Without prior consultation, the government has unilaterally announced plans to cut costs across the federal public service as part of the Refocusing Government Spending initiative.

PSAC is concerned that these spending cuts will not only impact services to Canadians but will result in job cuts. PSAC will be fighting back against these cuts and protecting workers caught in the crossfire.

Your PSAC collective agreement has protections against job cuts. Your employer must ensure that employees are treated equitably and given every opportunity to continue their careers. This section of our website outlines your rights and options as a worker facing these challenges and contains more information about the process.

General

What is workforce adjustment (WFA)?

Workforce adjustment (WFA) is the term used to describe a process for reducing indeterminate positions in the core federal public service, agencies and separate employers. The process was negotiated by PSAC with your employer as an important job protection measure. Its main purpose is to protect the jobs of our members.

The WFA process is outlined in Appendix C of your collective agreement.

How is WFA defined?

Workforce adjustment is a situation that occurs when the Commissioner decides that the services of one or more indeterminate employees will no longer be required beyond a specified date due to one of the following:

• A lack of work
• The discontinuance of a function
• A relocation of a work unit in which the employee does not wish to participate
• An alternate delivery initiative, including: 
  • the service is being transferred to another level of government
  • public-private partnerships (P3s)
  • contracting out and privatization of your work

Budget cuts most often take the form of a discontinuance of a function, which refers to the elimination of a specific job function or activity within the agency. Positions associated with the discontinued function may be declared surplus. Employees occupying these positions could be affected by the workforce adjustment process.

What does the WFA Appendix oblige the employer to do?

The CRA must:

• Advise and consult with the union as soon as possible.
• Maximize employment opportunities for indeterminate employees including providing a guarantee of a reasonable job offer for those employees subject to WFA for whom they know or can predict employment availability in the CRA. 
• When possible, provide alternative employment opportunities and give employees every reasonable opportunity to continue their careers as CRA employees.
• Treat employees equitably.
• Establish joint workforce adjustment committees.
• Review the use of private temporary agency personnel, consultants, contractors, term employees, and all other non-indeterminate employees and, where practicable, not re-engage them when it will facilitate the appointment of surplus or laid off persons.
• Identify opportunities for retraining to help employees continue their careers at the CRA.
• Notify employees in writing about their status and any change to it.
• Establish voluntary departure programs for all WFA situations involving five or more affected employees working at the same group, level, and work unit. 
• Assign a counsellor to all affected employees to work with them throughout the process. 

Additional employer obligations can be found in Part I of the WFA Appendix.

What does the WFA Appendix oblige workers to do?

In a workforce adjustment situation, it’s important to be proactive and investigate other potential employment opportunities with the CRA. Once it’s clear that a work force adjustment is inevitable, you should:

• Collaborate with human resources to find new roles. 
• Gather information about your entitlements under the WFAA.   
• Provide résumés or other relevant information that can assist the employer in securing new work for you.   
• Ensure you can be contacted easily.
• Consider training and job opportunities.
• Be aware of timelines and proactively consider options when decisions are required.

What does it mean to be an “affected,” “surplus,” or “opting” employee?

Refer to the glossary for definitions of important terms or the WFA guide to learn more about the the WFA process. You can also refer to the WFA Appendix in your collective agreement. 

How do I read and understand the WFFA?

The Work Force Adjustment Appendix is organized around key decision points. Some parts may apply to your workforce adjustment situation. Other parts might not. It is comprised of a General section that outlines the objectives and definitions followed by these seven parts and two annexes:

• Part 1 outlines the roles and responsibilities for the CRA and employees.
• Part 2 outlines the process for the CRA to notify the union. It is important that the union knows when a workforce adjustment situation is going to occur so that it can actively represent members impacted by the situation.
• Part 3 outlines the process that the employer must follow when there is a relocation of a work unit.  The employer has unique obligations when a whole work unit is being relocated.
• Part 4 outlines the employer’s obligations to provide retraining opportunities. There are different obligations for affected, surplus, and laid-off employees. 
• Part 5 outlines when the employer must provide salary protection when employees are appointed to lower-level positions as the result of workforce adjustment.
• Part 6 outlines the choices members need to make if they are not provided with a guarantee of a reasonable job offer. This part spells out how the process works in general; the role that the voluntary departure program plays; how the alternation process works; and the options that members must choose from, including a one year paid surplus priority (Option A), a lump sum departure payment called a Transition Support Measure (TSM, often combined with a Public Service Superannuation Pension waiver), or an Education Allowance combined with a TSM (Option C).
• Part 7 contains special provisions regarding Alternate Delivery Initiatives (ADI), where work is being devolved or contracted out to an organization outside the CRA. These are unique obligations that are in most cases separate from those found in Parts 1 to 6, unless otherwise specified. 
• Annex A contains a Statement of Pension Principles that applies to Part 7 Alternate Delivery Initiatives. 
• Annex B includes a chart outlining the number of weeks of Transition Support Measure available to opting employees based on years of service who choose Option B or C. 

