1-Budget 2019-2021 To Convention-Psac 2018 Conv

2019-2021 Budget
Presented to the
PSAC 2018 National Convention
PSAC NATIONAL TRIENNIAL CONVENTION

TORONTO, ONTARIO | APRIL 29 to MAY 4, 2018
SECTION A
2019-2021 BUDGET
THE NUMBERS

AͲ1
PSAC BUDGET 2019-2021
2016 2016 2017 2017 2018 2019 2020 2021
Budget Actual Budget Actual Budget Budget Budget Budget
Revenue
Membership Dues 79,527,514 78,970,215 80,720,427 74,482,808 81,931,233 85,000,000 86,275,000 87,569,125
Dues Increase 2,783,293 2,825,043 2,867,418
Directly Chartered Locals 300,000 395,250 300,000 468,685 300,000 400,000 400,000 400,000
Investment Income 1,000,000 190,530 1,000,000 391,401 1,000,000 750,000 750,000 750,000
Other Revenue 1,400,000 1,304,301 1,400,000 1,098,556 1,400,000 1,400,000 1,400,000 1,400,000
Solvency Dues Levy
1,012,680
Recognition
Total Revenue 82,227,514 80,860,296 83,420,427 77,454,130 84,631,233 90,333,293 91,650,043 92,986,543
Expenses
Salaries and Benefits 44,396,384 44,214,552 45,040,298 46,636,359 45,693,870 49,981,027 50,730,742 51,491,704
Members' Expenses 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,714,688 24,070,409
Other Operating Expenses 8,062,395 8,701,263 8,062,395 8,519,924 8,062,395 9,164,405 9,301,871 9,441,399
Rent 5,702,200 5,613,364 5,761,200 6,190,196 5,836,200 5,964,729 6,007,331 6,054,348
Amortization of Capital Assets 2,032,500 2,165,589 1,886,359 2,101,625 1,565,332 2,085,136 1,701,098 1,470,891
Miscellaneous (Expenses not
75,000 53,000 75,000 14,000 75,000 100,000 100,000 100,000
budgeted for)
Inflation 453,383 906,767
Total Expenses 82,431,643 80,991,729 83,441,799 85,825,679 84,302,728 90,659,522 91,555,730 92,628,751
Excess of (Expenses Over
Revenue) Revenue over (204,129) (131,433) (21,372) (8,371,549) 328,505 (326,229) 94,313 357,792
Expenses
Internally Restricted Funds - (356,504) - (2,198,160) - - - -
(204,129) (487,937) (21,372) (10,569,709) 328,505 (326,229) 94,313 357,792

125,876

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PSAC BUDGET 2019-2021
THE NUMBERS
2016 2016 2017 2017 2018 2019 2020 2021
Deductee count used for dues
175,000 176,605 175,000 179,359 175,000 176,000 176,000 176,000
revenue
Average Salary used for dues

$49,688 $49,606 $50,434 $46,109 $51,190 $53,031 $53,827 $54,634
revenue
Average Member Dues

0.9075% 0.9075% 0.9075% 0.9075% 0.9075%
Percentage - Base
0.9107% 0.9107% 0.9107%
Adoption of Resolutions :
- Ongoing 0.0032% 0.0032% 0.0032% 0.0032% 0.0032%
- One Budget Cycle 0.0039% 0.0039% 0.0039% 0.0039% 0.0039% - - -
Dues Increase 0.0298% 0.0298% 0.0298%
Levy for Pension Plan Solvency 0.0593% 0.0593% 0.0593% 0.0593% 0.0593% - - -
Member Dues Percentage 0.9739% 0.9739% 0.9739% 0.9739% 0.9739% 0.9405% 0.9405% 0.9405%
Deductee projected salary

1.5% N/A 1.5% N/A 1.5% 1.5% 1.5% 1.5%
increases
Inflation factor 1.5% 1.4% 1.5% 1.6% 1.5% 1.5% 1.5% 1.5%

MEMBERS' EXPENSES
2019 - 2021
2016 2016 2017 2017 2018 2019 2020 2021

NEGOTIATIONS AND MOBILIZATION 2,880,000 3,474,050 2,880,000 2,980,054 2,880,000 3,050,000 3,050,000 3,050,000
REPRESENTATION 1,250,000 1,652,084 1,250,000 1,487,754 1,250,000 1,350,000 1,350,000 1,350,000

LEGAL FEES 1,700,000 1,706,734 1,700,000 1,653,493 1,700,000 1,700,000 1,700,000 1,700,000
HUMAN RIGHTS ACTIVITIES 1,730,699 1,595,258 1,730,699 2,968,127 1,730,699 1,906,520 1,906,520 1,906,520
HEALTH & SAFETY ACTIVITIES 503,000 1,088,156 503,000 359,805 503,000 628,000 628,000 628,000
REGIONAL ACTIVITIES 1,792,000 1,995,801 1,792,000 2,000,025 1,792,000 1,832,000 1,832,000 1,832,000
EDUCATION 2,727,950 1,936,936 2,727,950 3,206,122 2,727,950 3,032,950 3,032,950 3,032,950
STEWARDS' INITIATIVES 170,000 56,573 170,000 76,528 170,000 100,000 100,000 100,000
YOUNG WORKERS 175,000 86,557 175,000 30,307 175,000 140,000 140,000 140,000
ORGANIZING 1,000,000 631,793 1,000,000 687,768 1,000,000 900,000 900,000 900,000

DIRECTLY CHARTERED LOCALS 300,000 270,380 300,000 121,282 300,000 400,000 400,000 400,000
COMMUNICATIONS 865,000 650,542 865,000 756,322 865,000 865,000 865,000 865,000
CAMPAIGNS 2,107,865 778,707 2,107,865 1,730,744 2,107,865 1,831,000 1,831,000 1,831,000

SUPPORTING OUR ALLIES 304,000 252,500 304,000 272,000 304,000 275,000 275,000 275,000
SOCIAL JUSTICE FUND - 60,172 - 35,784 - 200,000 200,000 200,000

PARTICIPATION IN THE LABOUR MOVEMENT 3,327,280 3,838,275 3,327,280 3,747,747 3,327,280 3,648,015 3,648,015 3,648,015
INTERNAL GOVERNANCE 1,280,370 74,430 1,280,370 132,691 1,280,370 1,455,740 1,455,740 1,455,740
OTHER MEMBERSHIP EXPENSES 50,000 95,013 50,000 117,022 50,000 50,000 50,000 50,000
Sub-total 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,364,225 23,364,225

MEMBERS' EXPENSES INFLATION 350,463 706,184
TOTAL 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,714,688 24,070,409

OPERATING EXPENSES
2019-2021
2016 2016 2017 2017 2018 2019 2020 2021
Salaries and Benefits 44,396,384 44,214,552 45,040,298 46,636,359 45,693,870 49,981,027 50,730,742 51,491,704
Rent 5,702,200 5,613,364 5,761,200 6,190,196 5,836,200 5,964,729 6,007,331 6,054,348
Other Operating Expenses:
Communication 886,844 805,419 886,844 856,227 886,844 475,617 482,751 489,993
General 1,562,270 1,385,583 1,562,270 1,580,891 1,562,270 2,056,411 2,087,257 2,118,566
Travel 3,324,216 3,493,019 3,324,216 3,776,207 3,324,216 3,794,152 3,851,064 3,908,830
Sundry 2,141,104 2,860,318 2,141,104 2,193,506 2,141,104 2,518,797 2,556,579 2,594,928
Meeting 147,961 190,278 147,961 142,223 147,961 181,928 184,657 187,427
Recovery - (33,354) - (29,130) - (25,000) (25,375) (25,756)
National Staff Conferences - - - - - 162,500 164,938 167,412
Total 8,062,395 8,701,263 8,062,395 8,519,924 8,062,395 9,164,405 9,301,871 9,441,399
Amortization of Capital Assets 2,032,500 2,165,589 1,886,359 2,101,625 1,565,332 2,085,136 1,701,098 1,470,891
Miscellaneous 75,000 53,000 75,000 14,000 75,000 100,000 100,000 100,000

SECTION B
2019-2021 BUDGET
INTRODUCTION and OVERVIEW

Section B
Budget 2019-2021
Introduction and Overview
Table of contents:
Introduction: Building Our Union, Building Our Future B-3

