Background

The Public Sector Reduced Workweek and Compensation Management Act ("Bill 22") was enacted to reduce the public sector payroll by $300 million. Bill 22 allows the Government to impose unpaid leave on public sector employees for up to 10 days per year. Bill 22 overrides provisions of existing collective agreements that would be breached by these measures and does not provide an appeal process in the event employees feel an employer is being unfair in implementing the program.

Complainants' Allegation

Bill 22 violates Convention No. 87 as it denies free bargaining and unilaterally imposes a reduction in compensation. 

Bill 22 was adopted on the heels of Bill 70, which imposed a one-year wage freeze on public servants.  Bill 22 is the second successive major government intrusion on collective bargaining in Manitoba in recent years.

Under Bill 22 there is no recourse to an independent arbitrator to resolve conflicting interpretations of the legislative provisions.  When a disagreement occurs, the employer's interpretation governs and cannot be appealed.

The Government has not provided the unions with documentation to support its economic arguments regarding the necessity for the reduced work week program.  There was inadequate consultation prior to the introduction of the legislation.

Government's Reply

Bill 22 does not violate Convention No. 87 and is a reasonable response to difficult fiscal circumstances. 

The legislative solution of unpaid leave allows public sector employers to reach budget cutback goals without causing substantial workforce layoffs.  Unpaid leave is only imposed if the employer and union fail to reach an agreement regarding implementation of budget reductions. 

There was a full consultation process both before and after the bill was introduced in the legislature.  MGEU declined to play a role in attempting to minimize the impact on its members.

CFA Conclusions

Once again the Government has failed to give priority to collective bargaining to implement changes to public servants' work experience.  Particularly following a legislated wage freeze, Bill 22 went beyond an acceptable limitation on free and voluntary collective bargaining. 

The Governments and complainants' differing view of the other party's approach to this situation indicates a severe lack of communication surrounding the adoption of Bill 22. Full and effective communication is an essential element of negotiation and consultation.

CFA Recommendations

1.     Amend Bill 22 to ensure compliance with principles of freedom of association and free collective bargaining.

2.     In the future, fully consult in good faith with stakeholders prior to legislation being considered which restricts rights.

3.     Amend Bill 22 to address the risk of it being applied to employees in an uneven and arbitrary manner by employers.