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DATE: February 2, 1999

TO: Heads of Personnel
Chiefs of Staff Relations
Compensation Managers
Senior Financial Officers

Pay Administration During Labour Disruptions

This directive provides guidance on the recovery of overpayments resulting from unauthorized absences due to strike activity. The procedures apply to members of a bargaining unit that is in a legal strike position, as well as members of other bargaining units who support the labour disruption.

The Financial Administration Act (Section 155(3)) requires that salary overpayments be recovered in full from the first available funds payable to the employee. For the recovery of overpayments resulting from strike activity, the Treasury Board Secretariat is authorizing departments to recover the lesser of 4 days' pay or the actual number of strike days to be recovered, per pay period until recovery action is completed. Departments may be required to temporarily stop certain voluntary deductions (such as credit union deductions) to ensure that the 4 day recovery can be effected in full. Every effort should be made to ensure that negative entitlements do not result when regular pay is processed.

Pay Procedures

Employees belonging to bargaining units that are in a legal strike position will continue to be paid normally until strike activity takes place.

In the event of labour disruptions, the following procedures for handling the pay of striking employees will apply:

• Treasury Board Secretariat will inform Public Works and Government Services Canada (PWGSC) whether and when to cease dues check-off for affected bargaining units.
• Pay cheques and direct deposit payments will continue to be produced and issued to striking employees on the regular pay day.
• Salary overpayments due to strike activity during any pay period will be recovered from the regular pay for the following pay period. As specified above, the recovery rate is the lesser of 4 days' pay or the actual number of strike days. In the event that an overpayment remains, the balance will be recovered from subsequent pay period(s).
• In this regard, it is essential that managers record the dates of withdrawn services for each employee. Absences due to strike activity are considered to be non-pensionable service, and official records must be maintained by departments. As well, some allowances such as bilingual bonus will have to be recovered if employees fail to meet the eligibility criteria.
• Depending on the nature and extent of strike activities, and the availability of pay processing personnel in departments, agencies and PWGSC pay offices, Treasury Board Secretariat (in co-operation with PWGSC) may invoke special procedures regarding the processing of pay transactions during a labour disruption. Should this take place, details would be provided through a further communication.

Dues Check-off

The Public Service Staff Relations Act (Section  52.1) requires that employees occupying designated positions continue to pay union dues while the bargaining unit is in a legal strike position. Departmental compensation advisors are reminded to ensure that the exclusion code of the master employee record (MER) reflects 15 for employees who occupy designated positions.

Enquiries

Questions regarding this directive should be directed to officers of the:

Linda Gobeil
Assistant Secretary
Labour Relations Division
Human Resources Branch