Revenue Assumptions B-6
Dues Impact B-11
Projected Revenue: 2019-2021 B-12
Projected Expenses, 2019-2021: Staff Salaries and Benefits B-13
Members’ Expenses for 2019-2021 B-16
Operating Expenses, 2019-2021 B-17
Inflation and the Bottom Line B-18
PSAC’s Overall Financial Health, and Internally Restricted Funds B-19
The Membership Asset Fund B-20
The PSAC Staff Pension Plan Solvency Reserve B-21
Report on Other Restricted Funds, 2016-2018 B-24
Other Restricted Funds, 2019-2021 B-27
The PSAC Strike Fund Contribution B-28
PSLRA Adjudication Costs B-29
Special Dues Levy – General Fund B-30
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Introduction: Building Our Union, Building Our Future
The PSAC’S 2019-2021 budget has been built in a very different context than three years ago.
In 2014-2015, we believed that the PSAC was facing a significant decline in revenues. We had come through three years
of the federal government’s Deficit Reduction Action Plan (DRAP) where 1 out of every 7 PSAC members had been
declared affected under the Workforce Adjustment Appendix. At the time our current budget was adopted, at the 2015
Convention, we were still living under a majority Stephen Harper government. After almost a decade in power, the Harper
government had become more and more emboldened to undermine labour and workers’ rights. We faced their attacks at
the bargaining table, in the workplace, in Parliament, and in the courts.
As a result of that context, we adopted a budget which was essentially a restraint budget. We cut our revenue
expectations by nearly $2 million. We also cut spending in two areas: Salaries and Benefits and Other Operating
Expenses. We made our largest cut to the area of staff Salaries and Benefits – a reduction of 3.4% taking into account
inflation. This set us up for a “transition” process that could have resulted in reducing staff levels by approximately 12
positions.
Today, the context is quite different. The election of the Liberal government in the fall of 2015 has allowed us to
significantly shift our future direction. While the Liberals have not exactly gone on a spending spree, they have started to
rebuild certain areas of the public service. They have also introduced legislation to reverse many of the Tories’ attacks on
unions.
As agreed to by our National Board of Directors (NBoD), in adopting the 2016-2018 PSAC Strategic Plan, this change in
context allows the PSAC to shift from a reactive mode to a proactive mode. For ten years, our union operated from a
defensive position, especially at the bargaining table, where we were subjected to unprecedented pressure from
employers to make contract concessions. The new federal government, elected on the promise of real change, “…creates
opportunities to win back lost ground, and to make real gains.”
This approach is also reflected in the theme for the 2018 Convention: “Building our Union, Building our Future.”
The NBoD plan laid out a series of bold goals for making gains in ten key areas of union work. This budget gives PSAC
the resources it needs to make real achievements and progress towards these goals, with a particular focus on several
key areas of work:
x We will strengthen our REPRESENTATION work, first in the area of adjudication and arbitration, and secondly by
working more closely with Components and Locals to strengthen our ability to resolve workplace problems and
increase members’ satisfaction with our representation work.
x We will strengthen our COLLECTIVE BARGAINING and MOBILIZATION work across our more than 315
bargaining units, with the goal of making real gains in wages and working conditions.
x We will ensure strong capacity for the unions’ COMMUNICATIONS and CAMPAIGNS work so that we can fight
against privatization and contracting out, and for strong economic, labour and human rights.
x We will increase funds for members’ participation in key areas: Bargaining, Human Rights, Health and Safety, and
Education.
x And we will ensure that we have the necessary internal supports needed to operate effectively and professionally
as a union and as a responsible employer.
Given the new context, this budget provides for an increase in revenues, based on a much more stable membership base
and the fact we have now settled collective agreements for most of our members through to 2018. In the coming pages
our revenue projections will be explained in detail.
To meet the goals of building the union, this budget also provides for an increase in spending. The largest increases go to
the two parts of the budget that were cut three years ago: Salaries and Benefits, and Other Operating Expenses. We are
also increasing most of the line items in the category of Members’ Expenses, to address inflation pressures and to provide
for increased member participation in education, conferences, and bargaining.
This budget does propose a small dues increase for PSAC General Revenues. As a result, the general fund dues will
increase by approximately $1.30 per member per month, on average.
However, this budget plan also provides that the PSAC will no longer be collecting the PSAC Staff Pension Plan
Special Dues Levy that was first established at the 2012 Convention. This special levy, set at 0.0593% of salary, was
started to address a potential solvency deficit in the pension plan for the PSAC and participating Components’ staff. As
will be described in detail in the coming pages, with a total fund as of December 2017 of $32.5 million, we no longer
believe there is a requirement for this special levy to continue. As a result, at the October 2017 National Board of
Directors meeting, the NBoD made the decision to cease collection of the PSAC Staff Pension Plan Special Dues Levy as
of January 1, 2018.
At the same time, the NBoD made the decision to invoke – also as of January 1, 2018 – the PSAC General Fund Special
Dues Levy that had been provided for in the 2016-2018 Budget. That budget gave the NBoD the ability and responsibility
to put into place such a levy if we faced a fall in revenue of greater than 2%. Given the problems with the Phoenix pay
system, by 2017 our revenue decline was in the order of 8%. While the 2016-2018 Budget mandated the use of a higher
rate, the NBoD set the PSAC General Fund Special Dues Levy at the same 0.0593% of salary. The net effect is no
change in dues being collected or owed. This was essential because at this juncture it is almost impossible to change
the dues rate being collected. The Board’s decision ensured that no additional pressure was placed on the Phoenix
pay system through dues changes, at a time where the priority needs to be fixing members’ pay problems and getting
collective agreements implemented.
This budget has been built on the assumption that we will also bring the PSAC General Fund Special Dues Levy to an
end no later than the end of 2018. This will result in a reduction of total dues paid to the PSAC. So while this budget
provides for a small dues increase for PSAC General Revenues, in fact the total dues being collected will be reduced as
a result of this budget. The reduction is anticipated to be approximately $1.50 per member per month, on average.
So while this is a “dues increase” budget for regular PSAC operations, the end of the special levies means that it’s a
“dues decrease” in terms of total PSAC percentage dues.
Revenue Assumptions
There are three main assumptions which are used to calculate the dues revenue projections for the PSAC’s budget:
1) Membership numbers
2) Members’ average salary
3) The PSAC dues rate
These three assumptions, multiplied together, equal the anticipated dues revenue for each of the three years in this
budget.
Our ability to accurately establish the first two of these assumptions has been significantly impacted by the problems with
the Phoenix pay system, through which we receive dues for approximately 75 per cent of our members. The Phoenix pay
system has had a devastating effect on members’ pay – and on members’ lives. Tens of thousands of our members have
been paid too little, too much, or not at all. When members aren’t paid correctly, their union dues are also wrong. This
means that we are not able to accurately count on the membership numbers and members’ average salary data that have
been coming out of the pay system in 2016 and 2017.
A significant part of the problem stems from the fact that when Phoenix was turned on in February of 2016, the system
stopped running the PSAC “Change File,” which makes the small month-by-month adjustments needed to ensure that the
dues actually owed equals the dues actually paid by members. It is through the PSAC Change File that we issue refunds
to members who paid more than they should have the previous month, and collect “arrears” – i.e. the amounts owed to
the union. Usually, these refunds and arrears are just a few dollars a month. However, when multiplied by thousands of
members per month over a long period of time, they can add up to a lot of money. The fact the Change File is not running
is a significant cause of our revenue shortfalls. Moreover, because the PSAC distributes revenues to Locals and
Components first, the dues shortfall is disproportionately impacting PSAC. We’re now on target for falling short of our
revenue target for 2017 by more than $6 million.
Our priority – and the government’s promise – has been to concentrate on fixing members’ pay. Fixing the dues problem
has been a much lower priority. Consequently, we have not been able to implement any changes in dues that result from
the signing of new collective agreements.
Also, there have been some changes to Local and Component dues that could not be implemented as a result of Phoenix.
Trying to implement any changes now would have put further pressure on the system. We could not risk putting further
pressure on the system at a time when the number of pay problems has escalated dramatically, particularly with the
implementation of retro pay for thousands of employees. For now, we’ve been left with no alternative but to hold dues
rates constant.
We are pursuing every possible avenue to get our dues corrected, but we do not expect to see results from our escalated
pressure until late 2018.
We are budgeting on the assumption that by the time the next cycle starts – in January 2019 – the Change File will be
running, that we will be able to implement changes in the dues rates for PSAC, Components and Locals, and that we will
see revenues increase to what we should be receiving. We are also budgeting on the assumption that the PSAC General
Fund Special Dues Levy will end.
In the meantime, our Dues Revenue assumptions need to be based on the most reliable information possible.
Assumption 1) Membership numbers
From a membership low of 141,543 in 1998, the PSAC experienced thirteen straight years of membership growth, to a
peak of 185,586 in 2011. This growth was the result of rebounds in federal employment levels plus the success of the
PSAC’s Organizing Program. This changed in 2012 with the Harper government’s Deficit Reduction Action Plan (DRAP),
which boasted cuts of 19,000 federal sector jobs over three years. Our organizing could not keep pace with those cuts,
and by 2015 our average membership had dropped by about eight thousand, to 177,126.
Since 2016, we know that most government departments have started to re-hire workers to implement increased program
spending plans. We believe the problems with Phoenix have masked some of that growth, and that some of the new hires
are not being reflected in our federal government membership counts. In 2016, our average membership dropped further,
to 176,605. In 2017 we’re seeing some growth, and our average was 179,359.
While the economic and political climate is improved from three years ago, we continue to believe that some prudence is
required in establishing our budget targets. We have therefore built the 2019-2021 budget using a membership count
of 176,000.
Assumption 2) Members’ Average Salary
Unlike many unions (and some of our Components), the PSAC collects a percentage dues rate based not on actual
salary, but on the “lowest step” of the pay grid for each classification and level.
We derive the members’ average salary from the dues that are received. In 2015 – the last year before Phoenix was
turned on – we collected total dues of $82,840,000 from a membership base of 177,126. This was equal to a members’
average salary of $51,536.
As described above, as a result of Phoenix our actual revenues received have dropped significantly in 2016 and 2017,
which means our “members’ average salary” calculation for 2016 and 2017 cannot be depended on as accurate. The
cause of this drop is not new organizing in lower paid or part-time sectors. The drop in 2016 and 2017 is due entirely to
missing revenue from the federal government portion of our membership.
What we do know is that the vast majority of our Treasury Board and Agency members are in the process of receiving pay
increases as a result of collective agreements achieved in 2016 and 2017. The PSAC does not collect a penny of dues
from retroactive pay. Because we have a percentage dues rate, the dollar value of dues increases to match the new pay
rates, once the agreements are signed. For example, most Treasury Board and Agency contract settlements have
resulted in wage increases over four years of at least 6.2%. This means that a PSAC member currently earning $50,000 a
year will see an annual gross pay increase of $3,100. Based on the current percentage dues rate, the PSAC portion of her
or his dues should rise by $28 a year.
However, for the big Treasury Board and Agency units we have not been able to implement these new dues amounts,
and must continue to delay until Phoenix has stabilized to the point we are able to do so. Once again, because of
Phoenix, this dues adjustment has not taken place. Once it does, we only collect the new amount on a go-forward basis,
not retroactively.
We are confident that we should build into our budget an assumption that reflects the anticipated wage increases we have
negotiated. However, because of the uncertainty we are experiencing as a result of the Phoenix pay system, we also
believe we need to be prudent with our growth assumptions. As a result, we are budgeting for an average members’
salary figure for 2019 of $53,031, which is 2.9% higher than 2015. The figures for the remaining two years are assumed
using an inflation figure of 1.5% resulting in the following:
2019 $53,031
2020 $53,827
2021 $54,634.
Assumption 3) PSAC Dues Rate
Going into the 2015 PSAC Convention, the base dues rate for PSAC General Revenues was 0.9075% of salary. During
the course of Convention, eight resolutions were passed which increased the dues rate for 2016-2018. Five of those
resolutions provided for ongoing dues increases, totaling 0.0032%. Three of these resolutions provided for one-time dues
increases that would expire at the end of 2018. These totaled 0.0039%.
Consequently, the PSAC General dues rate for 2016-2018 has been 0.9146%. When you include the PSAC Staff Pension
Plan Special Dues Levy of 0.0593% the total percentage dues collected for PSAC starting in 2016 has been 0.9739%.
In order to establish the base dues rate for 2019-2021, we need to subtract the one-time dues increases. This gives us a
base dues rate of 0.9107%. If we were presenting a “no dues increase” budget, this would be the PSAC general dues rate
for 2019-2021. This budget proposes a small ongoing dues increase of 0.0298% in order to generate an additional
revenue stream of approximately $2.8 million a year for PSAC general expenses. Because this budget provides for the
cessation of the PSAC Staff Pension Plan Special Dues Levy, the total dues rate for 2019-2021 will be 0.9405%.
This table summarizes the impact of these changes.
2016-2018 2019-2021
Starting Rate 0.9075% Starting Rate 0.9146%
Add: One Budget Cycle (2016-2018) Subtract: One Budget Cycle (2016-2018)
0.0039% (0.0039%)
Increase dues increase
Add: On-going dues increase 0.0032%
Sub-total 0.9146% Sub-total 0.9107%
General dues increase 0.0298%
Special Levy Rate 0.0593%
Total Rate 0.9739% Total Rate 0.9405%
To repeat: while there is a dues increase for regular PSAC operations, the end of the special levies means that it’s a dues
decrease in terms of total PSAC percentage dues.
Dues Impact
Expressed another way, the impact on average monthly dues (using the average salary of $53,031 for 2019) is as follows:
CURRENT AVERAGE PSAC DUES Rate Average Monthly

PSAC General Fund 0.9146% $40.42
PSAC Staff Pension Plan Special Dues Levy 0.0593% $2.62
Total 0.9739% $43.04
POTENTIAL 2019-2021 AVERAGE DUES Rate Average Monthly

PSAC General Fund 0.9107% $40.25
Increase in General Fund Dues Rate 0.0298% $1.32
Total 0.9405% $41.57
Net Change (reduction) (0.0334%) $(1.47)
What this means is that while there’s an increase in average monthly dues for PSAC’s General Fund, there is a decrease
in the total average monthly dues being paid to the PSAC. (Note that this does not account for any changes in Component
or Local dues).
Projected Revenue: 2019-2021
The following table summarizes the assumptions and proposals built into the 2019-2021 budget.
2019 2020 2021
Number of Members 176,000 176,000 176,000
Average Salary 53,031 53,827 54,634
Base Dues Rate 0.9107% 0.9107% 0.9107%
Projected Dues Revenue, Base Dues Rate 85,000,000 86,275,000 87,569,125
Dues Increase 0.0298% 0.0298% 0.0298%
Projected Dues Revenue from increase 2,783,293 2,825,043 2,867,418
Total Dues Revenue 87,783,293 89,100,043 90,436,543
Other Revenue 2,550,000 2,550,000 2,550,000
TOTAL REVENUE 90,333,293 91,650,043 92,986,543
Note that the “Other Revenue” total of $2,550,000 includes three specific line items that are shown in Section A of the
Budget. These include:
x Investment Income: we are projecting a decline based on a careful analysis of current actuals – from $1,000,000 a
year to $750,000
x Other Income: we are projecting to maintain this line at $1,400,000 a year
x Directly Chartered Locals: This is the portion of DCL dues that is the “Component Equivalent Dues Rate” for those
DCLs provided with additional services by the PSAC. This amount is being increased, from $300,000 a year to
$400,000 a year. Read the “Directly Chartered Locals” portion of Section C for more detail on this revenue and the
associated expenses.
Projected Expenses, 2019-2021: Staff Salaries and Benefits
PSAC staff in headquarters and in our 23 Regional Offices provide services to our members in every province and
territory in Canada, not to mention those members who work overseas.
Because of the nature of our organization, our staff are essential to achieving our goals for our members – better
collective agreements; protection of members’ rights in the workplace and their communities and a Union that is
democratic and accountable to members. Every day PSAC staff bring to work their knowledge, their energy, their skills
and their dedication to union principles. Because we’re a union, we take our responsibility as an employer very seriously.
We strive to provide PSAC staff with competitive salaries, benefits and working conditions reflecting their contributions
and our principles.
However, the last couple of PSAC budgets have reduced staff spending. At the 2012 Convention, the staff salary line item
for 2013 was cut by $919,000. Given that wage increases needed to be taken out of that smaller envelope, this translated
into a cut of about 3.5%. At the 2015 Convention, the staff salary line item for 2016 was once again cut, this time by
$907,000. Once again, given that wage increases needed to be taken out of that smaller envelope, this translated into a
cut of about 3.4%.
This budget reduction was not one we really wanted to make. It was a hard choice made at a time of declining revenues.
In the 2016-2018 budget, we adopted a "total envelope" for salaries and benefits spending, rather than budgeting based
on a fixed number of positions. This approach was adopted to provide the PSAC with more flexibility to meet emerging
needs and reduce the impact of the cut. That’s why we anticipated that the cut in spending could amount to a reduction of
between 8 – 16 positions. In fact, no staff layoffs have taken place, in large part because of this approach.
The 2015 Convention also approved the creation of a $4 million Transition Fund designed to "minimize the impact" of a
cut in spending, and ease the “transition to a somewhat smaller organization." We anticipated that the Fund would be
used to identify union priorities, implement changes to align with these priorities, and make use of attrition to achieve
reductions in spending.
While we were seeking to minimize the negative impact of the cut in salaries, the Budget did mean we would eventually
need to reduce the level of services and functions performed by PSAC staff.
In fact, in 2016, we used very little of the Transition Fund. We actually met the budget target without drawing on the fund
for salaries. Our only Transition Fund expenses in 2016 were for meetings of the Transition Working Group – a cross-
organization body that brought together AEC officers, Component Presidents, and PSAC managers, to advance the
Transition process.
The main reason we were able to meet the budget target for 2016 was because of lower than expected total benefits
spending: in 2016 benefits spending was just 35% of salaries instead of the historical 40%.
However, savings were also achieved because of deliberate decisions to leave some positions vacant. As a result of the
budget, the Directors’ Team was very cautious with its staffing approvals. Some of those lags were longer than expected
– or desired. The cautious approach also meant that we made greater use of term positions than we normally would.
While term employment has its place, too much use of term employment can lead to more short term backfilling, more
turnover and less stability. All this means that we lose good people who find permanent jobs elsewhere. Instability also
makes it harder to provide the services members need and want.
2017 has been different. We have moved to try and reduce the vacancy rate, reduce the use of term employment, and
stabilize staffing. The flexibility provided by the “overall envelope approach” and the Transition Fund has allowed the AEC
and the Directors’ Team to address a number of emerging needs, such as:
• Adding two permanent Grievance and Adjudication Officers (as part of a strategy to improve representation and
lower spending on outside counsel).
• Incorporating the salaries of our two Social Justice Fund positions into the regular salary envelope.
• Converting some part-time positions to full-time and reducing the use of term staffing.
• At the same time, we have continued to leave some positions vacant throughout the cycle.
At this point we have drawn on the Transition Fund to cover current salary and benefits spending of $1.3 million in 2017
and anticipate another $1.25 million in 2018. We will also be using some of the Transition Fund to look at ways we can do
the work we need to do more effectively and more efficiently.
In establishing the salary envelope for 2019-2021, the first thing we wanted to do is ensure that we are able to cover our
existing staff levels. We carefully examined current spending, looking position by position. As a result of negotiated wage
increases and inflation costs on benefits, we predict we would need a staff salaries and benefits budget of approximately
$48.2 million just to stay where we currently are.
However, we don’t want to stay where we currently are. We know that our members expect us to act on their priorities.
They expect us to negotiate strong collective agreements and to vigorously defend their rights through the grievance
process. They expect us to represent their voices through political action and campaigns. Our members deserve a Union
that can address these priorities. To do this more effectively, we need to increase our staff capacity – and we need to
ensure that our staff have access to the training and support they need to serve our members’ interests. Therefore, this
budget proposes to add to our staff capacity with an additional increase totaling about $1.8 million.
The result is a 2019 Salaries and Benefits spending envelope of $49,981,000. The salary envelope being proposed will
allow a staff range of between 362-372 positions.
Also, as a result of this budget, staff salaries and benefits will be 55% of total spending. This is a little bit higher than the
54% of spending in previous budgets, but a much lower amount than many other unions with whom we have compared
our spending.
Section D provides additional technical information related to staff and benefits spending.
Members’ Expenses for 2019-2021
Members’ Expenses are the funds used to directly support the participation of members in our union, and the delivery of
programs and services to our members.
It is from these funds we pay for the cost of members’ loss of salary when they take leave to participate in collective
bargaining, education, conferences and conventions. Members’ travel also comes out of these funds.
However, the various categories also support a range of other costs for services in areas such as representation,
communications, and political action. It is also from this category of expenses that the PSAC pays its costs to affiliate to
the Canadian Labour Congress and the various provincial and territorial Federations of Labour.
As in previous budgets, total spending on Members’ Expenses represents 26% of all budgeted expenditures over the
2019-2021 cycle.
To be clear, the Members’ Expenses category does not work in isolation from other parts of the budget. Many of the
PSAC’s programs and services depend on resources found in each of Salaries, Members’ Expenses, and Other
Operating Costs. For example, when we negotiate collective agreements for our members, spending takes place from
three areas:
(a) staff salary spending under the Salaries and Benefits line item;
(b) the Negotiations line item under Members’ Expenses, which pays for member loss of salary, member travel
and accommodation, and the costs of negotiation (e.g. room rental and interpretation); and
(c) the Travel lines under the Other Operating Expenses portion of the budget, which cover staff travel and
accommodation associated with bargaining.
This same thing is true of most program areas, such as education, organizing, conferences, representation, and
conventions.
Section C provides the detailed breakdown of the budget for each category of Members’ Expenses. In setting individual
budget lines, we have tried to pay greater attention to past spending patterns. There are a number of areas where we are
proposing to remove the line item or decrease the budget for the line item because the funds were not fully utilized. A few
changes are also being made to how some areas of spending are grouped, to better reflect emerging needs and priorities.
Generally speaking, most areas of Members’ Expenses are receiving increases as a result of this budget, including a
large number of the line items that were frozen in the last budget. Some of these increases are designed to reflect
inflationary pressures, particularly in those categories that pay for members’ loss of salary, travel and accommodation.
These increases help ensure that we are able to maintain the current delegate entitlement for important conferences such
as the National Equity Conferences and the National Health and Safety Conference. Other increases are being made to
expand programming, in areas such as Education, Local Development, Joint PSAC-Component campaigns, and the new
line item for the National Health and Safety Policy Committees Forum.
Operating Expenses, 2019-2021
Besides Salaries and Members’ Expenses, the other major categories of spending include Rent, Amortization of Capital
Assets, and the five categories of spending under the Other Operating Expenses heading (Communication, General,
Travel, Sundry, Meeting Costs).
In the 2016-2018 Budget, the Other Operating Expenses were cut by a total of 10 per cent. This budget restores that cut,
but also contains additional increases totaling 4 per cent to cover inflation and identified organizational needs. Section D
explains these areas of the budget in detail, describing how the planned spending supports the operation of the union,
and links to the delivery of members’ programs and services.
Inflation and the Bottom Line
Given the state of the Canadian economy, including historically low inflation rates, and the pattern of settlements in the
federal public sector, we have projected an inflation factor of 1.5% in years two and three of the budget cycle.
This inflation rate of 1.5% for 2020 and 2021 is factored into the following budget lines:
• The average membership salary;

