NJC Kilometric Rates
Kilometric rates for government travel are established by the Executive Committee of the National Joint Council on recommendation of the employer and bargaining agent representatives who form the NJC Government Travel Committee. The information on which this decision is based is furnished under contract to the NJC by a leading external consultant with expertise in corporate fleet management. The consultant provides a recommendation on appropriate kilometric rates using a methodology developed by the Government Travel Committee and approved by the NJC. Rates are adjusted on an annual basis unless the parties agree that there are compelling circumstances to revise rates more frequently.
A basic description of the methodology used to establish kilometric rates may be found in the Guide to National Joint Council Rates and Allowances (http://www.njc-cnm.gc.ca/doc.php?lang=en&did=117). A "Question and Answer" document on kilometric rates posted on the web site in 2004 also remains a good source of clarifying information (http://www.njc-cnm.gc.ca/doc.php?lang=en&did=150).
In the interests of ensuring transparency, the NJC Executive Committee has recently decided to take the further step of making public the full text of the following two documents:
- The original 1999 report of the consultants which outlines in detail the approach used to derive recommended kilometric rates based on the methodology agreed by the NJC parties (http://www.njc-cnm.gc.ca/doc.php?lang=en&did=174);
- The annual update report of the consultants used as a basis for establishing kilometric rates effective April 1, 2004 as approved by the NJC Executive Committee (http://www.njc-cnm.gc.ca/doc.php?lang=en&did=175).
(Note that further revisions to kilometric rates subsequently took effect on July 1, 2004 following a decision by the NJC Executive that there were compelling reasons to take action based upon a consultant's update of the impact of increased fuel prices during the period of April and May 2004.)
The Executive hopes that this material will afford public service employees and managers fuller insight into the approach used by NJC employers and bargaining agents to set market-based kilometric rates. Any concerns about kilometric rates should be expressed to employer and bargaining agent representatives who are currently scheduled to conduct their next full review of the NJC Travel Directive, including the methodology for kilometric rates, in 2006.
Note: Public Service employees and managers are advised that they should NOT at any time contact the external consultants who provide information to the NJC about their reports. The parties to the National Joint Council agree that the consultants should NOT answer any such inquiries and that all questions and concerns should be directed to the NJC parties themselves.