December 18, 2013
27.4.110
Background
The employees received notification from the Department advising them that the Vacation Travel Assistance (VTA) effective April 1, 2013 would be lower than the previous year. The grievors are claiming that the lowered VTA amount is insufficient to cover actual vacation expenses.
Bargaining Agent Presentation
The Bargaining Agent representative noted that the grievors work and reside in City A, and the airport that services City A is in City B. As City A is considered an isolated post, the grievors are entitled to benefits, such as VTA, provided for in the Isolated Post and Government Housing Directive (IPGHD).
In 2013 the grievors received a VTA that was lower than the previous year, yet were not notified of the decrease, or of the reason for the decrease. This is contrary to the intent of the IPGHD VTA allowance as the grievors did not receive adequate coverage for them to leave and return to their isolated post for vacation purposes. The Bargaining Agent representative noted that an employee who works for a crown corporation in the same community received much higher vacation travel the same year. It was noted that a local travel agent quoted the price of a full fare roundtrip ticket from City B to City C (point of departure) on Sept. 24, 2013 and the amount was higher than VTA. While the comparison between a crown corporation and a federal department are different, it would still cost the same for anyone living in the same area, regardless of their employer, to travel to their point of departure.
As the grievors only received $1270 for their VTA, a difference of $707 from the $1977 quoted by the travel agent, this would mean a significant out of pocket expense for the grievors to be able to travel from their isolated post to their point of departure. Section 3.5.1 of the IPGHD states "Employees working at headquarters that have airports will be paid an amount equivalent to 100% of the return full fare economy airfare between the headquarters and the point of departure" however, it would appear this did not happen in the case of these grievors.
In the corrective action of the grievance, the grievors requested the employer provide them with the information as to how they arrived at their decision to decrease the amount of coverage, yet an adequate response was not provided as the grievors still do not understand how this rate was arrived at or why such a large decrease occurred. The first level decision stated "As per section 3.5 of the Directive, Vacation Travel Assistance is based on the location of the employee, the airline rates of a return full fare economy flight, as well as any discounts that the company may offer". The Bargaining Agent representative noted that this did not answer the question as to why the decrease occurred and it should be noted that the only reference found to "discounts" is if a special fare is set by the airline for a child to travel or if discounts are given because of "compassionate" reasons which is covered in section 3.4.
Therefore, based on the evidence provided, the Bargaining Agent representative maintained that the grievance must be allowed and that the grievors be granted the full coverage that reflects the actual cost incurred for leaving the isolated post for vacation purposes.
Departmental Presentation
The Departmental representative noted that a Communiqué had been published on the Treasury Board Secretariat (TBS) website regarding the updated VTA allowances, effective April 1, 2013. In this Communiqué, the VTA amount was posted for City A. As advised by TBS, the rates are published on April 1 and October 1 of each year in compliance with the IPGHD methodology.
The rates are based on quotes from the service provider, AMEX, which are based on the maximum unrestricted economy Y-class fare return ticket between the isolated post and the point of departure (excluding airport fees, departure taxes, NAVCAN surcharges, travel agent fees and other miscellaneous fees). AMEX had verified the quotes for City A in the Sabre Global Distribution System (GDS) in combination with online rates and phone verification in order to establish final quotes for the production of VTA rates. TBS uses the only unrestricted economy Y tickets for this location obtained through the airline which provides regular scheduled flights to the isolated post.
The Departmental representative emphasized that City A was subject to a higher verification level by both AMEX and TBS, as they noticed that the change in air rate was significant from the previous year. VTA rates are established based on the methodology specified in section 3.5.1, however, this can allow for significant variations in benefits as a result of changes in the airline industry. The Departmental representative confirmed that TBS and departments have no control on the amount that will be provided by the airline industry to establish the VTA; the rates are provided by AMEX, as they are specialized in quoting airfares for travelers.
In conclusion, the Departmental representative maintained, that based on the information provided and the circumstances of this grievance, the department is of the opinion that the grievors were treated within the intent of the IPGHD. For these reasons, the grievance should be denied.
Executive Committee Decision
The Executive Committee considered and agreed with the report of the Isolated Posts and Government Housing Committee which concluded that the grievors had been treated within the intent of the Directive. The Committee believes that additional information to the effect that a contracted service provider provides the rates as established by the airlines, should be added to the HR notices going forward to provide further explanation to employees to clarify how VTAs are calculated. As such, the grievances are denied.