• The average PSAC staff salaries,
• Members’ Expenses; and
• Other Operating Expenses.
Previous budgets used a general “inflation line” item to take into account inflationary pressures on membership expenses
and other operating costs. This budget incorporates the inflation directly into each category of expense. The only area
where we have maintained an inflation allocation is in the Members’ Expense category. Given that many aspects of
Members’ Expenses (e.g. conferences) take place only once per cycle, adding an inflation amount into every single line
item is not practical. We’ll retain an inflation line within that category to give the PSAC the ability to address inflation costs
associated with Members’ Expenses.
In preparing this budget, we have sought to ensure that our total planned expenses do not exceed our total planned
revenue. This budget proposal accomplishes that. Over the full three-year cycle, our budgeted revenues total $274.97
million, and our budgeted expenses total $274.84 million. As shown on page A-2, the bottom line is that the budget
provides for a very small surplus over the three years -- $125,876. It is, in effect, a balanced budget.
PSAC’s Overall Financial Health, and Internally Restricted Funds
Like past PSAC budgets, this one seeks to ensure that the PSAC’s finances remain healthy. We want to maintain a
reasonable operating reserve in the event of extraordinary disruption to regular revenues. At the same time, we do not
want to build up assets for no reasonable purpose – we want to ensure that the funds we have are being effectively used
to build the union. The chart below illustrates the overall financial health of the PSAC over the last six budget cycles.
We began 2001-2003 with a very small amount of restricted reserves, and a negative balance in our unrestricted net
assets. Over the next nine years (2001-2009), the financial health of the PSAC improved significantly, due to prudent
budgeting and significant membership growth. Entering into 2010, we made significant decreases in our unrestricted net
assets; instead we made a large increase in the Membership Asset Fund, created several Restricted Reserve Funds to
pay for program and organizational needs, and boosted the funds in the Strike Fund.
Over the next six years (2010-2016), we maintained relatively strong positive financial health in terms of our general
operations. However, the final bar in the chart, showing our status as of December 31, 2017, illustrates the significant
impact of Phoenix. Given our lower revenues, our unrestricted net assets are down to $(60,012) as of December 31,
2017. In short, the financial health of the PSAC has been negatively affected by the Phoenix over the last two years.
The last three bars in the chart illustrate one important new element to our overall financial situation: the PSAC Pension
Plan Solvency Reserve. Originally created as an internally Restricted Fund of $2.2 million, the PSAC Staff Pension Plan
Special Dues Levy that was put in place starting in 2012 has significantly increased the value of this Reserve.
This chart helps illustrate why the National Board of Directors decided, in October 2017, to cease collection of the PSAC
Staff Pension Plan Special Dues Levy, and replace it with an equivalent PSAC General Fund Special Dues Levy.
It is our hope that the assumptions and spending plans in this budget will result in a restoration of the PSAC’s strong
financial health, by the end of the 2019-2021 cycle.
The Membership Asset Fund
First established in 2000, the Membership Asset Fund (MAF) was created to build an operating reserve in situations of
extraordinary disruption to regular revenues. As outlined in PSAC Regulation 23, the MAF is to be used only for expenses
“incurred as a result of circumstances or conditions either unexpected or beyond the PSAC's control.” Such extraordinary
circumstances could include PSAC dues being cut off during a strike. Draws from the MAF must be approved by the
NBoD and only “when no other approved budgetary funds are available.” In 2013 the Membership Asset Fund was set at
$20.2 million – enough to cover operations for 3 months. For 2016-2018, the MAF amount has been adjusted annually
based on the total general budgeted expense. This budget continues that approach, with the goal of ensuring the MAF is
sufficient to cover operations for 3 months.
The PSAC Staff Pension Plan Solvency Reserve
The PSAC is a union, but we are also an employer with a defined benefit Staff Pension Plan paid for by employer and
employee contributions. The Staff Pension Plan covers both active and retired employees and full-time elected officers of
the PSAC and participating Components.
The PSAC pension plan was directly impacted by the financial crisis that began in 2008, the poor performance of the
financial market and the historically low interest rates and returns on investments. Coming into the 2012 Convention, we
explained to delegates how the Pension Regulations governing our plan could trigger sudden and significant extraordinary
payments should we be forced to file a plan valuation containing a “solvency deficit.”
Three actions were taken to build up a reserve fund to prepare for coverage of a potential solvency deficit in the Staff
Pension Plan:
1) In 2012, in considering the 2013-2015 Budget, the Convention Finance Committee proposed that $2.2 million
be transferred from the Membership Asset Fund.
2) Delegates to the 2012 Convention voted to commence a PSAC Staff Pension Plan Special Dues Levy of
0.0593%. This special levy commenced on January 1, 2013.
The resolution included a provision that any of the special levy funds not required to fund a solvency deficit would
be used to credit members’ dues in the future. The delegates to the 2015 Convention voted to continue this PSAC
Staff Pension Plan Special Dues Levy with instructions to the National Board of Directors to review the need for the
special levy each year.
3) On January 1, 2014, the employee current service contribution rate increased from 40% to 50%, and the
employer contribution rate decreased from 60% to 50%. Currently, employees and employers are each paying
12.545% of pay into the Plan. Since then, PSAC and participating Components have channeled their equivalent
savings into the Pension Solvency Reserve Fund.
Setting up the reserve funds was a smart and prudent thing to do. In 2016 we had to file a valuation for the PSAC Pension
Plan which contained a solvency deficit, and as of January of 2017 the PSAC was required to begin making pension
solvency payments of $254,600 per month.
Markets did start to improve a little, and consequently we completed a new valuation of the PSAC pension plan effective
January 1, 2017. This resulted in a much smaller solvency deficit and by August 2017 we were able to cease the solvency
payments. In total, we made $1,273,000 in solvency payments in 2017.
We also learned in 2017 about the Ontario government’s proposed legislation that would change the laws around pension
plan valuations. In announcing the change, the government says that it’s their intention to reduce the likelihood of
employers needing to make solvency payments.
At the end of December 2017 we had built a total of $32.5 million in reserves to cover off potential solvency concerns
regarding the PSAC Staff Pension Plan. This reserve is comprised of:
Source Balance at
December 31, 2017
PSAC Staff Pension Plan Special Dues Levy $25,800,000
Contributions (from members)
Transfers from PSAC $5,100,000
Transfers from participating Components $1,600,000
Total $32,500,000
We believe that it is essential to keep this reserve in place for now. It would be premature to make any long term
decisions about these funds until the Ontario legislation is passed and its impact on our plan fully assessed.
At the same time, we believe that the reserve in place is sufficient to address any potential problems with the pension plan
through until the end of the 2019-2021 cycle. We are not required by law to file another valuation until January 1, 2020. If
we do end up having to file a valuation that requires solvency payments, we believe the $32,500,000 currently set aside
can cover requirements through to the next Convention, by which time the status of these funds should be re-assessed.
That is why the National Board of Directors voted in October 2017 to cease collection of the PSAC Staff Pension Plan
Special Dues Levy of 0.0593% effective January 1, 2018 (while replacing it with an equivalent general fund levy).
Furthermore, this budget provides that we will not re-commence the collection of a PSAC Staff Pension Plan
Special Dues Levy during the 2019-2021 cycle.
Report on Other Restricted Funds, 2016-2018
Beyond the Membership Asset Fund and the PSAC Pension Solvency Reserve, the 2016-2018 Budget provided for four
other restricted funds, totaling $6,150,000.
REPORT ON OTHER RESTRICTED FUNDS, 2016-2018
Fund as proposed (May Balance Estimated balance

2015) and established (December 31, 2017) (December 31, 2018)
(Jan 1, 2016)
Social Justice Reserve Fund $300,000 $100,000 $0
Transition Fund $4,000,000 $2,542,592 $1,000,000
PSAC Holdings Fund $1,100,000 $608,384 $200,000
Resolutions Fund $750,000 $344,359 $0
TOTAL $6,150,000 $3,595,335 $1,200,000
Here is our report on how these funds have been used:
x Social Justice Reserve Fund: The 2016-2018 Budget allocated $300,000 as a Social Justice Reserve Fund to be
used to supplement the contributions received from participating employers and employees. From 2016 onwards,
staff and operational costs for the Social Justice Fund (SJF) are covered within the PSAC budget, so this allocation
has been used exclusively to support SJF programs. By the end of 2018 this reserve fund balance will be zero. A
renewal of this Fund is not being proposed. Instead, this Budget provides for regular contributions to the Social
Justice Fund as part of the Members’ Expenses budget – see Section C for details.
x Transition Fund: The 2016-2018 budget provided for the creation of the $4,000,000 “Transition Fund” established
in the context of a significant (3.4%) cut in Staff Salaries and Benefits. The use of this fund has already been
discussed above in the introduction to our proposed salary spending. We’ll make the following additional points
here:
o In 2016, we did not draw on this Fund to cover variances in salary and staff spending: total spending stayed
within the budget salary envelope. Funds were used to help cover the cost of meetings of the Transition
Working Group, a cross-organizational body that includes three AEC officers, three Component Presidents,
and PSAC staff managers. The working group has reported regularly to the NBoD, and its work helped
inform the NBoD Strategic Plan.
o In 2017 we have drawn $1,255,000 to cover the negative variance in staff salaries, benefits and overtime
costs. Similarly, it is anticipated in 2018 we will draw $1.25 million for this purpose.
o In 2017 the Fund has been used to advance two organizational review projects: the review of the
Representation Section, and implementation of staff and work process changes within the Membership
Administration team. In 2018 we hope to make further use of the fund to assist with organizational reviews
and change management initiatives.
We are targeting that by the end of 2018, we will have utilized no more than $3 million of the Transition Fund. This
budget does not propose a carry-over of these funds. Funds left over will be used to help create the two 2019-2021
restricted funds contained in this budget (Holdings Fund and Resolutions Fund).
x PSAC Holdings Fund: First established in 2009 at $2.2 million, the PSAC Holdings Fund was created to cover
ongoing losses in operations of PSAC Holdings, which operates 233 Gilmour. That allocation was completely
utilized in 2010-2011. Following the 2012 Convention, a new $3.9 million was added to the PSAC Holdings Fund.
Most of that was utilized in 2013-2015, but we were able to end 2015 with a balance of just over $1 million. As per
the 2016-2018 Budget adopted at the 2015 Convention, the Fund was topped up to $1.1 million as of January 1,
2016. PSAC Holdings has been able to significantly reduce its losses through a combination of increased rents and
parking rates, and reductions in operational spending. Just $116,000 was used in 2016, and in 2017 we have
utilized $383,000. We have projected the draws on the fund needed through until the end of 2018 and anticipate an
ending balance of $200,000. This budget provides for retaining this balance and adding to it for 2019-2021 (see
next section below).
x Resolutions Fund: For the 2015 Convention, a Resolutions Fund of $750,000 was set aside to cover the costs of
resolutions with one-time costs. Four resolutions were passed at the 2015 Convention which involve spending from
this Fund:
o GEN-016, $118,100 to fund a campaign to add gender identity to the Canadian Human Rights Act;
o GEN-027, $52,300 to create an awareness course on the impacts of domestic violence;
o GEN-040, $414,300 to continue advocacy work for a nationally-funded child care program;
o NEGO-059, $165,300 to campaign against contracting out of public services and public sector jobs (this
resolution was also supported via a one-time dues increase as part of the Campaigns budget.)
To date about half the monies set aside for these resolutions has been spent; it is anticipated that by the end of
2018 we will have spent all of these funds.
Other Restricted Funds, 2019-2021
This budget proposes a much more limited use of Restricted Funds for 2019-2021. Beyond retention of the PSAC Staff
Pension Plan reserves, just two funds are contained in this budget.

