June 18, 2008
21.4.955
Background
The employee grieved the department's decision to discount the exchange rate of the travel claim based on a local interpretation of the Travel Directive.
The grievor's claim was reimbursed at the actual exchange rate paid for accommodations and expenses that were identified on the credit card statement; however, all meals and incidental allowances were paid at the Bank of Canada rate, regardless of whether they were also identified on the credit card statement. At the time, the local branch interpreted clause 3.3.4 of the Travel Directive to mean that receipts would be required for all meals and incidentals if employees were to be reimbursed at the actual exchange rate.
At the first level grievance hearing, the Department conceded that Finance and Administration in the region had not applied section 3.3.4 of the Travel Directive in a manner consistent with Headquarters application. It agreed to review the grievor's travel claims and make the necessary adjustments to pay the actual exchange rate for all expenses that were supported with a receipt or credit card statement showing an actual exchange rate per the following:
(a) In the case of an employee having a receipt for two meals the calculation would be – one meal allowance based on the average Bank of Canada rate and two meal allowances based on the actual exchange rate supported by receipts as reference in the travel directive section 3.3.4.
(b) In the case of other allowance expenses, as long as they are supported with a receipt, they will be reimbursed at the rate on the receipt.
The grievor's travel expense claims were subsequently reviewed and recalculated. The grievor did not accept the remedial actions. The grievor alleged that he still was not being paid in accordance with the Travel Directive.
Bargaining Agent Presentation
The bargaining agent representative maintained that the Travel Directive does not require individual receipts for meal and incidental allowances except for when one is claiming expenses in excess of the allowance rate.
The bargaining agent representative submitted that if receipts are not required for every item covered by an allowance then the employer should pay the actual rate that the employee can provide documentation for to indicate a rate for actual purchases made on that day.
The bargaining agent representative further submitted that if employees are truly required to produce receipts for all allowable expenses then this requirement should be more clearly expressed in the Travel Directive.
The bargaining agent representative stated that local and national interpretations of the Travel Directive cause problems because Departments and regions develop their own interpretations which are often in conflict with the Travel Directive.
The bargaining agent representative suggested that the reality is that current financial pressures do not provide an accommodating environment and financial direction is clearly aimed at limiting employer costs at employee expense, no matter how small those costs may be.
Departmental Presentation
The departmental representative stated that the grievor's travel expense claims were recalculated and the necessary adjustments were made to pay the actual exchange rate for each expense and allowance that was supported with a receipt of credit card statement showing an actual exchange rate.
The departmental representative argued that the Travel Directive is clear in that receipts are to be provided from each transaction and source in order to be reimbursed at the actual exchange rate paid and that all other expenses and allowances that are not accompanied by a receipt or credit card statement will be paid at the Bank of Canada rate.
The departmental representative maintained that if the Directive intended for an employee to be reimbursed all allowances according to one receipt's actual exchange, the wording of "receipts" in clause 3.3.4 would be singular and not plural.
The departmental representative further argued that actual exchange rates fluctuate depending on the time of day and credit card provider, so which actual exchange rate would the Department be expected to apply?
Finally the departmental representative submitted that in the absence of receipts, it is reasonable to expect the Bank of Canada currency exchange rate to be a fair and accurate representation of the costs of converting foreign currency, and ensures that the employee is not out-of-pocket.
Executive Committee Decision
The Executive Committee considered and agreed with the report of the Government Travel Committee which concluded that the grievor had not been treated within the intent of the Travel Directive. The committee agreed that the foreign currency calculation method utilized by the department was incorrect. As such, the Committee agreed to uphold the grievance insofar as the travel claims will be recalculated in accordance with the foreign currency conversion process, outlined by the Travel Committee communiqué.