02 May 2012
A PAFSO breakfast roundtable discussion on April 25 was held to provide short updates from the President and Executive Director on collective bargaining and budget/DRAP implications. While little new information was available to announce, the intent of the session was to allow members a chance to ask questions, share information, and discuss their concerns with the current situation.
Update on collective bargaining
PAFSO entered the negotiations focused on three objectives
- Gaining appropriate wage (economic) increases
- Retaining severance pay for retirements and resignations
- Addressing pay anomolies (FS-2 vs CO-2 – approx $10k difference at the max of the pay range; FS-1 vs. PL-3 – approx $2K difference; FS-4 vs. EX-1 – approx 4% difference)
Negotiations hit an impasse principally on wage issues, including severance pay. PAFSO’s email message of January 24, 2012 contains more detailed information. PAFSO moved to engage a Public Interest Commission (PIC) as is typical for negotiations using the conciliation/strike method of dispute settlement (versus arbitration). Delays have occurred due to the Employer’s choice of representative. The PS Labour Relations Board has indicated that anyone who has represented the Employer within the last 6 months cannot again be chosen as a representative. PAFSO is determining how best to respond.
The severance pay issue may be moot considering the announcement in the budget that the government intends to unilaterally cut this benefit for voluntary separations from the public service. The deal agreed to by PSAC in 2010 on wage increases (1.75%, 2%, 1.5%) makes it difficult for PAFSO to negotiate higher wage increases since a precedent has now been set for other bargaining agents.
The budget indicated that pension contributions will eventually move to a 50-50 split between the employer and employees. Currently, the employer pays close to 60%, employees 40%. The new scenario was discussed by Bernard Dussault at a PAFSO Breakfast in February as the best case outcome for Public Service employees, given that the government had been signalling it would make some kind of change.
Update on Budget/DRAP implications
PAFSO has no new concrete information to share since the updates provided on March 30 and April 16.
Overseas, it is rumoured that 90 CBS positions will be cut, which applies to all categories (FS, MCO, FSITP, EX, FSAA, etc). It is also rumoured that specific information on cuts may be provided on April 30. At the very least, workforce pressures will become clearer once the list of HQ vacancies is announced in early May. It is anticipated, but not confirmed, that a total of approximately 60 FS positions (boxes) will be cut at HQ and posts in FY2012-13. It is unknown whether the FS group will be subject to additional cuts in 2013-14 and 2014-15 (Years 2 and 3 of the DRAP). PAFSO has not received any confirmation that the FS pool will or will not be cut. We do know that no FS will be affected at CIC. The best case scenario will be that no affected letters are issued to any members of the FS group. Given that FS are pooled, if any level is targeted for reduction, all FS at that level within that department would be issued affected letters and could have to compete for the available number of positions if an insufficient number of affected employees take advantage of opting provisions (or, if available, Guaranteed Reasonable Job Offers). Both PAFSO and HFP want to avoid this scenario at all costs.
Despite requests, HFP/HCM has not provided an overall picture of the total current number of FS at HQ and missions and how many FS positions at each level exist at DFAIT. Therefore, it is difficult to contextualize how a 60-position cut may impact FS. PAFSO will undertake to press HFP again for this information. The most recent available numbers on FS date from 2010, at which time there were approximately 1,000 FS at DFAIT, with bulges at the FS-2 (333) and FS-3 (413) levels. HFP has indicated that they have made an effort to avoid filling some positions in an attempt to keep boxes open to fill when cuts are implemented. The flip side of this is that FS may have to temporarily (for a few weeks) work in positions that may be up to 2-3 levels below their substantive level or outside their group completely (e.g. EC or CO). However, this temporary “pain” could mean that no FS get affected letters. There are reports from FS that some language training has been cancelled and many officers at post are being told they will return home early this summer, in some cases having only been assigned in summer 2011.
It was announced in the budget that some overseas postings will now be slated for longer term in order to save on moving costs, language training, etc.. PAFSO speculates that this could mean that 2-year language training positions (Arabic, Mandarin, Japanese, etc) will require postings of at least 3 years. It is speculated that postings where FS regularly request extensions could also be formally made into longer postings. We believe that high-hardship postings (i.e. Levels IV, V, and V+) will likely be excluded from such measures, with some possible exceptions where 2 years of language training is undertaken. An announcement is likely in weeks ahead.
The budget announced a re-examination of FSDs to align them with private-sector standards. One member welcomed this measure given that benefits in the private sector for expatriate workers is often considerably greater than that for FS. More likely, however, is that the government was giving an indication of future intent to reduce the pool of funds available in the next triennial FSD review upcoming this year. However, for now DFAIT can in some instances interpret the FSDs more stringently without breaching them.
Members are indicating that reduced rent ceilings have already come into effect in some locations, apparently including at least one Level III post. DFAIT had previously indicated that only non-hardship and Level I and II posts would see lowered rent standards. PAFSO will seek clarification. Anectodal evidence has already surfaced that a senior manager will be required to move into quarters which are smaller and more distant from the mission than those of employees under their supervision.
It is unclear at this time in which Western EU cities private leasing of SQs would apply. Members have indicated that this approach would be problematic even in certain high-income countries where a large portion of the rental market operates in the underground economy. PAFSO is also concerned that the cumulative number of weeks which an FS will spend away from work and not delivering on government business over the course of a posting because of house hunting, concluding rental contracts, purchasing major applicances and furnishings, and home maintenance is not being fully factored into calculations of cost savings.
The roundtable ended with the PAFSO President encouraging all members to contact the Executive Committee or PAFSO Office with information on the impacts of Budget 2012 cutbacks, especially as regards levels of service to Canadians and the operational effectiveness and safety and security of employees.