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Union Dues Deductions - Information Notice

DATE: July 7, 2004

SUBJECT: Union Dues Deductions

The purpose of this bulletin is to provide departments with direction to implement the decision issued by the Public Service Staff Relations Board (PSSRB) - file # 169-2-669 to 674 on April 26, 2004, in relation to the complaint made by the Professional Institute of the Public Service of Canada (PIPSC) regarding the check-off provisions in the six PIPSC collective agreements.

Background

The background information concerning this matter is provided in our bulletins dated February 9, 2004, February 13, 2004, and May 5, 2004. These bulletins can be obtained in the Treasury Board Secretariat (TBS) Web site.

Implementation of the PSSRB decisions

The PSSRB decision of December 11, 2003 required that the employer no longer consider the date of the letter of offer when establishing the effective date of the change in union dues deductions. Effective February 9, 2004 departments were instructed to use the actual effective date of the appointment / change to establish the date for commencing or changing union dues deductions with the exception of reclassification and conversion actions.

As indicated on May 5, 2004, the required payment to PIPSC was issued by TBS, on March 11, 2004, in order to meet one of the obligations of the PSSRB decision of December 11, 2003. Corporate Compensation offices will be provided with an Excel worksheet that details the payments made to PIPSC for their employees. Compensation advisors will require this information in order to complete the task outlined below.

The PSSRB decision of April 26, 2004 relates to complaints by PIPSC of delays in remitting union dues to the bargaining agent.

As you are aware, since September 2001 departments undertook a significant effort in time and salary dollars to resolve the problems identified by PIPSC. In spite of this effort, by the fall of 2003, the Institute indicated the amount owed had escalated significantly.

The PSSRB ruled on April 26, 2004 that the employer breached its obligation under the collective agreements to remit dues to PIPSC and is liable for the losses suffered by PIPSC as a result of that breach, retroactive to May 1, 2001.

This bulletin provides departments with the information necessary to determine the exact amount owing to the Institute for the period from May 1, 2001 to July 31, 2004. Since the Institute must receive payment of this amount by August 24, 2004, departments must provide to this office, the amount owing for their respective organization, by August 6, 2004.

A future bulletin will provide departments with the changes in procedures required to process union dues deductions as a result of the PSSRB decision of April 26, 2004.

This PSSRB decision is as a result of departments not starting and/or stopping dues at the proper time and the administration of dues for employees in acting situations. As a result, TBS will determine the amount owing between May 1, 2001 and July 31, 2004 using the procedures outlined below. TBS will pay the amount owing on behalf of each organization, and then, the amounts will be charged back to the affected department or agency. Departments will be provided with these amounts prior to the action being taken to charge the monies back to the departments.

Determination of amount owing to PIPSC

The Institute has provided our office with a report for the 52 organizations affected. In addition, an Excel worksheet of the information was provided by PIPSC. The paper report and the Excel files will be couriered to the respective Corporate Compensation Manager of each organization.

The Compensation advisors will be required to determine the total amount of union dues owing to the Institute for the period between May 1, 2001 and July 31, 2004. They are also required to review the pay records for all employees indicated in the Institute's report.

The PSSRB decision of April 26, 2004 does not affect the recovery of dues owing for periods prior to May 1, 2001. All arrears being recovered for PIPSC for periods prior to May 1, 2001 must continue to be recovered and remitted to the Institute. As was indicated in our bulletin of February 13, 2004, where the former bargaining agent does not authorize a full refund for the dues paid in error to that union, the department is required to pay the union dues directly to the new bargaining agent (e.g. PIPSC) for the period not refunded by the former bargaining agent.

In order to be able to justify the data to the PSSRB, departmental staff must make a copy of the letter of offer for each appointment to a position represented by PIPSC for all the employees on the PIPSC report where this appointment / assignment results in the requirement to commence PIPSC union dues. Where PIPSC union dues were ceased, a copy of the authorizing document that required this action must also be made. This information must be retained in the departmental pay unit along with a photocopy of the employee's personal history card until December 31, 2005.

The method used to determine the amount owing for the various types of situations is indicated in the attached Appendix A.

