Union Dues Deductions

September 15 2003

Union Dues Deductions

In accordance with the collective agreements between Treasury Board, as the Employer, and the public service bargaining agents, the employer must deduct union dues from the pay of all employees in the relevant bargaining unit and remit them to the applicable bargaining agent.

This bulletin is to remind departments of this obligation and to clarify the procedures that must be applied in this regard.

Union dues are to be deducted from all employees unless they are:

• The incumbent of a position excluded from a bargaining unit under the Public Service Staff Relations Act (PSSRA);
• Exempt from paying dues because of religious affiliation in accordance with the specific check-off provisions of the collective agreement; or
• In an occupational group that is not represented by a bargaining agent.

The Union Dues Check-off Policy is currently being revised and a copy will be provided to you for consultation shortly. In the interim, the following procedures are to be applied.

Individuals appointed for less than three months do not pay union dues. Care should be taken not to confuse casual appointments under Section 21.2 of the Public Service Employment Act (PSEA) with specified period employees. Casual employees hired under Section 21.2, regardless of their length of employment, are not subject to a collective agreement and consequently will never pay union dues while employed as a casual. In addition, periods of casual employment (hired under 21.2 of the PSEA) are not included toward the counting of the time required to become subject to the collective agreement.

Example:

• Initial appointment as a casual under section 21.2 of the PSEA (< 90 days): April 14, 2003 to June 27, 2003;
• Employment ended: June 28, 2003;
• Appointed for a specified period in a group covered by the Program and Administrative Services (PA) collective agreement: June 30, 2003 to September 19, 2003;
• Employee not subject to collective agreement or union dues check-off.
• The casual employment does not count in establishing the date the person becomes subject to the collective agreement.

Employees appointed for less than three months, whose employment is extended to three months or more, pay union dues from the first of the month following the date the person has been so employed for a period of three months.

Note: This cancels the previous direction provided to Treasury Board departments in 1993 and 1997. At that time it was stated that the employee became subject to the collective agreement "as soon as it is known" that the total period of employment will equal or exceed three months. However, the PSSRA stipulates that the person employed on a term basis only becomes subject to the Act when the person has been so employed for a period of three months or more. This legal requirement must be applied.

Example:

• Initial appointment for a specified period of two months from March 10, 2003 to May 9, 2003 inclusive;
• Re-appointed for a subsequent specified period of two months effective May 12, 2003;
• Authorizing document signed by departmental delegated officer on April 30, 2003;
• The employee is subject to the relevant collective agreement effective June 10, 2003;
• Dues commence July 1, 2003.

Individuals appointed for three months or more are, in accordance with the PSSRA, covered by the collective agreement from the date of appointment. Generally, union dues are deducted from the first full calendar month following the date of this appointment. However, Compensation Advisors must verify the Check-off article of the relevant collective agreement to ensure that deductions are commenced on the correct date. Some collective agreements stipulate that the union dues deductions will start with the first full calendar month of employment to the extent that earnings are available.

Example 1:

• Initial appointment effective May 1, 2003 for a specified period of four months (May 1, 2003 to August 30, 2003 inclusive);
• The relevant collective agreement states that dues deductions will start with the first full calendar month of employment to the extent that earnings are available;
• The employee is subject to the relevant collective agreement effective May 1, 2003;
• Dues commence May 1, 2003.

Example 2:

• Initial appointment for a specified period of five months from January 20, 2003 to June 20, 2003 inclusive;
• The employee is subject to the relevant collective agreement effective January 20, 2003;
• Dues commence February 1, 2003.

Example 3:

• Initial appointment for a specified period of two months from April 14, 2003 to June 13, 2003 inclusive;
• Re-appointed for a subsequent specified period of five months effective June 16, 2003;
• Authorizing document signed by departmental delegated officer on May 30, 2003;
• The employee is subject to the relevant collective agreement effective June 16, 2003;
• Dues commence July 1, 2003.

Once an employee has met the qualifying period in accordance with the substantive collective agreement; union dues should be deducted in respect of the acting position.

