Minutes of the National Union-Management Consultation Committee (NUMCC) Meeting

MEETING BETWEEN THE CANADA REVENUE AGENCY (CRA) 
AND THE UNION OF TAXATION EMPLOYEES (UTE)

Opening Remarks

The Chairperson of the meeting and Union of Taxation Employees (UTE) National President began with a land acknowledgement then welcomed the participants to the second CRA-UTE NUMCC meeting of 2023. While recognizing the importance of the numerous informal union-management meetings that take place all year long, he reflected on the value of the formal meetings held twice a year.

The Commissioner welcomed the participants and said he was glad for the opportunity to meet in-person. He congratulated the union on the signature of the new collective agreement and also acknowledged the hard work of the CRA’s bargaining team for reaching a tentative agreement.

He commended the team’s efforts in rapidly finalizing the process, which led to the signature of the collective agreement in June 2023.

In reference to concerns raised during the previous UTE-NUMCC meeting about the inclusion of both official languages during union-management consultations, the Commissioner was pleased to report that a communication was sent to all employees reminding them that all documentation sent for national consultations must be in both English and French.

One of the main highlights of the summer was the Cabinet reshuffle which resulted in the appointment of the Honourable Marie-Claude Bibeau as the new Minister of National Revenue. The Commissioner indicated that there is good collaboration with the Honourable Minister Bibeau but recognized that there is still a learning process ahead. He thanked the Honourable Diane Lebouthillier for her dedicated work with the Agency since 2015. There were also some departures in the ranks of Senior Management that resulted in changes at the Management table.

Susan Chambers, former Assistant Commissioner (AC), Atlantic Region, left the Agency in July 2023 to pursue a new professional opportunity at Fisheries and Oceans Canada. A replacement has yet to be identified but in the meantime, he welcomed Tanya Cameron who attended the meeting in the capacity of acting Assistant Commissioner.

Mark Quinlan, former Assistant Commissioner (AC) of the Quebec Region, left the Agency in October to join Public Services and Procurement Canada (PSPC) where he will be in charge of Real Property. In the interim, Chantal Tourigny attended the meeting in the capacity of acting Assistant Commissioner.

The Commissioner was pleased to welcome Natalie Waples, who was appointed as new Director General of the Workplace Relations and Compensation Directorate (WRCD), replacing Philippe Blanchette who left the Agency back in June. Finally, the Commissioner indicated that Nandini Srikantiah had left the Agency to pursue new opportunities with the Canada Borders Services Agency (CBSA). He highlighted that she played a critical role in the return to work and journey to hybrid (JTH) initiative and that moving forward, the HRB will be responsible for this portfolio. He ended by saying that funding for the team will sunset at the end of this fiscal year and remaining team members are transitioning to new roles across the Agency over that period.

On the topic of the Refocusing of Government Spending (RGS) initiative launched during the summer, the Commissioner recognized that it is never a pleasant experience but said we should be relieved that there was no workforce adjustment (WFA) factored as part of the initiative. He thanked the UTE for meeting with the Finance and Administration Branch (FAB) in September, prior to the proposals being sent to the Treasury Board Secretariat (TBS) for their consideration.

The Commissioner said he was pleased with the early results of the 2023 CRA Charitable Campaign that was launched in September. The Campaign is set to run until January 18, 2024, but he encourages everyone to remind employees and UTE members of the significant impact donations can have for some people.

The Journey to Hybrid is not on the agenda but the Commissioner wanted to recognize the progress being made by the Joint Consultation Committee (JCC) on the Directive on Virtual Work Arrangements (VWA). The JCC has met twice to discuss the review of the Directive the productive dialogue taking place seems promising. He thanked those involved in this committee and said he was looking forward to further updates in this regard.

The UTE National President congratulated Senior Labour Relations Officer Shane O’Brien, who retired after 42 years. On the matter of the collective agreement, the UTE National President said he was grateful that the CRA expedited the process for the signature of the collective agreement. He ended by saying that he is looking forward to having frank and honest discussions and invited everyone to participate.