How do I know if I am subject to WFA?

Indeterminate employees must be notified in writing by the employer that they will be impacted by a workforce adjustment. 

The Commissioner must notify you in writing that your services may or will no longer be required, depending on the situation. The notice will indicate that you are officially “affected.” The notice may also include whether you:  

• Will receive a guarantee of a reasonable job offer, or  
• Are eligible to participate in a voluntary departure program, or  
• Will be required to participate in a process for determining who in your work unit at the same group and level will be laid off, or 
• Have access to the opting provisions in article 6.4.1 the WFA Appendix.   

Where applicable, the notification should also provide the information relative to the employee’s possible layoff date.

Other important notices must also be issued during the process. These notices include surplus letters, job offers, opting decisions, requests for résumés and other personal information, as well as job interview notices. Many of these will specify timelines for responding or making a choice.

It is very important for you to respond to the notices by the deadlines provided. 

What is the process for determining who is laid off? 

Due to existing legislation, management determines who is retained and who is laid off when the employer has decided to make changes to the workforce, including job cuts.

When multiple employees of the same occupational group and level, who are either employed in similar positions or performing similar duties, are affected, and the employer needs some employees to remain employed, management has unilateral discretion to determine the process for deciding which employees retain their substantive positions.

The CRA’s WFA Process Policy stipulates the decision is based on merit. Unfortunately, there is limited recourse to this process which lacks transparency and accountability and PSAC is challenging its legality.

PSAC has long advocated for an equitable, seniority-based process to reduce some of the stress caused by layoffs while maintaining equity considerations. We will continue to fight for fair and transparent processes that account for seniority and equity when layoffs occur.

Workforce adjustment committees must critically examine the qualifications used by management in a WFA situation and actively advocate for transparency and fairness.  

What do I do if I hear about a WFA or I am notified of one?

When you are first notified about a workforce adjustment situation, or even if you believe you may be subject to one in the near future, please follow these general guidelines:

• Don’t trust hearsay propagated by individual managers and supervisors.
• Keep your UTE local executive, national union leadership, and PSAC regional staff advised about what you are hearing. This way your union may raise the issues at a Union Management Committee meeting or a standing Joint Workforce Adjustment Committee meeting, to verify the claims.
• Do not to make any rash or quick decisions. Instead become informed and ask questions about your particular situation and your options from both the union and the employer.
• After becoming informed, seriously consider all the options available to you with particular emphasis on what the best option is for you, given the situation. The WFA Appendix requires you to make difficult choices, and the choice that each must make depends on your individual circumstances.
• Ensure that you respond to requests from the employer within the specified deadlines. Understandably, you may just want the whole situation to disappear because the decisions you are forced to make are so difficult. Unfortunately, not doing anything will make the situation worse and potentially force you to accept an option that isn’t the best one for you.
• If you are deemed surplus and your choice is to remain employed by the CRA, you must actively seek alternate employment and seriously consider all job offers. Be assertive in questioning your human resources advisors about what they are doing to help you find new employment.
• Ensure you can be easily contacted by both the union and your employer.
• Union protections and processes are the most important resource assisting you through the job loss or transition process and you have the right to representation throughout, from before the process starts until after it ends.

Specific employment situations 

What does WFA mean for term employees?

Managers can end the employment of a term employee earlier than the date specified in the offer of employment.

Managers must provide written notice or pay in lieu of notice to the term employee and respect the following notice periods:

• a minimum of two weeks of notice in situations where term employees have a cumulative service of less than two years.
• a minimum of four weeks of notice in situations where term employees have a cumulative service of two or more years. 

