General Secretary's Annual Report 2000-2001

Publications

Dear Members:

I am very pleased for the first time in my term as General Secretary to submit this annual report on the affairs of the National Joint Council for the period August 1, 2000 through July 31, 2001.

All of us, in the celebrated words of American educator Benjamin Mays, "stand on the shoulders of our predecessors". I am most fortunate to succeed Fernand Lalonde whose accomplishments have provided a strong foundation on which to build in my role as General Secretary. Fern's retirement was well celebrated last May by the many friends he made during his term and throughout his career. I take this opportunity to acknowledge once more Fern's singular commitment to the National Joint Council and his successes in fostering new opportunities for union-management collaboration through NJC. That the parties today have recognized NJC "as the forum of choice for information sharing, consultation and codevelopment" is in no small part the legacy of Fernand Lalonde.

The organization of this year's report departs somewhat from past practice. I hope you find that the new format provides you a concise overview of milestones and accomplishments in the work of the National Joint Council, and of issues that the parties face together. The report includes information on the activities of the Public Service Commission Advisory Council which I also serve as General Secretary. While the two councils remain separate and distinct, supporting their parallel work is increasingly an integrated challenge for the NJC Secretariat.

I suspect that we will soon look back on 2000-2001 as a transitional year which foreshadowed important new developments for the NJC. The year brought considerable achievements, some in more traditional areas of the Council's mandate and others which expanded the scope of NJC activity and the range of its "products". But beyond these achievements, it was the prospect of more fundamental change ahead which increasingly captured attention as the year closed.

What may change bring for the National Joint Council? If the recommendations of the Advisory Committee on Labour Management Relations in the Federal Public Service (the "Fryer Report") published in June were to be implemented, the mandate of NJC would expand significantly. The Fryer Report also opens the complex issue of whether the role of NJC and its accountabilities should for the first time be enshrined in legislation. These, and many related questions are now before the Task Force on Modernizing Human Resources Management in the Public Service led by Ran Quail. Much lively debate among the parties can be expected in the months ahead as we approach the implementation phase for reforms resulting from the work of the Quail Task Force.

The Fryer Report, in my view, comprises an important endorsement of collaborative union-management approaches and, more specifically, of the efforts to date of the parties at NJC to make alternate approaches work. It confirms that the NJC is well-positioned to contribute to HR modernization, and suggests that Council is well suited to assume new responsibilities, if assigned.

All of this is most welcome. Welcome too is the Fryer Report's support for normalizing the NJC's funding arrangements and for increasing the resources available to it to accomplish its various roles. I was amply warned by my predecessor that the NJC budget is a vexing challenge. Still, I have been surprised and dismayed to find exactly how difficult everyday operations in the Secretariat can be when funding sources are eccentric and funding flexibility virtually non-existent. Rethinking NJC resourcing is certainly long overdue.

The Fryer Report refers frequently (and positively) to "codevelopment", mirroring our own By-Laws. Regardless of the change process ahead, nurturing codevelopment as an option for the parties will continue to be a high priority for NJC. Truth be told, few of us have a well-honed understanding of "codevelopment" as a process. We know that it differs qualitatively from consultation, as traditionally conducted, and also stands apart from collective bargaining. We like to think of codevelopment as a less confrontational, interest-based alternative to conventional negotiations, but one similarly capable of producing bilateral or multilateral agreements which can be given legal force. How exactly we should do codevelopment, however, is sometimes less clear.

Nonetheless NJC does codevelopment ---- and with considerable success. Our experience to date suggests that the process norms for codevelopment cannot be rigid. Requirements change from situation to situation and vary significantly with the blend of individuals assigned to a task. For NJC, the key will continue to be to offer flexible opportunities to tailor codevelopment processes to requirements as they arise. Finding the best way to codevelop occupational health and safety policies for public service-wide application, for example, may demand different skills and resources than codeveloping approaches to the conduct of joint compensation research. The NJC "tool kit" should be full and varied.

Whatever its shape, NJC codevelopment will need to improve further to prosper. In the past, some of our codevelopment processes have simply taken too long, particularly in the area of cyclical review of major directives. Some have been excessively opaque, with the unfortunate result that few managers and employees understand or appreciate the extensive work and problem-solving which has gone on. As well, the weight of our rules and processes has at times served to discourage the parties from codeveloping limited improvements for more rapid implementation.

I look forward to working with the Executive Committee, committee chairpersons and other representatives of the parties to explore ways of improving codevelopment. We may, for example, want to rethink traditional schedules for reviewing NJC directives. We may need to consider new and more collaborative approaches to identifying problems and preparing the agenda of issues in advance of cyclical reviews. We may wish to consider how the content of an NJC directive can be adjusted between cyclical reviews without the full burden of the "opting" provisions of our By-Laws. These and other facets of our codevelopment work need to be on the table for discussion.

