Impact Mitigation – Revocation of Living Cost Differential (LCD) Allowance for Whitehorse, Yukon, Isolated Posts and Government Housing Committee

The results of the latest Statistics Canada survey of the Yukon and Northern British Columbia Region indicated that Whitehorse no longer qualifies for the Living Cost Differential (LCD).

In order to mitigate the impact of these results on employees in Whitehorse, the National Joint Council Isolated Posts and Government Housing Committee (NJC-IPGHC) has developed an interim process for the phasing-out of allowances for which an isolated post no longer qualifies. This process is similar to that currently in the Isolated Posts and Government Housing Directive (IPGHD) for the Environment Allowance (see section 5.7.2) and will apply to all locations that, based on current methodology, no longer qualify for any of the IPGHD allowances.

The IPGHC will also be reviewing the methodologies used in determining eligibility for the various allowances as part of the current cyclical review of the IPGHD. The interim phase-out process being introduced for the LCD will apply until the new directive takes effect.

Phase-out Process

The interim allowance phase-out process is as follows:

1. one-third of the amount of the decrease, on the first day of the fourth calendar month after the month in which written notice was received*,
2. one-third of the amount of the decrease, on the first day of the 13^th calendar month after the month in which written notice was received*, and
3. the remainder on the first day of the 22^nd calendar month after the month in which written notice was received*.

* THIS COMMUNIQUÉ WILL SERVE AS THE NEW NOTICE TO EMPLOYEES IN WHITEHORSE. The phase-out process will therefore be as follows:

Details regarding the methodologies can be found in Chapter 5 of the IPGHD or at the following site: http://www.njc-cnm.gc.ca/doc.php?lang=en&did=117.

Details regarding the changes to the IPGHD resulting from the current cyclical review will be communicated once the process is completed. Employees living and working in isolated locations will also have the opportunity to attend information sessions on the changes to the IPGHD in many of the isolated locations when the new directive is ready for implementation.

Departmental employees or regional staff should direct any questions on this subject to the appropriate departmental corporate official who, if need be, can contact the appropriate officers at the Treasury Board Secretariat.