Ottawa stocks ‘ war chest’ to fight labour lawsuits

OTTAWA — The federal Treasury Board department is preparing to spend nearly $ 16 million this fiscal year and next to create and maintain a “litigation management unit” to handle employment issues and fund labour relations legal costs as public- sector job cuts loom.

Civil service unions fear potentially tens of thousands of job losses as part of the federal program spending review that’s expected to be released in the March 29 budget and the months following it. The government is searching for a minimum $ 4 billion, and up to $ 8 billion, in annual savings over the next few years from its examination of expenditures.

Unions are vowing to take the government to court, if necessary, to maintain their collective agreements and retain jobs.

With the political stakes on the rise, the government is planning to spend nearly $ 16 million this fiscal year and next to establish and fund a LMU within the Treasury Board department.

The unit is to “manage employment and labour relations litigation and to fund litigation costs in responding to challenges to federal public- sector labour and employment legislation,” says a small line item in spending estimates tabled last week in the House of Commons.

The government expects to spend $ 6.5 million in 2011- 12 on the unit and another $ 9.4 million in the 2012- 13 budget year, according to the estimates.

John Gordon, president of the Public Service Alliance of Canada, which represents about 150,000 federal public servants, said he didn’t realize the government “had a war chest” to prepare for its fight with public- sector unions.

However, he said it won’t deter his group from challenging the government in court.

Gary Corbett, president of the Professional Institute of the Public Service of Canada questioned why it was necessary when labour complaints go to the Public Service Labour Relations Board.