Union Dues Deductions - Implementation of PSSRB Decision

February 13, 2004

Union Dues Deductions - Implementation of PSSRB Decision

This is further to a bulletin addressed to Directors of Personnel issued by Brent DiBartolo, Assistant Secretary, Labour Relations and Compensation Operations dated February 9, 2004, regarding the decision issued by the Public Service Staff Relations Board (PSSRB) - file # 169-2-660 to 665 on December 11, 2003, 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.

Implementation of PSSRB decision

The above-mentioned PSSRB decision requires that all union dues owing to PIPSC for the period between the month dues should have commenced (using the actual effective date of appointment) until the month dues actually commenced (retroactive to May 1, 2001) be paid to the Institute within 90 calendar days of the rendering of the decision.

To assist in determining the amount that must be paid to PIPSC resulting from this decision, PIPSC provided an Excel worksheet indicating the particulars of the employees affected by the decision. Attached is a copy of the worksheet for your organization.

The worksheet includes the pay office, paylist, name, Individual Agency Number (IAN), classification, a column for the date of appointment / assignment (to a position represented by PIPSC), a column for the date that dues should have commenced, a column for the date that dues actually commenced, a column indicating the number of months between those dates, a column indicating the amount owing for that period, and a remarks column. This worksheet is available in Excel only.

Note: For the full period from May 2001 to the present, the rate of dues for PIPSC is $47.00 per month.

The only way to establish the amount of union dues owing to PIPSC is via departmental records. These amounts cannot be obtained from the Public Works and Government Services Canada (PWGSC) pay system or from the Treasury Board Secretariat (TBS) incumbent system.

Completing the Excel Worksheet

Using departmental records, you are required to indicate the following on the attached Excel worksheet:

1. Where the classification field is blank, the classification of the employee on the date of appointment to a position represented by PIPSC (either initial appointment to the Public Service or appointed from a position represented by another bargaining agent). The format for the field is XXXXX99 (e.g. MDMOF02).
     
2. The date of appointment or assignment to a position represented by PIPSC. The date is to be entered in DD-MM-YYYY format.

   Note: For multiple acting assignments; insert the date of the initial acting to a position represented by PIPSC after April 30, 2001 (see item # 6 and example 3 below).

   Where the date of appointment is prior to May 1, 2001, indicate the exact date of appointment.

3. Establish and insert the month and year that PIPSC dues should have commenced. The format is MM-YYYY.

   For an initial appointment to the Public Service (Public Service Staff Relations Act, Schedule 1, Part I), you must refer to the Check-off provisions of the relevant collective agreement. Collective agreements require that dues be commenced on the first full month or first full calendar month of employment. For subsequent appointments or assignments, the change in union dues must be made effective the first of the month following the date of the appointment, as per the PSSRB decision.

   Where the date that PIPSC union dues should have commenced is prior to May 1, 2001, indicate 05-2001 (May 2001) on the worksheet.

4. Insert the month and year that union dues actually commenced. The format is MM-YYYY.

   Where the date that PIPSC union dues actually commenced is prior to May 1, 2001, indicate 05-2001 (May 2001) in this field of the worksheet for the employee.

   Where dues have not yet commenced, but should have, indicate the month that dues will commence (i.e. March 2004) and then immediately perform a pay transaction in the PWGSC pay system to commence the dues for that month. Commence the recovery of the arrears immediately as per the procedural changes below. Indicate the month and year on the worksheet taking into account the number of months of arrears that you will be recovering.

   Where dues were commenced and arrears recovered over a number of months, determine the months that these arrears represent and then insert the first month of the arrears.

   Example

   Employee promoted from a position represented by the Public Service Alliance of Canada (PSAC) to position represented by PIPSC on March 3, 2003. The letter of offer is issued on May 15, 2003. Current PIPSC dues are commenced on August 1, 2003. Arrears for two (2) months representing the dues required for June 2003 and July 2003 are recovered in August and September 2003. The month and year to insert on the worksheet is June 2003.

5. The worksheet will automatically calculate the number of months and the amount owing for the period.

   Note: Where dues were commenced for the correct month, the number of months and the amount due will both automatically equal zero.

   For acting situations, where there are broken periods, override the automated calculator and insert the actual number of months due PIPSC.

6. Use the remarks column to indicate:

Note: It is not necessary to determine if the former bargaining agent issued any refund for the above period.

Example 1

Employee represented by PSAC is appointed to a position represented by PIPSC effective June, 2001. The letter of offer is issued on November 5, 2001. PIPSC union dues were commenced effective December 1, 2001. Dues for PSAC were ceased on the same date.

Indicate the following on the worksheet:

• Month dues should have started: 07-2001 (July 2001).
• Month dues actually started: 12-2001 (December 2001).

Five (5) will automatically be inserted in the month column and $235.00 in the amount column.

Example 2

Employee represented by PSAC is appointed to a position represented by PIPSC effective June 4, 2001. The letter of offer is issued on November 5, 2001. Due to an administrative error, PIPSC union dues were commenced effective May 1, 2003. Dues for PSAC were ceased on the same date. PSAC approved a refund for twelve (12) months and the compensation advisor recovered twelve (12) months of PIPSC arrears (May 2002 to April 2003) from the employee's salary.

Indicate the following on the worksheet:

• Month dues should have started: 07-2001 (July 2001).
• Month dues actually started: 05-2002 (May 2002).

Ten (10) will automatically be inserted in the month column and $470.00 in the amount column.

