February 7, 2018
27.4.124
Background
The Vacation Travel Assistance (VTA) rate for the return full fare economy class airfare between the headquarters and the point of departure is determined by the airline routings and rates provided to Treasury Board Secretariat and reviewed based on the following criteria: ease of travel (most direct routing, least connections possible, no other modes of transportation such as driving, ferries when possible, etc.) and most economical. The employees were informed that effective April 1, 2016, the VTA rate for travel from City A to the point of departure for an adult was reduced to $652 from $801. The grievors are in disagreement with the rate as set for employees whose headquarters is City A or who must travel to City A. Some grievors work in City A, Province X, others work from small detachments in Province X. The grievors believe that the rate should be $1774.00 (City A to City B = $884 + City B to City A = $890) minus applicable surcharges (NAVCAN surcharges, airport fees, departure taxes, travel agent fees).
Grievance
The grievors are grieving that they have not been treated within the intent of subsection 3.5.1 of the National Joint Council Isolated Posts and Government Housing Directive as they were not provided 100% of the return full fare economy class airfare between the headquarters and the point of departure. This payment includes the Goods and Services Tax (GST) and provincial or territorial sale tax, as applicable. The payment excludes airport fees, departure taxes, NAVCAN surcharges, travel agent fees, and other miscellaneous fees.
In the grievors’ view, the definition of Vacation Travel Assistance (VTA) as per the Government of Canada’s National Joint Council’s Isolated Posts and Government Housing Directive is not being interpreted correctly. They are in disagreement with rates as set for headquarters for Department Y in Province X. The rate provided is $652.00 (reflects return airfare).
Bargaining Agent Presentation
The Bargaining Agent representative contended that the grievors were not treated within the intent of the Isolated Posts and Government Housing Directive (IPGHD). The Bargaining Agent Side representative states that the flights from City A would not be following the rates as outlined in the Directive, but rather would fluctuate according to market prices, or whichever was lower. However, according to the Bargaining Agent representative, most employees understand the Vacation Travel Assistance (VTA) is not a tool by which the employees can receive extra compensation, but rather a tool that allows for them to leave for vacation purposes. The grievors in this matter are expecting to be compensated within the intent of the scope and purpose of the Directive.
The Bargaining Agent Side representative noted that subsection 3.6.1 is allowing employees to be paid an amount equivalent to the return, “full fare economy class airfare”. According to the Bargaining Agent Side representative, Airline D is the only airline that offers complete, continuous year-round service to City A, Province X. Airline E does not operate during the winter months, and only offers seasonal service, from May to October. Airline F is a discounted airline which does not offer full-fare economy tickets.
At the time of filing the grievance, the grievors contacted Airline D to get a quote for a full-fare economy rate, flying return from City A to City B. The quote rate was
City A to City B = $884
City B to City A = $890
Total = $1774
This amount is different from the VTA rate provided which is $652 (reflects return airfare).
Also, the Bargaining Agent representatives argued that an Economy Latitude ticket is fully refundable, while an Economy Tango and Flex are not. These last two levels do not offer any changes to tickets, nor any standby flights. Furthermore, these also charge additional fees for baggage, a service that is included with the Latitude ticket. The Bargaining Agent representative made a reference to a precedent, NJC decision 27.4.110, the airfare quoted was received from AMEX a credit card and travel service provider. In this decision, the employer indicated that they had requested airfare rates from this provider, 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. This decision emphasizes that the TBS uses rates provided by AMEX, « as they are specialized in quoting airfares for travellers ». The Bargaining Agent representative is questioning the fact that the only travellers who can benefit from AMEX are current cardholders. These rates do not reflect the reality for most Northern travellers who use other credit cards and must rely on Airline D and its rates.
Based on the above arguments, the Bargaining Agent representative maintains that the grievors were not treated within the intent of the Directive when it provided them with a much lower amount for the VTA. TBS is using an exclusive travel service locked in with a credit card (AMEX). They are not a true reflection of what return airfare is from the North. Furthermore, the airfare quoted is not a full fare economy class airfare, but a more stripped-down fare that is not in keeping with the intent of the Directive. As corrective action the Bargaining Agent is asking that the grievance be upheld and apply corrective measures.
Departmental Presentation
The department maintains that the VTA rates are established based on the methodology specified in subsection 3.5.1 on Fixed Rate Vacation Travel Assistance of the archived directive. The Employer Side representative argued that VTA provides financial support to federal employees who are subject to the Isolated Posts and Government Housing Directive to temporarily leave the isolated post on vacation should they choose to do so. Employees obtain the Vacation Travel Assistance and use it at their discretion.
Also the Government of Canada travel service provider is currently Hogg Robinson Group (HRG). HRG is responsible for researching the rates as provided by all airlines providing airline service from the isolated post to the point of departure. The rates are then provided by HRG to TBS. TBS reviews the rates and selects the full fare economy rate that will apply and be established effective April 1st of every year for each isolated posts. A new rate is established effective October 1st for level 4 and level 5 isolated posts. The rates obtained by HRG are established pursuant to airline rates as provided in the Sabre Global Distribution System. It is recognized that these rates can vary as a result of rate changes in the airline industry.
Furthermore, City A is a level 1 isolated post for the purpose of the Environment Allowance. As such, the rate for the VTA was established on April 1, 2016, for City A. The published amount was $652 per adult.
Based on what was presented, the Department’s position is that the grievors were treated within the intent of the IPGHD as well as in accordance with the direction provided by TBS. For these reasons, it is respectfully recommended that this group grievance 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 were treated within the intent of the Isolated Posts and Government Housing Directive. As such, the grievance is denied.