Once new rates of pay are negotiated in an agreement, will the salary received on promotion during the retroactive period of the collective agreement be recalculated?

June 19, 2008


The rates of pay resulting from promotions, transfers, deployments, or acting situations made during the retroactive period of a collective agreement will be recalculated using the revised rates of pay once a new collective agreement is signed. The retroactive period is the period from the effective date of the expired salaries (April 19, 2007 and June 22, 2007 for the TR and EC rates of pay respectively) up to and including the day before the collective agreement is signed or when an arbitral award is rendered. When employees become subject to a new collective agreements they will be entitled to the better of a recalculation of the rate of pay during the retroactive period and the straight down revision of the rates of pay. If the recalculated rate of pay is less than the rate of pay the employee was previously receiving, the revised rate of pay will be the rate, which is nearest to, but not less than the rate of pay being received prior to the revision. However, where the recalculated rate is at a lower step in the range, the new rate shall be the rate of pay shown immediately below the rate of pay being received prior to the revision (i.e straight down revision).

The “better of a recalculation” was the result of a complaint filed in 2001 by SSEA and CUPTE alleging discrimination against their members when implementing retroactive rates of pay. While the represented employees of these two bargaining units had their rates of pay revised using the straight down rule, the retroactive rates of pay for excluded and unrepresented employees were implemented by applying the straight down or better treatment. In November 2002, the PSSRB upheld the complaints and ordered the Employer to revise retroactive rates of pay for these represented employees in the same manner as for excluded and unrepresented employees.

On a related note, all salary-related benefits (e.g., overtime, extra-duty, leave and termination payments, pension) will also be recalculated once an agreement is signed, based on the revised rates of pay.