PROPOSALS FOR OTHER RESTRICTED FUNDS, 2019-2021
Anticipated Carry- Proposed Additions Total

Over from 2018
Resolutions Fund $750,000 $750,000
PSAC Holdings Fund $200,000 $900,000 $1,100,000
TOTAL $200,000 $1,650,000 $1,850,000
x Resolutions Fund: It is proposed to establish a $750,000 Fund to fund any Resolutions which have a one-time cost
for the 2018 Convention resolutions.
x PSAC Holdings Fund: It is proposed that any unused amounts of the current PSAC Holdings Fund be
supplemented with a new addition of $900,000 to cover off the estimated operating losses of PSAC Holdings for
2019-2021.
The funds will be created using current unrestricted net assets, which will be increased as a result of the anticipated
lapsed funding from the Transition Fund described above.
The PSAC Strike Fund Contribution
The Strike Fund consists of restricted membership dues that are used for the payment of strike pay and benefits, plus
strike expenses when members are on strike. The monthly contributions made by members to the Strike Fund are over
and above the PSAC dues rate. The Strike Fund is reported separately in PSAC’s audited financial statements.
The 2006 Convention directed that the Strike Fund must maintain a minimum balance of $10 million. The Convention
also approved implementation of a special levy if the Strike Fund fell below $10 million, to remain in place until the Strike
Fund achieved a positive balance of $25 million. This special Strike Fund levy was set at $4 per member per month, and
$2 for those earning under $30,000 per year.
By June 2008, the Strike Fund reached a positive balance of $25 million and the special Strike Fund levy ended. Since
then, the monthly strike fund contribution has been $1.00 per member per month.
As of December 2017, the PSAC Strike Fund had a positive balance of $33.2 million.
This budget proposes to:

x maintain the contribution to the PSAC Strike Fund of $1 per member per month; and
x reaffirm the decision made by the 2006 Convention to implement a special Strike Fund levy of $4 per member per
month ($2 for those earning under $30,000) if the Strike Fund balance falls below $10 million, to remain in place
until Strike Fund achieves a positive balance of $25 million.
PSLRA Adjudication Costs
The 2016-2018 PSAC budget included a provision that would have allowed us to draw on the interest from the PSAC
Strike Fund to cover the anticipated costs of Adjudication for units under the Public Service Labour Relations Act
(PSLRA). The Harper government’s 2013 Budget Implementation Act (Bill C-4) included a measure whereby unions under
the PSLRA would have to cover half the cost of adjudication before the Public Service Labour Relations and Employment
Board (PSLREB). We anticipated that this could increase our representation costs by up to $1 million a year. Although
passed into legislation, these provisions were never proclaimed into force. The new Liberal government has introduced
legislation (Bill C-62) to rescind those parts of Bill C-4 that altered the grievance provisions of the PSLRA, including this
one. This removes a major budgetary pressure that was facing the PSAC.
Special Dues Levy – General Fund
Both the 2013-2015 and the 2016-2018 budgets included a provision for the possible introduction of a “Special Dues Levy
– General Fund.” The 2013-2015 budget was tied to a drop in membership numbers. The 2016-2018 Budget was
somewhat broader. The provision read:
Concretely, a fall of 2% or greater of revenue – or the equivalent of $1.5 million – will trigger a Special Levy
to the General Fund. The exact amount of this Special Levy will be determined based on the amount needed to
maintain total revenue at the budgeted amount. This Special Dues Levy will not exceed $5 per member per
month or $60 per member per year.

In October 2017, the Standing Finance Committee of the National Board of Directors brought forward a resolution to
commence the use of this PSAC General Fund Special Dues Levy, due to the drop in dues revenue as a result of the
Phoenix pay problems. With the drop anticipated to hit over $6 million, the special levy dues rate mandated by the 2016-
2018 Budget could have been more than $3.00 per member per month on average. However, the problems with Phoenix
meant it was impossible for the PSAC to make any changes to the dues amounts being deducted from members. Any
attempt to change dues rates would have thrown a wrench into a system that already doesn’t work and created problems
for our members.
Consequently, the NBoD agreed to commence the PSAC General Fund Special Dues Levy at the rate of 0.0593% – the
same rate that was in place for the PSAC Staff Pension Plan Special Dues Levy which the Board agreed to cease. Both
changes take effect on January 1, 2018. This meant no change in dues to be processed through Phoenix, and it also
meant no change in the dues actually being collected from members.
This decision reflected a detailed review of the status of the PSAC Pension Plan Reserves, and the recognition that
Phoenix is having a very negative impact on the PSAC’s revenues and financial health. The effect of this re-direction of
special levies was to make sure we are making the best use of the dues members are currently paying.
The dues collected as a result of the PSAC General Fund Special Dues Levy will be separately tracked, monitored and
reported on. Once we determine how much of our lost dues can be recovered, this separate tracking will allow us to
determine whether any of the Funds collected as a result of this special levy are surplus to the revenues that we lost, so
that a decision can be made about how these funds will be used for the benefit of members.
This 2019-2021 Budget is built on the expectation that we will stop collecting the PSAC General Fund Special
Dues Levy no later than December 31, 2018. As explained earlier, this will mean that the total percentage dues paid to
PSAC will decrease on January 1, 2019.
That being said, we still face considerable uncertainty as to when Phoenix will start to stabilize, when Phoenix will begin
properly processing refunds and arrears, and when we will be able to implement the new monthly dues amounts under
the recently signed Treasury Board and Agency collective agreements. It is still possible that by the fall of 2018, we may
still be effectively prohibited from changing members’ dues through Phoenix. Therefore, it is also still possible that by the
fall of 2018 we will not be taking in the revenue that we expect and need to operate.
Furthermore, this budget was built without access to reliable federal government membership data for 2016-2017. We
have sought to use the best possible information, and have been prudent with our revenue estimates. While we have
established targets which we believe we should be able to meet, we still face considerable uncertainty, particularly in the
first year of the next cycle.
Therefore, this 2019-2021 Budget continues with a potential PSAC General Fund Special Dues Levy. Concretely, a fall of
2% or greater of revenue – or the equivalent of $1.75 million – will trigger a Special Levy to the General Fund. The exact
amount of this Special Levy will be determined based on the amount needed to maintain total revenue at the budgeted
amount. This Special Dues Levy will not exceed $5 per member per month or $60 per member per year. A decision to
commence or cease collection of a PSAC General Fund Special Dues Levy in 2019-2021 must be made by the PSAC
National Board of Directors (NBoD).
SECTION C
2019-2021 BUDGET
MEMBERS' EXPENSES
MEMBERS' EXPENSES
2019 - 2021
2016 2016 2017 2017 2018 2019 2020 2021
NEGOTIATIONS AND MOBILIZATION 2,880,000 3,474,050 2,880,000 2,980,054 2,880,000 3,050,000 3,050,000 3,050,000
REPRESENTATION 1,250,000 1,652,084 1,250,000 1,487,754 1,250,000 1,350,000 1,350,000 1,350,000
LEGAL FEES 1,700,000 1,706,734 1,700,000 1,653,493 1,700,000 1,700,000 1,700,000 1,700,000
HEALTH & SAFETY ACTIVITIES 503,000 1,088,156 503,000 359,805 503,000 628,000 628,000 628,000
EDUCATION 2,727,950 1,936,936 2,727,950 3,206,122 2,727,950 3,032,950 3,032,950 3,032,950
STEWARDS' INITIATIVES 170,000 56,573 170,000 76,528 170,000 100,000 100,000 100,000
YOUNG WORKERS 175,000 86,557 175,000 30,307 175,000 140,000 140,000 140,000
ORGANIZING 1,000,000 631,793 1,000,000 687,768 1,000,000 900,000 900,000 900,000
DIRECTLY CHARTERED LOCALS 300,000 270,380 300,000 121,282 300,000 400,000 400,000 400,000
COMMUNICATIONS 865,000 650,542 865,000 756,322 865,000 865,000 865,000 865,000
CAMPAIGNS 2,107,865 778,707 2,107,865 1,730,744 2,107,865 1,831,000 1,831,000 1,831,000
SUPPORTING OUR ALLIES 304,000 252,500 304,000 272,000 304,000 275,000 275,000 275,000
PARTICIPATION IN THE LABOUR MOVEMENT 3,327,280 3,838,275 3,327,280 3,747,747 3,327,280 3,648,015 3,648,015 3,648,015
INTERNAL GOVERNANCE 1,280,370 74,430 1,280,370 132,691 1,280,370 1,455,740 1,455,740 1,455,740
OTHER MEMBERSHIP EXPENSES 50,000 95,013 50,000 117,022 50,000 50,000 50,000 50,000
Sub-total 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,364,225 23,364,225

MEMBERS' EXPENSES INFLATION 350,463 706,184
TOTAL 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,714,688 24,070,409
DRAFT2019Ͳ2021PSACBudgetAdoptedbyPreͲConventionFinanceCommitteeFebruary2018CͲ2
Negotiations and Mobilization
NEGOTIATIONS AND MOBILIZATION

2016 2016 2017 2017 2018 2019 2020 2021
NEGOTIATIONS AND
2,880,000 3,474,050 2,880,000 2,980,054 2,880,000 3,050,000 3,050,000 3,050,000
MOBILIZATION
Negotiations 2,400,000 3,131,317 2,400,000 2,156,862 2,400,000 2,500,000 2,500,000 2,500,000
Mobilization 480,000 342,733 480,000 823,192 480,000 550,000 550,000 550,000
Negotiations and mobilization are core responsibilities of the PSAC. The bargaining process is a key opportunity to
engage our membership in collective action in order to win and maintain decent wages and benefits, and fair, equitable
and healthy workplaces. It is primarily through collective bargaining that we protect and improve our members’ working
conditions.
Currently, we represent members in over 315 certified bargaining units, under fifteen different legislative regimes. This
number represents a net increase of about 50 units in the last decade.
The Negotiations line item funds the direct participation of members in the collective bargaining process, including:
x Membership participation in bargaining conferences;
x Bargaining team expenses, including members’ salaries on Leave Without Pay and travel costs;
x The union’s share of collective bargaining meeting costs including room rentals and interpretation, where
applicable.
Reflecting PSAC membership, the bulk of the Negotiations line item (approximately 75%) funds the cost of bargaining
conferences and bargaining teams for our 20 largest national and territorial units.
We will continue the practice of holding national bargaining conferences for our large Treasury Board and Agency units.
This approach provides an effective and efficient process that ensures broad participation in setting bargaining demands,
priorities and the election of team members, who go on to play an active part in engaging members’ concerns in the
bargaining, mobilization and ratification processes.
This budget provides for a small increase in the Negotiations line item to cover increases in members’ loss of salary and
travel costs, and to account for the growing number of units.
The Mobilization line item covers expenses such as:

x Bargaining team expenses to attend mobilization meetings in the regions (loss of salary and travel costs);
x The costs of holding membership ratification votes prior to a strike vote;
x Membership mobilization activities related to bargaining including demos, rallies, leafleting, events, and material
and shipping costs to support mobilization (i.e. bracelets, postcards, flyers banners).
This budget provides for an increase in the Mobilization line item to reflect the goal of building and sustaining momentum
and commitment over extended periods of bargaining, and to accurately reflect the documented costs of holding
ratification votes. This budget is sufficient to allow the transition to electronic voting, when used by the PSAC.

