- IMPLEMENTATION OF THE NEW COLLECTIVE AGREEMENT:
We continue to meet with senior management of the Agency’s compensation sector regarding the planning and implementation of the monetary provisions in our new employment contract.
To date, the Agency has adhered to the timelines that it previously set:
- The new rates of pay and the $400 lump sum payment were applied to the December 23 pay;
- The retroactive payments owed to our members and former members are still scheduled to be paid on the March 31 pay.
Regarding the $500 payment as compensation for extending the implementation period of the collective agreement, this amount should be paid on the April 28 pay, as originally planned. Note that our former members will also receive that amount on the same date.
The deadline for implementing the monetary provisions of the new collective agreement is May 14.
We will continue to monitor the situation closely and keep you informed of any new developments in this matter.
- PHOENIX COMPENSATION PAYMENT:
We also discussed this issue with senior management of the Agency’s compensation sector. They confirmed for us that the amounts owed to our members as compensation in connection with the Phoenix pay system debacle will be paid on March 3.
As you know, the PSAC recently informed us that the Treasury Board has decided to proceed with the Phoenix compensation payment despite the fact that the Canada Revenue Agency has not yet informed us of its final interpretation regarding whether those payments will be taxed. We received that news with shock, much bitterness, and a strong feeling of injustice.
It’s important to remember that the PSAC had carefully chose the wording used in the agreement signed with the Treasury Board, factoring in the many problems experienced by our members and the major impacts on them as a result of this unprecedented fiasco. In fact, the emotional burden, stress, anxiety, fear and insecurity experienced by our members have had a very significant and extremely negative impact on their mental and physical health. That’s why the agreement refers to the very real suffering that our members have endured since that pay system was put in place in early 2016.
It’s obvious to us that, due of the nature of the compensation, the amounts awarded should not be taxable. When determining whether the Phoenix compensation should be taxable, the CRA relied on information provided by the Treasury Board that contained multiple errors, including about general compensation for pain and suffering.
The PSAC was quick to point this out to the CRA, and it agreed to revisit the issue if the Treasury Board helped clarify the facts. But the Treasury Board refused to cooperate. It denied that it had even understood this mutual agreement among the three parties and openly stated to the members that the general compensation was taxable, period, thereby blocking the CRA’s ability to revisit its position before proceeding with the payment.
Since the Treasury Board refuses to cooperate, the PSAC decided to submit its own account of the facts right to the CRA, emphasizing that the case law supports our position because the courts have repeatedly ruled that this type of compensation is not taxable. Normally, it’s the employer (Treasury Board) that the CRA notifies about something like this. However, it may decide to review the new facts submitted to it by the PSAC.
We will keep you informed of any new developments in this matter, as the situation evolves.
Respectfully submitted,
Marc Brière
National President