Managers must inform the employee in writing of the date on which they will cease to be a CRA employee. Tax centres and call centres, which have temporary recurring and fluctuating workloads, do not have to give notice to term employees with cumulative service of less than 12 months. However, managers should provide reasonable notice whenever possible. Where formal notice has been given and it later becomes necessary to extend the offer of employment, the extension letter must indicate that the initial formal notice continues to apply, and therefore, no further notice will be provided.

The CRA can implement a moratorium on administrative conversions for term employees to a permanent appointment after three years of cumulative service in certain circumstances to minimize situations of workforce adjustment. In such cases, the CRA must inform impacted term employees, in writing, that any further time spent in their current position will not count in the calculation of cumulative service for administrative conversion. The CRA placed a moratorium on term conversions on April 8, 2024.

What happens if I am on leave or was set to go on leave soon? 

Any approved leave remains approved unless otherwise communicated by your manager. See the relevant article of the collective agreement pertaining to your leave to understand how and when management may cancel an approved leave. 

Employees on paid or unpaid leave are under no greater or lesser risk of being given an affected status notice under the WFA policy. However, being on leave could mean that management fails to properly notify you, or maintain communication with you throughout the process, which could give rise to legitimate complaints against the employer. Consult your union steward if you feel management has failed to meet its notice obligations under the WFA Appendix.

What happens if I am in an acting position and my substantive has been affected by WFA? 

In accordance with the CRA WFA Process, permanent employees who may be on a temporary lateral move or acting assignment outside of the work unit, permanent employees who are on a leave of absence, and permanent employees on an interchange must also be included in the WFA retention process if their substantive position is affected. 

Employees who are on a temporary lateral move or acting assignment in the work unit affected by a WFA situation must not be included in the retention process since their substantive position is not part of the work unit that is affected by the WFA situation. Prior to beginning the retention process, managers may end temporary lateral moves or acting assignments of those employees who come from other areas. 

The employees who are retained in their substantive position will no longer be affected and their WFA situation will be resolved. The employees not retained in their substantive position will remain affected and will either be provided with a guarantee of a reasonable job offer (GRJO) or access to options. 

Voluntary departure programs

What is a Voluntary Departure Program (VDP)?   

The CRA must establish a voluntary departure program for all WFA situations involving five or more affected employees working at the same group and level and in the same work unit. The VDP allows affected employees to leave their CRA employment by selecting among options in the WFA Appendix. Those options are a transitional support measure (TSM), lump-sum payment (see 6.4.1(B)), or a TSM with an additional education allowance (see 6.4.1(C)). You may be eligible for a pension waiver. Those participating in the VDP are also entitled to severance as per your collective agreement. 

Do I have to participate in the Voluntary Departure Program (VDP)?   

It is an entirely individual decision to participate or not participate in the VDP. It is important that you assess whether the WFA entitlements are of benefit to you. If you decide VDP is not right for you, then you must wait to learn whether a retention process will take place, whether you will be given a guarantee of a reasonable job offer, or whether you will be made “opting” with access to the option in article 6.4 of the WFA Appendix.  

It is important to note that if there are more volunteers than there are positions to be cut, the volunteers are selected in order of seniority with the most senior granted voluntary departure.   

If I leave voluntarily, do I have access to EI? 

If you participate in a voluntary departure program (VDP) and resign, you are deemed to have been laid off and are therefore eligible to Employment Insurance regular benefits. However, your Transition Support Measure and any severance must first be allocated based on your normal gross weekly earnings, delaying your first week of entitlement to EI benefits accordingly. There are further conditions to demonstrate eligibility for EI benefits in any given week, and you should consult Service Canada for more information.   

Guarantee of a reasonable job offer 

What is a guarantee of a reasonable job offer?   

If an employee is affected and declared surplus, they may receive a guarantee of a reasonable job offer, which they can accept or reject. 

The definition of a reasonable job offer, specific to Part I to VI, is: “an offer of indeterminate employment within the CRA, normally at an equivalent level, but which could include lower levels. Surplus employees must be both trainable and mobile. Where practicable, a reasonable job offer shall be within the employee’s headquarters as defined in the Directive on Travel.”

A reasonable job offer is also an offer from a core public service department, providing that:    

• The appointment is at a rate of pay and an attainable salary maximum not less than the employee’s current salary and attainable maximum that would be in effect on the date of offer.  
• It is a seamless transfer of all employee benefits including a recognition of years of service for the definition of continuous employment and accrual of benefits, including the transfer of sick leave credits, severance pay, and accumulated vacation leave credits.  

