4 December 1989 Income Tax Severed Letter ACC8960 F - Performance Pay

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

December 4, 1989

Dear 19(1)

Re:  Performance Pay

In the telephone conversation with Mr. Campbell you discussed the provision of incentives to employees of Revenue Canada.  More particularly you were discussing compensation related to performance.

As noted performance related compensation is generally not a concept used in most categories of employment in the Canadian Public Service, certainly not in Revenue Canada.  The senior management categories are those to which this concept allies.  In regard thereto, we are enclosing a copy of the most recent report on executive compensation.

In the other employment categories there are ranges in which a person is placed and is eligible each year for an increment until the top of the range is reached.  Thus an auditor class 4 (AU4) would start at $53,136 and could progress to a maximum of $60,594 with annual increments for a maximum of 4 years.  A person is granted an increment subject to satisfactory performance, which performance is rated annually.  An increment can be withheld.  Upon reaching the top of the category, the employee must seek promotion in order to realize further raises in compensation.  The ranges are subject to change as a result of union-management contract negotiations, for example, a person at the top of the range would not receive an increment, but would benefit from any negotiated increase for the class.

Merit or performance is reflected in the increments which are awarded to the persons in the less senior positions.  However, there is not the flexibility to award a greater amount to one than another, which is apparent in the senior management category.  as discussed this concept does not tend to be acceptable in collective bargaining.  While management may have the right to withhold an increment they rarely, if ever, get the right to vary the increment.

We hope that the attached report relating to senior management compensation will assist you in answering the enquiry from Argentina.  Should you require more information, or if the Argentine Government can provide more detailed questions for response, please let us know.

Yours sincerely,

C.  Savage A/DirectorProvincial and InternationalRelations Division

Attachments

EEC/sgPerformanceFile copySequence fileAuthor's copyChrono file (2)Reading file