That NJC has been maturing is, in my view, beyond question. I believe that it is nevertheless crucial to recognize that Council still occupies uncertain terrain. As recent events have shown, the business of Council is far from immune from the effects of conflict in collective bargaining or from other difficult issues which arise between participants. While it is not surprising that the work of NJC becomes more fragile when relationships among the parties are strained, it remains a matter of great concern that the viability of Council itself can be imperilled by events largely or completely unrelated to its own performance. I do not presume to have the answer to this dilemma but I do suggest that it is one which all Council members should seriously contemplate.

2002 promises to be one of the most important and challenging years in the history of the National Joint Council. I feel fortunate to have arrived in this role at a moment when there are such important issues to face, and an energy for change in the air. With the will and support of the parties, NJC can act as an important agent of transformation. Its record shows that it can adapt to new circumstances and model new ways for the parties to work together. This is a legacy that I will do my best to continue.

Dan Butler
General Secretary

1. NATIONAL JOINT COUNCIL

The year ending July 31^st witnessed a number of important milestones and accomplishments for the National Joint Council:

• In March, the parties formally endorsed revised By-Laws for Council which position NJC as "the forum of choice" for resolving issues of Public Service-wide application not addressed in bilateral collective bargaining. The new By-Laws also streamline opting procedures and establish new third-party dispute resolution options to assist codevelopment and other NJC processes.

• With wide support among Council members, the Executive mandated a working group to examine the need for, and investigate approaches to implementing a joint compensation research function within a possible NJC governance framework. At the end of the reporting period, the Joint Compensation Advisory Committee was continuing to examine governance, funding, delivery and methodological issues in anticipation of approval in principle by Treasury Board ministers of a joint compensation research initiative. As part of preparatory work, members of Council were canvassed in late spring for their ideas on possible priority research projects under NJC supervision.

• In January 2001, the Executive launched a new working group to explore the potential for learning initiatives collaboratively designed and led by unions and management. In June, the Joint Learning Initiatives Working Group presented a "Statement of Support" and a "Framework of Principles" for joint learning to Council which were warmly welcomed and endorsed by all Council members. These documents provide an important reference framework which management and bargaining agents may now use to guide joint employee learning ventures at the national, regional and local levels. The framework encourages and promotes more joint learning initiatives and is viewed by the Executive Committee as an important benchmark for collaboration between public service unions and the employer.
• The Working Group is now identifying opportunities to pilot joint learning initiatives on vital subjects such as occupational health and safety and the prevention and resolution of harassment in the workplace.

• Recent changes to the Canada Labour Code Part II (section 134.1) required the establishment of a central occupational health and safety policy committee covering all departments and agencies in the Public Service Staff Relations Act, Schedule 1, Part 1 universe for which the Treasury Board is the employer. Policy committees, within the meaning of the Code, are the focal point for the development of all occupational health and safety policies and programs and enjoy wide authority to monitor health and safety issues and problems in the workplace.

• By agreeing that the Executive Committee of NJC will serve as the policy committee in the Treasury Board jurisdiction, Council accepted a very significant expansion of the NJC mandate in the field of occupational health and safety. To assist it to meet these new responsibilities, the Executive Committee established in the spring of 2001 a new Service-Wide Policy Committee on Occupational Health and Safety which now serves as the principal working forum for the parties for their policy and monitoring activities. By June, the Committee had secured from the NJC Executive approval for full "terms of reference" and for action priorities. It had also initiated development of a communications network with departments to facilitate rapid two-way exchanges of information.

• The regular NJC Occupational Health and Safety Committee remains in place to hear grievances on NJC health and safety directives and to conduct cyclical reviews of these directives as directed by the Executive Committee.

• Council accepted the recommendation of the Executive to create a formal NJC Communications Committee to continue the work begun by the parties earlier in the year towards a first comprehensive communications strategy for Council. This development recognizes the pressing need to upgrade the visibility of NJC in the Public Service and to disseminate information more effectively about NJC processes and about terms and conditions of employment in the workplace which result from NJC consultation and codevelopment.

• A new separate employer, the Canadian Food Inspection Agency, was welcomed to Council membership in 2001. This marks the first occasion where a recently created alternate service delivery agency has recognized the importance of rejoining the parties in order to participate in a wide range of Council activities. Increasingly, the issue of Public Service fragmentation has been identified by Council members as a significant concern and many express the hope that CFIA's decision marks a precedent that other separate agencies will follow.

