in priority to other elements in the Board's caseload. Priority is also given to the processing and consideration of applications for certification, and to any other matter in which there appears to be a significant potential for adverse industrial relations consequences if there is a delay in resolution.

The setting of priorities inevitably results in the deferral of less urgent matters. Consequently, scheduling pressures can make very lengthy or complex matters—the kind of matters that are now typically scheduled for oral hearing by a panel of the Board—difficult to resolve expeditiously. In fiscal year 2009–10, the Board received 51 applications for matters that required priority attention.

Written Decisions

The Board issues detailed Reasons for decision in matters of broader national significance and/or significant precedential importance. In other matters, concise letter decisions help expedite the decision-making process, thereby providing more timely industrial relations outcomes for the parties involved. The Board strives to provide timely and legally sound decisions that are also consistent across similar matters in order to establish strong and clear jurisprudence.

The CIRB issued 49 detailed Reasons for decision in 2009–10, and 219 letter decisions, for a total of 268 written decisions. While this is fewer than in 2008–09—in large part due to focused effort to dispose of DFR cases, as mentioned earlier—it is generally higher than in any other year in the decade.

Examples of significant Board decisions rendered in 2009–10 can be found at: http://www.cirb-ccri.gc.ca/publications/report-rapport_eng.asp.

Monitor and Fine-tune the DFR Complaint Process

The current DFR complaint process was implemented on March 1, 2008, after lengthy discussion and the trial of other processes. The goal of improving the handling of DFR complaints was largely to simplify and expedite their disposition. While DFRs are not usually the type of matter that require priority attention, the volume of such cases represents a significant proportion of the Board's caseload. DFR cases were having an increasingly negative impact on the Board's overall processing performance and represented a growing proportion of the case backlog.

Since the implementation of the current DFR complaint process, the number of pending DFRs has fallen from 235 at the end of 2007–08 (representing almost 40% of all pending matters) to 88 at the end of March 2010 (representing a little more than 20% of all pending matters). Furthermore, the overall processing time for this type of matter decreased from 489 to 269 days over the same period.

Client Consultations

Client consultations continued during fiscal year 2009–10 and valuable input was received with respect to the processing and management of matters before the Board. The Board will continue to engage the labour-management community as it commences a full review of its Regulations.

Management Priority

The CIRB continues to take appropriate steps to ensure that strong management practices are in place. During fiscal year 2009–10, in response to the Board's Management Accountability Framework Assessment, an action plan to strengthen areas requiring improvements was drafted and work began on implementing corrective measures. The CIRB will continue to work with Treasury Board Secretariat to position ourselves to achieve, at a minimum, an acceptable rating in all areas of management.

Risk Analysis

The CIRB is a low risk agency. Financially, approximately four fifths (82%) of its $13.3 million operating budget is for salaries and benefits. Of the remaining $2.4 million in Operations and Maintenance (O&M), 53% is for travel and professional services, and is largely related to the processing of cases such as travel to external hearings, temporary rental of hearing rooms, interpretation services and translation of Board decisions. The Board adheres to Treasury Board policies for the expenditure of its O&M budget.

Operating Environment

The Board has an ongoing operating challenge in that the CIRB's sole function is to respond to the matters referred to it by unions, employers, employees and the Minister of Labour. As such, the CIRB's operational activities are driven by external demands that it can only react to rather than plan for.

The Board's workload is a function of many variables, but the economic environment is a key determinant of the types of cases submitted to the Board. For example, corporate mergers, acquisitions and restructuring tend to increase the demand for bargaining unit reviews. Corporate bankruptcies and insolvencies frequently result in a loss of or decrease in the level of collectively bargained salary and employment benefits, with resultant increases in duty of fair representation and bad faith bargaining complaints. The negotiation or renegotiation of collective agreements in areas essential to public health or safety creates demand for Board investigations and rulings on maintenance of activities issues. However, except for a slight increase in the proportion of applications for successor rights and for maintenance of activities, the profile of applications/complaints received by the Board in 2009–10 has not changed significantly since the start of the recession.

Although the nature of the demand for Board services may vary, depending on the state of the economy, the absolute number of incoming applications and complaints has remained relatively constant over the last few years, with only a marginal increase during the 2009–10 fiscal year.

Processing Time

The Board's largest operational risk is associated with the number of applications and complaints it receives in a given year, combined with its ability to continue to reduce its backlog of cases. To mitigate this risk, priority is given to the processing and consideration of matters in which it appears that delay will pose a significant potential for adverse industrial relations consequences, or where other identifiable factors require a matter to be promptly addressed. In addition, the CIRB adopted new procedures for the processing of duty of fair representation complaints over the last year. This year, the CIRB will begin a comprehensive review of its Regulations to ensure effective and efficient handling of applications and complaints and will fine-tune the processing of applications for certification. It is expected that these mitigating strategies will greatly reduce the time it takes to process matters, which in turn will continue to reduce the number of backlog cases.

Quality of Decisions

In addition to the timeliness of decisions, a second operational risk involves the quality of the decisions. Decisions that are not based on sound legal and industrial relations principles would not only lead to flawed jurisprudence, but would also create uncertainty in the client community. It should be noted that all but two of the 129 judicial review applications that the Federal Court of Appeal heard were dismissed in the 2004–05 to 2009–10 period. This underscores the importance of the quality of Governor-in-Council (GIC) appointments that are made to the Board and the experience and expertise that these appointees bring to it.

Human Resources

The CIRB, like most of the federal public service, is facing challenges with employee retention and departures due to retirement. Over 60% of the Board's staff is eligible to retire in the next five years. In addition, results from the Public Service Employee Survey identified issues related to career progression within the Board. As the CIRB is a small and specialized organization, the impact of staff turnover can be significant. Maintaining continuity of the Board's corporate knowledge requires sustained focus on recruitment, training and succession planning. In the past year, the Board has responded by putting in place development programs and positions and will continue to look for opportunities to expand its training and career development opportunities.

Expenditure Profile

Spending Trend

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Over the past three years, planned spending has increased by approximately $150,000 and represents adjustments in salary and benefits prescribed by collective agreements. The difference between total authorities and planned spending represents both temporary and permanent adjustments to address salary and benefit increases prescribed by collective agreements or by Treasury Board policy, amounts carried forwards from previous years, and for 2008–09, an amount received from HRSDC for the relocation of two regional offices. The decrease in actual spending from 2008–09 to 2009–10 is mostly due to the expenditures related to the relocation and retrofit of two regional offices in 2008–09 for approximately $729,000; however this is offset by an increase of $332,000 in salary and benefits adjustments prescribed by collective agreements and Treasury Board policy for a net decrease of $397,000.

It should be noted that the Board's success in delivering on its mandate is directly tied to the knowledge, skills and professionalism of a dedicated team of employees and GIC appointees. As a result, a large part (82%) of the CIRB's budget is allocated to salary and benefits.

Voted and Statutory Items
($ thousands)
Vote or Statutory Item (S) Truncated Vote or Statutory Wording 2007–08
Actual
Spending
2008–09
Actual
Spending
2009–10
Main
Estimates
2009–10
Actual
Spending
10 Operating expenditures 11,138 12,296 11,122 11,712
(S) Contributions to employee benefit plans 1,378 1,427 1,465 1,614
Total 12,516 13,723 12,587 13,326