1. Entente de principe Table centrale
Agreement in principle between the Government, represented by the Conseil du trésor,
and the organisations forming
the CSN-FTQ-SISP Common Front

2. Duration of the collective agreement
Entente de principe Table centrale
Duration of the collective agreement
5 years
from April 1, 2010
to March 31, 2015

3. Entente de principe Table centrale
Pay
Fixed pay increases
And new innovative provisions…
Potential increases tied to the nominal Gross Domestic Product (GDP)
Potential increase tied to inflation

4. Maximum potential increases
Entente de principe Table centrale
Maximum potential increases
Fixed pay increases
Potential increases tied to the nominal GDP
Potential increase tied to inflation
Maximum potential increases
April 1, 2010
0.5%
April 1, 2011
0.75%
April 1, 2012
1.0%
1.5%
April 1, 2013
1.75%
3.25%
April 1, 2014 2%
3.5%
March 31, 2015 1%
Total 6%
10.5%

5. Entente de principe Table centrale
Fixed pay increases
April 1, %
April 1, %
April 1, %
April 1, %
April 1, %
Total 6%

6. Potential increases tied to the nominal GDP
Entente de principe Table centrale
Potential increases tied to the nominal GDP
If the sum of the nominal GDP increases exceeds the government’s predictions in its plan for a return to a balanced budget, fixed pay increases will be supplemented

7. Potential increases tied to the nominal GDP
Entente de principe Table centrale
Potential increases tied to the nominal GDP
The nominal GDP is not the real GDP with which we are more familiar. The nominal GDP is higher because it includes inflation.
Year
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Real GDP
6.4%
4.4%
1.4%
2.7%
1.2%
1.9%
2.2% 1%
Nominal GDP
7.4%
6.7% 3%
4.2%
3.9%
4.8%
3.5%
3.7%
5.4%
1.6 %

8. Potential increases tied to the nominal GDP
Entente de principe Table centrale
Potential increases tied to the nominal GDP
April 1, %
April 1, %
April 1, %
Total potential 3.5 %
To be added to fixed pay increases

9. Entente de principe Table centrale
How does it work?
Year
Government’s predictions
on nominal GDP
Potential increases tied to the nominal GDP
2010
3.8%
2011
4.5%
2012
4.4%
0.5%
2013
4.3%
1.5%
2014
The fixed pay raise for 2012 may be increased by up to 0.5% if the
total increase in the nominal GDP
for 2010 and 2011 exceeds 8.3%
(3.8% + 4.5%)

10. Entente de principe Table centrale
How does it work?
The fixed pay raise for may be increased by up to 2%, minus whatever is obtained in 2012, if the total increase in the nominal GDP
for 2010, 2011 and 2012 exceeds 12.7%
(3.8% + 4.5% + 4.4%)
Year
Government’s predictions
on nominal GDP
Potential increases tied to the nominal GDP
2010
3.8%
2011
4.5%
2012
4.4%
0.5%
2013
4.3%
1.5%
2014

11. Entente de principe Table centrale
How does it work?
The fixed pay raise for may be increased by up to 3.5%, minus whatever is obtained in 2012 and 2013,
if the total increase in the nominal GDP for 2010, 2011, 2012 and 2013 exceeds 17%
(3.8% + 4.5% + 4.4% + 4.3%)
Year
Government’s predictions
on nominal GDP
Potential increases tied to the nominal GDP
2010
3.8%
2011
4.5%
2012
4.4%
0.5%
2013
4.3%
1.5%
2014

12. Potential increases tied to the nominal GDP
Entente de principe Table centrale
Potential increases tied to the nominal GDP
A calculation to our advantage
If the nominal GDP grows 0.1% more than the government predicts, employees receive a raise of 0.125%

13. Entente de principe Table centrale
Example for April 1, 2012
In 2012, in order to access the potential 0.5% increase tied to the nominal GDP, the total increase in the nominal GDP for 2010 and 2011 must exceed the 8.3% predicted by the government
Fixed pay increase 1%
Total increase in the nominal GDP
for 2010 and 2011
7.5% ↓
8.3%
8.4%
8.5%
8.6%
8.7 %
8.8%
Potential increase tied to the nominal GDP 0%
0.125%
0,25%
0,375%
0.5%
0.5 %
Total increase
1.125%
1.25%
1.375%
1.5%

14. Potential increases tied to the nominal GDP
Entente de principe Table centrale
Potential increases tied to the nominal GDP
The concrete advantage:
If the total growth in the nominal GDP exceeds government’s predictions by 2.8% over the first four years of the collective agreement, we will reach the maximum of 3.5% in potential increases tied to nominal GPD

15. Potential increase tied to inflation
Entente de principe Table centrale
Potential increase tied to inflation
If inflation over the life of the collective agreement is greater than the fixed increases plus increases tied to the nominal GDP…
Pay rates will be adjusted by up to 1%
The pay adjustment will take effect on March 31, 2015, which is the last day of the collective agreement
Total potential 1%

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Pension plan
The agreement in principle reached on the pension plan allows for :
More secure benefits
Stabilized pension contributions
based on parameters put forward by the Common Front