With an annual budget of $3,050,000, the total three year spending budget for Negotiations and Mobilization in 2019-
2021 will be $9,150,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was
$9,153,263.
Representation
REPRESENTATION
2016 2016 2017 2017 2018 2019 2020 2021
REPRESENTATION 1,250,000 1,652,084 1,250,000 1,487,754 1,250,000 1,350,000 1,350,000 1,350,000
Enforcement of collective agreement rights is at the core of our responsibilities as a union. By representing our members
on grievances through adjudication and arbitration, we defend the economic and workplace interests of individual
members, as well as the collective rights of the union. Currently, we represent members in over 315 bargaining units
certified in 15 jurisdictions, reflecting an increasingly diverse range of sectors, workplaces and collective agreements.
The Representation Section of the PSAC currently manages an active case load of between 4000-4500 cases. Initiatives
have been launched within the Section and with key external stakeholders to address the systemic challenges that face
us in this work, in order to ensure that we have the ability to represent members in a manner that is both efficient and
effective. These include adding resources to address the volume, and changes to improve hearing scheduling and officer
availability through improvements to case management and work processes. The addition of two new Grievance &
Adjudication Officers has helped us contain spending on outside counsel and to allow us to continue to work within the
allotted budget.
Actual spending under this line item supports the following:

x Membership expenses (e.g. travel) incurred in the course of presenting, arguing and mediating cases;
x Witness fees and costs;
x Expert opinions, including medical opinions in the context of accommodation issues;
x PSAC’s share of arbitration fees; and
x The cost associated with referring cases to outside legal counsel.
Use of outside counsel accounts for at least 50% of the spending. This is usually done to ensure that we have the
capacity to proceed on high priority files as quickly as possible, avoid postponements and provide back-up where we do
not have staff available. In complex files requiring specific expertise or experience, we will also engage outside counsel if
the capacity does not exist or is not available within the Section.
There has been an upward trend in the proportion of spending that relates to paying our share of arbitration fees for
grievances taking place under the Canada Labour Code and territorial and provincial jurisdictions, where it is the standard
practice for employers and unions to pay half the cost of the arbitrator’s fees and costs. Increases can be attributed to a
growth in the numbers of newly organized members under provincial jurisdiction and the increase in the fees charged by
arbitrators and experts.
In the 2016-2018 PSAC budget, we were anticipating having to cover the half costs of adjudications under the Public
Service Labour Relations Act. While passed into legislation, this provision was never declared in force. The new Liberal
government has introduced legislation to repeal this provision, which would have had a significant impact on PSAC
spending in this area.
A small increase in this line item is included in this budget to ensure we are able to meet growing needs and address the
reality that the costs related to private arbitration have and are projected to continue to increase. There has also been an
increase in this line to allow for the holding of representation seminars. These seminars will be aimed at increasing the
union’s overall capacity to problem solve and provide effective, timely representation at the initial levels of the grievance
process. This will be critical to building the strength of the union at the base and to foster skills necessary to take on
priority issues such as helping members find relief for a myriad of issues spawned by the Phoenix pay system.

With an annual budget of $1,350,000, the total three year spending budget for Representation in 2019-2021 will be
$4,050,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $5,148,940.
Legal Fees
LEGAL FEES
2016 2016 2017 2017 2018 2019 2020 2021
LEGAL FEES 1,700,000 1,706,734 1,700,000 1,653,493 1,700,000 1,700,000 1,700,000 1,700,000
The PSAC has a comprehensive legal program aimed at protecting and promoting members’ rights in a number of areas,
through the work of a team of in-house lawyers who represent the PSAC and direct work of outside counsel on:
x Protection of fundamental collective bargaining and equality rights through Charter litigation;
x Judicial review of arbitration and tribunal decisions;
x Pension litigation aimed at preserving and promoting defined benefit pension plans;
x Taking court action against the government as a result of the Phoenix pay system;
x Enforcement of the rights of newly organized members;
x Protecting our bargaining unit integrity and arguing complex certification applications in front of labour boards;
x Ensuring effective strikes through essential services dispute representation and strike support, such as
representation on injunctions;
x Protection and promotion of union members’ rights to mobilize and engage in political activities;
x Representing on human rights complaints before tribunals and courts;
x Pay equity disputes;
x Enforcement of health and safety provisions;
x Whistleblower protection;
x Privacy concerns;
x Providing members with specialized legal advice related to law enforcement occupations.
During the past budget cycles, spending in this area was focused on mounting an effective defense against the Harper
era attacks on federal public servants. Work continues to ensure that those changes are repealed. While we continue to
focus efforts on fighting regressive changes to legislation at both the federal and provincial levels where our members are
impacted, increasingly the focus of our work has been on supporting bargaining and working proactively to promote
progressive reform.
This budget provides funding for the 2019-2021 cycle at the same level as the previous cycle, as current funding level
appears to cover our requirements.

With an annual budget of $1,700,000, the total three year spending budget for Legal Fees in 2019-2021 will be
Human Rights Activities
HUMAN RIGHTS ACTIVITIES

2016 2016 2017 2017 2018 2019 2020 2021
Women's Conferences 441,000 471,628 441,000 64,319 441,000 443,520 443,520 443,520
Racially Visible Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500
Access Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500
Pride Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500
Aboriginal Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500
National Equity Conferences - 78,753 - 2,312,005 - - - -
Regional Racially Visible Conferences 200,000 530,815 200,000 10,303 200,000 200,000 200,000 200,000
Regional Human Rights Committees 45,000 29,189 45,000 51,669 45,000 45,000 45,000 45,000
Regional Women's Committees 75,000 54,418 75,000 80,582 75,000 75,000 75,000 75,000
National Human Rights Committee 150,000 134,518 150,000 64,307 150,000 175,000 175,000 175,000
Human Rights Activities 52,000 53,523 52,000 5,207 52,000 52,000 52,000 52,000
Aboriginal Network 150,000 82,308 150,000 74,546 150,000 150,000 150,000 150,000
Accessibility 77,699 58,573 77,699 135,538 77,699 78,000 78,000 78,000
Family Care 80,000 84,956 80,000 139,430 80,000 90,000 90,000 90,000
Inter-Aboriginal & Inuit Language 20,000 16,577 20,000 30,221 20,000 20,000 20,000 20,000
The PSAC takes great pride in our leadership role within the labour movement in advancing human rights and equity. Our
union recognizes that inequality, marginalization, harassment and discrimination have a historic basis that continues to
pervade our society and our workplaces. Tackling these issues requires a dedicated, educated, energized membership
that can push for changes in many fora. Advancing human rights and equality is a job for all of us.
The Human Rights line items provide for:
x Continued funding for National and Regional Women’s Conferences at the rate of 21 cents per member per
month, as established by a past Convention resolution.
x Over the last two cycles, the National Women’s Conference and our four other National Equity Conferences
(Racially Visible, Access, Pride and Aboriginal) have been held together as a combined event. Costs for the
conferences are rising due to increases in costs such as travel, accommodation and leave without pay. In 2016-
2018, the total spending for these five conferences was $2.391 million against a combined budget of $2.014
million. This budget provides for an increase for the holding of the national equity conferences totaling $414,000
over the three-year cycle. In the budget table above, this increase is divided equally among the four equity
conferences.
x Funds for Regional Racially Visible Conferences (first adopted at the 2015 Triennial Convention).
x Grants to Regional Women’s Committees and Regional Human Rights Committees from coast to coast to
coast, to facilitate community-based meetings and development of local and regional actions. There are currently
39 active Regional Women’s Committees and 36 active Regional Human Rights Committees. This funding includes
initial start-up funding for committees and funding for established committees. These committees provide
opportunities for members to come together to discuss and strategize around workplace or local issues by
organizing events, speakers or activities in their region. (Note that funding for Regional Youth Committees has
been moved to the new Young Workers section of the budget).
x Funds for holding meetings and activities of the National Human Rights Committee (an advisory committee to
the National Board of Directors), including preparatory teleconferences.
x The Aboriginal Network, which consists of four areas of work: 1) the National Aboriginal Peoples Circle; 2)
regional outreach activities by the National Aboriginal Peoples representatives; 3) TUB training for indigenous
members and 4) other activities or development of materials, tools on indigenous issues.
x Human rights activities that promote PSAC human rights priorities throughout the budget cycle, such as
recognition and support for PSAC designated equity days and other related activities and materials as required.
x Accessibility funds to ensure that PSAC activities at the national and regional levels** are accessible for our
members with disabilities. Funding ensures that facilities booked for all PSAC national events are reviewed by a
designated member of the Members with Disabilities Working Group (as per GEN-159 passed at the 2015
Convention). This budget line item also covers the Local Accessibility Funds.
x Funds to ensure the participation of members with family care responsibilities at PSAC national and regional
levels**. The family care funding enables members with childcare responsibilities to participate at PSAC events.
There is an increase in costs for family care in this budget cycle due to the fact the family care policy has changed
the payable rate, as well as an increased request for elder care.
x Inter-Aboriginal & Inuit Language funds to support Inuit and other indigenous language interpretation needs for
activities at PSAC national and regional levels.
** Activities at the “national and regional levels” include National and Regional Conventions and Conferences, Regional Council and
Committee meetings, National and Regional Education courses and Bargaining Conferences.
With an annual budget of $1,906,520, the total three year spending budget for Human Rights Activities in 2019-2021 will
be $5,719,560. By way of comparison, the most recent total three year spending (2015-2016-2017) was $5,480,134.
Health and Safety Activities
HEALTH AND SAFETY ACTIVITIES

2016 2016 2017 2017 2018 2019 2020 2021
HEALTH & SAFETY
503,000 1,088,156 503,000 359,805 503,000 628,000 628,000 628,000
ACTIVITIES
National Conference 270,000 793,781 270,000 107,259 270,000 320,000 320,000 320,000
National Policy
- - - - - 50,000 50,000 50,000
Committees Forum
Regional Conferences &
153,000 159,981 153,000 113,256 153,000 153,000 153,000 153,000
Activities
Regional Committees - - - - - 25,000 25,000 25,000
WCB Membership
80,000 134,394 80,000 139,290 80,000 80,000 80,000 80,000
Representation
Health and safety is an essential part of our union’s work. Our success in improving health and safety protection for
workers across Canada both inside and outside the workplace relies on membership activism.
This budget will support membership engagement and participation in national and regional conferences and other
activities. It will also cover expenses for workers’ compensation representation.
The allocation for the National Health and Safety Conference has been increased to meet the needs to fully fund
participation of the mandated 300 delegates. This conference brings health and safety activists together nationally to
discuss, strategize, network, educate, mobilize and debate on health safety issues; and to provide direction to the national
health and safety program.
A new line has been added to provide stable funding for the National Health and Safety Policy Committees Forum,
which brings together union representatives on the national policy committees to identify workplace incident trends,
provide recruitment tools for local and regional committees, discuss emerging trends or issues, share best practices and
support and increase the capacity of these committees.
In this budget, we are combining the allocation for the former Regional Health and Safety Conferences and Regional
Activities line items into a single line item called Regional Health and Safety Conferences and Activities. This will
provide regions with more flexibility to meet the growing costs of regional conferences while still providing some funds for
development of posters, tools, and other means of support for health and safety activities in the regions.
A new Regional Committees line item has been added to allow for allocation of grants to the Regional Health and Safety
Committees, which were given recognition under the Constitution at the 2015 Convention.
The last line item provides funds for representing members on Workers’ Compensation (WCB) cases, including the
costs associated with expert witnesses and members’ participation in hearings.

With an annual budget of $628,000, the total three year spending budget for Health and Safety Activities in 2019-2021
will be $1,884,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $1,836,812.
Regional Activities
REGIONAL ACTIVITIES
2016 2016 2017 2017 2018 2019 2020 2021
Regional Councils 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000 1,125,000
Regional Convention
378,000 567,000 378,000 567,000 378,000 420,000 420,000 420,000
Subsidy
Interpretation 200,000 270,731 200,000 197,632 200,000 240,000 240,000 240,000
REVP Special Projects 42,000 - 42,000 58,289 42,000 - - -
Area Councils 47,000 33,070 47,000 52,104 47,000 47,000 47,000 47,000
The Regional Activities line item supports the development of strong regional structures that engage members and bring
the work of our union closer to the communities our members work and live in. The expenses covered under Regional
Activities include:
x The Regional Councils line item supports the meetings and operations of the seven Regional Councils as well as
the many activities that they undertake and lead. The Regional Council line item is divided up amongst the regions
and is the same amount as allocated in the last three budget cycles.
x The Regional Conventions line item provides subsidies to regions for the holding of Regional Conventions. This
total is divided amongst the regions and each region determines how the monies will be spent. All of the three-year
allocation for Regional Convention subsidies ($1,134,000 in 2016-2018) is dispersed to the regions in years one
and two of the budget cycle, as Regional Conventions are held in the second year of the cycle. For 2019-2021, the
subsidy if being increased by rolling in the amount that was previously in REVP Special Projects. The former
REVP Special Projects line was mainly used to bring in additional staff to assist with the planning of Regional
Conventions. This expense will now be covered within the operating expenses budget for staff.
x Interpretation is a centralized budget line item to cover the costs of interpretation at Regional Conventions,
Regional Council meetings, regional education events and regional conferences. This represents an increase from
the 2016-2018 Budget, to better reflect increased expenses and use of interpretation.
x The final line item under Regional Activities is used to provide grants to Area Councils, which play an important
role linking PSAC members from different Components and Locals to work together to engage and mobilize
members and to build our union. These funds are divided amongst the active Area Councils every year (currently
47 in total).