1. Canada Life

The government initially announced that the transition from the existing health care provider to the new service provider Canada Life would be smooth one, however, the UTE National President indicated that the situation has been catastrophic from the beginning and there are lots of frustrations amongst the UTE members.

The Assistant Commissioner, Human Resources Branch (AC, HRB), recognized and echoed the frustrations raised by the union. She indicated that the CRA raised its concerns and employees’ frustrations with the TBS, who is the plan administrator for the public service, to address them directly with Canada Life. Employees have to wait on the phone for a very long time before they can talk with an agent and the CRA has no means to escalate cases directly to Canada Life as it is an external insurance company. Changes regarding Canada Life are communicated to CRA employees via messages on InfoZone from the AC of HRB and in the monthly It “Pays” to know!

Bulletin with the most recent updates being shared in the October and December editions.

At the enterprise level, the Compensation Client Service Centre (CCSC) is equipped with scripts to help support CRA employees by providing important resources.

Corporate Compensation spoke with the TBS plan administrator’s manager on September 28, 2023, and November 22, 2023, to discuss ongoing employee complaints. TBS advised that the following improvements have been made:

• The average wait time is down to 6 to 7 mins after the cap on calls waiting was removed;
• To avoid higher call volumes, employees were advised to either call early in the morning or later in the week;
• 400 call centre representatives have been hired, and Canada Life plans to increase that number to 500 by January 2024;
• Issues with members who didn’t do the early positive enrolment have been fixed.
• The rejected claims for dependents issue has been fixed.
• An upgrade to the existing Canada Life mobile app will be launched in December. At this time, the mobile app permits a member to only submit dental claim but once the upgrades of January 2024 are completed, members will be able to use it to submit Public Service Health Care Plan (PSHCP) claims as well.
• Two information notices have been posted on the TBS website to notify members of the improvements and changes to the PSHCP. This information was also included in CCSC’s October bulletin published on InfoZone.
• Bulletins are posted on the PSHCP Administration Authority. Of note, Corporate Compensation will monitor these bulletins for key messages or updates to share with CRA employees.
• An escalation process for urgent requests has been implemented, thus ensuring that urgent claims such as life-sustaining prescription drug, service or treatment are handled first.

The Assistant Commissioner recognized the importance of this issue for the union, and she will continue to keep them informed as more information becomes available.

The UTE National President expressed his disappointment with the government’s lack of preparation in this matter. The transition was poorly handled, and UTE members were significantly impacted. For example, a member’s claim for the reimbursement of a very expensive drug was denied by Canada Life, even though the drug was covered by the previous insurer. The union is seeking compensation for members who were impacted, noting that some of them had to stop various medicine intended for the treatment of life-threatening illnesses. The UTE National President reminded participants that a few years ago, employees were impacted financially because of Phoenix, which prevented some of them to seek new job opportunities because of the impact on their credit score.

The National Capital Region Vice-President commented on the difficult situation in the CCSC call centre and added that call centre agents are ill-equipped to answer employees’ questions about their benefits. He would like to see the Agency advise employees to stop calling compensation advisors as they can’t provide any support other than instructing them to contact Canada Life directly.

The UTE National President spoke about a recent visit to the Winnipeg Tax Centre where he discussed issues related to the transition with compensation advisors. The direct access the CCSC had with the previous insurer Sun Life no longer exists under the new contract with Canada Life which resulted in the loss of the fast-track system that was once available.

The AC, HRB said she was empathetic with employees and indicated that the CRA will continue to work with the TBS and with the CCSC call centres to improve the situation.

The Commissioner relayed Management’s frustrations and reiterated that there is not much the CRA can do in this matter but to improve its communication efforts. He recognized that the complaint department is overloaded and emphasized that the focus should be on timely communication with employees.

The UTE President responded that the union will seek financial compensation for the members as the impact on employees is substantial and for some of them the damage has already been done.

