Update on SMSM-1102 (PSDC CR-04) Grievancesat Service Canada (ESDC) – April 2026

April 28, 2026 | By Matthew Brett

Update on SMSM-1102 (PSDC CR-04) Grievancesat Service Canada (ESDC) – April 2026 Thumbnail

DETAILS OF THE AGREEMENT MADE

As indicated in the last update updated published on our website, on March 30, 2026, an agreement was signed between ESDC and CEIU concerning the policy grievance, filed on March 29, 2019, for which the hearing had been held in person in Ottawa on September 12, 2024, before the Treasury Board Secretariat (TBS).

BACKGROUND

At the end of January 2025, the TBS asked the parties involved to meet to discuss some points in the case. CEIU agreed to participate. On February 21, 2025, a first meeting was held.

Between February 2025 and January 2026, several approaches were made by ESDC internally and with the TBS. In January 2026, ESDC received the requested information from the TBS so that they could go ahead.

During this period, from February 2025 to January 2026, regular follow-up was done by CEIU.

On February 6, 2026, a second meeting was held between ESDC and the CEIU. ESDC confirmed to the CEIU that it wished to settle the policy grievance cases of March 2019 and various individual grievances filed in 2019 and 2020.

The two parties discussed some points presented by CEIU during the February 2025 meeting to find an agreement.

During a meeting held on March 25, 2026, a verbal agreement was made.

On March 30, 2026, the agreement was signed.

INFORMATION APPLICABLE ACCORDING TO THE EMPLOYEE GROUPS ACTING ON THE ESDC DECISIONS OF FEBRUARY 22, 2019:

It must be remembered that the Department had decided, for incumbents who had not filed a grievance in 2008 or after, to give retroactive pay only effective from the date of their last appointment. Consequently, ESDC did not want to account for prior periods during which the members occupied and performed the functions of Program Services Officer (PM-01) if they included another position number. To summarize, CEIU had recommended, in July and October 2019, to file a grievance if management informed the incumbent that it did not consider all of their periods entitling them to retroactive appointment and/or to payment of interim compensation. The CEIU had received over 100 grievances in that period. If some incumbents had not filed a grievance in 2019, they must refer to the 2nd group (below).

ESDC AND CEIU AGREED:

Settlement of the grievances of 2019: the parties acknowledge that approximately 110 employees who filed grievances in 2019 and 2020 were judged eligible for PSDC positions while exercising level PM-01 functions. The Employer agrees to process these payments after the signing of individual settlement agreements.

  • The employees who did not file a grievance concerning the contents of the job description of their PSDC position between 2008 and September 13, 2018, who performed the tasks of a Program Services Officer (PM-01) for operations related to pensions or integrity and who left their position before September 13, 2018.

ESDC AND CEIU AGREED:

Retroactive period: the Employer agrees to adjust the effective start date for retroactive salary calculation purposes for the employees eligible as of March 26, 2011. (We are talking about a retroactive period of 7.5 years versus September 13, 2018).

Former incumbents (non-grievor): the Employer agrees to extend eligibility to retroactive salary adjustments to former incumbents who occupied PSDC positions between March 26, 2011, and September 13, 2018, subject to validation of the functions.

Notwithstanding the foregoing, when a validated former incumbent can prove continuous occupancy of a PSDC position that began before March 26, 2011 and continued beyond that date, the retroactive salary will be calculated effective from the most recent date between January 1, 2009 or the applicant’s actual starting date in the position. This provision only applies to former incumbents whose continued occupancy of a PSDC position beyond March 26, 2011 is confirmed under the validation process. We are talking about approximately 2,000 potential former incumbents who will be considered in this exercise.

Former incumbents (non-grievor) not considered in the agreement: unfortunately, the former incumbents who occupied PSDC positions on September 16, 2006, and who ended no later than March 25, 2011, will not be eligible for retroactive salary adjustments. We are talking about approximately 200 potential former incumbents who will not be considered in this exercise.

COMMUNICATION AND DISTRIBUTION OF INFORMATION

Initial notice (responsibility of the Employer – ESDC)


In the next few weeks, the Employer undertakes to conduct an initial communication campaign to identify and inform the potentially eligible former incumbents based on the internal records available (PeopleSoft/SGM data).

Methodology


For employees currently holding positions at ESDC, the Employer will send an email to their professional email address in the record. For former employees, the Employer will send an email to the known personal email address in the record. In cases where no email address is available or when an email is non-distributable, the Employer will send a notice by letter to the last known postal address.

Contents

This notice will specify the terms of settlement, the eligibility criteria (exercise of PM-01 functions) and the instructions for filing claim. A copy of the “Claim Form – PSDC Settlement” (Schedule A) will be attached to this notice or included with it.

Timing clause: in accordance with the agreement made, claims must be submitted within a period of one (1) year after the signing date of the agreement (March 30, 2026). Any claim received after March 30, 2027, will be ruled ineligible.

Nature of payment

The payments will be made in the form of retroactive salary and will be subject to all legal deductions at source, including income tax and pension plan contributions.

Overpayments outstanding in the applicant’s pay record will also be recovered under this process.

Impacts on pension

For retired applicants, the Employer will collaborate with the Pension Centre to ensure that the required adjustment to the pension plan are calculated and applied. CEIU will publish a new update no later than May 28, 2026.