With an annual budget of $1,832,000, the total three year spending budget for Regional Activities in 2019-2021 will be
Education
EDUCATION
2016 2016 2017 2017 2018 2019 2020 2021
EDUCATION 2,727,950 1,936,936 2,727,950 3,206,122 2,727,950 3,032,950 3,032,950 3,032,950
Education Program -
1,015,950 618,061 1,015,950 1,849,353 1,015,950 1,015,950 1,015,950 1,015,950
National
Education Program -
1,620,000 1,268,489 1,620,000 1,315,556 1,620,000
Regional 1,800,000 1,800,000 1,800,000
Duty to Accommodate 50,000 10,061 50,000 2,355 50,000
Local Development - - - - - 175,000 175,000 175,000
Scholarships 42,000 40,325 42,000 38,858 42,000 42,000 42,000 42,000
Education is the foundation for building a strong union through empowered members. The PSAC Education Program is
fundamental to the achievement of our union’s priorities, and is highly regarded by members and activists. Through
education, members learn about their union, their workplace, and their society, and gain the knowledge, skills and
confidence to make the union relevant in their workplaces and in their communities.
The National Education Program line item provides funding for education initiatives such as:
x The national Leadership Training Program of the PSAC;
x The Union Development Program (UDP);
x Funding for a small number of PSAC members’ participation in the Labour College of the Canadian Labour
Congress;
x Advanced representation training on Staffing Complaints before the Federal Public Sector Labour Relations and
Employment Board (FPSLREB);
x The development and hosting of on-line education for PSAC members;
x Funds for education provided to Aboriginal women to encourage their participation in leadership positions;
x National education courses and programs developed in response to emerging needs, including partnerships with
Component education initiatives.
The freeze in funding for National Education is made possible because of anticipated reduced spending for the UDP,
following a review of the program currently underway.
The Regional Education line item covers development and delivery of courses offered to members in their region. In an
average year, over 3,500 members attend 300 training initiatives delivered by their Regional Offices across the country.
The most common training courses include “Talking Union Basics” (TUB), the basic and advanced grievance handling
courses, and local officer training, but there are many other programs offered such as health and safety training for union
activists. This budget increases the funding for Regional Education Programs. This is designed to allow for increased
participation and course delivery; it will also provide for regional delivery of some of the newly developed programs
including:
x Duty to Accommodate training (which was introduced as a separate line item following the 2012 Convention);
x Delivery of a domestic violence awareness course (the development of which was funded by the 2015 Resolutions
Fund); and
x Lobbying Elected Officials.
A new Local Development line item is being added to the Education budget to fund Joint PSAC-Component and/or Joint
PSAC-DCL specific initiatives aimed at assisting locals to strengthen their internal capacity, including enhanced
membership outreach and greater membership engagement. In the 2016-2018 budget, Local Development was part of
the “Locals and Stewards” line item under the Building the Union category. The actual spending on local development
from that line item has, to date, been $47,977 for the cycle. By re-creating a separate line for Local Development, we
expect to significantly strengthen this area of work.
This PSAC Scholarships line item provides awards to PSAC members or their children to assist in attending university or
college on a full-time basis. This line item is supported in part by funding that is received from Coughlin and Associates
and AGR Insurance.
With an annual budget of $3,032,950, the total three year spending budget for Education in 2019-2021 will be
Stewards’ Initiatives
STEWARDS INITIATIVES
2016 2016 2017 2017 2018 2019 2020 2021
STEWARDS INITIATIVES 170,000 56,573 170,000 76,528 170,000 100,000 100,000 100,000
The 2016-2018 Budget included a “Building the Union” category which provided funding for Locals and Stewards’
Initiatives as well as Young Workers’ Initiatives. We’re changing the categories in this Budget. Local development funding
has been provided for under the Education category, and we have now created a new category of funding for Young
Workers.
The Stewards’ Initiatives line item in the 2019-2021 budget will be dedicated to increasing the number of skilled
Stewards in locals. We will build on past initiatives including the new PSAC Shop Steward Tool Kit and the provision of
funds for national and regional meetings of Stewards. This line item will assist Components and DCLs in their efforts to
recruit and guide Stewards by offering tools and education directly aimed at supporting the work of Stewards.
With an annual budget of $100,000, the total three year spending budget for Stewards’ Initiatives in 2019-2021 will be
$300,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $304,978. However,
some of that spending was for local development which in 2019-2021 will be covered under Education.
Young Workers
YOUNG WORKERS
2016 2016 2017 2017 2018 2019 2020 2021
YOUNG WORKERS 175,000 86,557 175,000 30,307 175,000 140,000 140,000 140,000
Young Workers' Initiatives 130,000 66,057 130,000 2,807 130,000 100,000 100,000 100,000
Regional Youth Committees 45,000 20,500 45,000 27,500 45,000 40,000 40,000 40,000
In the 2019-2021 budget cycle, funds for Young Workers’ Initiatives and Regional Youth Committees have been grouped
together under this new Young Workers category.
Dedicated funds for Young Workers’ Initiatives first made their appearance in the PSAC budget following the 2003
Convention decision to reach out directly to our younger activists and broaden their engagement in our union at the
national and regional levels and to equip them with relevant tools particular to the need of these emerging union activists.
Funds from this line item are used to support regional initiatives, including schools for young activists, special training for
young stewards, youth union camps and participation to Labour sponsored events such as CLC Conventions,
Conferences and Summits. In past budget cycles the funding for Regional Youth Committees was included under the
Human Rights section of the budget. Funds in this line item are provided to PSAC regions for grants to recognized
regional youth committees. There are currently 15 active Regional Youth Committees.
By joining these two lines under a new category, we hope to better meet the objective of engaging young workers in the
PSAC. While the two budget lines are being reduced, we are planning to increase the actual spending from 2016-2018
levels by enhancing the coordination of Youth related support initiatives. With an annual budget of $140,000, the total
three year spending budget for Young Workers in 2019-2021 will be $420,000. By way of comparison, the most recent
total three year spending (2015-2016-2017) was $285,928.
Organizing
ORGANIZING
2016 2016 2017 2017 2018 2019 2020 2021
ORGANIZING 1,000,000 631,793 1,000,000 687,768 1,000,000 900,000 900,000 900,000
The PSAC has a longstanding Convention mandate to build our union power via Organizing. Concretely, this means that
we:
x Organize the unorganized into new bargaining units within the PSAC;
x Follow existing members affected by restructuring, devolution, workplace reorganizations, privatization and
contracting out by certifying them into new bargaining units;
x Fend off raids from other unions as well as decertification attempts.
The budget allocation for Organizing funds all of this activity, which is aimed at protecting our existing membership while
increasing and strengthening our numbers.
Since 2004, the PSAC has seen significant growth in its membership as a result of organizing. On average we have
offered the benefit of belonging to a Union to almost 3,500 workers every year. All new organizing is based on an
approved plan that is put together in consultation with the Regional Executive Vice Presidents, and other parts of our
union. We have worked closely with Components when the new members sector of activities fits within the mandate of a
Component. The PSAC is seen as a leader in organizing in Canada.
Growth through organizing has been concentrated in the following sectors: the University sector, the gaming sector, the
medical research sector, First Nations police services and we have organized groups of provincial Government
employees. A couple of recent success stories:
x Unionization drives often require long-term campaigns. After initial contacts that started in the 1990s, in 2015 we
finally organized approximately 225 full-time workers at the federally-funded International Development
Research Centre (IDRC), which employs a broad range of research staff, program officers, and administrative
workers.
x In late 2016, the PSAC was successful in organizing 30 employees of Bouygues Energy and Construction at the
Winnipeg Airport Authority. The drive was a joint effort with the Union of Canadian Transport Employees. Building
on this success, PSAC and UCTE are coordinating efforts to expand the size of the unit in the near future.
We continue to assess the Organizing Program and for the 2019-2021 cycle are planning for more focused targets and
improvement to post-certification servicing. We believe this will lead to a more efficient and effective program. As a result,
while a slight reduction is contained in the 2019-2021 budget, we believe the allocation allows the PSAC to maintain a
solid commitment to Organizing.

With an annual budget of $900,000, the total three year spending budget for Organizing in 2019-2021 will be $2,700,000.
By way of comparison, the most recent total three year spending (2015-2016-2017) was $2,249,331.
Directly Chartered Locals
DIRECTLY CHARTERED LOCALS

2016 2016 2017 2017 2018 2019 2020 2021
DIRECTLY CHARTERED
300,000 270,380 300,000 121,282 300,000 400,000 400,000 400,000
LOCALS
The number of Directly Chartered Locals (DCLs) has increased to 83 locals comprising approximately 31,000 members.
In some cases, these Locals provide the full range of services to members and in other cases, PSAC provides these
services or there is a shared responsibility. These arrangements are covered by service agreements between the PSAC
and the Local.
Like all PSAC members, DCL members pay the general PSAC dues rate, as established by the National Triennial
Convention. The total PSAC dues paid by DCLs in 2017 is projected to reach over $3.7 million (that’s based on the same
0.9146% dues rate that all members pay). This amount forms a part of PSAC general revenues.
In addition, DCL members also pay “Component Average Dues” – currently at a rate of 0.6120% – which are calculated
using an average of the rates collected by the PSAC’s fifteen Components. Those DCLs that provide the same servicing
provided by a Component use these dues to help finance their servicing. About half of the DCLs are “self-servicing” and
therefore receive all of the revenues associated with the “Component average dues”.
The remaining DCLs depend on some level of servicing provided by the PSAC as set out in the service agreement. For
these DCLs, the PSAC receives some or all of the “Component Average Dues.” These add up to the amount shown as
the “Directly Chartered Locals” revenue line on page A-2 of the budget (estimated at $400,000 for 2019-2021).
In short, these additional funds come from members of those DCLs that require some level of additional services from the
PSAC, as additional revenue, and this amount is equal to the anticipated expenses in this line item. PSAC’s Regional
Offices use the actual funds received to help cover the costs of additional services provided to those Directly Chartered
Locals that are not self-servicing. The current trend indicates an increase in revenues (and therefore expenses) during the
2019-2021 cycle.
With an annual budget of $400,000, the total three year spending budget for Directly Chartered Locals in 2019-2021 will
be $1,200,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $855,589.

Communications
COMMUNICATIONS
2016 2016 2017 2017 2018 2019 2020 2021
COMMUNICATIONS 865,000 650,542 865,000 756,322 865,000 865,000 865,000 865,000
Digital & Print
485,000 446,306 485,000 375,439 485,000 485,000 485,000 485,000
Communications
Promotion materials -
100,000 93,965 100,000 129,895 100,000 100,000 100,000 100,000
PSAC
Alternative Media 55,000 52,500 55,000 48,000 55,000 55,000 55,000 55,000
Regional Communications
35,000 35,000 35,000 35,000 35,000 35,000 35,000 35,000
Activities
Membership
120,000 1,130 120,000 95,275 120,000 120,000 120,000 120,000
Consultation/Polling
Advertising/Sponsorship 70,000 21,641 70,000 72,713 70,000 70,000 70,000 70,000
After a decade of cuts and attacks, it is time to move from defending our members’ rights to a more proactive strategy
where we also win advances at the bargaining table, in the legislature and with our allies in social justice movements.
Effective communications are crucial to our union’s ability to inform and engage our membership in these fights and to
influence public opinion and policy decisions. A new Branch has been created – Communications, Political Action and
Campaigns – to ensure a greater focus on this important work.
In the 2019-2021 budget, the overall funding amount for Communications is being maintained at the same level as the
current budget, divided among the following line items:
x Digital and Print Communications now includes the former “Other Communication Tools” line item to better
reflect a more coordinated communication strategy. This budget includes the production and distribution of Our
Union Voice and other publications. It also supports the PSAC website and the development and distribution of
digital content. It will also allow us to explore new ways to reach our members using the communication tools that
they regularly use.
x The Promotion Material line item provides funding for PSAC branded promotional items as well as project-specific
items for campaigns and initiatives.
x The PSAC continues to support Alternative Media, including Rabble.ca and other progressive media sources.
x The Regional Communications Activities line item provides each region with the funding for region-specific
communications initiatives.
x Membership Consultation and Polling ensures our union is effective in representing the interests of our
membership, and that our union’s public communications are strategic. This line item will fund regular polling of
PSAC members on key issues as well as public opinion polling for use in the development of campaigns or in
public communications initiatives.
x The Advertising/Sponsorship line item allows the PSAC to regularly increase our visibility with our membership
and the general public on key issues. It also allows us to support events that align with our members’ needs and
interests. Advertising linked to campaigns will be included in the Campaigns budget.
With an annual budget of $865,000, the total three year spending budget for Communications in 2019-2021 will be
Campaigns
CAMPAIGNS
2016 2016 2017 2017 2018 2019 2020 2021
CAMPAIGNS 2,107,865 778,707 2,107,865 1,730,744 2,107,865 1,831,000 1,831,000 1,831,000

Election Campaigns 75,000 49,072 75,000 73,247 75,000 100,000 100,000 100,000
Campaigns 1,464,000 498,635 1,464,000 1,366,262 1,464,000 1,250,000 1,250,000 1,250,000
Jointly Funded PSAC-
- - - - - 250,000 250,000 250,000
Component Campaigns
One Time Campaigns 337,865 - 337,865 60,235 337,865 - - -
Regional Campaigns 231,000 231,000 231,000 231,000 231,000 231,000 231,000 231,000
A union that is mobilized and active politically is better able to defend and achieve gains at the bargaining table, and to
promote and defend the rights and interests of its members as workers and citizens. PSAC members are increasingly
taking action to defend strong public services, to promote the rights of workers across Canada, and to build a more
inclusive and equitable country for all Canadians. The creation of a new Communications, Political Action and Campaigns
Branch will allow for better delivery and co-ordination of these campaigns so that we can achieve the greatest impact.
Campaigns can be focused on issues that affect all members, or members in certain Regions, Components or Locals.
x Elections are a key moment for political engagement and an opportunity to raise public awareness of the issues
that are important to our members. The spending in this line is restricted by legislation which limits direct spending
by third parties during the election. However, this budget does provide for a small increase that will allow us to grow
the mobilization of our members during elections at federal and provincial / territorial levels.
x The general Campaigns line item will focus on membership engagement to defend public services, to win over
public opinion in favor of quality public services and equality, to defend collective bargaining and union rights, and
to support campaigns on issues that affect our membership and society at large. This budget re-establishes a
separate and distinct line item for Jointly Funded PSAC and Component Campaigns. This had been rolled into
the general campaigns line item in the last budget. This budget restores it in the hope that it will provide for more
effective partnership between PSAC and Components, and give clearer focus and accountability for this important
part of our work. Taken together, we are proposing a small increase across these two budget line items.
x Delegates to the 2015 PSAC Convention voted to support three one-time campaign initiatives: lobbying to support
the Inquiry into Murdered and Missing Aboriginal Women (GEN-052), lobbying to amend the Employment
Insurance Act to remove the cap of 15 weeks’ illness benefits (GEN-120) and a large scale campaign against
“Contracting Out of Public Services” (NEGO-059), which also received funding through the Resolutions Reserve
Fund. Supported through one-time dues increases, the funding for these campaigns ends in 2018.
x The Regional Campaigns budget enables regions to supplement national political action priorities, and to fund
political action activities that are specific to the regions where members live and work. These funds can also be
used to forge region-specific coalitions and to mobilize membership participation in municipal elections. This line
item is remaining the same for the third consecutive budget cycle.
With an annual budget of $1,831,000, the total three year spending budget for Campaigns in 2019-2021 will be
Supporting Our Allies
SUPPORTING OUR ALLIES

2016 2016 2017 2017 2018 2019 2020 2021
SUPPORTING OUR
304,000 252,500 304,000 272,000 304,000 275,000 275,000 275,000
ALLIES
Supporting our Allies 150,000 129,000 150,000 147,000 150,000 150,000 150,000 150,000
Participating in Union and
40,000 - 40,000 - 40,000 - - -
Social Justice Movement
Public Research and
114,000 123,500 114,000 125,000 114,000 125,000 125,000 125,000
Partnerships
The Supporting Our Allies line item ensures that the PSAC is able to continue working in solidarity with other
progressive national organizations also committed to economic and social justice. The PSAC has a long history of
working closely with a host of different groups on common issues as well as supporting the various initiatives they
undertake. While there are too many to list all of them, some of these organizations include the Canadian Health
Coalition, Canadians for Tax Fairness, Child Care Now (formerly Child Care Advocacy Association of Canada), Canada
Without Poverty, Common Frontiers, Green Economy Network and the Council of Canadians.
The Public Research and Partnerships line-item provides resources for on-going and new potential partnerships with
progressive research organizations such as the Canadian Centre for Policy Alternatives (CCPA), Voices-Voix, the Institut
de recherche et d’informations socioéconomiques (IRIS), and the Broadbent Institute. The CCPA coordinates several
important on-going research projects in which the PSAC supports and participates, including the Alternative Federal
Budget (AFB). An increase in this line is proposed to strengthen PSAC support for proactive, progressive research.
Previous budgets had a small allocation ($40,000 per year) for “participating in union and social justice” activities. The
line has not been utilized and this budget therefore removes it going forward. However, other line items do facilitate the
union’s participation in union and social justice movement work

With an annual budget of $275,000, the total three year spending budget for Supporting Our Allies in 2019-2021 will be
$825,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $850,748.