On completion of the analysis of the employees' pay records, departments will be required to update the PIPSC Excel worksheet for all employees on the worksheet (including former employees).

The data required by TBS to issue the lump sum payment to PIPSC on August 24, 2004 is the following:

Classification on appointment to a position represented by PIPSC that requires the commencement of PIPSC dues deductions.
The effective date of appointment to a position represented by PIPSC where PIPSC dues are commenced (either new appointment or subsequent appointment / assignment).
The date of issuance of the letter of offer for the above appointment.
The actual month current deductions were commenced for PIPSC.
The amount of PIPSC arrears that were recovered (up to July 31, 2004).
The amount of dues still owing to PIPSC (as of August 1, 2004).
The amount already paid by TBS on March 11, 2004 (from the Excel worksheet provided separately).

To reduce confusion regarding the format of the dates, the month, day and year values will be indicated in separate columns as indicated on the worksheet (e.g.12/24/2004).

Use the remarks column to provide explanations, such as "reclassification / conversion".

For multiple periods of acting assignments to positions represented by PIPSC, provide a separate line for each period of acting where the acting period is greater than one full calendar month and there was a change in bargaining agent that required changing the dues deductions from another bargaining agent to PIPSC.

Note that for former employees, the SOS date must be indicated in the remarks column, in addition to the required data.

For employees who transferred to another organization, please provide Brian Jackson, without delay, via e-mail with:

The name of the new organization,
The date of transfer, and
The payroll identification for the new organization.

We will then contact the new organization to obtain the data required.

Prior to forwarding the completed Excel worksheet to the TBS, Corporate Compensation officials are requested to review the information submitted by their regional staff for accuracy and completeness.

The Corporate Compensation Manager must return the completed Excel worksheet for their organization to Brian Jackson at the following e-mail address by August 6, 2004: Jackson.brian@tbs-sct.gc.ca

Departmental compensation and staff relations managers should direct any questions that they may have to their appropriate corporate officials who, if need be, can contact the Pay Administration Section.

original signed by

Thomas A. Smith

Director, Pay Administration
Management Policy and Labour Relations

Appendix A

Action required to establish lump sum owing for the PSSRB decision of April 26, 2004

