No. 43                                                                                November 8, 2000

PSAC TAKES PAY EQUITY TO
FEDERAL COURT

The PSAC has filed a statement of claim in the Federal Court - Trial Division. The union is seeking pay equity for employees of certain employers established under Part II, Schedule I of the Public Service Staff Relations Act. The Federal Court is being asked to direct Treasury Board or any other responsible party to increase wage rates and benefits for these employees in a manner consistent with the Orders of the Canadian Human Rights Tribunal dated July 28, 1998 and November 16, 1999.

The employers covered by the statement of claim include: the Communications Security Establishment (CSE), the Canadian Security Intelligence Service (CSIS), the Canadian Institutes of Health Research (CIHR), formerly known as the Medical Research Council, the Office of the Auditor General (OAG), the Office of the Superintendent of Financial Institutions (OSFI), the

Social Sciences and Humanities Research Council (SSHRC) and Statistical Survey Operations (SSO).

There are approximately 3,000 current and former employees affected. Approximately one-quarter of these people are current employees, the remaining three-quarters are former employees. This breakdown is based on the ratio of current to former employees affected by the Tribunal decision in the federal government.

What is owed?

Using an estimated $30,000 per person (the average amount for employees of Treasury Board), the total amount owing would be approximately $90-million.

Rather than spending hundreds of thousands of dollars in court, Treasury Board could simply provide the necessary funds and eliminate these discriminatory wage rates.

Why is this action being taken?

On November 16, 1999, the Human Rights Tribunal ordered pay equity adjustments after determining that the wages being paid to employees in the CR, ST, DA-CON, EU, LS and HS groups in the federal public service were discriminatory. Treasury Board has indicated that it will consider giving these separate employers the funds to adjust their employees’ ongoing salaries - salaries which are based on discriminatory rates. However, they are not prepared to fund the payment of retroactive adjustments and interest.

PSAC had hoped that Treasury Board would voluntarily provide the necessary funds, as it has in the case of the Canadian Food Inspection Agency, for example. However, it is now clear that further action is needed in the case of these employers.

How long will this action take?

PSAC hopes to be in discovery next spring with the case being heard in the fall of 2001. After that, we might expect a decision in early 2002. However, these may be optimistic estimates. Both parties then have the right to appeal that decision, if they wish, to the Federal Court of Appeal. Following a decision from Court of Appeal, the parties could seek leave to appeal to the Supreme Court of Canada.

Aren’t there any other options?

The fastest option is for Treasury Board to agree to provide the necessary funds to these employers. Failing that, the Federal Court is our best option. Another possibility was to file a complaint with the Canadian Human Rights Commission and have it heard by a Tribunal. However, it took seven years (1991 to 1998) for the complaint against the federal government to be heard before a Tribunal and a decision issued. And that decision ultimately ended up in court which delayed the process even more.

What about the other employers under Part II, Schedule I of the PSSRA?

The employers listed in the statement of claim have not resolved the issue of pay equity. Other employers under Part II, such as the Canadian Food Inspection Agency, have agreed to make pay equity adjustments. Treasury Board’s approach is not consistent. They are providing funds to some employers and not to others.

How will this action help our members under other federal legislation?

The pay equity issue also extends to members who used to work for the federal government but are now covered by the Canada Labour Code, rather than the Public Service Staff Relations Act. Examples of these employers include Nav Canada and the airports. The salaries which our members were paid when their employer changed were the rates which the Tribunal found were discriminatory. In addition, some PSAC members under the Parliamentary Employees Staff Relations Act were given the 1990 pay equity adjustments.

PSAC has been raising this issue in negotiations with these employers, as the opportunity arises, and resolving it in some cases. This latest court action will set a precedent for other employers who are dragging their heels on this issue at the bargaining table. In order to speed up the court action, the union chose to proceed first with the Part II employers as the case is somewhat less complex and can be argued more quickly. Unfortunately, the courts have only recently been gaining expertise in the area of equal pay for work of equal value. The more straightforward the case, the better.