PSAC collective agreements have protections against job cuts. Employers must ensure that employees are treated equitably and given every opportunity to continue their careers. Below are some resources and answers to common questions about budget cuts and workforce adjustment.
In addition to these general FAQs, we have developed FAQs on the following topics:
What is Workforce Adjustment?
Workforce Adjustment (WFA) is a process set out in the collective agreement that provides rights and benefits for our members who are affected by workforce changes and job cuts. For an overview of WFA and how it works, see the following resources:
You can also consult Appendix D on Workforce Adjustment in your Collective Agreement.
All questions about your individual situation should be addressed to the employer. Contact your direct manager.
Federal Public Service budget cuts
In the 2023 federal budget, the Government of Canada announced that departments would be require to reduce spending.
In addition to these cuts, the Liberal government under Mark Carney called on all departments to find 15 per cent in “savings.” The government has not yet provided the details of their budget reductions, including how many jobs will be affected.
However, the WFA Appendix of the PA collective agreement requires that the employer must notify the union in advance. The agreement also requires that the employer advise and consult with union representatives “as soon as possible” after a decision to implement a workforce adjustment situation has been made and throughout the process. CEIU National has been actively putting pressure on the departments to establish WFA Committees for consultation, as required under the collective agreement. This will ensure our members’ voices and lived realties are front and centre.
CEIU and PSAC will provide regular updates to our members when we receive more information.
- To receive updates, make sure your membership information is up to date.
Keep in mind that the workforce adjustment process is a process that takes place over time, with a specific set of steps that the employer must follow. At each stage, the employer must inform employees about their status, their rights, and next steps.
How does the employer decide who is affected by a WFA situation and who is not?
With departments being told they must cut their budgets, each department will determine what work will continue and what operations will operate with reduced staff. They will then determine which work units will be affected by any reductions.
Before notifying employees, departments must notify the union of the identity and location of the work units affected, the expected date of the announcement, the anticipated timing of the WFA situation and the number, group and level of the employees who are likely to be affected. Unions must be notified at least two business days, in confidence, before any employees are notified. This allows the union to be prepared to assist our members in those workplaces. The employer must also consult the union throughout the WFA process.
The employer must then notify each employee in the affected work units that they may be subject to WFA or surplus processes. (This is an “affected notice” and does not mean you will necessarily be made surplus or subject to layoff.)
If you have questions about your individual situation, your manager is the best source of information.
General questions
Does WFA apply to term employees? What options do term employees have?
Term employees are not covered by Workforce Adjustment, Appendix D of the Collective Agreement.
For more information about the rights of term employees, see the Term Employees: FAQ
What happens if a WFA situation occurs while I am on leave or about to go on leave?
Any approved leave remains approved unless otherwise communicated by your manager. See the relevant article of the collective agreement pertaining to your leave, to understand how and when management may cancel an approved leave.
Employees on paid or unpaid leave are under no greater or lesser risk of being affected by a workforce adjustment situation. While you are on leave, your manager must provide the same notice of a WFA situation as they would to any employee whose job is affected.
During the WFA process, managers should consult with Human Resources as to how to deal with specific leave situations and must consider your situation before deciding how they will move forward. Employees on long term sick leave, parental leave, or other leaves related to human-rights-protected grounds must be provided with accommodations as needed. Each situation must be treated on a case-by-case basis; therefore, if you have questions regarding your individual situation, please speak to your manager for information. If you need further assistance, contact your local union representative.
What happens if I am in an acting position and my substantive has been affected by WFA?
Your rights and obligations, and those of the employer, remain the same regardless of your acting status. Since your employment status remains attached to your substantive position for the duration of the acting assignment, if your substantive position is affected by WFA, you will be returned to that position and provided with the rights and options under the Workforce Adjustment Appendix.
Will I have to compete for my job?
If there are more employees than there are remaining jobs, the employer must determine which employees remain in their jobs and which are declared surplus. The process for making this decision is called the Selection of Employees for Retention or Layoff, or SERLO.
While this process is not a competition, there are some similarities. The employer must determine the qualifications and requirements of the jobs that are remaining and evaluate employees against those. There are several methods the employer can use to assess employees. For more details about the SERLO process, see our FAQs on SERLO or the SERLO Guide for Managers.
Why aren’t employees chosen based on seniority?
Due to existing legislation, management determines who is retained and who is laid off when the employer has decided to make changes to the workforce, including job cuts. The selection is based on “merit” as defined by the Public Service Employment Act and is not covered by the collective agreement.
Can I be relocated to a job in a different city due to a WFA situation?
If an entire work unit is being relocated, you will have the option to either relocate with your job or be subject to the WFA provisions.
If you are a surplus employee in receipt of a Guarantee of a Reasonable Job Offer or who has chosen Option A (12-month surplus priority status), the employer must look for jobs within your preferred location. The WFA Appendix states that “Departments or organizations will make every reasonable effort to market a surplus employee within the employee’s surplus period within his or her preferred area of mobility.” However, in some cases, a relocation may be the only offer provided if the employer can’t give you a reasonable job offer in your area. In that case, if you do not accept an offer of a reasonable job involving relocation, you may be laid off.
