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Backgrounder
Overview of Collective Bargaining Process

ACFO will soon enter into negotiations with Treasury Board for a new collective agreement. This Backgrounder is intended to provide members with an overview of the collective bargaining process.

STEP 1: Selection of Dispute Resolution Method

The Public Service Labour Relations Act (PSLRA) provides a choice between two methods of resolving collective bargaining disputes: binding arbitration and conciliation/strike. ACFO chooses the method of dispute resolution based on a membership vote and can change it prior to each round of bargaining. Presently ACFO is registered as choosing conciliation/strike and must register a change before notice to bargain is given by either party, should a change be desired.

STEP 2: Preparation for bargaining

Selecting the Compensation and Benefits Committee

The ACFO Board of Directors can appoint up to 15 regular members to the Compensation and Benefits Committee.

Selecting the Collective Bargaining Team

The collective bargaining team is selected in accordance with the ACFO Bylaws. Members of the ACFO bargaining team include the ACFO Chair and up to five (5) members of the Compensation and Benefits Committee.

The bargaining team is supported by the administrative, communications and labour relations services of the National Office as required by the ACFO Board of Directors.

The ACFO Board of Directors may also engage the services of a professional negotiator, pay and compensation advisors, or other consultants as required.

Surveying the Membership

ACFO has typically conducted a membership survey to solicit bargaining demands and priorities and collect important demographic and strategic information as needed.

Preparing Collective Bargaining Demands

The bargaining team prepares the ACFO bargaining demands based on a number of factors including, but not limited to:

  • The results of the membership survey;
  • The report of the previous round of bargaining;
  • A review of the collective agreements negotiated by the 17 other bargaining agents in the public service;
  • Analysis regarding comparator groups internal and external to the federal public service.

Terms and Conditions of employment that are contained within legislation or within the National Joint Council Agreement are not subject to collective bargaining. For example, the following matters cannot be bargained under the current framework:

  • Staffing;
  • Classification;
  • Pensions;
  • Income tax implications;
  • Health Care Plan;
  • Dental Plan;
  • Workforce Adjustment.

STEP 3: Essential Service Agreement

Under the PSLRA, essential services must be provided to the public during a strike. An essential service is defined as "a service, facility or activity of the Government of Canada that is or will be, at any time, necessary for the safety or security of the public or a segment of the public."

No later than 20 days after a notice to bargain is given, the employer may give a written notice to the bargaining agent suggesting which employees occupy essential services positions. The employer and the bargaining agent must then make every reasonable effort to enter into an essential services agreement as soon as possible, whereby certain employees are deemed essential to the health and safety of Canadians and therefore cannot legally participate in a strike.

If the employer and the bargaining agent are unable to agree to an essential services agreement, either of them may apply to the Public Service Labour Relations Board (PSLRB) to determine any unresolved matter.

STEP 4: Negotiations

The timing, location and structure of negotiations are subject to the agreement of the parties. The Act only requires that the parties enter into negotiations and bargain in good faith.

Typically negotiations start with an exchange of demands whereby the parties provide one another with a list of their bargaining demands followed by a presentation of the explanation and rationale for each demand.

After the demands are exchanged, the parties attempt to negotiate conditional agreements on each demand. Some demands are accepted, some are amended and some are withdrawn as negotiations progress.

If the parties are able to negotiate every demand to their mutual satisfaction, they reach what is known as a tentative agreement that is presented to the ACFO Compensation and Benefits Committee (C&B). The C&B then submits the tentative agreement to the ACFO Board of Directors with its recommendations.

If the ACFO Board of Directors accepts a tentative agreement, it recommends its acceptance to the bargaining unit and a ratification vote is held. If the ACFO Board of Directors does not accept the tentative agreement, it can send the bargaining team back to the table.

Similarly a tentative agreement is also subject to Treasury Board approval. If the parties reach a point where it is difficult to make any progress, they may declare an impasse and request mediation.

STEP 5: Appointment of a Mediator

Either party may choose to request the services of a mediator. The Chairperson of the PSLRB may at any time, if requested to do so, or through his or her own decision, appoint a mediator to confer with the parties on a dispute and endeavour to assist them in settling the dispute.

Mediation is a voluntary process and the mediator assists the parties in reaching an agreement. Unlike an arbitrator, a mediator does not make any final decisions to resolve disputes between the parties.

STEP 6A: Conciliation / Strike DRM

The following paragraphs explain the process if conciliation/strike has been adopted as the mechanism for dispute resolution.

I) Public Interest Commission (PIC)

If the parties are unable to reach a negotiated settlement, a Public Interest Commission (PIC) will be appointed by the Federal Minister of Labour on the recommendation of the Chairperson of the Public Service Labour Relations Board (PSLRB).

A PIC may be composed of a single person or a panel of three persons. It should be noted that members of a PIC are selected from a list of persons jointly agreed to by the parties. Within 30 days of its appointment, the PIC will report its recommendations for settlement to the Chairperson of the PSLRB, who will then make the report public.

II) Mandatory Strike Vote

In the event that the recommendations from the PIC do not bring about a settlement, the PSLRA requires that a secret ballot strike vote must be held before a strike can be called. All employees in the bargaining unit will have the right to vote and must be given reasonable opportunity to participate in the vote.

The bargaining agent may authorize or declare a strike only within the period of 60 days following the vote, provided that it has received the majority support of voters.

STEP 6B: Binding Arbitration DRM

The following paragraphs explain the process if binding arbitration has been selected as the dispute resolution mechanism.

Arbitration boards are established in the same manner as PICs, except that they are established by the Chairperson of the PSLRB.

Either party may request the establishment of an arbitration board. In most cases, the parties will have reached agreement on a substantial number of provisions before arbitration is requested.

An arbitral award is binding on the parties and usually forms a supplement to the collective agreement.

Communiqué: Information on Dispute Resolution Mechanisms Prior to Member Survey


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