TB Backs Off on the Conversion to a Pay in Arrears System: Standing United Worked :: Association of Justice Counsel News
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October 16th, 2013
October 16th, 2013
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TB Backs Off on the Conversion to a Pay in Arrears System: Standing United Worked

The AJC, along with other public sector unions, stood united and worked on this file, proving, once again, that we are stronger together.

There's been an agreement on the pay in arrears issue. AJC members will be glad to learn that Treasury Board has backed off on its original plan.

You will recall that this subject caused a great deal of concerns among our members and throughout the public service. The AJC, along with other public sector unions, stood united and worked on this file, proving, once again, that we are stronger together.

Together, we were able to exert more pressure than if we had each resisted on our own.

The essential component of the agreement announced Wednesday, October 16 is that existing public service employees will continue to receive the salary payments to which they are entitled, but they will not receive payments two weeks after their 'struck off strength' date.

As for new employees, they will fall under a pay in arrears system upon their hiring.

Below, you will find an excerpt of correspondence from Daniel Watson, Chief Human Resources Officer at Treasury Board:

"Pay in arrears" or the payment of salary and benefits two weeks after they are earned

1) The full payment of public servants' salary and benefits will continue uninterrupted and will not be affected by this transition. To be clear, public servants will receive their full salary and benefits in each pay period and this transition will not result in the reduction of salary or benefits that they are entitled to be paid. The measure that the employer is adopting will ensure that public servants receive their full pay and benefits during what would otherwise have been a transitional two week waiting period. Because existing employees who have benefited from this transitional measure will have received all salary payments to which they are entitled, they will not receive a salary payment two weeks after the 'struck off strength' date as will be the case for new employees who will be placed on pay in arrears upon hiring.  New Employees who start their employment after the implementation of the new system will receive their first pay at most four weeks after their start date. They will receive their final payment at the latest two weeks following departure - upon retirement or termination of employment.

The treatment of statutory deductions and the equalization of monthly deductions

2) Statutory deductions such as CPP and EI will continue on the same basis as in the past. Employees will not notice any changes to these deductions as a result of the transitional measures. Certain monthly deductions (such as those for union dues and the PSCHP) will continue to be equalized but this will be done in a more transparent and a less complicated manner than is currently the case. The total deductions will remain the same and little change will be noticed in any given pay period.

Various allowances dependent on a minimum number of hours or days having been worked

3) Several allowances are paid in accordance with the terms of various collective agreements that set a minimum number of hours or days of work before a public servant becomes eligible to receive them.  While we may wish to explore options for modernizing the way in which these allowances are paid, until the collective agreements are amended, these allowances will continue to be paid on the same basis as in the past and no changes will be made to the way that they are dealt with. Your interventions were very useful in arriving at this conclusion.  

I trust that you will find that this approach addresses the issues that you raised in our various conversations.  This transition ensures that salary and benefits will continue to be paid on an uninterrupted basis and that no reductions in pay or benefits to which employees would otherwise be entitled will result from these changes. The relatively minor changes in the approach to equalizing certain monthly deductions should prove more transparent and easier to understand.

I thank you for your views and perspectives on this issue throughout the time that we have been working on it.


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