Background

Restriction of collective bargaining for federal public service employees by the Government Expenditure Restraint Act (Bill C-113) which extends the Public Sector Compensation Act (which was the subject of Case No. 1616) for a further two years (Note: Case No. 1800 is in relation to legislation that succeeded Bill C-113 and further extended its wage restraints)

Complainant's Allegation

The Act imposes a freeze on compensation for a further two year period, following a two year extension of collective agreements and wage restraints imposed by the PSCA.  The Government failed to implement any of the recommendations offered in relation to Case No. 1616 but, instead, renewed the restrictive legislation already found in violation of ILO principles.  Bill C-113 is not an exceptional measure that meets the ILO's criteria for acceptable limitations on bargaining.

Public sector wage control has little effect on public debt but drastically effects public servants.  Bill C-113 has no provisions to protect workers' standard of living.  There is no justification for the impugned provisions.

Government's Reply

Bill C-113 is needed to address a difficult economic situation.  It is an exceptional measure that falls within the criteria set by the ILO for measures taken in the face of economic crises.  The ILO has recognized that governments can restrict bargaining on compensation issues to address severe financial difficulties.  The Act does not terminate collective bargaining on non-compensation issues and is a reasonable compromise given the drastic economic situation.

CFA Conclusions

In Case No. 1616, the CFA determined that the PSCA violated principles of freedom of association.  The Government has not implemented the recommendations that were made at that time.  Instead, the Government in enacting Bill C-113 has again placed serious limitations on collective bargaining in the public service in relation to compensation.

It is not for the CFA to judge the soundness of the Government's financial arguments.  The CFA must determine whether the measures taken in response to such financial pressure go beyond acceptable limits.

The Act cannot be considered an exceptional measure.  It creates the longest wage-restriction program ever experienced in Canada and goes beyond what is a permissible restriction on collective bargaining. The action taken by the Government is not the fair and reasonable response required of them.

The CFA expresses its concern at the frequency with which the Government resorts to legislation that limits collective bargaining.  Such measures could destabilize labour relations. 

CFA Recommendations

1.     The CFA deeply regrets that the Government has not implemented previous recommendations but instead has chosen to further restrict collective bargaining in the public sector.

2.     The Government should take measures to prevent unilateral imposition of employment conditions.

3.     The Government should allow a full return to normal free collective bargaining in the public service.