In the last budget the government signalled a overhaul in way it manages its $43 billion a year payroll, and this week unveiled legislation that would give it some of the tools to help it get there. Its plans includes giving cabinet the power to oversee collective bargaining and the right to appoint a Treasury Board representative at all rounds of negotiations.
The government has already taken steps to bring its employees — the core public service — in line with the private sector through wage controls, pension reforms, and the elimination of voluntary severance, and now is looking at an overhaul of sick leave and disability claims. Treasury Board president Tony Clement said this same “alignment” must now be extended to all federal workers, including the more than 88,000 who work in 47 crown corporations.
“We are ensuring that public service labour costs align and that taxpayers’ hard-earned dollars are used efficiently,” said Clement in an email. We will also ensure consistency throughout government on this plan. Both the government and Crown Corporations have a responsibility to spend taxpayer dollars wisely. We will work together on this when necessary.”
This means Crown corporations must get their negotiating position from Treasury Board before they begin bargaining, as well as get Treasury Board approval on settlements for non-unionized employees. The government doesn’t expect to do this for all bargaining, but “case by case” as needed.
The budget also announced that all Crown corporations will bring their pension plans in line with the changes introduced to the public service plan in last year’s budget. That means Crown employees now will have to pay for half of the yearly contributions to their pension plans and new hires will have to work longer to collect full pensions.
But this unprecedented move by Cabinet into bargaining has sparked an outcry among unions, particularly among three Crown corporations that Clement singled out as having “financial viability” issues: the Canadian Broadcasting Corporation, Canada Post and Via Rail.
Some argue this move undermines the independence of Crown corporations, entities created to operate arms-length from government and free from political interference.
“Why have Crowns then, why not just make them departments?” asked one senior bureaucrat.”
The Public Service Alliance of Canada, which represents 4,600 employees at 19 Crown corporations, said “injecting a third party into the bargaining process removes control from the parties most affected and who know the workplace best — not exactly conducive to effective collective bargaining.“
Gary Corbett, president of the Professional Institute of the Public Service of Canada, said the move is another assault on labour and collective bargaining to demonize unions and “what the right-wing communications machine calls big union bosses.”
The budget also signalled that all the policies, practices and laws governing the management of the public service, including pensioner benefits and the way it negotiates with the 18 unions representing Canada’s bureaucrats will be up for discussion in the next round of bargaining in 2014.
Personnel costs are the government’s single biggest operating cost, and many argue they are also poorly managed and the least scrutinized. The $43.8 billion spent in total represents 18 per cent of all program expenses and 38 per cent of direct program spending that the Conservatives have been trying to reduce.
That compares with about $23 billion a decade ago, before the public service went on an unprecedented growth spurt.
The Treasury Board cabinet committee is broadly responsible for the terms and conditions of employment for all federal workers, including compensation. Treasury Board is the legal employer for all departments and agencies — the core public service — so bureaucrats at the Treasury Board Secretariat negotiate collective agreements.
Treasury Board determines pay directly for non-unionized employees, the Canadian Forces and the RCMP.
For the rest, including Crown corporations and separate employers, Treasury Board’s role has been limited to approving overall annual budgets or corporate plans and compensation was negotiated by the individual organization.
Original Article
Source: canada.com
Author: KATHRYN MAY
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