Mr. Speaker, with regard to (a), the $545 million amount included in 2016-17 supplementary estimates (C) is made up of amounts set aside by departments for collective bargaining purposes, as well as an amount for the employer’s anticipated costs for collective agreements that were expected to be finalized in 2016-17. Roughly 75% of the funds are amounts that departments set aside in prior years.
As a result of the 2013 operating budget freeze, departments are required to absorb the cost of wage and salary increases that take effect in 2014-15 and 2015-16, and their ongoing impact. This also includes retroactive payments. To assist departments in managing these obligations, they were provided with the opportunity to reprofile--move forward to future years--funding from 2014-15 and 2015-16 to manage the costs for which they are responsible.
Wage and salary increases that take effect in 2016-17 and future years, along with their ongoing impact, are part of the employer’s anticipated costs and will be funded centrally.
At the time the 2016-17 supplementary estimates (C) were prepared, 12 tentative collective bargaining agreements had been reached, covering over three-quarters of represented public servants. However, not all of these agreements had been ratified by the bargaining agents and none had been signed by the employer. Funding was included in supplementary estimates (C) to provide sufficient capacity to address cash management pressures that might have materialized had the agreements been ratified and signed by March 31, 2017.
As collective agreements were not ratified and signed by the end of the fiscal year, funding was not allocated to departments and lapsed to the fiscal framework. As a result, funding for the same purpose has been included in the 2017-18 supplementary estimates (A).
With regard to (b), Treasury Board Secretariat vote 30, paylist requirements, is a central vote that is used by Treasury Board ministers to allocate funds to departments for costs related to parental and maternity allowances, severance pay; and adjustments to the terms and conditions of employment of the federal public service, including members of the Royal Canadian Mounted Police and the Canadian Forces, when these have not been provided from Treasury Board Secretariat vote 15 on compensation adjustments.
The entire amount requested for supplementary estimates (C) was for adjustments to the terms and conditions of employment of the federal public service to reflect new collective agreements, as described earlier.