PIPSC Economist, Ryan Campbell, brings us the 5 takeaways from Minister of Finance Chrystia Freeland’s 2020 fiscal update delivered on Monday, Nov. 30, 2020.

1. Public-sector science is integral

The government’s top priority remains a science-driven approach to containing COVID-19 and protecting Canadians. In this Fall Economic Statement, the federal government has provided $565 million for COVID-19 testing supplies and the distribution of rapid coronavirus tests.

Canadians are eager to have access to a safe and effective vaccine and the lack of domestic production has been identified as a weakness. This Fall Economic Statement didn’t answer all questions about the speed and efficacy of vaccination efforts in Canada but it did take steps to ramp up domestic production. The National Research Council will be part of the solution – they’re allotted $126 million over six years to produce 2 million vaccine doses per month at the Human Health Therapeutics Research Centre. The public service remains at the centre of the federal government's pandemic response, led by Health Canada and the Public Health Agency.

2. No signs of austerity and a foundation has been laid for a green recovery

We can be thankful the government was not spooked by false threats from deficit alarmists. Yes, the deficit projection for 2020-21 has increased to $382 billion, a scale of spending not seen since WWII. But, this projection also showed the deficit has a natural downward trajectory, dropping, without any mention of austerity, to $121 billion next year and $51 billion in 2022-23.

As the health threat subsides, the need for government spending will go down as well. Even after this historically bad year, Canada’s debt is expected to remain less than half of the average debt in other G20 countries. Moderate debt levels and historically low-interest rates have made it easier for the government to fight the virus and repair the economic damage without financial constraints.

Investing remains the correct course of action to support our economy in these unprecedented times. This is especially true as the COVID-19 and climate crises converge. In this Fall Economic Statement, the federal government committed to prolonged stimulus spending even after the virus is overcome – committing to allocate 3-4% of GDP per year between 2021-24. This spending is over and above the $2.6 billion for green retrofits and $150 million for zero-emission vehicle infrastructure also announced. Spending is crucial to repair economic scarring resulting from the recent shocks and GHG emission reduction targets must continue to go hand-in-hand with the investment in job creation.

3. Tax fairness signals were sent, but more substance will be required

The federal government announced the intention to simplify the home office expense deduction for the first $400 claimed. This seems like a positive move but full details have not been released yet. We will provide an update as soon as we have all the information.  

As of July 2021, foreign tech and e-commerce companies will have stricter requirements to charge Canadian customers GST/HST. Up until now, Canadian counterparts were at a competitive disadvantage because they always had to add these charges. This common-sense adjustment is welcomed but long overdue. CRA professionals and other advocates for tax fairness have been recommending this change for years.

Slow but tangible steps were taken to close the stock options loophole – a deduction that acts as a subsidy for the wealthy. The Fall Economic Statement also announced the federal government’s intention to modernize the General Anti-Avoidance Rule (GAAR) and committed $606 million over 5 years in additional spending at the Canada Revenue Agency to curb international tax evasion and aggressive tax avoidance.

All together, tax-fairness announcements are expected to yield $2 billion per year in additional revenue. These changes are positive but represent the lowest of the low-hanging fruit. The government must now turn its focus to the super-wealthy and multinational corporations that hide their profits outside of Canada.

4. NAV CANADA and the commercial airline industry need support

Health threats and travel restrictions have wreaked havoc on the commercial airline industry through the pandemic. In the Fall Economic Statement, the federal government committed significant resources to airports and regional service providers. It also provided loans to other impacted sectors through the Highly Affected Sectors Credit Availability Program.

There was no mention of a final deal for commercial airlines, Negotiations are ongoing but this stands out as a glaring omission. NAV CANADA is a private, not-for-profit company that carries considerable overhead and is dependent on usage fees for revenue. NAV CANADA must be included in the final deal for the air sector while also receiving unambiguous access to existing programs like the Canadian Emergency Wage Subsidy.

5. After 30 years of unfulfilled childcare promises, the Liberals have a few months to deliver

COVID-19 has exposed the overwhelming lack of affordable childcare in Canada. Women have borne the brunt of this burden and have been leaving the labour market in the highest numbers in generations.

The finance minister used strong and supportive language, stating: “Canada will not be truly competitive until all Canadian women have access to the affordable child care we need”. Unfortunately, the financial commitment was small and the hard work and decision making was kicked down the line, much in the same way it has been for the last 30 years.

It would be shameful to make it through this global crisis and not learn from the lessons we’ve been given. Budget 2021 must include concrete commitments for a universal national child care program.

 Yves Cousineau is the 2020 recipient of the PIPSC Life Membership Award.

A tireless champion for members for two decades, Yves has served as a leader of the NR Group, bargaining teams, and at consultation. A role model of integrity and hard work, Yves has generously shared his wisdom and inspired the many stewards he has recruited and mentored.

The Life Membership Award recognizes outstanding service of enduring value to PIPSC by a regular or retired member who has demonstrated leadership for at least ten years. 

Mike Murphy is the 2020 recipient of the PIPSC Service Award.

A driving force who helped the University of Ottawa IT professionals become members of PIPSC more than 10 years ago, Mike is the group president. For years, he has worked vigorously to encourage members to unite in solidarity to conquer injustice at the bargaining table and in the workplace.

The Institute Service Award recognizes outstanding service over a significant period of time, above and beyond that which might be expected of any devoted member who has served on many constituent body executives.

PIPSC thanks the members of the Awards Selection Panel – Bert Crossman, Ralph Herman, and Nita Saville – for reviewing the nominations and for recommending these laureates.

Please visit the Awards page to learn more about the nomination process.

Canada’s public service is here for you.

