Phoenix Agreement

  • PSAC wanted the same agreement for everyone, regardless of salary. Hence the financial agreement. PIPSC was given days of leave, however if those are converted into salary, it represents a large difference between positions and levels (ex. between an AS-04 and a CR-03).
  • The money will come from the Treasury Board (TB), which is very rare. Normally, TB does not release additional money to departments as a result of tentative agreements.
  • This agreement will not be ratified by the members, contrary to the collective agreements. It was the PSAC NBoD that voted in favour of this agreement (it was a unanimous vote)
  • Breakdown of cost: Of the total $2500 – $1500 is direct payment for Phoenix. $1000 is related to the delay in the application of the 2014-2018 collective agreement (which was also the result of Phoenix)
  • Will the $2500 be taxable or not? Both the PSAC and the TB are of the opinion that this amount will not be taxable. The wording of the agreement was formulated to reflect this. (The Canada Revenue Agency (CRA) will still have to decide. They required the full text of the agreement before confirming whether, in their opinion, it is taxable.)
  • This agreement is 2X better( in terms of salary) than agreements reached by other unions.
  • Will PIPSC claim this amount for their members as part of the Trailer Clause? This is out of PSAC’s hands, however they do not consider the trailer clause to apply to this agreement.
  • Will this financial agreement consider in future years? As the Phoenix system will still be in use for 2-3 years, it is possible that a similar agreement could be negotiated in the future if issued related to the system continue to affect members.
  • Pensioners and Phoenix: who will take care of making the payment? As the financial payment will be made by TB to the departments, it will be the department who makes the payment (and not the pension center)

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