A federal labour board has ruled that government managers must honour any promise of a “guarantee of a reasonable job offer” for employees affected by downsizing — a decision the board said could have far-reaching consequences across the federal public service.“This case could have wide-ranging impacts,” wrote David Olsen, adjudicator with the Public Sector Labour Relations and Employment Board. “Despite the importance of this case and the serious issues raised, it concerns me the wider implications of this decision were not argued before me.”The ruling followed a complaint from a $36,000-a year dishwasher at RCMP regional headquarters in Edmonton whose job was eliminated in 2011. .The employee had been declared surplus with an assurance that he would receive a “guarantee of a reasonable job offer” elsewhere in the federal system. The RCMP later withdrew that guarantee, instead offering a severance package.“At no point during the over four-year period when the grievor was a surplus employee did he receive any guarantee of a reasonable job offer,” wrote Olsen. “There can be no question that no guarantee was ever made.”Olsen concluded the government breached the language of the collective agreement. .“On both that language and meaning, the only possible answer is the employer had to provide the grievor a guarantee of a reasonable job offer.” He ordered compensation or other appropriate remedy within 60 days.“I am mindful of the impact this case could have throughout the public service,” Olsen wrote. “While this case only concerns the wording of the collective agreement, I am aware that workforce adjustment language has been included in other collective agreements.”The decision comes as Prime Minister Mark Carney signals an austerity push to find $25 billion in savings over three years. “I have a simple rule: spend less, invest more,” Carney said last week without providing further details.The federal payroll currently stands at 445,000 employees, up 31% from 340,461 a decade ago, according to a report by the Parliamentary Budget Office titled Full-Time Equivalents In The Federal Public Service. The number is expected to decline to 415,000 by 2028, though still remain above pre-pandemic levels.