2. 2023 Accessibility progress report

The Deputy Assistant Commissioner of the Service, Innovation and Integration Branch (DAC, SIIB) provided an overview of the Agency’s 2023 Accessibility Progress Report, which is set to be published on Canada.ca by the end of 2023.

The Agency’s first Accessibility Plan was published in 2022 and it marks the beginning of a transition into becoming an organization that is fully accessible for both clients and employees of the Agency. The Plan targets 23 accessibility barriers through 42 actions, covering the period between January 2023 and December 2025. In addition to addressing barriers related to the seven areas of the Accessible Canada Act, it also targets gaps related to foundational elements of the CRA’s operations, including organizational culture and internal accessibility expertise. At the core of all CRA’s accessibility initiatives, including the Accessibility Plan, is the “Nothing Without Us” principle.

To create the Plan, the Agency held a series of consultations with CRA employees with disabilities, members of the public with disabilities, and non-profit organizations who help persons with disabilities access the CRA’s programs and services. Of note, the CRA’s Persons with Disabilities Network actively participated in the development of the Accessibility Plan, from start to finish. The AC, SIIB was pleased to report that the TBS Office of Public Service Accessibility recognizes CRA’s Accessibility Plan as being among the best in the federal government.

Consultations with persons with disabilities and non-profit organizations have been held to help assess the Agency’s progress and the following points are noteworthy:

• CRA employees participants indicated that they start to see a positive shift towards embracing a culture of accessibility at the Agency. There is a desire for more training at the managerial and senior leadership levels to increase understanding of disability issues, to improve hiring and accommodations processes, and to reduce biases and stigmas faced by persons with disabilities. To fill this gap, the Agency is currently working on building tools and training, informed by persons with lived experience, to facilitate increased awareness and knowledge of accessibility and disability at the Agency.
• Participants who are members of the public and non-profit organizations also mentioned that they’re noticing improvements but that work still needs to be done to simplify application processes, make web content easier to understand, and expand methods of communication.

The Formal accessibility feedback, which is a requirement under the legislation, also provides valuable information in helping the CRA understands how it can improve and become more accessible. The feedback received to date from CRA clients revealed that:

• There is a desire to be able to customize their contact methods for improved interactions with the Agency;
• There is a need to balance security and accessibility to provide ease of access to persons with disabilities, and;
• There is a continued need to build greater cultural awareness and inclusion through accessibility training.

The abovementioned input and feedback were assessed by the various stakeholders and based on the status of each action item in the Plan; the Plan remains on track to be fully delivered by December 2025. The AC, SIIB, reported the following progress and commented on the Plan’s current status:

• 17% (7 of 42) of the action items have been completed;
• It is expected that 62% (26 of 42) of the action items will be completed as originally planned;
• Delays were experienced with 21% of the action items but it is still expected that these actions will be completed during the three-year period covered by the plan (finalized by December 2025).

The 2023 Accessibility Progress Report is currently under embargo but the AC, SIIB advised the union that it would be shared with them within one week (from December 9) and before its official publication on the Canada.ca website. She added that an Agency-wide message will be distributed to all employees by the Commissioner once the report is published on the Canada.ca website.

Next steps for 2024 consist in working to develop the CRA’s first Accessibility Policy and planning for a new round of consultations with CRA employees with disabilities in the spring. She ended by saying that the Agency is at the beginning of a long and exciting journey, with many opportunities to learn on how to continue to remove known barriers for persons with disabilities and prevent new barriers from emerging.

The Deputy Commissioner reiterated that although a lot of work has yet to be done, CRA’s action plan is seen as one of the most advanced in the federal public service and the conversation will continue over the next few years. She reflected on the aspect of consultations with employees and the importance to pay attention at how the Agency will support them and ensure they have the necessary tools to enhance their experience. She reminded everyone of the Agency’s commitment to engage employees early in the processes.

The Quebec Region vice-president shared his enthusiasm for a pilot project in the Quebec Region that aims to demystify duty to accommodate requests. The initiative is less formal than the Early Intervention and Return to Work (EIRTW) process, but it is a great tool for employees to understand how it works.

