Questions and Answers - Work Force Adjustment Agreements

Questions

1. What is work force adjustment?
2. To whom does work force adjustment apply?
3. What do work force adjustment agreements offer to an indeterminate employee in a work force adjustment situation?
4. Who determines whether or not an employee will receive a guarantee of a reasonable job offer?
5. Are positions identified as surplus based on the performance of the employee assigned to that position?
6. What is a reasonable job offer?
7. What factors does the deputy head consider when determining whether or not to provide a guarantee of a reasonable job offer?
8. What is salary protection? What does it mean in relation to a reasonable job offer?
9. How long will the guarantee of a reasonable job offer be in effect?
10. When can a deputy head choose not to provide a reasonable job offer?
11. If a deputy head cannot provide an employee with a guarantee of a reasonable job offer, will the deputy head provide the reasons?
12. What options do employees have in situations where no guarantee of a reasonable offer is extended?
13. What work force adjustment provisions apply when departmental work is being transferred either to a separate employer or outside of the Core Public Administration?
14. When extending a reasonable job offer, how wide is the geographic area considered for other positions?
15. What happens if an employee's position is declared surplus while they are on secondment or assignment?
16. Does a job offer from a separate employer such as the Canada Revenue Agency constitute a reasonable job offer?
17. What is alternation, and when is it possible?
18. What happens to employees if their position is affected while they are on maternity, parental or extended sick leave?
19. What are the rights of a term employee in a work force adjustment situation?
20. If employees are declared surplus, how can they improve their chances of finding employment?
21. What special counselling assistance is provided to employees who have been designated as either affected or surplus under work force adjustment?
22. If employees return to the Core Public Administration after having received a work force adjustment lump-sum payment, what rules apply?
23. What happens to an employee’s annual leave, accumulated sick leave, family-related leave, personal day, etc? Will they be cashed out?
24. Who will be responsible for covering the costs resulting from work force adjustment measures?
25. Where can employees find more information on priority administration?

Answers

Q1. What is work force adjustment?

Work force adjustment is a situation that occurs when a deputy head decides that the services of one or more indeterminate employees will no longer be required beyond a specified date because of:

• a lack of work;
• the discontinuance of a function;
• a relocation in which the employee does not wish to relocate; or
• an alternative delivery initiative.

The deputy head shall advise the employee in writing that his or her services will no longer be required.

All indeterminate employees that are subject to a work force adjustment situation shall be subject to the provisions of the applicable work force adjustment agreement. The work force adjustment agreements form part of the collective agreement and have been negotiated with the unions. Work force adjustment agreements outline the obligations of all parties when a workforce adjustment situation occurs.

For more details regarding work force adjustment provisions, please consult the relevant work force adjustment agreement.

Q2. To whom do the work force adjustment agreements apply?

With the exception of members of the Executive (EX) category, all indeterminate employees in the Core Public Administration, both represented and unrepresented, are covered under work force adjustment agreements. Where Treasury Board is the employer, those agreements are included either as an addendum to collective agreements with bargaining agents (e.g. Public Service Alliance of Canada, Professional Institute of the Public Service of Canada and others), or as a National Joint Council Work Force Adjustment Directive.

Certain employers named under Schedule V of the Financial Administration Act, including the Canada Revenue Agency, Parks Canada and the Canadian Food Inspection Agency also have their own work force adjustment agreements as part of their collective agreements.

Q3. What do work force adjustment agreements offer to an indeterminate employee in a work force adjustment situation?

Work force adjustment agreements offer the following to indeterminate employees whose services are no longer required because of a work force adjustment situation:

• A guarantee of a reasonable job offer; or
• No guarantee of a reasonable job offer and one of the following transition measures:
  • Option A – 12 month paid surplus period; or
  • Option B – a lump sum payment called a transition support measure; or
  • Option C – a transition support measure plus up to $11,000 for tuition and other related fees.

Deputy heads will be expected to provide a guarantee of a reasonable job offer for those employees subject to work force adjustment for whom they know or can predict employment availability in the core public administration. Employees who receive a guarantee of a reasonable job offer are considered "surplus employees."

Work force adjustment agreements also address circumstances in which the deputy head is not in a position to offer a guarantee of a reasonable job offer. Where no guarantee is made within the Core Public Administration, employees, generally, are to be accorded a period of 90-120 days (called the opting period), during which to choose one of the three possible transition support options described in Part VI of the applicable work force adjustment agreement, Options for Employees. In these cases, the employee is considered an "opting employee."

Q4. Who determines whether or not an employee will receive a guarantee of a reasonable job offer?

Deputy heads are accountable for managing their workforce to maintain effective delivery of programs and services to Canadians. It is also the responsibility of the deputy head to make the decision under the applicable work force adjustment agreement as to whether or not affected employees will be guaranteed a reasonable job offer.

Q5. Are positions identified as surplus based on the performance of the employee assigned to that position?

No, positions are not identified as surplus based on the performance of the employee assigned to that position.