If employees receive a guarantee of a reasonable job offer, they are given surplus preferred status and paid until the CRA fulfills their guarantee of a job. If required, they must be willing to be trained and they must be mobile.  

Will I be compensated for the difference in salary should I find a new position that is at a lower level?    

If you are given a reasonable job offer at a lower classification level, you will be salary protected at your prior substantive classification level for the duration that you occupy the new position. This salary protection is known informally as “red circling.”  If you deploy out of the position (at any pay level), or resign and later return to the CRA, you are no longer entitled to salary protection. In rare cases, your new classification level may move above the value of your prior classification, in which case you would be entitled to eliminate your salary protection and benefit from the new, higher rate.   

Will the employer cover my relocation costs if I am given a reasonable job offer in another location?    

In the event you secure a reasonable job offer that is located more than 40km from your prior home office, you are entitled to relocation costs under the CRA Directive on Relocation.     

Opting provisions 

When does the 120-day opting period start? 

The 120-day period begins on the date of receipt of the letter notifying the employee that they are deemed an Opting employee.

It does not begin when the employee receives the notice of affected status letter, unless the letter states that the employee is being made opting then. However, often this determination is made following a series of other steps including determination of whether you are receiving a Guarantee of a Reasonable Job Offer, voluntary departure programs, and a retention process. Only after the notification of opting status does the 120-calendar day period start. If the employee fails to communicate their choice within the stated timeframe, they will be deemed to have selected option 6.4.1a, to be placed on the surplus preferred list for a period of 12-16 months (depending on your length of service), after which they will be laid off if no employment has been secured.  

What does it mean to have surplus preferred status?    

If you select Option A in Article 6.4.1 of the WFAA, you will have a 12–16-month surplus preferred period. This means that for any job for which you meet the essential merit criteria, your candidacy is identified to the hiring manager through the preferred list, and you are entitled to the position above all other candidates. In the event of multiple qualified preferred candidates, further assessment may be warranted for selection. While this process is automated, you still share responsibility for locating suitable work and bringing to managers’ attention job opportunities that you would like to be considered for. You are removed from the preferred list as soon as you find alternative work, whether it arises from the preferred list or any other deployment.   

If I find a job elsewhere in the government, can I take it? If I find the job while I am in surplus, can I take it?      

If you believe you have a suitable alternative job available, you could choose Option A in Article 6.4.1 of the WFAA and pursue the employment opportunity with surplus preferred status. However, you should be cautious about any informal or verbal commitment and seek appropriate counselling before making your decision. The employer is obligated to provide counselling under the provisions of the WFA Appendix.   

How is the amount of my transitional support measure calculated? Is it in addition to severance?        

In Annex B of the WFA Appendix in your collective agreement, you will find the years of service calculations for the amount of the transitional support measure (TSM). 

Article 62 of your collective agreement on severance pay provides a calculation of your severance pay entitlement in the event of layoff and is additional to the TSM. 

You are also entitled to a payout of any vacation balance outstanding in your account, prorated to the month of your termination.   

When will I receive my transitional support measure?        

The TSM is issued no sooner than the effective date of the employee’s notice of resignation and can be paid in one or two lump sums over a maximum two-year period. See Article 6.4.1b) of the WFAA.  

What can I use an education allowance for?   

The collective agreement does not limit the tuition reimbursement to specific institutions or types of study. There are no limits on what you can study as long as it’s a program at a recognized educational institution, such as a college or university. It can also be used for multiple programs. You must provide receipts to be reimbursed.   

Alternation 

How does alternation work?   

Alternation is a process available to workers during workforce adjustments. It enables a surplus employee to remain employed by exchanging positions with another employee willing to leave, thereby minimizing involuntary job losses within the CRA. It is the employer’s obligation to facilitate alternation, and management cannot arbitrarily or unfairly deny alternation requests. Surplus employees are permitted to alternate during the 120-day decision period as well as during the 12–16-month period when they are surplus preferred, for those who have chosen option 6.4.1a) of the WFA Appendix.  

Can different classifications alternate?     

According to Appendix C, Article 6.3.7, an alternation may occur between employees at the same group and level. When the two positions are not in the same group and at the same level, alternation can still occur when the positions can be considered equivalent. They are considered equivalent when the maximum rate of pay for the higher-paid position is no more than 6% higher than the maximum rate of pay for the lower-paid position.   

 

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