Implementation of revised rates of pay - Letter
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To: Compensation Managers, Chiefs of Staff Relations
The purpose of this bulletin is to clarify the procedures to be followed when implementing revised rates of pay as a result of the signing of a new collective agreement or the rendering of an arbitral award.
A Federal Court ruling [Lajoie A-894-91] has discontinued the practice of recalculation when implementing a retroactive revision. The applied principle is that you do not reconstruct the history of the employee's salary changes during the retroactive period. The revision is applied straight down to the rate immediately below (in the new salary range) the rate previously received for each period and for every rate being implemented, without recalculation of any sort. Where there are performance pay ranges, the pay notes are applied without recalculation.
The salary for employees who were promoted, transferred or deployed during the retroactive period are not to be recalculated. This also applies to the salary revision for employees who commenced acting or were in receipt of acting pay during the retroactive period. If on the date of signing of the new collective agreement the definition of acting assignment is no longer met, then the acting would cease effective the date of signing of said agreement.
For greater certainty, the retroactive period is defined as the period from the effective date of the revised rates of pay up to and including the day immediately prior to the day on which the collective agreement is signed or the arbitral award is rendered.
As we are starting the implementation of collective agreements in the second round of negotiations [LA, AU, CS already signed], this change is also being implemented unless a specific provision is introduced in the new agreement authorizing recalculations.
Your questions may be directed to:
Chantal Beausoleil: 952-1584
Contact Beausoleil Chantal by email Beausoleil.Chantal@tbs-sct.gc.ca
Suzanne Marchand-Bigras: 952-2983
Contact Marchand Bigras Suzanne by email Marchand-Bigras.Suzanne@tbs-sct.gc.ca
Director, Pay Administration
Labour Relations Division
Human Resources Branch
Tom Smith
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