Alternate Service Delivery Initatives
An alternate service delivery (ASD) initiative is the transfer of any work, undertaking or business of the CRA to any body or corporation that is outside the CRA (7.1). Employees affected by this type of work force adjustment are subject to the provisions
outlined here only, unless indicated otherwise (7.2.1).
UTE must be advised of any plans to pursue an ASD initiative at least 180 days before it happens (7.2). The notice must include:
- the program being considered for ASD,
- the reason for the ASD, and
- the type of approach anticipated for the initiative.
A joint WFA – ASD committee will be created with equal representation from your union and the CRA. It may also include others by mutual agreement. The mandate of this committee is to engage in meaningful consultation on human resource issues related to
the ASD in order to provide information that will help you decide whether to accept the job offer (7.2).
There are three types of transitional employment arrangements that can occur as outlined in Table 1 (7.2.2). The profile of the new employment in terms of pay and benefits is outlined for each type.
Offer of employment
If your position will be moving to the new employer, you will receive a written offer of employment, which you can accept or refuse (7.4.1). Type 1 and Type 2 arrangement are considered a reasonable job offer (7.2.3). Type 3 arrangements are not (7.2.4).
There are time limits in place for accepting an offer of employment. If you refuse a Type 1 or Type 2 offer, you will receive notice of termination. If you refuse a Type 3 offer, the Commissioner may declare you either a surplus employee or an opting employee. In
this case, you fall under the non-ASD provisions in the Appendix (7.5.3).
If you accept the job offer from the new employer, your CRA employment will end on the day of transfer or on a day the CRA may chose provided it doesn’t break your continuous service between the old and new employer (7.5.4).
Table 1
Comparable Benefits with Three Types of
Alternate Service Delivery Initiatives
| Issue | Type 1 Full Continuity |
Type 2 Substantial Continuity |
Type 3 Lesser Continuity |
| Employment rights | Retain continuous employment and all related rights | May or may not retain continuous service | Type 3 transfers are to employers with inferior working conditions which fail to meet the criteria of either Type 1 or Type 2. |
| Remuneration | Same remuneration (salary and supervisory differential) | At least 85% of hourly or annual remuneration (pay and supervisory differential) | |
| Tenure | Guarantee of 2 year minimum employment with new employer | Employment tenure equivalent to that of new employer or guarantee of 2 year minimum employment with new employer | |
| Benefits | Core benefit coverage* | Some level of core benefit coverage* | |
| Pension | Comparable pension** • If not comparable, get 3 month lump sum |
Comparable pension** • If not comparable, get 3 month lump sum |
|
| Disability | Sick leave carry-over up to Longterm Disability Insurance waiting period*** | Short-term disability arrangements of some sort | |
| Vacation | Vacation transfer if new employer accepts, or payout | Vacation transfer if new employer accepts, or payout | Vacation transfer if new employer accepts, or payout |
| Severance | No severance | Severance only if new employer doesn’t recognize continuous service | Severance |
| Offer of employment | • Must be written • Considered reasonable job offer |
• Must be written • Considered reasonable job offer |
• Must be written • Not a RJO |
| Offer timing | Must accept offer within 60 days | Must accept offer within 60 days | Must accept offer within 30 to 60 days (minimum is 30) |
| Refuse offer | • You get 4 months notice of termination **** | You get 4 months notice of termination **** | You become surplus or opting employee |
| Accept offer | If accept offer, simply move to new employer | If accept offer, • 3 months pay on day of transfer • 18 months of top-up for difference in remuneration • if less than 80%, get additional 6 months top-up |
If accept offer, • 6 months pay on day of transfer • 12 months of top-up for difference in remuneration Total cannot exceed 1 year’s pay |
| Other Payments | • retention payment possible | • retention payment possible | • retention payment possible |
| Union | Depending on new labour legislation, you may automatically remain a member of PSAC |
* Core benefits include health, long-term disability and dental coverage.
** A comparable pension arrangement means the pension has to be “reasonable”. For example, the new employer is only obliged to contribute 6.5 per cent of payroll, compared to the 12 per cent contributed for CRA workers. It is not obliged to offer a defined benefit plan similar to the one offered in the current Public Service Superannuation Act.
*** Short-term disability bridging through recognition of your earned but unused sick leave credits up to a maximum of the new employer’s Long-term Disability Insurance waiting period.
**** The Commissioner can extend the notice of termination period for operational reasons, but the extension can’t go past the transfer date.
Payments and Allowances
Your position will disappear on the day of transfer to the new employer. If, for any reason, you will not be moving to the new employer and your current employer wants you to stay until the day of transfer, the employer can offer you a retention payment (6.4). This sum, which is equal to six months pay, will not be paid in combination with any other amount under the ASD section of the Work Force Adjustment Appendix (WFAA).
If you accept a Type 2 offer, you will receive two lump sum payments to offset any difference between your current remuneration and the new remuneration (your salary and supervisory differential). If the hourly or annual salary falls below eighty per cent of your current remuneration, you will receive a further lump to be paid on the day of transfer.
For Type 1 and Type 2 arrangements, if the pension is not comparable, within the meaning of the Statement of pension principles (Annex A of the WFAA), you will receive a lump sum payment on the day of transfer of three months pay to offset this difference.
If you accept an offer of employment in a Type 3 arrangement, you will also receive two lump sum payments to offset the difference between your current remuneration and the new remuneration. This sum cannot not exceed one year’s pay (7.7.4).
If you are re-appointed to the CRA within the period covered by these payments, you will be expected to pay them back on a pro-rated basis (7.8).
Vacation, sick leave and severance
If the new employer will accept vacation credits, you can transfer them. Otherwise, they will be paid out (7.9.1).
If the new employer will accept sick leave credits, they will be transferred. If the new employer does not accept them, you will lose any unused sick leave credits.
Severance will not be paid to you by the CRA in Type 1 situations because your employment is considered to be continuous. In Type 2 situations, severance will only be paid by the CRA if the new employer does not recognize your continuous service for severance purposes or provide similar severance entitlements (7.9.2).
In other cases, you will be considered to be involuntarily laid off on the day your employment in the CRA ends for severance purposes (7.9.3).