While new ventures and developments captured considerable attention, existing NJC committees and Boards of Management continued important work on priorities set by the parties, with many contributing successes of their own to the record of the last twelve months:

• The FSD Committee continued its work throughout the year on the cyclical review of the Foreign Service Directives. Characterized by some as the most fundamental review ever of terms and conditions for foreign service work, the employer and bargaining agents considered several hundred proposals from both sides and reached agreement for June implementation on revisions to twenty-two (22) of the directives (visit: www.njc-cnm.gc.ca for complete details). Work is continuing into fall 2001 on further revisions to the remaining directives aiming for implementation early in 2002.

• As a result of a decision by the Executive to revoke temporarily the new directive of October 16, 2000, the Isolated Posts and Government Housing Directive Committee returned to the table to review a short list of items in contention. In January, interested parties in affected locations were invited to make representations on issues of concern and much helpful input was received. By mid-summer, the Committee had held 12 meetings studying this input and developing new approaches to resolve the problems identified. Good progress was achieved on the issues with the Committee aiming to recommend to the Executive Committee later in the fall a revised package for implementation in 2002.

Under the leadership of newly appointed co-chairs, the Joint Employment Equity Committee secured approval from the NJC Executive for a work plan emphasizing four priorities:

• development of a joint framework for the interpretation of the Duty to Accommodate;
• revision of the Policy on Accommodation for persons with disabilities within the Federal Public Service;
• revision of the EE Act;
• the Embracing Change Action Plan implementation strategy.

Towards the end of the reporting period, the Committee also began discussions on the use of the Aboriginal peoples declaration form.

Last November, the Official Languages Committee was reconstituted and a new Chair appointed. As a first order of business, committee members developed new terms of reference as well a work plan which were subsequently approved by the Executive Committee. The work plan deals with problems in the use of English and French as languages of work, access to second language instruction, the bilingual Relève at all levels, recommendations of the Commissioner of Official Languages, language training for bargaining agent representatives, and the Official Languages Program in the context of HRM modernization. The parties have agreed not to open discussions on the Bilingualism Bonus Directive at this time.

Members of the Government Travel Committee were by the summer in the final stages of a complete modernization of the Travel Directive which promises new advantages for employees and administrative efficiencies for management. The Committee intends that the new directive value employees by better supporting their family, health and safety needs while on travel. The new document will be streamlined, simpler to understand and administer for employees and managers. The target date for implementation is April 1, 2002.

In May 2001, the government announced that employees would be permitted to join travel loyalty programs and to retain benefits for business or personal use effective June 1^st 2001. This change was consistent with understandings already reached by members of the Government Travel Committee in their deliberations.

Separate from the work of the Committee, the Executive considered an important request from a bargaining agent to clarify an issue of overlap between the Travel Directive and collective agreements regarding the issue of "captive time". Following consultations with the parties by the General Secretary, the situation was successfully resolved and guidance subsequently provided to all Council members on the issue.

NJC continued its efforts at regional outreach by holding its September 2000 annual seminar in Victoria, British Columbia around the theme "The Public Service as Employer of the Future". The event earned highly positive reviews from participants who expressed particular appreciation for the opportunity to interact with members of the Advisory Committee on Labour Management Relations in the Federal Public Service (the "Fryer Committee"). Workshop sessions at Victoria amply demonstrated that the parties are prepared to use the annual seminar for focused work on important issues in a fashion free from many of the constraints of other settings.

Much of the subsequent work of the Union-Management Relations Committee over the reporting period concentrated on preparations for seminar 2001 in Bromont, Québec. With "The Public Service in Transition" as its theme, seminar 2001 will continue the approach taken in Victoria by asking participants to work together on major questions in the reform of the labour relations system. The planned centrepiece of the program is an entire day devoted to providing input to members of the Task Force on Modernization of Human Resources Management in the Public Service (the "Quail Task Force"). With the anticipated attendance of major public sector leaders for these discussions, including the President of Treasury Board, Bromont promises to be a major milestone in the NJC seminar series.

Fall 2002 will be a busy period for the Work Force Adjustment Committee as members concentrate on the cyclical review of the directive. While the opting exercise conducted earlier in the year resulted in a reduced number of bargaining agent participants, workforce adjustment remains an active issue within Council for Treasury Board and over a dozen member unions.

The Public Service Dental Care Plan completed fourteen years of operation in March 2001. The total annual cost for the year 2000 of the NJC plan exceeded $51 million, with over 90,000 employees covered. During that year, 83% of plan members claimed benefits, either for themselves or a family member. The Board of Management prepares a separate detailed report each year on plan usage, trends and administrative issues which is shared with all parties.