The First National Vice-President asked if there was any reference to service animals in the office in the 2023 Accessibility Progress Report. He indicated that there appears to be an issue with employees being questioned about their service animals or not allowing the animals in the CRA facilities.

The AC, SIIB responded that she will consult the report in order to answer that question.

The Deputy Commissioner explained that service animals are an issue emerging in various departments. A meeting with Deputy Ministers from Agencies and Departments is scheduled to take place on December 15, 2023, to discuss this concern and she expects an update to be provided after this meeting.

Commitment: The AC, SIIB will provide an update on the presence of service animals on the CRA premises after December 15.

3. Refocusing government spending (RGS)

The Assistant Commissioner, Finance and Administration Branch (AC, FAB) provided an update on the Refocusing government spending exercise.

Based on recommendations formulated in Budget 2022, the Fall Economic Statement 2022, and formally in Budget 2023, the Canada Revenue Agency started working on its Refocusing of Government Spending (RGS) exercise. He explained that this is a government-wide exercise and that starting 2023-2024, each department and agency was called upon to reduce their spending to achieve collective savings of 15.4 billion in professional services, travel, and operations over the next five years and $4.5 billion ongoing. Of note, the Agency’s emphasis has been to find efficiencies while minimizing the impact on services to Canadians, on revenue generating objectives, and on people.

This exercise was approached similarly to the Annual Resource Alignment Process (ARAP) but instead of reinvesting savings within the Agency towards the highest unfunded priorities or pressures, they are returned to the core public service. All branches and regions were asked to review their programs and operations to identify where there might be duplication, lower value for money, or programs that do not address the Government’s top priorities. The Agency assessed potential risks and impacts for each proposal and consultations with CRA senior management were held to determine which proposals should be retained.

The HRB was significantly involved in assessing the savings proposals to identify any potential workforce impacts.

The CRA has identified savings in the following areas to achieve the reduction target:

• Travel: full reduction is effective starting in 2023-2024 and ongoing;
• Professional services: reduction starting in 2023-2024 with a ramp-up leading to the full amount materializing in 2024-2025 and ongoing;
• Operations: reductions starting in 2024-2025 and ramping up to the full amount by 2026-2027 and ongoing.

The final package of spending reduction proposals was approved by the Minister and submitted to the TBS on October 5, 2023. An email providing information on the CRA’s work to support the Government’s commitment to RGS was sent to all staff on November 8, 2023. Managers were notified a day in advance and received supplemental information to assist them in answering potential questions from their teams. The AC, FAB indicated that unions will continue to be informed in advance of sending future updates to employees and reiterated the Agency’s commitment to working in partnership with both unions. He concluded by saying that in terms of latest announcement made by the government as part of the 2023 Fall Economic Statement, it is still unknown how this will apply to the Agency.

The UTE National President sought clarifications about what is considered high risk for the Agency.

The AC, FAB responded that a risk assessment was performed for each proposal with the emphasis on potential impact on services to Canadians, on revenue generating objectives, and on people.

The UTE National President said the union appreciated being consulted during this process. As expected, the UTE did not make any recommendations for job cuts as their main concerns are job losses and service to population. He stated that historically, the announcements have always been that there would be spending reductions in travel and that CRA intends to save the jobs. He expressed his disappointment as it is usually not what happens, and the Agency would proceed with job cuts. He added that the Government of Canada does not consider that individuals with a determinate employment status losing their job represents an impact on the workforce because they are ending a contract and not terminating the employment of an employee with an indeterminate employment status. The CRA is under review by the Auditor General and any potential impact on the call centres would be catastrophic. While recognizing that the Government of Canada wants to balance its budget, the tax season approaches quickly, and he strongly recommended against proceeding with early end of terms for call centre agents. He mentioned that a number of employees with a determinate status of employment were let go after the strike and the wait time for clients immediately climbed.