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Pension plan
Limited variation in the contribution rate
For 2011, 2012 and 2013, the maximum variation in the contribution rate will be limited to 0.5%
For subsequent years, the maximum variation will be the difference between the required contribution and the current contribution divided by 3

18. Entente de principe Table centrale
Pension plan
Concrete effects of this limited
variation in the contribution rate
Year
Predicted contribution rate
based on the actual valuation method
Maximum annual contribution rate
based on the new valuation method
2011
11%
8.19% + (0.5%) = 8.69%
2012
8.69% + (0.5%) = 9.19%

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Pension plan
Change in the contribution formula
The portion of earnings exempt from contributions, now equal to 35% of Maximum Pensionable Earnings (MPE), will be reduced to 25% of MPE (MPE in 2010 = $47 200)
The change will be phased in gradually over a 5 year period, starting on January 1, 2012

20. Entente de principe Table centrale
Pension plan
Change in the contribution formula
Employees who have a salary equal to or higher than the MPE will benefit from a reduction in their contributions
Employees whose salary is lower than the MPE will not be affected by this and will not pay more in contributions
The shortfall in contributions in the participants’ fund will be absorbed either through savings made in the pension plan itself or by the government

21. Entente de principe Table centrale
Pension plan
Indexation
After each actuarial valuation, if the surplus is of more than 20% of liabilities and is sufficient to cover costs imputable to the participants’ fund, there will be indexation.
It will cover contributions between July 1, 1982 and December 31, 1999
It will be calculated according to the same formula used since January 1, 2000:
CPI minus 3%, with a minimum of 50% of the CPI
This agreement only covers the part of benefits imputable to the participants’ fund. The governement does not undertake in advance to index the part of benefits imputable to it.

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Pension plan
Starting on January 1, 2011, possibility of contributing for more than 35 years to increase benefits
A new cap of 38 years of effective service will be introduced
Pension benefits could reach up to 76% of pay (2% per year)
The 36th, 37th and 38th years of contributory service will not be
coordinated with the Québec Pension Plan. Therefore, they will be recognized in full at 2%, even after the pensioner turns 65 years of age
No retroactive contribution or buybacks will be allowed
This is a voluntary measure that does not change in any way the criteria allowing for retirement after 35 years of service for those who wish to leave at that moment

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Pension plan
Updating of the tables of rates for buying back service
The new tables will be applicable as of January 1, 2011
They will be established age by age
They will be revised after each full actuarial valuation (every 3 years)
The costs of buybacks will be more equitable between participants

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Pension plan
Use of the bank of 90 days
Given that since the year 2000, employees can contribute to the pension plan for all their absences…
As of January 1, 2011, use of the bank of 90 days will be limited to parental leave

25. Entente de principe Table centrale
Pension plan
Pension credits
Pension credits were used in particular to buy back years worked before the RREGOP was created in 1973
People who are presently eligible to buy back years worked before 1973, will be allowed to do so until December 31, 2010
As of January 1, 2011, it will no longer be possible to acquire these pension credits

26. Entente de principe Table centrale
Pension plan
Employer demands withdrawn
Introduction of an actuarial penalty for people who would have retired with 35 years of service but without having reached the 55 years of age
Raise the actuarial penalty from 4% to 6% per year of early retirement
Introduction of stricter clauses when employees come back to work after retiring

27. Entente de principe Table centrale
Parental rights
Our Common Front demand aimed at updating our collective agreements to bring them into line with:
The Act respecting labour standards
The Act respecting parental insurance
The Employment insurance Act

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Parental rights
Collective agreements will incorporate :
Additional grounds for splitting maternity, paternity or adoption leave set out in the Act respecting labour standards
The possibility of splitting parental leave (52 weeks) on the same grounds
An extension of the length of time that a suspension of maternity, paternity, adoption or parental leave can last
A 3 weeks’ advance notice to be given for taking paternity, adoption or parental leave

29. Entente de principe Table centrale
Parental rights
Same compensation for paternity and adoption leave
5 days paid 100%
5 weeks paid 100%, in link with the Québec Parental Insurance Plan or the Employment Insurance Plan, to be taken within 52 weeks of the birth or adoption of the child, with the same possibilities of extensions
Social benefits maintained during the paternity or adoption leave
Employees returning from paternity or adoption leave will have the same rights as employees returning from adoption or maternity leave

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Parental rights
Leave for parental responsibilities becomes leave for family responsibilities
Extended to cover the father, mother, spouse…
The number of days of leave goes from 6 to 10

31. Entente de principe Table centrale
Parental rights
Other gains
There will be no more obligation to payback benefits to the employer when the adoption does not go through
Some inconsistencies in the calculation of benefits when an employee works for more than one employer are ironed out

32. Entente de principe Table centrale
Skilled workers
A joint inter-sectoral working group on skilled wokers is set up
Composition : 5 union representatives and employer representatives
Mandate : To examine the situation regarding the attraction and retention of personnel in the skilled worker job titles in the public and parapublic sector
Recommendations : The working group will file joint or seperate recommendations by December 31, 2011

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Skilled workers
The job titles that will be analysed by the working group appear on page 14 of the consultation document

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Have a good debate !