What factors are considered in determining compensation in the federal public service?

Sections 148 and 175 of the Federal Public Sector Labour Relations Act give guidance relevant to the determination of compensation in the federal public service.  The Act identifies five factors which should be taken into account:

• Necessity of offering compensation and working conditions comparable to the private and public sectors;

• Need to establish compensation and working conditions which are fair and reasonable in relation to qualifications required, work performed, responsibility assumed, and the nature of services rendered;

• Need to maintain appropriate internal relativity of compensation and working conditions within an occupation and as between occupations in the public service;

• Necessity of attracting competent persons to, and retaining them in, the public service in order to meet the needs of Canadians; and

• State of the Canadian economy and the Government of Canada’s fiscal circumstances.

Treasury Board, in its capacity as the Employer, also has a Policy Framework for the Management of Compensation within the federal public administration.  Compensation management is guided by four overarching principles:

• External Comparability:  Compensation should be competitive with, but not lead, that provided for similar work in relevant labour markets;

• Internal Relativity:  Compensation should reflect the relative value to the Employer of the work performed;

• Individual/Group Performance:  Compensation should reward performance, where appropriate and practicable, based on individual or group contributions to business results.

• Affordability:  The cost of compensation must be affordable within the context of commitments to provide services to Canadians, the fiscal circumstances of the Government of Canada, and the state of the Canadian economy.