Parliamentary Committee Notes: Contract Policing Back Pay
Date: May 11 2022
Classification: Insert classification
Fully releasable (ATIP)? Yes
Branch / Agency: CPB / RCMP
Proposed Response:
- We recognize all communities are challenged by growing policing costs and pressures on our officers to keep us safe.
- That is why we are working closely with provinces, territories and municipalities policed by the RCMP to support them in addressing these challenges.
- We are meeting with these contract policing partners to discuss the implementation of the collective agreement and their specific situations and needs.
- With the agreement, RCMP salaries are in-line with other police services across Canada.
- Our government remains steadfast in its commitment to continue our strong collaboration with provinces, territories and municipalities that are policed by the RCMP — to support them in meeting their financial obligations under the contracts.
Financial implications
- NIL.
Background:
The Minister of Public Safety (PS) is accountable for the management and conduct of the Royal Canadian Mounted Police (RCMP) and for the extent and quality of the services it provides, including under the 166 Police Service Agreements (PSAs or contracts) between the Government of Canada (GC) and provincial, territorial and municipal (P/T/M) governments.
On August 6, 2021, the first collective agreement with the National Police Federation for about 20,000 RCMP Regular Members (RMs) and reservists came into effect. It is valid to March 31, 2023.
P/T/M engagement
Collective agreement negotiations are confidential to ensure that the outcome is fair for both sides. That said, since 2018, TBS and PS engaged contract policing jurisdictions through the Contract Management Committee (CMC) — an Assistant Deputy Minister (ADM)-level committee established under the PSAs that meets regularly to discuss new and emerging issues that could impact the cost, governance, nature and quality of policing services provided by the RCMP.
P/T/M contract partners became vocal in the lead up to the ratification and final signing of the collective agreement, stating through media interviews and written correspondence to the Minister of Public Safety that they were not adequately consulted throughout the negotiation process.
Many municipalities are bound by balanced budget laws; therefore, for these jurisdictions, the costs of contract policing likely require a local tax increase to avoid a deficit.
With the collective agreement, salaries for RMs and reservists are in-line with other police services across Canada. The agreement was fair for RMs and reservists and reasonable for Canadian taxpayers.
On February 28, 2022, Public Safety Canada and the RCMP provided letters to each contract jurisdiction containing the methodology and estimated cost range of respective amounts owing for the salary increase. Officials have started active engagement with interested jurisdictions to discuss their individual situations, needs and concerns. The RCMP will not issue invoices for the retroactive salary increase costs until these bilateral meetings are complete. This engagement will help to inform the Government’s ongoing analysis and respond to P/T/Ms requests.
Financial Implications-– Collective Agreement (Regular Members and Reservists represented by NPF)
In fiscal year 2021–22, the negotiated agreement cost is approximately $1.4B — this incorporates retroactive pay increases dating back to April 1, 2017, with ongoing costs projected to be $624M.
Prior year retroactive pay invoices to contract jurisdictions will be finalized midway through the fiscal year 2022-2023. Overall, P/T/M’s share of the retroactive costs for fiscal years 2017-18 through 2020-21 are estimated between $442M-$464M
Under the Police Service Agreements, P/T/Ms are required to pay their share of the impact of the collective agreement for the 13,760 RCMP members that work in the contract policing program.
As part of this new collective agreement, the salaries for regular members and reservists represented by the NPF will increase by just under 24% (the maximum pay for a Constable will move from $86,110 (April 1, 2016) to $106,576 (on April 1, 2022), a 23.77% increase. For example, the salary increase and retroactive payments will establish parity with the Ontario Provincial Police — the best comparator — by April 1, 2022.
In 2021–22, the RCMP accessed funding for the full retroactive cost of the collective agreement. As contract partners begin to pay for retroactive costs in 2022–23, those revenues will be deposited to the Consolidated Revenue Fund. Ongoing costs will generate revenue from contract partners and will be treated as re-spendable revenue, consistent with existing practices. Assuming the completion of bilateral meetings withcontract partners in the coming months, contract partners will receive their invoices for retroactive salaries in August 2022.
Contacts:
Prepared by: Pamela Matthews, Director, Police Service Agreements Division, 613-343-553-7966; Jeff Hutcheson (RCMP), Executive Director, Corporate Budgeting, Financial Management, 613-796-3175
Approved by: Talal Dakalbab, Assistant Deputy Minister, Crime Prevention Branch, 613-852-1167
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