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 theCore 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 3arrangements 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).

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

·        If not comparable, you receive a 3 month lump sum

Comparable pension

·        if not comparable you receive a 3 month lump sum

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:

·        3 months pay

·        18 months of top-up in exchange for the difference in remuneration

·        if remuneration is less than 80% of current salary you receive an additional six months top-up

On the day of transfer of the work or function, you receive:

·        6 months pay

·        12 months of top-up for difference in remuneration

 

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 payto 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 topay 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).

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September 17, 2013
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