Social Justice Fund
SOCIAL JUSTICE FUND

2016 2016 2017 2017 2018 2019 2020 2021
The PSAC Social Justice Fund (SJF) was created as a separate entity in 2003. Sources of revenue to the SJF include
contributions from employers and employees where we have been successful in negotiating a SJF clause into our
collective agreements. The contributions derived from such clauses are paid directly to the SJF.
The SJF facilitates the involvement of the PSAC with coalitions and allies, such as the Americas policy group of the CCIC
(Canadian Council for International Cooperation), the CLC international consultation group, Common Frontiers, the
Canadian Network on Corporate Accountability, and various Social Forums. These linkages are very important in shaping
policy around poverty alleviation strategies in Canada, and policies on human rights, peace and development.
The SJF also supports direct membership participation in international solidarity initiatives in support of labour movement
and social justice partners in the South.
The SJF has increased the amount of information and publications made available to members and has increased its
participation in PSAC conferences, meetings, and conventions in order to increase awareness and develop membership
engagement. The SJF has also increased the number of bargaining sessions it attends, in order to promote inclusion of
the SJF clause in collective agreements. Reflecting the greater integration of SJF activities, the two SJF staff are now a
part of the regular PSAC staff complement.
Over the past two cycles, we did not budget any spending from Members’ Expenses for the Social Justice Fund.
However, two sources of (previously unbudgeted for) income have been donated to the SJF: the legal costs awarded in
PSAC’s favour and the income from the PSAC Affinity Program.
These transactions show up in our financial statements as additional income under “Other Income” and are reported as
expenses under this line item. In addition, over the past two cycles the PSAC established a Social Justice Reserve Fund,
from which regular transfers were made to the SJF.
The 2019-2021 Budget takes a new approach and provides for a small annual allocation of funds to the Social Justice
Fund, so as to ensure a regular support for SJF program activities.
Participation in the Labour Movement
PARTICIPATION IN THE LABOUR MOVEMENT

2016 2016 2017 2017 2018 2019 2020 2021
PARTICIPATION IN THE
3,327,280 3,838,275 3,327,280 3,747,747 3,327,280 3,648,015 3,648,015 3,648,015
LABOUR MOVEMENT
CLC Affiliation 1,357,549 1,504,723 1,357,549 1,469,177 1,357,549 1,504,800 1,504,800 1,504,800
Federation of Labour
1,659,227 2,065,808 1,659,227 2,094,392 1,659,227 1,820,728 1,820,728 1,820,728
Affiliation
International Affiliation 131,004 137,461 131,004 118,640 131,004 132,487 132,487 132,487
Total Affiliation Fees 3,147,780 3,707,992 3,147,780 3,682,209 3,147,780 3,458,015 3,458,015 3,458,015
Federation of Labour
105,000 48,155 105,000 38,352 105,000 70,000 70,000 70,000
Committees
National Committees 19,500 - 19,500 - 19,500 20,000 20,000 20,000
CLC Convention /
55,000 82,128 55,000 27,186 55,000 100,000 100,000 100,000
Conferences
Total Non Affiliation
179,500 130,283 179,500 65,538 179,500 190,000 190,000 190,000
Expenses
The PSAC continues to be active in the broader labour movement – building power and solidarity among workers across
Canada and around the world. That movement includes our participation within the Canadian Labour Congress (CLC)
representing over 3 million workers. We are also active in provincial and territorial Federations of Labour. The PSAC is
affiliated to Public Services International (PSI) a global federation with 20 million public sector workers represented by
over 700 unions in more than 150 countries.
Participation in the Labour Movement expenses cover:
x Per capita affiliation fees to the Canadian Labour Congress (CLC) and Provincial and Territorial Federations of
Labour. For the last several budget cycles, this line item has been overspent as PSAC affiliation fees have been
calculated on actual membership numbers as opposed to the projected membership numbers. We are currently
reviewing the formulas used to calculate these affiliation fees to ensure they accurately reflect our membership
composition, and provide for more stable and predictable spending on our part (as well as stable and predictable
funding for the CLC and Federations). Our goal is to keep spending within budget for 2019-2021.
x Per capita international affiliation fees to Public Services International (PSI). This line item is increasing slightly
based on actual expenditures.
x Costs related to the PSAC Locals’ participation in Federation of Labour Committees across the country. This line
item is decreased based on actual expenditures.
x Costs related to the participation of PSAC leaders and members in national committees of the Canadian Labour
Congress and National Joint Council or other national labour committees.
x Costs related to Canadian Labour Congress national conferences, such as the Equity Conference. It also covers
costs related to participation in the Canadian Labour Congress Convention which is held once every three
years. Interest from members in participating in CLC conferences and convention has increased. This line item is
going up to cover participation of more members in these activities.

With an annual budget of $3,648,015, the total three year spending budget for Participation in the Labour Movement in
2019-2021 will be $10,944,045. By way of comparison, the most recent total three year spending (2015-2016-2017) was
$11,672,018.
Internal Governance
INTERNAL GOVERNANCE
2016 2016 2017 2017 2018 2019 2020 2021
INTERNAL
1,280,370 74,430 1,280,370 132,691 1,280,370 1,455,740 1,455,740 1,455,740
GOVERNANCE
NBoD Meetings 100,000 64,143 100,000 111,136 100,000 90,000 90,000 90,000
NBoD Expenses 25,000 2,436 25,000 15,574 25,000 25,000 25,000 25,000
PSAC Convention 1,155,370 7,851 1,155,370 5,981 1,155,370 1,340,740 1,340,740 1,340,740
The budget for Internal Governance covers costs related to the National Board of Directors (NBoD), as well as the
PSAC’s Triennial Convention.
These budgeted expenses include:
x National Board of Directors Meetings: The budget line covers the costs of three regular NBoD meetings per
year, one off-site planning session per cycle, and an additional meeting in the year prior to the 2021 PSAC
Convention. This line item is being decreased for the second budget cycle in a row to reflect actual spending.
x National Board of Director Expenses: The budget line of $25,000 per year for three years covers expenses such
as PSAC Honours and Awards (which are awarded by the NBoD) as well as costs associated with briefings of the
NBoD in between regular meetings.
x PSAC Convention: The 2016-2018 Budget for the PSAC Convention was set at $3.46 million. Given the higher
costs associated with holding the 2018 Convention in Toronto, we are now forecasting total expenses to reach just
over $4 million. These costs are offset by around $250,000 by registration fees and sponsorships, which are
recorded under “Other Income.”
x While we know some costs will rise over the next three years, we’re using the 2018 expense forecast as the budget
for the 2021 Convention on the assumption that it will be held in a location with significantly lower accommodation
and venue costs.
With an annual budget of $1,455,740, the total three year spending budget for Internal Governance in 2019-2021 will be
Other Membership Expenses
OTHER MEMBERSHIP EXPENSES

2016 2016 2017 2017 2018 2019 2020 2021
OTHER MEMBERSHIP
50,000 95,013 50,000 117,022 50,000 50,000 50,000 50,000
EXPENSES
The majority of the funds in this line item are for retroactive pay for PSAC members. Members who take leave without
pay for PSAC business – for example to be on a bargaining team, or to attend a conference, convention or education
course – are paid their salary by the PSAC for the lost wages. Just as employees are entitled to retroactive pay from their
employer once an agreement is signed, members are entitled to receive retroactive pay from the PSAC for past leave
without pay on behalf of the union. Costs associated with Membership Cards are also included in Other Membership
Expenses. The budgeted amounts for Other Membership Expenses remain the same as in the 2016-2018 budget.

With an annual budget of $50,000, the total three year spending budget for Other Membership Expenses in 2019-2021
will be $150,000. By way of comparison, the most recent total three year spending (2015-2016-2017) was $266,558.
Members’ Expenses Inflation
MEMBERS' EXPENSES INFLATION

2016 2016 2017 2017 2018 2019 2020 2021
MEMBERS' EXPENSES
350,463 706,184
INFLATION
This budget builds an inflationary factor of 1.5% for 2020 and 2021 into the overall Members’ Expenses category. We do
not add this into every line because not all of the Members’ Expenses are subject to the same inflationary pressure. For
example, expenses which are based on fixed grants or funding for events that take place in year one of the next cycle are
not subject to inflation in the way as those line items which pay for ongoing members’ salary and travel costs, such as
Negotiations and Education. The Members’ Expenses Inflation line will be used to address any budgetary pressures on
Members’ Expenses that takes place in 2020 and 2021 so that the overall category can stay on target.
SECTION D
2019 - 2021 BUDGET
OPERATING EXPENSES
Salaries and Benefits
SALARIES AND BENEFITS 2019-2021

2016 2016 2017 2017 2018 2019 2020 2021
SALARIES AND
44,396,384 44,214,552 45,040,298 46,636,359 45,693,870 49,981,027 50,730,742 51,491,704
BENEFITS
Salaries
PSAC’s human resources –our staff –are one of our most critical assets. The staff in headquarters and in our 23
Regional Offices are at the heart of our ability to accomplish the priorities set by the elected leadership and the
membership.
Most of our staff throughout the country contribute directly to serving the membership –be it through negotiating collective
agreements, representing members at adjudication, defending members’ rights at administrative tribunals and in the
courts, providing union education, organizing campaigns, rallies and strikes, providing health and safety guidance,
assisting locals, regional committees and Councils, and organizing regional and national conferences, to name only these
functions. Some staff are dedicated to less visible, administrative functions that are also necessary to run an organization
like the PSAC: meeting our responsibilities as a good employer, providing technological and infrastructure support,
managing our finances, our dues and our information, and providing staff with the tools and training they need to do a
good job for our members.
The PSAC staff is among the most representative, diverse and skilled in the Canadian labour movement.
At the last Triennial Convention, PSAC's approach to budgeting for our human resources needs moved from a fixed
number of positions to a total salary envelope. This new way of managing our human resources is allowing us to better
assign our resources to the priorities identified at the Convention and by the National Board of Directors and Alliance
Executive Committee.
DRAFT2019Ͳ2021PSACBudgetAdoptedbyPreͲConventionFinanceCommitteeFebruary2018DͲ2
Three years ago, the uncertain political environment led us to present a budget with a reduction of the salary envelope
equivalent to 3.4%. To minimize the impact of this reduction and to facilitate our transformation to a somewhat smaller
organization, convention delegates also authorized the creation of a $4 million Transition Fund.
As explained in Section B of this budget, the current context is a much different one. We are therefore proposing a salary
and benefits envelope that will allow us to:
1) maintain the number of staff at the current level;
2) increase the number of staff in key priority program areas; and
3) factor in an increase of 1.5% for 2020 and 2021, to account for negotiated wages’ increases as well as a
benefits inflation.
Further supporting rationale for the increased salary and benefits envelope is found on pages B-12 to B-16 in Section B.
The proposed amount includes the salary, overtime and benefit costs for all PSAC staff members as well as the 9 full-time
elected AEC officers.
Benefits
Benefits for staff members and elected officers represent an important annual expense, and are included in the salary and
benefits envelope proposed in this budget.
In past budget cycles, we had historically budgeted benefits costs separately, and the benefits budget was set at 40 per
cent of salary spending. In recent years, we have found that the cost of benefits has been lower than 40% of salary
spending. In 2016, total benefits costs were 35% of salaries; in 2017 total benefits costs have been 37% of salaries.
The lower than anticipated benefits spending actually allowed us to keep more staff employed; that’s how the salary and
benefits envelope approach gives PSAC more flexibility to meet the needs of the union.
Employer contributions to the PSAC Pension Plan are the largest of our benefits expenses, representing just over 1/3 of
total benefits spending.
The current contribution rate is determined from the actuarial valuation filed effective January 1, 2017. The percentage of
contributions paid by the employer and the employees continues to be at 50%: each contributes the equivalent of
12.545% of the eligible salary.
The second largest category of benefits spending is for the various health, dental, vision, life insurance and long-term
disability programs covering PSAC staff. These represent just under 1/3 of total benefits spending. We have not
experienced any significant increases in these costs over the past few years.
A variety of statutory employer contributions (CPP/QPP, EI, workers’ compensation and provincial health premiums)
makes up the third largest category, at about 20% of total benefits spending. These costs increase year over year based
on increases in rates set by federal and provincial governments.
The remaining portion of our benefits spending covers a diverse range of benefits such as maternity and parental leave
top-up, recreation allowance, and other provisions that are negotiated into collective agreements between the PSAC and
our staff unions.
Rent
RENT 2019-2021
2016 2016 2017 2017 2018 2019 2020 2021
RENT 5,702,200 5,613,364 5,761,200 6,190,196 5,836,200 5,964,729 6,007,331 6,054,348
The Rent line item in the budget reflects the cost of office space for the PSAC Officers and Staff at 233 Gilmour Street in
Ottawa, as well as at the various regional offices across the country. In Headquarters, the PSAC pays rent to PSAC
Holdings, the separate entity which operates and manages 233 Gilmour.
The PSAC Headquarters has undergone a major renovation program over the last sixteen years. As outlined in the 2016-
2018 budget, we have excavated and repaired the southern foundation walls, and are currently replacing the emergency
generator which provides emergency power during a power outage.
We have also completed the renovation of the J.K. Wyllie and J.C. Carlo boardrooms on the ground floor, which now have
a state of the art audio-visual system. We have retained interior designers to review the specific requirements for gender
neutral washrooms.
Our focus moving forward is to address the aging infrastructure of the Alliance Centre building, which is now over 50
years old. That is the reason why we commissioned a Building Condition Assessment which serves to assess the
performance of the building’s systems and capital components. This provided us with a detailed inventory of future needs,
short and long term replacement strategies and life cycle costs. This study projected capital expenditures of approximately
$6.6 million from 2017 to 2037, assisting PSAC Holdings with its long term budgeting.
In addition to office space for PSAC National, there are currently 7 out of 12 southern Components housed in the 233
Gilmour Street building: AGR, GSU, UCTE, UPCE, USJE, UTE, and UVAE, as well as the Joint Learning Program. These
entities all pay rent separately to PSAC Holdings.
The PSAC has 23 regional offices across Canada. Those with leases go as far out as 2028, with some options to extend
to 2033. Regional office rents comprise 53 per cent of total spending under the Rent line item. Nine of these leases are
expiring in 2018 or 2019; this gives us the opportunity to review our needs, negotiate renewal in existing space, gather
market intelligence on available properties and look at relocation alternatives in order to make prudent decisions and
ensure the best efficient space solutions.
It was decided to move the Ottawa Regional Office back to the 233 Gilmour Centre to utilize the empty space on the 6th
floor. This will result in savings of $2.5 million over 10 years (following payment of a lease termination fee of $452,000).
The targeted occupancy date is March, 2018.
Amortization of Capital Assets
AMORTIZATION of CAPITAL ASSETS 2019-2021

