On November 16, 2021, President Debi Daviau met with recently appointed Treasury Board President Mona Fortier to discuss the way forward on our members’ key issues.

The discussion focused on scientific integrity, equity and diversity, Public Service Health Care Plan improvements, and the potential resumption of negotiations on the Employee Wellness Support Program.

Although she had not received her mandate from the PM yet, Minister Fortier identified her top 3 priorities in her new role:

• good faith negotiations
• open communications
• collaboration

The Minister was very complimentary of the work PIPSC had done with the government and previous Treasury Board Presidents, and shared that she had received many positive comments from colleagues about us.

We look forward to further discussions with Minister Fortier on these and other issues of significant importance to our members, such as flexible work arrangements, safe workplaces, and the next round of collective bargaining.

On October 26, 2021 Prime Minister Justin Trudeau announced his new cabinet. PIPSC welcomes the appointment of the Honourable Mona Fortier as the new President of the Treasury Board.

As the Member of Parliament who represents the riding of Ottawa-Vanier, Minister Fortier has a good understanding of the experiences and challenges faced by professional public service employees, many of whom are her constituents. When the Phoenix fiasco first made headlines, she reached out to us to see how she could help with the situation. We welcomed her engagement at the time, and we will continue to brief her on public service issues from the perspective of our members.

Once the next PIPSC president has been elected, we will be asking for a meeting to discuss our union’s current priorities: flexible work arrangements for our members, safe workplaces, and bargaining (which may potentially start as early as February 2022).

We look forward to a productive and consultative relationship with Minister Fortier.

On May 13, 2021, PIPSC President Debi Daviau appeared before the Senate Committee on Social Affairs (SOCI) to provide our feedback on how changes to certain provisions of Bill C-30, the Budget Implementation Act, 2021, may help eliminate the barriers that affect equity-seeking groups in the federal public service.

Our overall position is that the proposed changes represent an improvement on the existing Public Service Employment Act (PSEA) by recognizing the impact of biases and barriers on the selection and promotion of candidates from equity-seeking groups.

In late January, we participated in a National Joint Council Employment Equity Committee consultation on this issue, where we outlined a number of our concerns:

• we don’t have a lot of confidence in federal staffing processes
• the delegation of staffing authority to local managers has played a key role in creating the barriers to equity, diversity and inclusion our members encounter today
• the system pits employees against employees
• our members are frustrated about how positions are staffed and how promotions are handed out
• the “right fit” is often used to exclude better qualified candidates
• acting appointments are made and extended without any rationale through non-advertised processes

Decisive and immediate action must be taken to finally create a federal workplace that reflects the people of Canada and their values. The representation of equity-seeking groups in the federal workplace can’t improve in the current context. It’s time to stop putting in band-aid solutions to this critical problem.

On May 10, 2021, PIPSC President Debi Daviau appeared before the House of Commons Standing Committee on Government Operations and Estimates (OGGO) to discuss the government’s handling of the pandemic’s impact on its employees.

Tens of thousands of our dedicated PIPSC members have continued to faithfully serve Canadians since the start of the pandemic. Right now a small percentage of them still remain in their regular workplaces to provide critical services, but approximately 90% of our members are currently working from their home offices.

In general terms, we are reasonably satisfied with how the government has handled the crisis’ impact on its employees. There have been issues with individual departments or even local managers misinterpreting or simply ignoring Treasury Board directives, as well as inconsistencies in implementing safety protocols and around working from home. But overall we give the government a passing grade so far.

That said, existing collective agreements need to be modified or tweaked to ensure that public service managers have the ability to be flexible with employees while still respecting our contracts. Leave with pay (Code 699), duty to accommodate and hours of work are examples of issues that need to be reviewed in light of the pandemic.

At this stage our main concerns revolve around adapting to the new work reality and about giving employees the choice to work at home or in an office, whether a satellite location or their regular workplace.

This means ensuring proper employer support for home offices and telework. It also means a big change in the public service work culture. Because of the very serious impact the pandemic has had on mental health and work-life balance, it also means that the employer must develop new tools for ensuring the wellness of public service employees.

It is critical for the Treasury Board and individual departments and agencies to continue to consult and work closely with unions to ensure that all these points are being addressed. The government’s response to the pandemic and its treatment of federal workers has been commendable so far – let’s not change it now.

On May 6, 2021, PIPSC President Debi Daviau and Economist Ryan Campbell testified before the House of Commons Standing Committee on Finance (FINA) about the Canada Revenue’s Agency’s (CRA) efforts to fight tax evasion.

The rules must apply to everyone, but unfortunately many wealthy individuals and corporations use their superior resources to look for a shelter or haven where the tax rules don’t apply. While these privileged few get a reduced tax bill, governments lose revenue for public services, resulting in either service cuts or tax hikes for everybody else.

In 2012, sweeping budget cuts were introduced to the CRA. Even with more recent government reinvestments, CRA still doesn’t have all the tools, training and staff it needs to get the job done. 

We need to fix this now. More than ever, Canada needs the tens of billions of dollars in tax revenue, if not more, that are sitting in off-shore tax havens. We need to:

• better enforce existing tax laws
• prevent political interference at the CRA
• better protect whistleblowers
• hire more technical advisors and invest in technology and training
• enhance the capacity of the CRA’s regional offices

A number of policy reforms also need to be undertaken.

Budget 2021 announced initiatives that, when implemented, will take tangible steps in the direction of tax fairness. These include a digital service tax for companies like Netflix and Amazon and the creation of a publicly accessible beneficial ownership registry.

These are both important initiatives long championed by PIPSC members and our allies in civil society. 

But while these changes are welcomed, we still have work to do. The Parliamentary Budget Officer has estimated as much as $25 billion of corporate tax revenue is lost to tax havens every year. We must do more to end the transfer pricing and profit shifting that facilitates this destructive practice. As of now, some incremental steps are being taken, but there are a variety of additional actions that can be put in place. The end result would be a new, simplified view of the global commercial landscape – one in which corporations can be prevented from pitting countries against each other and are taxed fairly everywhere.

Overall, our CRA professionals must receive the training, tools and resources they need to do their jobs. The CRA must receive appropriate funding to ensure tax laws are enforced equitably and that wealthy individuals and powerful corporations are just as accountable as any other Canadian. And there needs to be international cooperation and updates to legislation, so those who try the hardest to avoid taxes end up paying their fair share.

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.