CRA presents smoke and mirrors on severance proposal

Following the last unsuccessful round of mediation, the CRA commissioner decided to take the unusual step of communicating with us in an effort to explain their severance proposal yet again.

Using creative examples, they have tried to convince us to accept a proposal with our own money. Severance is in the collective agreement as we speak. The money the employer is floating around in those examples is already ours.

What’s more, the commissioner actually failed to mention an important side of the story. None of the examples provided speak to what we stand to lose.

Using the case of an SP-04 employee with 12 years of continuous employment, the commissioner calculated using the maximum rate of pay that the gross severance pay-out that employee would be worth approximately $13,150.

What he did not mention is what would happen if you keep your severance as per the collective agreement. Under the current agreement, you are entitled to a maximum of 30 weeks’ severance, at the rate of one week’s pay for each year of continuous employment.

In other words, if the same SP-04 is planning to stay employed at CRA for the rest of his/her career, he/she could potentially receive an additional 18 weeks of severance at retirement. 

  • $ 57 257 / 52.176 weeks = $ 1097.38 / week
  • 18 years * 1097.37 = $ 19752.87

This amount would also surely increase with future economic increases bargained by the parties or with any future promotion of the employee. 

What is being proposed by the government is really nothing more than a short-term gain for a long-term loss.

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July 27, 2015
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