2016 2016 2017 2017 2018 2019 2020 2021
AMORTIZATION of
2,032,500 2,165,589 1,886,359 2,101,625 1,565,332 2,085,136 1,701,098 1,470,891
CAPITAL ASSETS
This category of expense covers Capital Assets which will be used by the PSAC for a few years, such as leasehold
improvements at 233 Gilmour and in the 23 Regional Offices, furniture and fixtures, photocopiers, computer equipment
and software, all over $1,000.
It should be noted that current accounting policies require that Capital Assets be recorded at cost and that they be
amortized (expensed) on a straight line basis over three years for computer equipment, and five years for such things as
software, furniture and equipment. This is how the purchase of Capital Assets turns into the expenses recorded under the
Amortization of Capital Assets line in the Budget. Therefore, it is the spending in this cycle that generates the bulk of
expenses in the next cycle.
In 2016 and 2017, $250,000 has been spent on furniture and equipment replacement and upgrades, $1.1 million on
computers, $1.2 million on software and $119,000 on leasehold improvements. The replacement of all computer
equipment (being undertaken in 2017 and 2018) is required due to the significant undertaking of migrating the PSAC to
Windows 7. Current software spending includes completing the electronic submission of expense claims project, the
payroll module upgrade and an integrated Human Resources Management System. The leasehold improvements are
being carried out mainly in the Regional Offices.
The Amortization of Capital Assets line item for the budget cycle 2019-2021 (total of $5.26 million over three years) is
slightly lower than the total for the 2016-2018 budget cycle ($5.48 million).
Other Operating Expenses
OTHER OPERATING EXPENSES 2019-2021

2016 2016 2017 2017 2018 2019 2020 2021
Communication 886,844 805,419 886,844 856,227 886,844 475,617 482,751 489,993
General 1,562,270 1,385,583 1,562,270 1,580,891 1,562,270 2,056,411 2,087,257 2,118,566
Travel 3,324,216 3,493,019 3,324,216 3,776,207 3,324,216 3,794,152 3,851,064 3,908,830
Sundry 2,141,104 2,860,318 2,141,104 2,193,506 2,141,104 2,518,797 2,556,579 2,594,928
Meeting 147,961 190,278 147,961 142,223 147,961 181,928 184,657 187,427
Recovery - (33,354) - (29,130) - (25,000) (25,375) (25,756)
National Staff Conferences - - - - - 162,500 164,938 167,412
Total 8,062,395 8,701,263 8,062,395 8,519,924 8,062,395 9,164,405 9,301,871 9,441,399
The day-to-day operations of the PSAC are supported by a wide variety of expenses grouped under “Other Operating
Expenses.” Spending in these line items supports the operations of every Branch and office of the PSAC, and therefore
directly supports the delivery of programs and services to the members of the union. This part of the budget contains a
total increase of just over $1 million per year in 2019 as compared to the 2016-2018 budget. The projected spending is
more in line with the budget for 2013-2015, when Other Operating Expenses totaled $8.9 million a year. Some of the
increase covers inflation since the last Convention; other increases are due to identified organizational needs, as
described in the following sections. We are also budgeting a future inflation amount for 2020 and 2021 of 1.5% a year in
each area under Other Operating Expenses.
Communication
This category of expenses includes phone, fax, internet and cell charges. With a plan to significantly increase our use of
Voice over Internet Protocol (VoIP), Skype and video conference technology, we have been able to make a significant cut
in the budget for office phones and long distance charges. Through centralized budget management we have also been
able to recognize significant savings in our Internet Account spending and a reduction of spending for the use of cell
phones. Overall, spending in this category is down by over 40%.
General
This area of the budget is growing with the move to “Hosted Services” for many of our information technology and
information management needs. By making use of SaaS (Software as a Service) subscriptions, we can provide
anywhere-anytime mobile access to applications and services. This makes it easier to deliver access to the latest updates
and upgrades across a very large user base. We will also increase our use of Cloud technologies for storage. Our staff
will still manage servers, network applications, services and data storage, but we will be able to reduce our use of on-site
physical servers.
For 2019 we’re budgeting a total of $864,000 per year for Hosted Services – an increase of about $714,000 per year.
However, we are also able to recognize IT savings under communications, repairs and maintenance totaling $636,000 a
year. In other words, we’re budgeting a net increase for these related technology changes of about $83,000 a year. What
we get in return is a significant modernization of the technological systems which allow staff to deliver programs and
services to PSAC members. We will also see longer term cost reductions in the purchase, repair, maintenance and
cooling of on-site servers.
The General Expenses category also includes a line item for equipment and furniture, which pays for ergonomic
equipment, and any other spending on equipment and furniture costs below $1,000 (spending over that amount is
capitalized). Rental of photocopiers, and the cost of postage and office supplies, are also included in this category.
Travel
This area of spending was cut significantly for 2016 – a reduction in budget of approximately 16% as compared to 2015.
We therefore scrutinize travel spending particularly carefully during the regular Branch-by-Branch quarterly reviews. As a
result of this careful monitoring and control process we can report that in 2016-2017:
x 13 per cent of total travel spending is for expenses that are negotiated as part of our staff collective agreements
(primarily within Regional Office Branch for those representatives who receive a car allowance and related
expenses in order to cover their travel);
x At least 25 per cent of our total travel spending is for collective bargaining travel related to the negotiation of
members’ collective agreements – e.g. the staff negotiators and research officers assigned to work with bargaining
teams;
x At least 30 per cent of total travel spending is for the staff travel costs to deliver other areas of direct membership
programs such as representation, education, local outreach, organizing and delivery for national and regional
human rights and health and safety conferences;
x Less than 10 per cent of travel spending is for elected Officer’s or staff travel related to AEC and NBoD meetings,
and Component and Regional Conventions.
We have worked hard to achieve the budget targets while ensuring we meet the program and operational needs of the
union. As a result, we believe an increase in the budget for travel is needed for 2019-2021 to account for current spending
requirements, inflation, and the expansion of program areas that require a lot of travel, such as negotiations,
representation and education. The budget for 2019-2021 remains below the travel budget contained in the 2013-2015
budget.
Sundry
This category of spending covers a diverse range of expenses. Just under half the spending is for various human
resources services: staff union expenses, recruitment and relocation costs, payroll processing, and the internal staff
training plan. Other significant areas of spending include publications and subscriptions, external translation fees,
professional fees, and insurance costs. The remainder covers a wide range of small line items such as graphics, bank
charges, news services, and printing costs.
The most significant areas of increased spending in the 2019-2021 Sundry budget are:
x staff union costs, which includes PSAC support for the internal employment equity committee (an addition of
$90,000 per year);
x internal training needs to meet legal requirements and the professional development of staff (an addition of
$80,000 per year);
x professional fees that cover the cost of PSAC and Social Justice Fund audits as well as the cost of organizational
reviews and program evaluations (an addition of $81,000 per year);
x publications and subscriptions have been increased by $43,000 a year, due in particular to the increased costs of
subscriptions for legal and representation purposes.
Meeting
This category covers meetings costs, primarily related to the need for simultaneous interpretation and translation
equipment when holding meetings of the AEC or staff.
Recovery of Expenses
This line item represents a reduction in the operating costs of the PSAC Copy Centre as a result of printing services
provided to the various Branches and Sections of the PSAC. Using this line item, we effectively re-distribute the Copy
Centre costs to the printing line items in various other parts of the PSAC budget, which can include both Members’
Expenses (e.g. printing of collective agreements) and Other Operational Expenses. This ensures our spending reports
better reflect the true cost of printing for PSAC programs and operations.
Note that any income received by the PSAC Copy Centre as a result of print jobs done for Components or other parts of
the union outside the PSAC are recorded as income under Other Income. Based on current trends this is currently
estimated at $2,000 per year.
National Staff Conferences
For many years, the PSAC was able to support the holding of National Staff Conferences as a forum for training,
communication, and building team work across organizational lines. The operating expense budget adopted in the last
cycle was too small to accommodate the holding of these conferences. This budget includes a new line that will support
the holding of one Officer level conference and one Administrative Staff conference during the 2019-2021 cycle.
UNION
GCC/IBT LABEL
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REDUCED ENVIRONMENTAL
IMPACT. VIEW SPECIFIC
934-M
ATTRIBUTES EVALUATED:
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2019-2021 Budget

PSAC NATIONAL TRIENNIAL CONVENTION

(204,129) (487,937) (21,372) (10,569,709) 328,505 (326,229) 94,313 357,792

Average Salary used for dues

Average Member Dues

Dues Increase 0.0298% 0.0298% 0.0298%

Deductee projected salary

Budget Actual Budget Actual Budget Budget Budget Budget

REPRESENTATION 1,250,000 1,652,084 1,250,000 1,487,754 1,250,000 1,350,000 1,350,000 1,350,000

ORGANIZING 1,000,000 631,793 1,000,000 687,768 1,000,000 900,000 900,000 900,000

COMMUNICATIONS 865,000 650,542 865,000 756,322 865,000 865,000 865,000 865,000

CAMPAIGNS 2,107,865 778,707 2,107,865 1,730,744 2,107,865 1,831,000 1,831,000 1,831,000

SOCIAL JUSTICE FUND - 60,172 - 35,784 - 200,000 200,000 200,000

Sub-total 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,364,225 23,364,225

TOTAL 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,714,688 24,070,409

INTRODUCTION and OVERVIEW

Introduction: Building Our Union, Building Our Future B-3

Assumption 1) Membership numbers

Assumption 2) Members’ Average Salary

Assumption 3) PSAC Dues Rate

Sub-total 0.9146% Sub-total 0.9107%

General dues increase 0.0298%

Special Levy Rate 0.0593%

Total Rate 0.9739% Total Rate 0.9405%

CURRENT AVERAGE PSAC DUES Rate Average Monthly

POTENTIAL 2019-2021 AVERAGE DUES Rate Average Monthly

Net Change (reduction) (0.0334%) $(1.47)

2019 2020 2021

Number of Members 176,000 176,000 176,000

Average Salary 53,031 53,827 54,634

Base Dues Rate 0.9107% 0.9107% 0.9107%

Projected Dues Revenue, Base Dues Rate 85,000,000 86,275,000 87,569,125

Dues Increase 0.0298% 0.0298% 0.0298%

Projected Dues Revenue from increase 2,783,293 2,825,043 2,867,418

Total Dues Revenue 87,783,293 89,100,043 90,436,543

Other Revenue 2,550,000 2,550,000 2,550,000

TOTAL REVENUE 90,333,293 91,650,043 92,986,543

Operating Expenses, 2019-2021

• The average membership salary;

The PSAC Staff Pension Plan Solvency Reserve

Transfers from participating Components $1,600,000

REPORT ON OTHER RESTRICTED FUNDS, 2016-2018

Fund as proposed (May Balance Estimated balance

Social Justice Reserve Fund $300,000 $100,000 $0

Transition Fund $4,000,000 $2,542,592 $1,000,000

PSAC Holdings Fund $1,100,000 $608,384 $200,000

Resolutions Fund $750,000 $344,359 $0

TOTAL $6,150,000 $3,595,335 $1,200,000

Here is our report on how these funds have been used:

Anticipated Carry- Proposed Additions Total

Resolutions Fund $750,000 $750,000

PSAC Holdings Fund $200,000 $900,000 $1,100,000

TOTAL $200,000 $1,650,000 $1,850,000

This budget proposes to:

Sub-total 22,163,164 20,243,961 22,163,164 22,363,575 22,163,164 23,364,225 23,364,225 23,364,225

NEGOTIATIONS AND MOBILIZATION

The Mobilization line item covers expenses such as:

Actual spending under this line item supports the following:

HUMAN RIGHTS ACTIVITIES

Budget Actual Budget Actual Budget Budget Budget Budget

Racially Visible Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500

Access Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500

Pride Conference 110,000 - 110,000 - 110,000 144,500 144,500 144,500