The Disability Insurance Plan Board of Management held five meetings and heard 20 appeals during the period in question. As in the past, The Board will be submitting a separate Annual Report to Council reporting on its activities and on trends and issues in disability insurance coverage.

The only aspect of the NJC's mandate to experience a reduction in workload in the last year was the processing of grievances concerning the application or interpretation of NJC directives. From August 2000 through July 2001, 21 new grievances were filed at the third level of the NJC process (i.e., to the Executive Committee). This contrasts with annual totals ranging from 67 to 172 during the previous five-year period. (Note, however, that figures over this period may not be strictly comparable given changes in how "group" grievances have been reported. The decline in 2000-2001 relative to earlier years is nevertheless marked.)

Possible reasons for the significant reduction in grievances in 2000-2001 include the greatly decreased profile of workforce adjustment issues and the reality that several major NJC directives have not been substantially revised for lengthy periods of time. In the latter case, areas of difficulty or ambiguity in the wording of long-standing directives may have already been well canvassed with the accumulation of interpretative precedents gradually serving to reduce the number of new cases submitted. If this effect is real, we would expect a return to higher grievance case loads when changes to the content of directives gives rise to new questions of interpretation. With far-reaching modifications to the foreign service, travel and isolated posts and government housing directives now on the horizon, this proposition may be quickly tested and 2000-2001 could soon prove to be a anomalous year.

Table 1 reports the disposition of grievances in the system in 2000-2001. Working committees charged with hearing cases continued to be effective in developing a consensus among representatives on the intent of directives. Impasse was reached on less than a quarter of the files considered with the number of grievances upheld slightly exceeding the number denied.

Number of grievances outstanding from previous period	11
Number of new grievances filed	21
Total	32
Disposition
Number of grievances decided	25
rejected - untimely	1
rejected - no jurisdiction	1
upheld	9
denied	6
impasse declared	6
withdrawn	2
Number of grievances outstanding (July 31, 2001)	7

Secretariat staff also support the appeals process before the Dental Board of Management and the Disability Insurance Board of Management. Effective organization of individual case submissions and preserving appellant confidentiality in the management of documents continue to be important priorities for the NJC office. In the case of disability claims, the Secretariat contracts the services of a consultant with specialized medical knowledge to assist the responsible committee advisor and administrative assistant in readying files for consideration by the Board.

During the reporting period, 70 new dental and 20 new disability claims files were opened. Table 2 tracks the disposition of active files before the Dental and Disability Boards during 2000-2001:

	Dental	Disability
Number of appeals outstanding from previous period	20	3
Number of new appeals filed	70	20
Total	90	23
Disposition
Number of appeals decided	84	16
upheld	14	1
denied	62	11
withdrawn	5	4
other	3	-
Number of appeals outstanding (July 31, 2001)	6	7

2. PUBLIC SERVICE COMMISSION ADVISORY COUNCIL

The PSC Advisory Council was formed in March 1999 as a tripartite consultative body (composed of representatives from bargaining agents, departments and central agencies) to examine current and emerging issues within the mandate of the Public Service Commission.

Two of the three original PSCAC working groups submitted reports during the period after lengthy study and discussions. The Working Group on Recourse is widely acknowledged to have had a significant impact in shaping the views of the parties through its report entitled '"Recourse in the Public Service of Canada".' The report envisages fundamental simplification and reform of the vast array of recourse processes which currently exist in the Public Service, including appeals under the Public Service Employment Act. Many of its recommendations were subsequently echoed in the final "Fryer Report" published in June and were the subject of close scrutiny as the work of the Task Force on Modernization of Human Resources Management was set in motion.

The Working Group on Mobility submitted its study entitled '"Developing, Sharing and Retaining Talent in the 21^st Century: Mobility as a Path to Success" to the Steering Committee in May. This report documents the various barriers which exist to employee mobility within and across organizations and offers recommendations on new approaches to breaking down staffing "silos" which have been welcomed by the parties.

Both working groups (along with the Working Group on Oversight which last year submitted its report "Accounting for Merit – Oversight of Staffing in the Federal Public Service") have been asked to stand down until such time as they are assigned further work by the parties.

The PSC Advisory Council Steering Committee was originally established to aid the full Council in setting its agenda and in providing guidance, direction, and administrative advice to working groups between full Council meetings. In June 2000, discussion at the Steering Committee's first annual planning session resulted in a proposal, subsequently accepted by the parties, that full Council would meet only once a year. Most of its role was subsequently assumed by a revised Steering Committee with modestly expanded membership.