Example:

• An AS 03 (Public Service Alliance of Canada - PSAC) receives an acting assignment to a PG 03 (Professional Institute of the Public Service of Canada - PIPSC) for a period from January 27, 2003 to March 31, 2003 inclusive;
• Authorizing document signed by departmental delegated officer on February 6, 2003;
• PSAC dues cease effective March 1, 2003;
• PIPSC dues commence effective March 1, 2003;
• Notice of Change in Union Affiliation Form (TBS/SCT 340-8) to be completed and sent to both bargaining agents;
• Note that prior to sending a copy of the form to the former bargaining agent, the IAN for the new bargaining agent must be blanked out on the former bargaining agent's copy.
• If the acting assignment is not extended, the PIPSC dues cease effective April 1, 2003;
• PSAC dues would commence effective April 1, 2003;
• Notice of Change of Union Affiliation Form (TBS/SCT 340-8) to be completed and sent to both bargaining agents when the employee returns to the substantive position.

The Union Dues Check-off Policy states that dues are not to be amended for closed period acting situations where the acting assignment is completed before input to the pay system has been made. This was meant to apply to isolated cases where human resources is not notified of an acting situation until it is over or when it is a short term acting situation of less than one month. Processing of acting situations of one month or more should not be delayed so that it can be submitted to the PWGSC pay system as a closed period so as to generate a supplementary cheque, thereby avoiding amending union dues.

In situations where dues deductions are "inadvertently" not reported, the bargaining agent's right to the dues is not negated. Necessary adjustments must be made to deduct these dues and remit them to the relevant bargaining agent.

Retroactive dues adjustments are problematic and bargaining agents do not always agree to refund the money. Consequently, these situations should be avoided by ensuring that the appropriate dues are deducted at the outset.

Currently three bargaining agents, listed below, require the department to obtain the bargaining agent's approval to refund union dues prior to requisitioning same via the PWGSC pay system. All other union dues deductions can be refunded /adjusted without seeking the approval of the bargaining agent.

• The Public Service Alliance of Canada (PSAC)
• The Association of Public Service Financial Administrators (APFSA) – for refunds of dues for six (6) months or more
• The Professional Association of Foreign Service Officers (PAFSO)

Departments and agencies are to use the Application for the Refund of Union Dues (TBS/SCT 340-50) for this purpose.

Refunds of deductions for the current calendar year:

All refunds of dues deductions for the current taxation year are to be issued via the PWGSC pay office, which reduces the union dues contribution element in the pay system that relates to the current year for the employee. The employee's T-4 and, if applicable, Relevé 1 will be reduced by the amount of the current year union dues refunded.

All refunds of union dues deductions for previous years are to be requisitioned via the PWGSC pay system. The regional pay office will issue the refund and automatically amend the relevant T-4(s) and Relevé 1(s). Employees are to be advised that these documents are to be submitted to Canada Customs and Revenue Agency (CCRA) and/or the Ministère du Revenu du Québec (MRQ) for reassessment of the return for the relevant year(s).

Attached is a sample letter that employees should be provided by Compensation Advisors or Human Resources Officers when requesting the reassessment.

To assist Compensation Advisors, we have developed a standard letter that may be used when providing the amended T-4 / Relevé 1 and the above sample letter to the employee.

Departmental Compensation and Staff Relations managers should direct any questions that they may have to the appropriate departmental corporate official who, if need be, can contact the Pay Administration Section.

Thomas A. Smith

Director, Pay Administration
Labour Relations and Compensation Operations
Human Resources Management Office

To: Regional District Office
(Canada Customs and Revenue Agency /
Ministère du Revenu de Québec)

From: Employee name & Address

To whom it may concern:

My Employer has issued an amended T-4 / Relevé 1 to me for the year (s)______________. This document/these documents were amended as a result of my Employer issuing a refund of union dues for the above noted year(s). The reason for the refund of dues was ( this wording to be provided by the Compensation Advisor/Human Resources Officer in the department) _______________________________________________________________________________________________________
_______________________________________________________________________________________________________

Please find enclosed the above mentioned amended (T-4 (s) / Relevé 1 (s)) in order for your office to reassess my Income Tax Return for the(se) year(s).

I understand that there may be possible penalties and/or interest charges resulting from the refunds being issued in this year for previous taxation years. I also understand that your regulations provide a fairness provision that may waive these penalties and interest charges. I hereby request that the fairness provision be applied in my situation as the delay in reporting this additional income was completely out of my control.

Yours truly