Q6. What is a reasonable job offer?

A reasonable job offer is an offer of indeterminate employment within the Core Public Administration that is usually at the employee's current level, but which in some circumstances may involve a lower level position appointment with salary protection.

Where feasible, such an offer will be made within the employee's local area, which is an area referred to as the employee's headquarters area as defined in both the Travel Directive and the Relocation Directive of the National Joint Council.

In certain circumstances, however, a job opening in another location could be considered as a reasonable job offer, since there is no guarantee that a job will be found in a local area. An employee who is declared surplus must be trainable, must cooperate in placement efforts and must not unduly restrict his or her mobility. Ultimately, it is the deputy head or his or her delegate who decides what is considered to be a reasonable job offer.

Q7. What factors does the deputy head consider when determining whether or not to provide a guarantee of a reasonable job offer?

Keeping in mind that employees are expected to be trainable and mobile, there are many other factors that are considered in deciding whether or not to provide an employee with a guarantee of a reasonable job offer, including:

1. whether they know or can predict that employment will be available for the affected employee in the Core Public Administration. This determination should be based on a number of factors including:
   • the employee's qualifications and competencies;
   • opportunities within the department as well as more broadly with departments and agencies of the core public administration;
   • consideration of the number and types of priorities within the Public Service Commission Priority System;
2. whether the skills of the employee are very specialized and retraining would be unreasonable.

It should be noted that, while geographic preferences of the employee are taken into account, there is no guarantee that a reasonable job offer would necessarily match the employee's preference.

Q8. What is salary protection? What does it mean in relation to a reasonable job offer?

Surplus employees and laid-off persons appointed to lower level positions generally have their original salary protected, in accordance with their collective agreements or applicable terms and conditions of employment. The salary of the appointee is protected until such time as that person is appointed to a position equivalent to the maximum rate of pay of the position from which they were declared surplus or laid-off, or until the person refuses an offer of appointment equivalent to the maximum of the group and level of the position from which they were declared surplus or laid-off, usually within the same geographical area. Salary protection will continue, until such time as the employee attains a salary equivalent to that of the position from which they were declared surplus or laid-off.

Performance pay and certain allowances such as terminable allowances are not salary protected.

Q9. How long will the guarantee of a reasonable job offer be in effect?

An employee who receives a written guarantee of a reasonable job offer remains in surplus status until he or she is either appointed to another indeterminate position, refuses a reasonable job offer and is laid off, or chooses to resign. Being provided with a guarantee of a reasonable job offer means that the employee will remain surplus until he or she has been provided with one reasonable job offer.

Employees could receive a reasonable job offer as soon as the first day of their surplus period, or later, since there is no time limit. If an employee refuses a reasonable job offer, the employee shall be laid off one month after the refusal, but not before six months from the start of his or her surplus declaration date.

Q10. When can deputy heads not provide a guarantee of a reasonable job offer?

Deputy heads may not be in a position to provide a guarantee of a reasonable job offer in situations where they cannot predict employment availability in the Core Public Administration for an affected employee.

Q11. If a deputy head cannot provide an employee with a guarantee of a reasonable job offer, will the deputy head provide the reasons?

On the request of the employee, the deputy head will provide his or her reasons in writing.

Q12. What options do employees have in situations where no guarantee of a reasonable offer is extended?

Employees who do not receive a written guarantee of a reasonable job offer (also known as opting employees) will instead be accorded in writing a period of 90 to 120 days, depending on their collective agreement or applicable terms and conditions of employment, during which to choose from one of three options:

1. A 12-month surplus period during which to find another position; (the employee will be placed on a time-limited surplus priority list). Employees who are not placed after the 12-month period are laid-off and are eligible for severance pay at the lay-off rate;
2. An offer of a transition support measure, which is a lump-sum payment tied to years of service; or
3. An offer of a sum equivalent to the transition support measure, plus an education allowance.

For more details, see the specific provisions contained in Part VI of the applicable work force adjustment agreement.

Q13. What work force adjustment provisions apply when departmental work is being transferred either to a separate agency or outside of the Core Public Administration?

In circumstances where departmental work is being transferred to a separate agency or outside of the Core Public Administration, employees are provided access under provisions contained in Part VII of work force adjustment agreements that specifically address three possible types of alternative service delivery initiatives. Employees affected by a decision to transfer any work, undertaking, or business of the Core Public Administration to any body or corporation that is a separate agency or that is outside of the Core Public Administration are given access to specific provisions tailored to address the type of employment arrangement being offered. For details, see the specific provisions contained in Part VII of work force adjustment agreements.

Q14. When extending a reasonable job offer, how wide is the geographic area considered for other positions?

Work force adjustment agreements state that, where practicable, a reasonable job offer will be located within the employee's headquarters area as defined in both the National Joint Council's Travel Directive and Relocation Directive. Departments will be expected to confer with Public Service Commission officials responsible for the priority administration system to try to find jobs in employees' preferred areas of mobility, but employees are expected to be willing to move to where jobs are located.