The Quebec Region Vice-President flagged for Management’s attention the high cost of training term employees and invited them to explore other avenues before letting them go. Early end of terms may have an impact on the Agency’s retention target as many employees start their career with a contract and a lot of them may stay with the Agency for more than thirty years.

The Commissioner reiterated that the Government’s priorities are to minimize impact on service and on people and recognized that this is the challenge. In reference to comments about term employees and training, he recognized that CRA has those muscles, and it will be a difficult exercise to find where spending reductions will have the lesser impact. Management will have to determine what the exposure is and how to prepare for these reductions.

The UTE National President stated that the Government of Canada sometimes tends to forget that CRA brings the money. Call centres are not generating revenues, but he indicated that there are many other areas at the Agency such as internal services that aren’t either.

The Commissioner responded that there are many areas offering internal services, but it doesn’t mean that we can simply identify a particular area and assume it won’t impact our operations.

4. Update on Values and Ethics

The AC, HRB expressed her appreciation for the outstanding work performed by CRA employees throughout the pandemic despite having to adapt to changing work conditions. Public servants are held to the highest standards by the Canadian public, and she was proud of CRA employees’ ability to continue delivering services to Canadians during the upheaval of the pandemic years while demonstrating the CRA values of professionalism, integrity, respect and collaboration.

There is a renewed focus on the role played by public servants in the Canadian context and she noted that the CRA values help shape the Agency’s response to the changes that are happening in the world.

Earlier this year, the Clerk of the Privy Council put together a Task Team to design and lead an exercise that will advance a broad conversation with public servants on the topic of values and ethics. The AC, HRB said she was looking forward to hearing the results of this exercise as the CRA will launch a similar exercise with its employees as the Agency is looking to update its corporate policy instruments (CPI) and supporting tools. She noted that the Assistant Commissioner of the Appeals Branch is the Agency’s champion for Values and Ethics and added that the UTE will be engaged as part of the review of the CPI. She spoke about the importance of continuing the conversations on the topic, not to change the Agency’s values, but to discuss how they should be integrated.

The Commissioner commented that it is interesting how much integrity is valued at the CRA. With a workforce of 50,000 employees, the Agency will undoubtedly have some values and ethics issues, despite the tools and directive in place. For example, he brought up issues around social media and instances where employees are not quite informed about what they can or cannot say. However, there are some pressures out there.

The Montreal Region Vice-President shared that one of the main sources of frustrations from UTE members pertains to how the CRA staffing values are not fairly and consistently applied in staffing processes.

The AC, HRB responded that it isn’t very clear how the subject is related to staffing processes, however, she assured the Montreal Region Vice-President that there was a strong desire to be fair and equitable.

The UTE National President responded that he would like to be consulted as the situation evolves.

5. Staffing matters

The union requested a discussion on staffing related matters such as sunset funding.

The UTE National President expressed that some issues have been brought to the union’s attention by its members. One of the main concerns appears to be related to the use of the sunset funding clause and how it impacts members’ ability to accrue their years of service. While recognizing that the Agency is facing financial constraints as a result of the recent budget announcement, he believes it is unfair that some employees were not informed from the beginning that they were hired for a contract that was sunset funded. It is very frustrating for employees who are only one to three years from getting their years of service to see their employer pull the plug. He recognized that Management wants to avoid a situation where they will have a roll over and be constricted to use a WFA initiative later.

The Commissioner stated that funding is going to decline and explained that the issue raised by the UTE National President is one the Agency has to grapple with when employees are hired on a temporary basis to work on contract. He added that the Agency must assess if it can afford to take on a high number of employees that will soon have their employment status converted from determinate to indeterminate. The CRA will have to find a mechanism to allow for the right balance, but he outlined that the situation described by the UTE National President is what happened earlier this year with employees of the call centres. He emphasized that there will be less money allocated to CRA’s call centres next year if nothing changes. He concluded by saying that difficult decisions will have to be taken at some point.