Learn more about the accomplishments and continuous work of Canada's largest union of professional employees in this year’s Annual Report.

Read the report online

The report includes a message from President Debi Daviau addressing some of 2020s most pressing issues including the COVID-19 response, Phoenix, outsourcing, defending public science, bargaining, and more.

A report from the Chief Operating Officer & Executive Secretary Edward Gillis outlines how the COVID-19 pandemic has challenged PIPSC but ultimately made the union stronger.

This year’s report features the stories of six dedicated PIPSC members from across Canada highlighting the work they do to represent and support members.

If your browser doesn’t support the online version, please download the PDF version.

In its November 30, 2020 Fall Economic Statement, the government announced a simplified tax process for Canadians claiming home office expenses:

“The CRA will allow employees working from home in 2020 due to COVID-19 with modest expenses to claim up to $400, based on the amount of time working from home, without the need to track detailed expenses, and will generally not request that people provide a signed form from their employers.” (Fall Economic Statement, section 4.8.3)

The CRA has provided more information about the simplified process for claiming the home office expenses for Canadians working from home due to the COVID-19 pandemic.

The tens of thousands of PIPSC members who have been working from their homes since March may incur substantially more than $400 in expenses in the 2020 fiscal year. For this reason and until more details are provided by the CRA, members should continue to save their receipts and track work-related expenses. Proper accounting of these expenses is essential should additional tax measures be announced in the future. Please remember, employees must seek prior approval before purchasing work-related equipment. The Treasury Board has published guidelines on which telework tools can be provided and on the procedures to request them.

We will communicate more information to our members on this important matter as it becomes available.

You asked, we advocated, and the government delivered! We’re pleased that, starting November 16, 2020, the Government of Canada is implementing MyGCPay stub, which provides clear and detailed information to understand your pay stub.

ACCESS GCPAYSTUB

Important: you must be connected to the government’s network to access MyGCPay.

In past years, PIPSC members have requested clearer information about pay stubs. Whether it was in the PIPSC member survey, or in the Public Service Employee Survey, you made it clear that understanding your pay stub is especially important with all the uncertainty caused by the failed Phoenix pay system. 

The message was heard loud and clear through consultations and then in a pilot phase. MyGCPay stub is now accessible to all employees working in federal departments and agencies. Earnings, taxes and deductions are separated into distinct tabs. Commonly-used terminology is defined and acronyms are explained.

We salute the government’s willingness to complete this project. We’re looking forward to further collaboration to keep members informed about pay stubs, especially when we transition to the NextGen HR and pay system.

The PIPSC Human Rights and Diversity Committee held an anti-Black racism webinar on September 30, 2020. The event was opened by Jennie Esnard, PIPSC NCR Regional Director and Chair of the Human Rights and Diversity Committee, and moderated by the PIPSC Education staff.

The panelists were:

• Emilie Nicolas, award-winning Human Rights advocate and anthropologist
• Larry Rousseau, Vice-President of the Canadian Labour Congress

Participants got a sense of how anti-Black racism impacts Black families throughout Canada. We were reminded of the importance of listening to Black voices who speak up about injustice, and combating systemic racism in our institutions by standing up and demanding change. 

A rich question and answer period ensued. 

Watch the video recording of the session below. 

You may need to disconnect from the employer’s VPN to view the video, or try accessing the page from a personal device. 

Have questions about how to combat anti-Black racism in your workplace? Contact the PIPSC Black caucus.

As the PIPSC Vice-President responsible for the implementation of the Canadian Psychological Health Standard in our members’ workplaces, I encourage you to attend the upcoming Canada School of Public Service webinar, Bill C-65 and Its Impact on Workplace Harassment, Violence and Safety, which will be held on November 16^th from 1:30 pm to 3pm (Eastern).

Register for this important virtual event and don’t miss this excellent learning opportunity for members at all levels and occupations.

In these challenging times, our mental health must remain a priority. Be sure to look after yourself or reach out if you need help!  

Norma Domey
Vice-President, PIPSC

Members of the public service pension plan and benefits plans can sign up for a newly launched email notification system.

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This service will provide subscribers with important updates to the Public Service Pension Plan, the Public Service Health Care Plan, the Public Service Dental Plan, the Pensioners’ Dental Plan, and any other important employee or retiree benefit offered by the Treasury Board to federal public servants.

This notification service only provides general updates, not personalized information. If you have questions about your individual account, please review our pensions and benefits page for more information. PIPSC recommends that you consult the Treasury Board benefits information page before making any financial decision with respect to your pension, dental, and healthcare plans.

This new service is available for current and retired PIPSC members who belonged to a Treasury Board pension or benefits plans. If you are employed outside of the federal service, please visit our pensions and benefits page for more information.

On November 2, National Joint Council bargaining agents sent a strongly worded letter to Treasury Board President Jean-Yves Duclos expressing their anger over the recent introduction of new guidelines on the use of “Other Leave With Pay (699)”.  

This is our third letter to senior government ministers on this issue over the past few weeks. We first brought it to their attention in late August, and followed up in early October. While some improvements were made to the original draft guidelines, they still fail to take into account the very difficult circumstances that so many of our members still find themselves in. 

As unions, we have a responsibility to stand up for all our members, particularly the most vulnerable amongst us. We are asking the employer to hold off implementing these changes until at least January 2021 so our members can carry on with their existing parental or caregiver commitments, and to allow for further discussions with bargaining agents over that period.

If the government fails to address our remaining concerns over Code 699, public service bargaining agents will have little choice but to pursue formal recourse. We remain hopeful, however, that what should have been an entirely avoidable dispute will be resolved soon. Our members’ focus should be on continuing to serve Canadians, not on having to choose between work and personal or family obligations.