45 ELIZABETH II

CHAPTER 18

An Act to implement certain provisions of the budget tabled in Parliament on March 6, 1996

[Assented to 20th June, 1996]

      Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

Short title

1. This Act may be cited as the Budget Implementation Act, 1996.

PART I

HUMAN RESOURCES MANAGEMENT

R.S., c. C-23

Canadian Security Intelligence Service Act

2. The Canadian Security Intelligence Service Act is amended by adding the following after section 9:

No suspension of arbitration

9.1 (1) Notwithstanding section 62 of the Public Service Staff Relations Act but subject to subsection (2), the operation of sections 64 to 75.1 of that Act is not suspended in respect of the resolution of any dispute applicable to employees of the Service.

Limit on maximum rate of increase

(2) During the period referred to in section 62 of the Public Service Staff Relations Act, an arbitration board, as defined in subsection 2(1) of that Act, shall, in rendering an arbitral award, limit the aggregate amount of any increase in pay and other benefits in respect of any dispute applicable to employees of the Service to that concluded through collective bargaining or otherwise by a comparable bargaining unit in the Public Service, within the meaning of that Act, after the compensation plan applicable to that bargaining unit ceased to be continued by virtue of the Public Sector Compensation Act.

R.S., c. F-11

Financial Administration Act

3. The Financial Administration Act is amended by adding the following after section 7:

Group insurance and benefit programs

7.1 (1) The Treasury Board may establish or enter into a contract to acquire group insurance or benefit programs for the public service of Canada or any part thereof, may set any terms and conditions in respect of those programs, including those relating to premiums, contributions, benefits, management and control and expenditures to be made from those contributions and premiums and may audit and make contributions and pay premiums in respect of those programs.

Remainder of Act does not apply

(2) This Act, other than this section, does not apply to any contributions made or premiums paid by the Treasury Board or the members in respect of any program established pursuant to subsection (1) or any benefits received by the members of such a program.

4. Section 10 of the Act is amended by adding the following after paragraph (d):

    (d.1) respecting the severance pay or other amounts payable to an employee or former employee whose employment is terminated pursuant to paragraph 11(2)(g.1), and any terms and conditions subject to which and the manner in which those amounts are to be paid;

5. (1) Subsection 11(1) of the Act is amended by adding the following in alphabetical order:

``Work Force Adjustment Directive''
« Directive sur le réaménage-
ment des effectifs »

``Work Force Adjustment Directive'' means the Work Force Adjustment Directive issued on the recommendation of the National Joint Council of the Public Service and with the approval of the Treasury Board, that came into force on December 15, 1991, as amended from time to time on the recommendation of the National Joint Council of the Public Service and with the approval of the Treasury Board or in accordance with this section or any other Act.

(2) Subsection 11(2) of the Act is amended by adding the following after paragraph (g):

    (g.1) provide for the termination of employment of an employee to whom an offer of employment is made as the result of the transfer of any work, undertaking or business from a portion of the public service specified in Part I of Schedule I to the Public Service Staff Relations Act to any body or corporation that is a separate employer or that is outside the public service, and establish the terms and conditions under which, the circumstances and manner in which and the authority by which or by whom that termination may be made or may be varied or rescinded in whole or in part;

(3) Section 11 of the Act is amended by adding the following after subsection (2):

Appoint-
ments

(2.01) An employee who does not accept an offer of employment made in the circumstances referred to in paragraph (2)(g.1) that is a reasonable job offer within the meaning of the Work Force Adjustment Directive or who accepts an offer of employment that is not a reasonable job offer within that meaning is entitled to be appointed to a position and to enter any competition in respect of a position as if the employee had been laid off in accordance with section 29 of the Public Service Employment Act.

Excuse for not accepting

(2.02) Every employee who did not accept an offer of employment from the body or corporation referred to in paragraph (2)(g.1) before the date on which the offer is to be accepted and who establishes to the satisfaction of the Treasury Board that the employee was unaware of the offer or incapable of indicating an acceptance of the offer is deemed to have accepted the offer before that date and is deemed to be an employee referred to in subsection (2.01).

(4) Section 11 of the Act is amended by adding the following after subsection (5):

Amendments to Work Force Adjustment Directive by mutual agreement

(6) The Treasury Board and bargaining agents may, by agreement in writing, amend the Work Force Adjustment Directive in respect of any subject matter, but only as it relates to their collective agreements or arbitral awards and only as it relates to the circumstances arising from a transfer referred to in paragraph (2)(g.1).

