Frequently Asked Questions

On March 14, the Treasury Board Secretariat (TBS) and the Public Service Alliance of Canada (PSAC) signed new collective agreements for Table 1 (Program and Administrative Services), Table 3 (Technical Services), and Table 5 (Education and Library Science). On March 22, TBS and PSAC signed the new collective agreement for Table 2 (Operational Services).

The new rates of pay and the collective agreements for PSAC Table 1, Table 3 and Table 5 are posted on the TBS Web site. The new rates of pay and the collective agreement for Table 2 will be posted in the next few weeks. New rates and retroactive pay will be implemented within 150 days from the date of signing - by August 11, 2005, for employees in Tables 1, 3, and 5, and August 19, 2005, for Table 2 employees.

3. How do increases for employees represented by the Public Service Alliance of Canada (PSAC) compare with the Consumer Price Index?

A. According to PSAC, the wages of its public service members have risen by 18%. This percentage was determined by adding the salary wage increases from 1991 to 2002.

B. Given that the increases were compounded, the total cumulative wage increase for all PSAC members from 1991 to 2002 is 19.5%. For illustrative purposes, wage increases for an employee making $30,000 per year based on a 2% increase per year are as follows:

Year 1	$30,000 x 2% = $600.	New salary would be $30,600.
Year 2	$30,600 x 2% = $612	New salary would be $31,212
Year 3	$31,212 x 2% =$624	New salary would be $31,836

As illustrated, a simple addition of the wage increases amounts to 6% or a salary increase of $1,800. However, if the increases are compounded, the wage increases amount to 6.12%, for a total wage increase of $1,836.

C. A restructuring of pay scales can occur during negotiations. Restructuring pay scales typically involves adding one or more steps at the top of the pay scale or removing one or more steps at the bottom of the pay scale. Taking into account the restructuring of pay scales negotiated between 1991 and 2002, the cumulative salary increase received by PSAC members totals 23.2%.

For example, in the illustrative diagram below, there are five pay increment levels. The bottom increment was dropped and an increment was added at the top of the pay scale in the second year.

Year 1		30,000	32,000	34,000	36,000	38,000
Year 2			32,000	34,000	36,000	38,000	40,000

D. In comparison, cumulative wage increases for deputy ministers and public service executives amount to 23.6% over the same period.

E. Total inflation over the same 1991 to 2002 period as measured by the Consumer Price Index was 20.8%.

A number of organizations study compensation across the country. Given the wide variety of occupations in the public service, it is difficult to make overall comparisons.

The Government of Canada recognizes that compensation for some groups is below comparable private-sector rates while the compensation of other groups is higher than that of comparable workers in the private sector. The Government has taken these factors into account in the current negotiation process.

Employees in positions designated as having safety or security duties do not have the right to strike and must report for work. Non-represented and excluded employees must also report for work.

Wages for periods when employees are absent from work due to strike activity are recovered from employees. Public Works and Government Services Canada (PWGSC) proceeds with the recovery of wages based on information provided by departments and agencies. The policy on handling pay cheques for employees during work stoppages is available at: http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/TBM_11A/ld-pt_e.asp.


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