	Situation	Current deductions	Arrears deductions	Excel Worksheet
1.	Where an employee has transferred from your organization, immediately provide Brian Jackson (Jackson.brian@tbs-sct-gc.ca) with; The name of the new organization, The date of transfer, The payroll id for the new department.			From your departmental records (copy of pay card and pay roll registers) indicate: Date of appointment from the pay card; Actual month current deductions commenced for PIPSC from payroll registers; The amount of arrears recovered; The amount of arrears outstanding between May 1, 2001 and July 31, 2004. Indicate in the remarks column of the worksheet: Transferred to: department / pay office / paylist The effective date of the transfer.
2.	Employee is appointed to a position represented by PIPSC between May 1 2001 and the present, but PIPSC dues have never been deducted from the employee's salary.	Immediately commence dues for PIPSC @ $47.00 per month effective from August 1, 2004.	Calculate the total amount owing to PIPSC between the date that PIPSC dues should have commenced (using the effective date of appointment) to July 31, 2004 inclusive at $47.00 per month.	Indicate on the worksheet: Date of appointment; Date of letter of offer; Total amount of arrears owing between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
3.	Current deductions for PIPSC dues were commenced and the recovery of arrears deductions (one month at a time) have also been commenced. A refund of the dues from the former bargaining agent has been requested.	No pay action required for the current PIPSC deductions.	Cease the recovery of PIPSC arrears (for the period from May 1, 2001 to July 31, 2004) effective August 1, 2004 (last month of recovery of the arrears to be July 2004). Note that this pay action must be processed in the PWGSC pay system by August 10, 2004. Recovery of arrears for periods prior to may 1, 2001 must continue to be recovered.	Indicate on the worksheet: Date of appointment; Date of letter of offer; Actual month current deductions commenced for PIPSC; The amount of arrears recovered; The amount of arrears outstanding between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
4	Current deductions for PIPSC are being deducted correctly and all PIPSC arrears retroactive to the later of the date of appointment or the date of the letter of offer have been completed. In other words, in these cases, the only monies owed to PIPSC were for the PSSRB decision of December 1, 2004.	No pay action required for the current PIPSC deductions.	No pay action required.	Indicate on the worksheet: Date of appointment; Date of letter of offer; Actual month current deductions commenced for PIPSC; The amount of arrears recovered for the period between May 1, 2001 to July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
5.	Current deductions for PIPSC were commenced and the department recovered PIPSC arrears for a period equal to the period covered by the refund of dues from the former bargaining agent. There is still a period between May 1, 2001 and July 31, 2004 where PIPSC is entitled to dues arrears. Example: An employee paid dues to the wrong bargaining agent for eighteen (18) months. The former bargaining agent authorized a refund for ten (10) months. The department only recovered ten (10) months dues for the new bargaining agent. The new bargaining agent is still entitled to eight (8) months dues. Indicate 8 times $47 in the column for the amount of arrears still outstanding.	No pay action required for the current PIPSC deductions.	Calculate the amount of arrears owing to PIPSC (at $47 per month) for the period between May 1, 2001 and July 31, 2004. Note: Do not include any arrears owing for periods prior to May 1, 2001 in this calculation.	Indicate on the worksheet: Date of appointment; Date of letter of offer; Actual month current deductions commenced for PIPSC; The amount of arrears recovered for the period between May 1, 2001 and July 31, 2004; The amount of arrears outstanding for the period between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
6.	Current deductions for PIPSC were commenced and the department recovered PIPSC arrears for a period equal to the period covered by the refund of dues from the former bargaining agent. The remaining arrears owing to PIPSC were paid directly to the Institute by the department.	No pay action required for the current PIPSC deductions.	No pay action required.	Indicate on the worksheet: Date of appointment; Date of letter of offer; Actual month current deductions commenced for PIPSC; The amount of arrears recovered for the period between May 1, 2001 and July 31, 2004; The amount of arrears paid to PIPSC by the department for the period between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
7.	For all reclassification and conversion actions, where the person is appointed to a position represented by PIPSC, in addition to the data required as per the applicable situations above, it must be indicated in the remarks column that the appointment is as a result of a reclassification or conversion. Please note that the date used to establish when to commence / change union dues is the later of the effective date of appointment or the date of issuance of the authorizing document.	Follow the procedures for the applicable situation above (situations #1 to #5).	Follow the procedures for the applicable situation above (situations #1 to #5).	Indicate on the worksheet: Date of appointment; Date of letter of offer; Actual month current deductions commenced for PIPSC; The amount of arrears recovered; The amount of arrears paid to PIPSC by the department for the period between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003; "reclassification / conversion" in the remarks column.
8.	Data is required for all acting assignments where: There is a change in bargaining agent and the new bargaining agent is PIPSC, and The acting assignment is on going and will not end before August 1, 2004.	Follow the procedures for the applicable situation above (situations #1 to #5).	Follow the procedures for the applicable situation above (situations #1 to #5).	Indicate on the worksheet: Date of appointment of the acting assignment; Date of letter of offer for the acting assignment; Actual month current deductions commenced for PIPSC; The amount of arrears recovered for the period between May 1, 2001 and July 31, 2004; The amount of arrears paid to PIPSC by the department for the period between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.
9.	Data is required for all acting assignments between May 1, 2001 and July 31, 2004, where: There was a change in bargaining agent and the bargaining agent for the acting position was PIPSC, and The period of the acting assignment was greater than one full calendar month, and The acting assignment ended prior to August 1, 2004.	No pay action required for current PIPSC deductions as the acting ended before August 1, 2004.	Calculate the amount of dues owing to PIPSC for each period of acting assignment of greater than one month (at $47.00 per month).	On a separate line for each acting assignment, indicate on the worksheet: Date of appointment for the acting assignment; Date of letter of offer for each new acting assignment (not extensions); Actual month current deductions commenced for PIPSC; The amount of arrears recovered for the periods between May 1, 2001 and July 31, 2004; The amount of arrears outstanding for the period between May 1, 2001 and July 31, 2004; From TBS worksheet, indicate the amount paid by TBS for the PSSRB decision of December 11, 2003.