Amendments to Work Force Adjustment Directive by Governor in Council

(7) The Governor in Council, on the recommendation of the Treasury Board, may amend the Work Force Adjustment Directive in respect of any subject matter, but only as it relates to the circumstances arising from a transfer referred to in paragraph (2)(g.1).

Work Force Adjustment Directive ceases to apply

(8) Notwithstanding any indication to the contrary that may be contained in any other Act or a collective agreement or arbitral award or any other terms and conditions of employment of employees of a body or corporation, the Work Force Adjustment Directive ceases to apply to an employee of a body or corporation immediately before the date on which the employment of the employee is terminated pursuant to paragraph (2)(g.1).

National Joint Council agreements

(9) Notwithstanding any other Act, where agreements of the National Joint Council of the Public Service are incorporated by reference in a collective agreement or arbitral award or would otherwise be part of the terms and conditions of employment of employees of a body or corporation, those agreements of the National Joint Council of the Public Service cease to apply to an employee of a body or corporation immediately before the date on which the employment of the employee is terminated pursuant to paragraph (2)(g.1).

Accrued benefits

(10) Notwithstanding subsections (8) and (9), Her Majesty in right of Canada, as represented by the Treasury Board, continues to be responsible for any obligation of Her Majesty in respect of benefits arising out of agreements of the National Joint Council of the Public Service or the Work Force Adjustment Directive that have accrued to employees of a body or corporation immediately before the date on which the work, undertaking or business is transferred to the body or corporation as described in paragraph (2)(g.1) as a result of the termination of employment of those employees provided for under that paragraph.

1995, c. 17, s. 7

6. Subsection 12(3) of the Act is replaced by the following:

Delegation of authorization

(3) Any person authorized pursuant to subsection (1) or (2) to exercise and perform any of the powers and functions of the Governor in Council or the Treasury Board may, subject to and in accordance with the authorization, authorize one or more persons under their jurisdiction or any other person to exercise or perform any such power or function.

1991, c. 24, s. 15

7. Section 37 of the Act is replaced by the following:

Lapse

37. The balance of an appropriation that remains unexpended at the end of a fiscal year or such longer period as may be specified in an appropriation Act or any other Act of Parliament, after adjustment for the recording of debts incurred and other amounts due or owing referred to in section 37.1, shall lapse.

R.S. c. L-2

Canada Labour Code

8. The portion of subsection 44(1) of the Canada Labour Code before the definition ``business'' is replaced by the following:

Definitions

44. (1) In this section and sections 45 to 47.1,

9. Section 47 of the Act is replaced by the following:

Where portion of public service established as federal business

47. (1) Where the name of any portion of the public service of Canada specified from time to time in Part I or II of Schedule I to the Public Service Staff Relations Act is deleted and that portion of the public service of Canada is established as or becomes a part of a corporation or business to which this Part applies, or where a portion of the public service of Canada included in a portion of the public service of Canada so specified in Part I or II of Schedule I to that Act is severed from the portion in which it was included and established as or becomes a part of such a corporation or business,

    (a) a collective agreement or arbitral award that applies to any employees in that portion of the public service of Canada and that is in force at the time the portion of the public service of Canada is established as or becomes a part of such a corporation or business continues in force, subject to subsections (3) to (7), until its term expires; and

    (b) the Public Service Staff Relations Act applies in all respects to the interpretation and application of the collective agreement or arbitral award.

Application for certification

(2) A trade union may apply to the Board for certification as the bargaining agent for the employees affected by a collective agreement or arbitral award referred to in subsection (1), but may so apply only during a period in which an application for certification of a trade union is authorized to be made under section 24.

Application for order

(3) Where the employees in a portion of the public service of Canada that is established as or becomes a part of a corporation or business to which this Part applies are bound by a collective agreement or arbitral award, the corporation or business, as employer of the employees, or any bargaining agent affected by the change in employment, may, during the period beginning on the one hundred and twentieth day and ending on the one hundred and fiftieth day after the date on which the portion of the public service of Canada is established as or becomes a part of the corporation or business, apply to the Board for an order determining the matters referred to in subsection (4).

Determi-
nation of Board

(4) Where an application is made under subsection (3) by a corporation or business or bargaining agent, the Board, by order, shall

    (a) determine whether the employees of the corporation or business who are bound by any collective agreement or arbitral award constitute one or more units appropriate for collective bargaining;

    (b) determine which trade union shall be the bargaining agent for the employees in each such unit; and

    (c) in respect of each collective agreement or arbitral award that applies to employees of the corporation or business,

      (i) determine whether the collective agreement or arbitral award shall remain in force, and

      (ii) if the collective agreement or arbitral award is to remain in force, determine whether it shall remain in force until the expiration of its term or expire on such earlier date as the Board may fix.

