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DATE: August 8, 2001
TO: Chiefs of Compensation
Chiefs of Staff Relations
SUBJECT: Pay Administration During Labour Disruptions
This bulletin provides guidance on the recovery of overpayments resulting from unauthorised 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 authorising 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 payday.
- Salary overpayments due to strike activity during any pay period will be recovered from the regular pay for a subsequent 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- In this regard, it is essential that managers record the dates of withdrawn services for each employee.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 departments must maintain official records. 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.
Departmental Compensation and Staff Relations managers should direct any questions that they may have to their corporate
Compensation officials who, if need be, can contact the Pay Administration Section.
Original signed by
Thomas A. Smith
Director, Pay Administration Section
Labour Relations Division
Human Resources Branch
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