News release

August 31, 2004

Conciliation Board report could avert strike at Canada Revenue Agency

OTTAWA – A Conciliation Board report issued today points the way to settlements in the federal public sector according to the Public Service Alliance of Canada (PSAC).

“The Conciliation Board, established to hear the issues in dispute between the union and the Canada Revenue Agency (CRA), has recommended wage increases that are getting closer to the area of possible settlements,” says PSAC National President Nycole Turmel.  

The Board has recommended wage increases of 3.0%, 2.75% and 2.5% in each of three years, retroactive to November 1, 2003.   Turmel points out that these amounts are still less than other federal public sector settlements and arbitration awards which generally are including some type of wage restructuring.   Increases for three year agreements are running in the 9% to 12% range, which is less than the increase of 8.25% being recommended by this Board.

The Board's report makes it clear that ability to pay is not an issue for the federal government.   The report points out that the government has been enjoying significantly larger than projected budget surpluses since 1996.

The Conciliation Board also recommends the final elimination of regional pay zones for labour and trades workers, stating:   “The principle of equal pay for equal work militates towards abolition of wage differentials for employees of the same classification group engaged by the same employer” .   In addition, the Board notes that the number of pay zones has been gradually decreasing and are no longer relevant.  

PSAC members at the Revenue Agency will be in a legal position to take strike action starting September 8 th which will have a significant impact on the ability of the federal government to collect most of its revenue.  

“The Conciliation Board's pay recommendations, including the elimination of regional rates of pay, set the stage for settlements not just at the Canada Revenue Agency but at Parks Canada, Treasury Board and the Canadian Food Inspection Agency,” says Turmel.   “Escalating strikes wouldn't be necessary if Treasury Board and its Agencies were showing any interest in negotiating settlements.”

“The PSAC's negotiating team is ready to meet with the CRA's team at any time in order to reach a fair and equitable settlement,” advises Turmel.   “Although the PSAC believes otherwise, in recent statements to our members Treasury Board President Reg Alcock indicated that he has nothing to do with Agency negotiations.   If that's the case, CRA should return to the bargaining table immediately and negotiate a ‘made at the CRA' settlement in order to avoid a strike.

Negotiations for the 25,000 PSAC members with the Agency began in August, 2003 in advance of the collective agreement expiry date of October 31, 2003.  

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For information:

Louise Laporte, PSAC Communications

(613) 560-4287 or (613) 558-4975 (cell)

Betty Bannon, National President, Union of Taxation Employees

(613) 266-5956 (cell)

Ron Moran, National President, Customs and Excise Union Douanes Accise (613) 677-1090 (cell)

54-310804