Workforce Adjustment
Alternative Delivery Initiatives (ADI)
An alternative delivery (ADI) initiative is the transfer of any work, undertaking or business of the public service to any body or corporation that is an agency or that is outside the Core Public Administration. (7.1). In the past, this has meant agencies like the Canadian Revenue Agency, airports other levels of government and private sector employers. Employees affected by this type of work force adjustment are subject to the provisions outlined here only, unless indicated otherwise (7.2.1).
Your PSAC component must be advised of any plans to pursue an ADI initiative at least 180 days before it happens (7.2). The notice must include: the program being considered for ADI, the reason for the ADI and the type of approach anticipated for the initiative. A joint WFA – ADI committee will be created with equal representation from your union and the department. It may also include others by mutual agreement. The mandate of these committees is to engage in meaningful consultation on human resource issues related to the ADI in order to provide employees with information that will help them decide whether to accept the job offer (7.2).
There are three types of transitional employment arrangements that can occur (7.2.2) as outlined in Table 1 below. The profile of the new employment in terms of pay and benefits is outlined for each type.
Offer of employment
If your position will be moving to the new employer, you will receive a written offer of employment, which you can accept or refuse (7.4.1). Type 1 and Type 2 arrangements are considered a reasonable job offer (7.2.3). Type 3 arrangements are not (7.2.4).
There are time limits in place for accepting an offer of employment (7.4.2). If you refuse a Type 1 or Type 2 offer, you will receive a four month notice of termination (which will be considered a layoff for severance pay purposes) (7.5.1, 7.9.3). If you refuse a Type 3 offer, the deputy Head may declare you either a surplus employee or an opting employee. In this case, you fall under the non-ADI provisions in the Appendix (7.5.3).
If you accept the job offer from the new employer, your Treasury Board employment will end on the day of transfer or on a day the home department may choose provided it doesn't break your continuous service between the old and new employer (7.5.4).
Table 1 Comparable Benefits with Three Types of Alternative Delivery Initiatives
Issue |
Type 1 Full Continuity |
Type 2 Substantial Continuity |
Type 3 Lesser Continuity |
Employment Rights
|
Retain continuous employment and all related rights
|
May or may not retain continuous service |
Type 3 transfers are to employers with inferior working conditions which fail to meet the criteria of either Type 1 or Type 2 |
Remuneration |
Same remuneration (salary and supervisory differential) |
At least 85% of hourly or annual remuneration (pay and supervisory differential) |
|
Tenure |
Guarantee of 2 year minimum employment with new employer |
Employment tenure equivalent to that of new employer or guarantee of 2 year minimum employment with new employer |
|
Benefits |
Core benefit coverage |
Some level of core benefit coverage |
|
Pension |
Comparable pension
|
Comparable pension
|
|
Disability |
Sick leave carry-over up to Long-term Disability Insurance waiting period. |
Short-term disability arrangements of some sort |
|
Vacation |
Vacation transfer if new employer accepts, or payout |
Vacation transfer if new employer accepts, or payout |
Vacation transfer if new employer accepts or payout |
Severance |
No severance |
Severance only if new employer doesn't recognize continuous service |
Severance |
Offer of employment |
Must be written, and Is considered a Reasonable Job Offer |
Must be written, and Is considered a Reasonable Job Offer |
Must be written, but is Not considered a Reasonable Job Offer |
Offer Timing |
Must accept the offer within 60 days |
Must accept offer within 60 days |
Must accept offer within 30 to 60 days (minimum is 30) |
Refuse Offer |
You get 4 months notice of termination |
You get 4 months notice of termination |
You become either a Surplus or an Opting employee |
Accept Offer |
Move to the new employer |
On the day of transfer of the work or function, you receive:
|
On the day of transfer of the work or function, you receive:
The total must not exceed 1 years pay. |
Other Payments |
A retention payment is possible in some circumstances |
A retention payment is possible in some circumstances |
A retention payment is possible in some circumstances |
Union |
Depending on new labour legislation, you may automatically remain a member of the PSAC |
You may or may not move to a unionized environment. |
You may or may not move to a unionized environment. |
Payments and Allowances
Your position will disappear on the day of transfer to the new employer. If, for any reason, you will not be moving to the new employer and your current employer wants you to stay until the day of transfer, the employer can offer you a retention payment (6.4). This sum, which is equal to six months pay, will not be paid in combination with any other amount under the ADI section of the Work Force Adjustment Appendix (WFAA).
If you accept a Type 2 offer, you will receive two lump sum payments ( 1. three months pay to be paid on the date of transfer and 2. an 18 month salary top up.) to offset any difference between your current remuneration and the new remuneration (your salary and supervisory differential). If the hourly or annual salary falls below eighty per cent of your current remuneration, you will receive a further lump to be paid on the day of transfer equivalent to six (6) months top up allowance..
For Type 1 and Type 2 arrangements, if the pension is not comparable, within the meaning of the Statement of pension principles (Annex A of the WFAA), you will receive a lump sum payment on the day of transfer of three months pay to offset this difference.
The PSAC and its components have been successful in negotiating improvements to Type 2 obligations especially in the case of devolution to other levels of government and in improvements to Request for Proposals underscoring the importance of Work Force Adjustment Committees.
If you accept an offer of employment in a Type 3 arrangement, you will also receive two lump sum payments to offset the difference between your current remuneration and the new remuneration. This sum cannot exceed one year's pay (7.7.4). If you are re-appointed to the public service within the period covered by these payments, you will be expected to pay them back on a pro-rated basis (7.8).
Remuneration in these instances includes and is limited to salary, equal pay adjustments and supervisory differential.
Vacation, sick leave and severance
If the new employer will accept vacation credits, you can transfer them. Otherwise, they will be paid out (7.9.1).
If the new employer will accept some or all of accumulated sick leave credits, they will be transferred. If the new employer does not accept them, you will lose any unused sick leave credits.
Severance will not be paid to you by the home department in Type 1 situations because your employment is considered to be continuous. In Type 2 situations, severance will only be paid by the home department if the new employer does not recognize your continuous service for severance purposes or provide similar severance entitlements (7.9.2).
In other cases, you will be considered to be involuntarily laid off on the day your employment in the public service ends for severance purposes (7.9.3).
Date Modified : 2012/05/28