The Steering Committee met six times during the year under review and spent much of its time in reviewing and promoting the final reports of the three original working groups. Discussion focused on such issues as:

• the need to show departments how a values-based approach to staffing can be implemented;
• the need to identify ways to enhance the speed and efficiency of staffing;
• the need for updated staffing tools;

• requirements for systematic demographic data across government to assist in identifying recruitment needs and employment equity initiatives;

• the need for a Research Advisory subcommittee or working group;

• the role of the Public Service Commission under a reformed HR management system;
• the potential role for a new working group on the reform of selection standards.

In April, members of the Steering Committee agreed that the concept of merit itself and further issues around the exercise of staffing accountabilities should be investigated by new working groups. The latter were given extremely short production targets so that recommendations could be channelled to the Task Force on Modernization of Human Resources Management by its September 2001 input deadline date.

During June and July, the Working Group on Merit examined options for integrating an approach to merit based on "best qualified" with the concepts of seniority, diversity, developmental potential, efficiency, fairness, equity and transparency. The Working Group on Accountability concentrated its effort on developing and evaluating various new models of accountability in the staffing system, with particular emphasis on the pivotal role played by deputy ministers. By the end of the reporting periods, drafts reports were circulating among Steering Committee members which the working groups hope will contribute to ongoing debates.

In June, a new manager for PSCAC activities was seconded from the Commission to replace Leigh Archibald, whose contribution to the Council in its initial formative period was well appreciated by the parties. Brian Lynch now works on Council files and is co-located with the NJC Secretariat, assisted by one dedicated support staff position.

The NJC Secretariat is widely recognized for excellence in its "core business" of supporting meetings between the parties across a wide range of subjects within the NJC mandate. Staff ensure not only seemless logistics and careful record keeping, but also provide professional advice to committee chairs and members and help facilitate discussions as required.

Over the past twelve months, the Secretariat managed 203 encounters of the parties. This total continues the constant upward trend in activity levels evident since the mid-1990's (82 encounters in 1995-96, 120 in 1996-97, 138 in 1997-98, 143 in 1998-99 and 193 in 1999-2000). On the positive side, the increasing range and volume of NJC encounters says something very important about the value ascribed to NJC by the parties. On the negative side, the growth in demand for Secretariat services has far outpaced changes in the resources available to it for its work. The Secretariat has now reached the limit of its ability to do more and urgently requires significant adjustments to its resource base in order to continue to be effective.

NATIONAL JOINT COUNCIL
National Joint Council (plenary)	4
Executive Committee	10
Other Committees and Working Groups
Isolated Posts and Government Housing Committee	21
Official Languages Committee	5
Foreign Service Directives Committee	28
Government Travel Committee	31
Joint Compensation Advisory Committee	4
Union-Management Relations Committee	7
Joint Union-Employer Learning Initiatives Working Group	12
Joint Employment Equity Committee	7
Service-Wide Policy Committee on Occupational Health and Safety	10
Occupational Safety and Health Committee	2
Boards of Management
Dental	6
Disability	10
Others	19
PUBLIC SERVICE COMMISSION ADVISORY COUNCIL
Public Service Commission Advisory Council (plenary)	1
PSCAC Steering Committee	7
Working Groups
PSC Advisory Council - Mobility	4
PSC Advisory Council - Oversight	1
PSC Advisory Council - Accountability	4
PSC Advisory Council - Recourse	5
PSC Advisory Council - Merit	5
Total	203

The National Joint Council and the Public Service Commission Advisory Council depend for their effectiveness on the commitment and energy of scores of employer and union representatives from across the public service all of whom deserve warm recognition and sincerest thanks.

In past annual reports by the General Secretary, the names of individuals completing committee assignments as well as their replacements have been listed. Because of the very large number of representatives who now routinely contribute to NJC and PSCAC across a growing range of committees and working groups, this practice has been discontinued. Changing this practice, however, in no way implies diminished appreciation for the crucial role played by the individuals who speak and work on behalf of employers and unions within NJC. As always, it is the people who populate NJC processes who make the real difference.

Having charted a new path, let this Annual Report immediately make an exception: In June of this year, Captain Maury Sjoquist of the Canadian Merchant Service Guild completed his four-year tenure as Co-Chairperson of the National Joint Council and as Chairperson of the Bargaining Agent Side. For two decades, Maury has been one the leading champions of the National Joint Council. His period as Co-Chairperson witnessed a remarkable confirmation of his vision for the organization, pre-eminently expressed through his pivotal role in the historic creation of the Public Service Health Care Plan Trust. All who have had the pleasure of working with Maury know him well for his plain talking and straight-forward approach, his unsurpassed wisdom, and his generosity. We are all much richer for his friendship.