Application for leave to serve a notice to bargain collectively

(5) Where the Board determines, pursuant to paragraph (4)(c), that a collective agreement or arbitral award shall remain in force, either party to the collective agreement or arbitral award may, not later than sixty days after the date the Board makes its determination, apply to the Board for an order granting leave to serve on the other party a notice to bargain collectively.

Application to bargain collectively

(6) Where no application for an order is made pursuant to subsection (3) within the period specified in that subsection, the corporation or business, as employer of the employees, or any bargaining agent bound by a collective agreement or arbitral award that, by subsection (1), is continued in force, may, during the period commencing on the one hundred and fifty-first day and ending on the two hundred and tenth day after the date the portion of the public service of Canada is established as or becomes a part of the corporation or business, apply to the Board for an order granting leave to serve on the other party a notice to bargain collectively.

Effect of order

(7) Where the Board has made an order pursuant to paragraph (4)(c), this Part applies to the interpretation and application of any collective agreement or arbitral award affected thereby.

Arbitral award deemed part of collective agreement

(8) An arbitral award that is continued in force by virtue of subsection (1) is deemed to be

    (a) part of the collective agreement for the bargaining unit to which the award relates, or

    (b) where there is no collective agreement for the bargaining unit, a collective agreement for the bargaining unit to which the award relates

for the purposes of section 49, and this Part, other than section 80, applies in respect of the renewal or revision of the collective agreement or entering into a new collective agreement.

Where notice to bargain collectively given prior to deletion

47.1 Where, before the deletion or severance referred to in subsection 47(1), notice to bargain collectively has been given in respect of a collective agreement or arbitral award binding on employees of a corporation or business who, immediately before the deletion or severance, were part of the public service of Canada,

    (a) the terms and conditions of employment contained in a collective agreement or arbitral award that, by virtue of section 52 of the Public Service Staff Relations Act, are continued in force immediately before the date of the deletion or severance or that were last continued in force before that date, in respect of those employees shall continue or resume in force on and after that date and shall be observed by the corporation or business, as employer, the bargaining agent for those employees and those employees until the requirements of paragraphs 89(1)(a) to (d) have been met, unless the employer and the bargaining agent agree otherwise;

    (b) the Public Service Staff Relations Act applies in all respects to the interpretation and application of any term or condition continued or resumed by paragraph (a);

    (c) on application by the corporation or business, as employer, or the bargaining agent for those employees, made during the period beginning on the one hundred and twentieth day and ending on the one hundred and fiftieth day after the date of the deletion or severance, the Board shall make an order determining

      (i) whether the employees of the corporation or business who are represented by the bargaining agent constitute one or more units appropriate for collective bargaining, and

      (ii) which trade union shall be the bargaining agent for the employees in each such unit;

    (d) where the Board makes the determinations under paragraph (c), the corporation or business, as employer, or the bargaining agent may, by notice, require the other to commence collective bargaining under this Act for the purpose of entering into a collective agreement; and

    (e) this Part, other than section 80, applies in respect of a notice given under paragraph (d).

Order

47.2 The Governor in Council may, by order, exclude from the operation of sections 47 and 47.1 any portion of the public service of Canada that is deleted or severed as described in subsection 47(1) where the Governor in Council, on the recommendation of the Minister after consultation with the Treasury Board and the Minister responsible for that portion of the public service of Canada, is of the opinion that it is in the public interest to do so.

Airports

47.3 Notwithstanding sections 6 and 7 of the Airport Transfer (Miscellaneous Matters) Act, sections 47 to 47.2 apply in the place of sections 6 and 7 of that Act with respect to employees designated pursuant to that Act as designated employees for an airport sold, leased or otherwise transferred to a corporation or other body designated pursuant to that Act.

10. Section 189 of the Act is renumbered as subsection 189(1) and is amended by adding the following:

Inclusion

(2) For the purposes of subsection (1), a federal work, undertaking or business includes

    (a) any portion of the public service of Canada specified from time to time in Part I or II of Schedule I to the Public Service Staff Relations Act that is deleted from that Schedule and that is established as or becomes a part of a corporation or any federal work, undertaking or business to which this Part applies; or

    (b) a portion of the public service of Canada included in a portion of the public service of Canada so specified in Part I or II of Schedule I to that Act that is severed from the portion in which it was included and that is established as or becomes a part of such a corporation or federal work, undertaking or business.