The AC, HRB stated that the Agency is examining the ongoing and anticipated financial constraints resulting from the government-wide cost containment measures that may impact its term employee population. She added that the timing coincides with the end of a number of temporarily funded programs (e.g., COVID-19 benefits) for which significant temporary resources have been hired. As such, many of the resources hired during the pandemic would now be reaching the threshold for administrative conversion to permanent employment. The financial strain on the Agency’s operating budget would be tremendous if all administrative conversions were to materialize, hence the need to manage this situation prudently. Consequently, Management is now considering the potential use of the sunset funding clause as a mechanism to manage these financial pressures as outlined in CRA’s CPIs.

The AC, HRB explained that a recent analysis of the Agency’s term employee population revealed that the estimated growth in the permanent workforce from administrative conversion is double the number of permanent employees eligible to retire in 2023-2024. When looking ahead to 2024-2025, the number would be quadrupled, which would put a lot of pressure on the Agency to absorb resources that are not financed to sustain on a permanent basis. Branches and program areas are increasingly including the sunset clause in term extensions and new contracts to protect the employment of CRA’s permanent workforce while ensure that adequate temporary capacity is available to sustain efficient program delivery. As previously mentioned by the UTE National President, the moratorium on administrative conversions is another mechanism outlined in CRA’s CPIs that can be leveraged in response to significant budgetary constraints. Of note, moratoriums are rare and last for a fixed period of time and any decision related to them requires analysis, consultation and approval by the Commissioner to ensure it does not adversely impact the Agency’s long-term needs. Efforts will continue to be deployed to support term employees within the Agency however, in situations where financial constraints do not make it feasible, available mechanisms will be examined across all branches and program areas to ensure a consistent and fair approach is adopted to sensibly risk manage and protect its capacity to serve Canadians efficiently.

The AC, HRB, recognized the importance and value of the term workforce contributions and she emphasized that employment and well-being should remain a priority in our decision-making process. Transparency and timely communication are also important in the Agency’s ongoing efforts to ensure fair management of term employees. She concluded by thanking the UTE for its participation on staffing issues impacting the term workforce and indicated that she will continue to keep them informed of any decisions or national direction that may arise.

The Commissioner reflected on the time when the length of the conversion period of term employees was reduced from five to three years. He recognized the systemic issue where Management is keeping an eye on the service length but clarified that the issue at hand in this case is related to funding expiring. In reference to comments made about determinate employees and training, he recognized that it would be difficult to identify areas where spending reductions will have impact. That being said, if less resources are allocated to the Agency, it will be necessary for Management to restrict our exposure and prepare the Agency for this reality.

Addressing the Regional Assistant Commissioners, the UTE National President asked them to abide by the Commissioner’s commitment and closely monitor employees approaching the three-year conversion mark.

The Quebec Region Vice-President shared some issues that were observed in the Quebec Region, where Management restricted employees from changing jobs by arguing that they were needed to finalize a given workload. Employees’ contracts ended at the end of the project, and they were not offered new contracts within 30 days, impacting their cumulative service1. This practice generated a sustained level of frustrations amongst some employees.

The UTE National President added that similarly, Management would at times allege budget constraints as a reason to end employee’s contracts but contradictorily, would ask other employees to participate in an overtime blitz.

In response to the Quebec Region Vice-President, the Deputy Commissioner agreed that it was not beneficial to let employees go who are already trained and have a certain knowledge of the CRA.

The Commissioner recognized the significant value of employees with lots of experience. A lot of new employees were hired at the beginning of the Covid-19 pandemic, and he was disappointed of the problematic situations that occurred as result of the lack of training. He is hoping that processes can be improved, as long as it meets the budgetary constraints shared by the AC of FAB.

The Northern and Eastern Ontario Region Vice-President mentioned that as the new appointee on the staffing committee for the UTE, he was disappointed that the issue around the end of term for employees approaching the conversion mark is not going away. He outlined that from zero to five years, it represents approximately 14,000 term employees at the Agency level, with each region having at least 2,000 term employees. This issue is a lasting one and he stated that it would continue to be under the union’s scrutiny.