Example 3

Employee represented by PSAC is acting in a position represented by PIPSC from June 4, 2001 until July 31, 2001. The authorizing document is issued on August 10, 2001. No union dues are deducted for PIPSC for that period of acting.

The same employee has a second period of acting in a position represented by PIPSC from April 15, 2002 to December 31, 2002. The letter of offer is issued on July 5, 2002. PIPSC dues are commenced for this period of acting from August 1, 2002.

PIPSC is still owed dues for this person for the month of July 2001 plus the period from May 2002 to July 2002 or four (4) months at $47.00 per month.

Indicate the following on the worksheet:

• Month dues should have started: 07-2001 (July 2001).
• Month dues actually started: 08-2002 (August 2002).

Thirteen (13) will automatically be inserted in the month column.

• Change the number of months to four (4).

No change is required to the amount column. It will automatically indicate $188.00.

The completed worksheet must be returned to this office no later than March 1, 2004.

Except for completing the worksheet, no other action is required by departmental personnel. Further information regarding the arrears owed to PIPSC will be the subject of another bulletin from the TBS.

Procedural Changes

Effective immediately:

1. The letter of offer will no longer be used to establish the date to commence or change union dues deduction for all bargaining agents. The actual effective date of the appointment / change will be used to establish the date for commencing or changing union dues with the exception of reclassification and conversion actions. For reclassifications and conversions, the date of the authorizing document will be used for this purpose.
     
2. Internal departmental processes will have to be modified to ensure that compensation advisors take immediate action relating to union dues deductions as soon as they are formally advised. Retroactive adjustments to union dues deductions must be kept to a minimum.
     
3. Where there is a change in bargaining agent, the department is to take immediate action to:

• Cease the union dues deductions for the former bargaining agent;
• Commence current deductions for the new bargaining agent;
• Commence the recovery of arrears for the new bargaining agent; and
• Commence the process to refund any dues paid in error to the former bargaining agent.

4. For closed period acting situations of more than one calendar month where there is a change in bargaining agent, and the acting assignment is completed before input to the pay system:

Example

Employee represented by PIPSC is acting in a position represented by PSAC for the period from February 10, 2004 to March 31, 2004. The Compensation section is advised in writing of the acting assignment on March 12, 2004.

Union dues should have been paid to PSAC for March 2004 for the acting assignment.

Action required:

• Deduct one month at $40.00 for PSAC for March 2004;
• Refund one month of dues for PIPSC for March 2004;
• Advise both bargaining agents of the action taken and the reason for the above actions.

5. Effective immediately, 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 for the period not refunded by the former bargaining agent. The new bargaining agent is entitled to the dues for the full arrears period.

Employees are not to be penalized by requiring them to pay union dues to two bargaining agents for the same period.

Departments will not deduct union dues arrears from the employee's salary for the period not refunded by the former bargaining agent.

Example

Employee represented by PSAC is appointed to a position represented by PIPSC effective March 8, 2004. The new bargaining agent is entitled to union dues deductions for the employee from April 1, 2004.

• The Compensation section is officially advised of the new appointment on August 10, 2004.
• Due to an administrative error, the PSAC union dues are ceased and the PIPSC union dues are commenced on July 1, 2005.
• The compensation advisor commences the recovery of arrears for fifteen (15) months (April 2004 to June 2005).
• Approval is received from PSAC for a refund of twelve (12) months dues. The refund is issued to the employee.
• PWGSC issues an amended T-4 and/or Relevé 1 for 2004.
• The department amends the recovery of the arrears for the employee ensuring that only twelve (12) months arrears are recovered from the employee's salary.
• The department directly reimburses PIPSC for the three (3) months of arrears dues to which PIPSC is entitled. This action is taken as soon as it is known that the former bargaining agent will not issue a refund for these months.
• The department adjusts the employee's union dues deduction to take into account the difference in the rate of union dues deduction for the two bargaining agents. In this example, the deduction for PSAC is higher than for PIPSC. Consequently, the department will refund the difference directly to the employee for the three (3) months (e.g. $80.00 - $47.00 = $33.00 times 3 months = $ 99.00) and request PWGSC to amend the T-4 and / or Relevé 1 for the year in question.

Note:

When PWGSC is requested to issue a refund of union dues for a previous calendar year, they will automatically issue an amended T-4 and/or Relevé 1 for that previous year. Please refer to our bulletin dated September 15, 2003 for details on this process.

Terms and Conditions of Employment

As indicated in Mr. DiBartolo's letter of February 9, 2004, effective immediately, for all changes, excluding reclassification and conversion, the terms and conditions of employment will change effective the date the employee actually commences the duties of the new position.

In addition to impacting on benefits (e.g. terminable allowance, hours of work, leave) for retroactive appointments and ongoing acting assignments, this change also impacts retroactive closed period acting assignments. It must be noted that the employee becomes subject to the terms and conditions of employment of the acting position as soon as the qualifying period for the acting assignment is met.

Compensation advisors will be required to review the benefits and the entitlements paid to an employee for the period of closed retroactive acting assignments after February 8, 2004 to ensure that the benefits and entitlements are correct.

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.

This publication is available via the Treasury Board Web site on Publiservice and Internet. To access the site, type one of the following in the address section of your World Wide Web browser:

Publiservice: http://publiservice.tbs-sct.gc.ca

Internet access: http://www.tbs-sct.gc.ca

Make the following selection : Organization / Human Resources Management Office / Compensation and Pay Administration

Thomas A. Smith
Director, Pay Administration
Labour Relations and Compensation Operations
Human Resources Management Office