Q15. What happens if an employee's position is determined to be no longer required while they are on secondment or assignment?

In these cases, the work force adjustment provisions would still apply and the employee would be officially notified of the date that their substantive position will cease to exist. The notification letter will also indicate whether or not the employee will receive a guarantee of a reasonable job offer.

It is at the delegated manager's discretion to request that the employee return to their substantive position until the date the position is discontinued.

Q16. Does a job offer from a separate employer such as the Canada Revenue Agency constitute a reasonable job offer?

Generally, a job offer from a Financial Administration Act Schedule V employer to a surplus employee is considered reasonable if the offer meets the reasonable job offer criteria as defined in work force adjustment agreements under Definitions.

Q17. What is alternation, and when is it possible?

Employees who are not given a guarantee of a reasonable job offer (also known as opting employees) are eligible for alternation. Alternation refers to a provision within the work force adjustment agreements wherein an opting employee who wishes to remain in the Core Public Administration exchanges positions with a non-affected employee willing to leave the Core Public Administration with a transition support measure or an educational allowance.

Q18. What happens to employees if their position is affected while they are on maternity, parental or extended sick leave?

In these situations, an employee whose position is affected will receive written notification at the same time as other affected employees. Generally, the decision as to whether or not to provide a guarantee of a reasonable job offer will only be made when the employee returns to work at the end of their leave period.

Q19. What are the rights of a term employee in a work force adjustment situation?

Term employees are not subject to work force adjustment agreements. Their employment is governed by the Term Employment Policy.

Q20. If employees are declared surplus, how can they improve their chances of finding employment?

Employees who are seeking employment share equally in the responsibility for resolving their situations. This means that they should actively participate in the employment search process. It is important that they provide timely information and be available for job interviews, and that they give serious and thoughtful consideration to all job opportunities. Employees should be aware of their entitlements and obligations associated with their priority status, and they should use departmental resources such as managers, human resources advisors, and career counsellors.

Q21. What special counselling assistance is provided to employees who have been designated as either affected or surplus under work force adjustment?

Work force adjustment agreements state that departments must inform and counsel affected and surplus employees as early and as completely as possible. In addition, departments must assign a counsellor to employees impacted by a work force adjustment situation to work with them throughout the process.

Such counselling is to include explanations and assistance concerning:

1. the work force adjustment situation and its effect on that individual;
2. the work force adjustment directive;
3. the Public Service Commission's Priority Information Management System and how it works from the employee's perspective;
4. preparation of a résumé;
5. the employee's rights and obligations;
6. the employee's current situation (e.g. pay, benefits such as severance pay and superannuation, classification, language rights, years of service);
7. alternatives that might be available to the employee (alternation, appointment, relocation, retraining, lower-level employment, term employment, retirement including the possibility of waiver of penalty if entitled to an annual allowance, transition support measure, education allowance, pay in lieu of unfulfilled surplus period, resignation, accelerated lay-off);
8. the likelihood that the employee will be successfully appointed;
9. the meaning of a guarantee of reasonable job offer, a 12-month surplus priority period in which to secure a reasonable job offer, a transition support measure, or an education allowance;
10. the human resources centres and their services (including a recommendation that the employee register with the nearest office as soon as possible);
11. preparation for interviews with prospective employers;
12. feedback when an employee is not offered a position for which he or she was referred;
13. repeat counselling as long as the individual is entitled to a staffing priority and has not been appointed; and
14. advising the employee that refusal of a reasonable job offer will jeopardize both chances for retraining and overall employment continuity.

Q22. If employees return to the Core Public Administration after having received a work force adjustment lump-sum payment, what rules apply?

If employees receive a work force adjustment lump-sum payment (including pay in lieu of unfulfilled surplus period, a transition support measure, an education allowance, a top-up allowance, retention payment or a special payment as a result of an alternative delivery initiative under a work force adjustment agreement, or a lump-sum payment under the Directive on Career Transition for Executives, they are required to declare that they have received such a payment, should they return to the Core Public Administration. They will be required to repay an amount corresponding to the period from the effective date of re-appointment to the end of the original period covered by the total of the lump-sum payment. Other conditions may apply in specific circumstances. Employees are advised to consult their compensation advisor for more information.

Q23. What happens to an employee's annual leave, accumulated sick leave, family-related leave, personal day, etc? Will they be cashed out?

If an employee is laid-off or resigns, annual leave and the one-time vacation leave that employees have earned but not used at termination of employment will be paid to them at their current rate of pay as of their last day of work.

Sick leave, family-related leave and personal days that were earned, but not used, are not paid out.

Q24. Who will be responsible for covering the costs resulting from work force adjustment measures?

Costs resulting from the application of work force adjustment agreements will be covered by the responsible department.

Q25. Where can employees find more information on priority administration?

Information on priority administration is available on the Public Service Commission website or from your human resources advisor in your department.