Mr. Speaker, with regard to (a), in the current round of negotiations, settlements have been based on 1.25% annual economic increases. A number of groups represented by different bargaining agents have received additional amounts in consideration of the specific circumstances of the group.
In the context of the current round of negotiations, a ‘market adjustment’ has been used as an informal term to distinguish salary increases provided in response to group-specific circumstances from the pattern 1.25% annual economic increase. For example, a salary increase provided to address group-specific internal or external comparability issues or to address recruitment and retention pressures has been typically termed a ‘market adjustment’.
With regard to (b), the 2.3% market adjustment provided to the RCMP is a salary increase. The 2.3% increase was termed a ‘market adjustment’ to recognize that it was paid in addition to the 1.25% economic increases to align RCMP members’ total compensation with that of the eight police forces in Canada used for compensation comparability purposes.
With regard to (b)(i), the 2.3% market adjustment provided to the RCMP is pensionable, as it is a salary increase. ¸
With regard to (b)(ii), the 2.3% market adjustment provided to the RCMP will be counted in the calculation of benefits just as a salary increase would be.
With regard to (b)(iii), generally speaking, since the net effect of a market adjustment is the same as a salary increase, the process for rescinding a market adjustment would be the same as applying a salary reduction. However, there are no plans to rescind either the market adjustment or salary increases for RCMP members.
Should a bargaining agent representing RCMP members become certified, salaries and market adjustments, as key elements of the terms and conditions of employment, would need to be negotiated in the course of a collective bargaining process.
With regard to (b)(iv), there are none.
With regard to (c), in the case of the RCMP, it was determined that following the retroactive 1.25% salary increases effective January 1, 2015, and January 1, 2016, an additional 2.3% market adjustment was warranted to align RCMP compensation with what is provided to the eight comparable police forces in Canada. These comparators provide local police services for a large majority of the Canadian population. It was termed a ‘market adjustment’ to distinguish it from the 1.25% annual economic increases that have been included in settlements to date.
The 2.3% market adjustment is not a separate payment or allowance. It will be applied to members’ salaries in the same manner as the salary increases. The full amount of the market adjustment is pensionable and will be included in the calculation of benefits based upon the rate of pay.