ainability (2015) Act Public Public Ser Servic vices Sus es - - PowerPoint PPT Presentation

Public Public ¡Ser ¡Servic vices ¡Sus es ¡Sustainability ¡(2015) ¡A ainability ¡(2015) ¡Act ¡

¡ ¡ ¡

Bi Bill ¡Br ¡Briefin efing ¡ ¡ ¡ December ¡14th, ¡2015 ¡ ¡ ¡ ¡

Con Context

• Nova Scotia is facing tough budget challenges.
• The Province’s revenue shortfalls reflect a weaker-than expected

economy and emphasize our need to control spending.

• The single largest expense of government is compensation.
• Government spends about $5.2 billion on compensation or 52 per

cent of all of government’s total spending.

• Government has a responsibility to set fiscal policy that

ensures sustainability of programs and services.

• This Bill provides certainty that the Province will be able to

stay within its fiscal plan and protect the sustainability of public services. 2

Obje jecFves

• To meaningfully engage public sector employees through

their unions in a collective bargaining process where:

• Efficiency, effectiveness and innovation are promoted
• Some of the benefits are shared with employees.
• To protect and preserve public services by negotiating

collective agreements that are affordable to the taxpayers of the province.

• To operate in conformity with the Finance Act, the

principles of responsible fiscal management, and the four-year Fiscal Plan. ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡ ¡3 ¡

St Steps ¡ s ¡Tak aken ¡ n ¡to ¡ ¡Da Date

• Meeting with union leaders August 18th
• Discussed Government’s commitment to meaningful collective

bargaining and to protecting the Fiscal Plan.

• Introduced Public Service Sustainability Mandate
• Directed employers to negotiate five year agreements within

fixed fiscal enveloped, with flexibility to apply portions of savings achieved through innovation to compensation plans

• Asked union leaders to engage in meaningful collective bargaining
• Follow-up meeting November 5th
• Discussed progress at bargaining tables
• Invited feedback on bargaining process improvements in support
• f serving the public and sustainable public services
• Negotiations underway
• Four tentative agreements reached: one ratified; two pending

ratification (recommended by bargaining agents); one voted down 4

Public Public ¡Ser ¡Servic vices ¡Sus es ¡Sustainability ¡A ainability ¡Act t Key ¡ ¡Eleme ments

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Ap ApplicaFon

• n
• Applies to all public sector employers and employees – unionized

and non-unionized

• Definition of public sector employee found in section 3(n)
• Exception – those bargaining units with renewed

agreements prior to proclamation

• Does not apply to medical residents – they have concluded a new

collective agreement

• Does not apply to provincial court judges or family court judges
• All provinces are required to set compensation for judges through

an independent commission process, for constitutional reasons. 6

Comp mpensaFon ¡ ¡Fr Frame mework

• Puts a framework in place regarding the extent of new

money public sector employers can offer for wages

• Same compensation framework as reached in tentative

agreements with NSGEU, Residents, and Crown Attorneys

• Puts statutory limit on public sector employers for increases to

compensation in excess of the framework: 3% over 4 years (sections 13 and 14)

• Additional increases may be allocated, if approved, through cost

savings or cost avoidance — “shared gains”

• Consistent with the Public Service Sustainability Mandate

announced by the Minister of Finance and Treasury Board in August

• Annual increments will continue for eligible employees

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Ar Arbitrator

• rs
• Right to arbitration is preserved for public sector

employees

• Legislation limits arbitrators from making awards that

exceed the framework

• Any award that does exceed the framework is of no force
• r effect
• Public sector employers are not bound to implement any

award of an arbitrator that provides for an increase in excess of the framework 8

Se Servic vice ¡ ¡Awar ard d

• Special payment made to public sector employees

upon retirement or resignation, based on years of public service.

• Freezes the award, retroactive to April 1, 2015
• All public sector employees eligible for the amount they

have accumulated up to April 1, 2015 (where applicable)

• Applies the same provisions as exists for non-

unionized public service employees:

• Existing entitlements will be paid out upon retirement,

based on salary as of April 1, 2015

• Future accrual will stop
• New employees (after April 1, 2015) will not be eligible
• Service Award liability will cease to accrue – in the

last fiscal year liability exceeded $50 million 9

Ph Physic sicians ians ¡

• Physicians are generally not employees, but deliver

insured health services through several fee and compensation models

• These compensation models are complex and part of

public health care policy decisions.

• Legislation will temporarily suspend arbitration for

physicians for 4 years

• April 1, 2015 – March 31, 2019
• Government works with physicians on a collaborative

basis to appropriately determine these models.

• Arbitration has not been used in the past.
• Negotiations with physicians continue.

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Admi ministraFon

• The Bill establishes a Public Service Sustainability Board
• Board will be responsible for dealing with questions that

arise about interpretation or application of the Act, when proclaimed

• Members will be cross-appointed from the Labour Board
• No full-time positions
• Powers of the board to be determined by regulation

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Ne Next ¡S ¡Step eps

• The legislation will come into force upon proclamation.
• Negotiations continue.
• Act does not prevent negotiation and does not impose

agreements.

• Act does not take away provisions of collective agreements

bargained in earlier years.

• Negotiation continue.
• Public sector employers remain ready, willing, and able to

engage in meaningful collective bargaining

• The Bill gives employers room to negotiate.
• Encourages public sector employers and unions to work together

to find savings - a portion of which could then be applied to further wage increases.

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Thank you.