PSAC accepts deal — barely
Just over half vote to give up severance in trade for pay raise
By Kathryn May, The Ottawa Citizen December 2, 2010
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Members of Canada’s largest federal union gave lukewarm support to a highly controversial deal for public servants to give up severance pay as part of 5.3-per-cent wage increase over three years.
About 52 per cent of the 95,000 public servants affected by the deal, which the Public Service Alliance of Canada struck with Treasury Board nearly two months ago, turned out for the vote held in 329 meetings across Canada over the past month. Union members could only vote if they attended one of the meetings.
The most tepid endorsement came from clerical and administrative workers, who number more than 81,500. They voted 52 per cent in favour. The much smaller groups of operational workers and education and library workers voted 53.7 per cent and 60.4 per cent, respectively, in favour.
The big question is what impact PSAC’s endorsement will have on contract negotiations with the rest of the 18 federal unions, which refused to trade severance for a bigger wage increase.
Don Burns, vice-president of the Professional Institute of the Public Service of Canada, said he had hoped PSAC members would have rejected the deal because it “opens a hornet’s nest” for the rest of the public service.
“It’s obviously a divisive issue within PSAC and has divided the rest of the unions. No good will come out of this whole initiative and it has caused a lot of hard feelings,” said Burns.
PSAC President John Gordon acknowledged the union faced strong resistance to the surrender of severance pay.
“Let me state the obvious — this was a close vote … We heard from many of our members who are unsatisfied with the agreements — particularly the provision to cash out voluntary severance and end its future accumulation,” said Gordon.
Gordon insisted the fiery debate around the surrender of severance at the ratification meetings, community events and over email and social media was “healthy” and even strengthened the union. He said it drove home the message that “no future erosion of our members’ rights and benefits will be accepted.”
He said PSAC members are also the front-line workers who see the deterioration of programs and services from steady cuts.
“Our members work hard but they are unhappy with the treatment they are receiving from the Harper government,” he said.
In the lead-up to the vote, Twitter, Facebook and YouTube lit up in an unprecedented campaign to oppose the deal. Some say the narrow victory is a repudiation of PSAC leadership, which strongly backed the agreement.
The deal also created a deep rift among unions. Many accused the government of striking a deal with PSAC, the biggest and most militant union, and then imposing it on others — by legislation if necessary.
The deal will give the 95,000 workers a 5.3-per-cent increase over three years. About 0.75 per cent of that increase will offset the loss of severance pay for voluntary departures.
Existing employees will still get the severance pay they have accumulated during their working years, but it will be eliminated for new workers. Laid-off employees will still get severance pay and PSAC negotiated increased payments for them.
The deal also gives workers several options to cash out their severance pay. They can cash out their severance immediately at today’s rate of pay, keep it and cash out at retirement, or cash out some now and the rest later.
Gordon has argued that giving up severance pay was not a concession but a “tradeoff” to help minimize job losses. With an operating freeze, departments must absorb any increased costs, including raises.
The union negotiated a 1.5-per-cent raise in each of the next three years with a gradual phase-in of the 0.75 per cent to offset severance. Workers will get .25 per cent in 2011 and the remaining.50 per cent in 2013 after the freeze on operating budgets is lifted.
The agreement was reached during an unusual round of “expedited talks” initiated by Treasury Board before the PSAC contracts expired.
Not all PSAC workers who were offered the wage package during those talks accepted it. Nearly 20,000 technical and border services workers rejected it. These workers will now proceed in the normal round of collective bargaining that will begin in the new year.
But Gordon said the government is intent on eliminating severance pay for voluntary departures and it will be the key issue for all unions when they return to the bargaining table as their contracts expire.
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Just over half vote to give up severance in trade for pay raise
By Kathryn May, The Ottawa Citizen December 2, 2010
Article Link
Members of Canada’s largest federal union gave lukewarm support to a highly controversial deal for public servants to give up severance pay as part of 5.3-per-cent wage increase over three years.
About 52 per cent of the 95,000 public servants affected by the deal, which the Public Service Alliance of Canada struck with Treasury Board nearly two months ago, turned out for the vote held in 329 meetings across Canada over the past month. Union members could only vote if they attended one of the meetings.
The most tepid endorsement came from clerical and administrative workers, who number more than 81,500. They voted 52 per cent in favour. The much smaller groups of operational workers and education and library workers voted 53.7 per cent and 60.4 per cent, respectively, in favour.
The big question is what impact PSAC’s endorsement will have on contract negotiations with the rest of the 18 federal unions, which refused to trade severance for a bigger wage increase.
Don Burns, vice-president of the Professional Institute of the Public Service of Canada, said he had hoped PSAC members would have rejected the deal because it “opens a hornet’s nest” for the rest of the public service.
“It’s obviously a divisive issue within PSAC and has divided the rest of the unions. No good will come out of this whole initiative and it has caused a lot of hard feelings,” said Burns.
PSAC President John Gordon acknowledged the union faced strong resistance to the surrender of severance pay.
“Let me state the obvious — this was a close vote … We heard from many of our members who are unsatisfied with the agreements — particularly the provision to cash out voluntary severance and end its future accumulation,” said Gordon.
Gordon insisted the fiery debate around the surrender of severance at the ratification meetings, community events and over email and social media was “healthy” and even strengthened the union. He said it drove home the message that “no future erosion of our members’ rights and benefits will be accepted.”
He said PSAC members are also the front-line workers who see the deterioration of programs and services from steady cuts.
“Our members work hard but they are unhappy with the treatment they are receiving from the Harper government,” he said.
In the lead-up to the vote, Twitter, Facebook and YouTube lit up in an unprecedented campaign to oppose the deal. Some say the narrow victory is a repudiation of PSAC leadership, which strongly backed the agreement.
The deal also created a deep rift among unions. Many accused the government of striking a deal with PSAC, the biggest and most militant union, and then imposing it on others — by legislation if necessary.
The deal will give the 95,000 workers a 5.3-per-cent increase over three years. About 0.75 per cent of that increase will offset the loss of severance pay for voluntary departures.
Existing employees will still get the severance pay they have accumulated during their working years, but it will be eliminated for new workers. Laid-off employees will still get severance pay and PSAC negotiated increased payments for them.
The deal also gives workers several options to cash out their severance pay. They can cash out their severance immediately at today’s rate of pay, keep it and cash out at retirement, or cash out some now and the rest later.
Gordon has argued that giving up severance pay was not a concession but a “tradeoff” to help minimize job losses. With an operating freeze, departments must absorb any increased costs, including raises.
The union negotiated a 1.5-per-cent raise in each of the next three years with a gradual phase-in of the 0.75 per cent to offset severance. Workers will get .25 per cent in 2011 and the remaining.50 per cent in 2013 after the freeze on operating budgets is lifted.
The agreement was reached during an unusual round of “expedited talks” initiated by Treasury Board before the PSAC contracts expired.
Not all PSAC workers who were offered the wage package during those talks accepted it. Nearly 20,000 technical and border services workers rejected it. These workers will now proceed in the normal round of collective bargaining that will begin in the new year.
But Gordon said the government is intent on eliminating severance pay for voluntary departures and it will be the key issue for all unions when they return to the bargaining table as their contracts expire.
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