Will the employer cover my relocation costs if I accept a job that involves relocation?
Yes. If you accept a job that is located more than 40km from your prior home office, you are entitled to relocation under the National Joint Council Relocation Directive.
Will I have to accept a lower paying job? If so, will my salary be protected?
You may have to accept a lower-level job if one is offered to you. However, if you accept a job at a lower classification level, your salary will be protected at your prior substantive classification level. This salary protection (commonly referred to as “red circling”) continues until you’re appointed or deployed into a position with a maximum rate of pay that is equal to or higher than the maximum rate of pay of your previous (surplus) position.
If you resign and later return to the Public Service, you will no longer be entitled to the salary protection.
How do I know if I will be laid off? How much notice will I be given?
A notice that you are “affected” or “surplus” is not a layoff notice.
The WFA Appendix ensures that involuntary layoffs are kept to a minimum during workforce adjustment situations. Article 1.1.14 of the Appendix states: “Deputy heads shall apply this appendix so as to keep actual involuntary layoffs to a minimum, and a layoff shall normally occur only when an individual has refused a reasonable job offer, is not mobile, cannot be retrained within two (2) years, or is laid off at his or her own request.”
Layoffs can only occur after certain other steps of the WFA process have been followed, as outlined in the WFA Appendix:
- Under Option A (12-month surplus priority), an employee unsuccessful inmay be laid off at the end of the if the employer has been unsuccessful in making the employee a reasonable job offer (Appendix D, 4.2.6).
- Under Option C(ii) (education allowance with 2-year leave without pay), at the end of the two-year leave without pay period, unless the employee has found alternative employment in the core public administration, the employee will be laid off in accordance with the Public Service Employment Act. (Appendix D, 6.1.4(c)(ii))
- When a surplus employee refuses a reasonable job offer, he or she shall be subject to layoff one (1) month after the refusal, but not before six (6) months have elapsed since the surplus declaration date. (Appendix D, 1.1.32)
In all cases, the employee will have at least one month of notice, but up to six months, as noted above.
Employees who are laid off are entitled to layoff priority for one year for any jobs for which they meet the essential qualifications.
What will happen to my pension if I am laid off or have to retire early due to WFA?
Note: The Public Service Superannuation Act (PSSA) provides that employees aged 55 to 59 (Group 1: hired before 2013) or 60 to 64 (Group 2: hired in 2013 or later) with 10 years or more of service are eligible for the pension waiver.
The pension waiver applies to those who are laid off after a priority period or those who resign and choose Option B (Transition Support Measure). It is not available if you refuse a reasonable job offer or if you choose Option C (Education Allowance). The pension waiver can also be applicable to those who choose to alternate (see section on Alternation below).
For more information see Workforce Adjustment and Pension Waivers.
Will I receive severance pay if I’m laid off?
Yes. Article 66 of the PA Collective Agreement outlines the severance pay entitlements for laid off employees. The WFA Appendix also provides that surplus employees who resign under the provisions of the Appendix will be deemed to be laid off for severance pay purposes.
As well, Appendix L outlines additional severance for certain employees who chose to defer severance payments. This does not apply to all employees. Review Appendix L for more information.
Can I file a grievance if the employer is not abiding by the provisions of the WFA Appendix?
WFA forms part of the collective agreement and can be addressed within the grievance procedure if the terms of the collective agreement are violated. Each situation must be assessed prior to determining the appropriate next steps or recourse to be taken. If you have concerns about your situation or feel your collective agreement rights have been violated, the first steps are to review this FAQ and other information about WFA, and to speak to your manager to obtain clarification in writing. If your concern hasn’t been addressed, you can then follow up with your local union rep to discuss possible next steps.
Voluntary Departure Program
What is a Voluntary Departure Program (VDP)?
In WFA situations where five or more employees at the same group, level and work unit are affected, the first step that a department must take after notifying employees is to establish a Voluntary Departure Program, or VDP.
A VDP allows affected employees who wish to leave the public service to come forward and volunteer to resign in exchange for certain options under the WFA Appendix that provide lump sum payments and other financial benefits. Employees have 30 days to decide whether to volunteer.
What happens if I don’t participate in the Voluntary Departure Program (VDP)?
The VDP is voluntary and allows for affected employees to choose to leave the public service if they wish to do so. Employees who choose not to volunteer will proceed through the next steps of the WFA process as outlined in the WFA Appendix.
It is important to note that if there are more volunteers than there are positions to be cut, the volunteers are selected in order of seniority with the most senior granted voluntary departure.
If I leave voluntarily, do I have access to Employment Insurance (EI)?
If you participate in VDP and resign, you are deemed to have been laid off and are therefore eligible for EI Regular Benefits. However, your Transition Support Measure and any severance must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week, and you should consult Service Canada for more information.
Alternation, SERLO, Opting
In addition to these general FAQs, we have developed FAQs on the following topics:
Showing 1 reaction