More than 120,000 federal government workers were expected to return to work today after the Public Service Alliance of Canada reached a tentative contract agreement with the Treasury Board, ending one of the largest job actions in Canadian history.
According to the union, the new agreement will see workers receive a 12.6 per cent wage increase over four years in addition to a one-time lump sum payment of $2,500, representing an additional 3.7 per cent of salary for the average union member in Treasury Board bargaining units.
The union also says the agreement also provides “significant” new protections around remote work for PSAC members and protections related to contracting out, among other measures.
“During a period of record-high inflation and soaring corporate profits, workers were told to accept less — but our members came together and fought for better,” PSAC national president Chris Aylward said in a statement. “This agreement delivers important gains for our members that will set the bar for all workers in Canada.”
The deal must still be ratified by PSAC members and, countrywide, strike action continues for 35,000 Canada Revenue Agency workers.
Heading into bargaining, PSAC had sought a salary increase of 13.5 per cent over three years, backdated to 2021, when the contract for PSAC’s main bargaining unit expired. That annual increase of 4.5 per cent was at odds with Treasury Board’s offer of less than eight per cent over four years.
Workers hit the picket line on April 19, disrupting services ranging from Agriculture and Agri-foods Canada to Veteran Affairs.
PSAC said they were seeking raises that kept pace with inflation, noting that the sector hasn’t received a raise in line with inflation in more than 15 years. A recent report from the Canadian Centre for Policy Alternatives found that the average federal public sector worker’s wages have not improved since 2007 once adjusted for inflation.
A day before the strike action began, Treasury Board offered a nine per cent increase over three years, which it called a “fair, competitive offer” while also noting that it had “responded to all demands” concerning remote work, shift premiums and measures to support employment equity and diversity and inclusion, among other measures.
A week into the strike, PSAC had said it would not accept the nine per cent offer, even if the government opened up on everything else.
CRA workers, meanwhile, had reportedly been offered the same nine per cent wage increase over three years but countered with a proposal of 22.5 per cent over the course of three years, including a market adjustment of two per cent.
Last year, the government had offered a roughly two per cent annual wage increase over a four-year period, accounting for increases of 1.5 per cent for 2021, three per cent for 2022, two per cent for 2023 and 1.75 per cent for 2024.
“In this tentative agreement, PSAC has secured a fair contract for members that exceeds the employer’s original offer before the launch of strike action, and provides wage increases above the recommendations of the Public Interest Commission as well as those negotiated by other federal bargaining agents,” PSAC said in a statement.
On social media, responses to the announcement of the agreement ranged from congratulatory to confusion, with some taking issue with the reported wage increase.
“We were fighting for 13.5% wage increase for the next 3 years, but we only got 10.5% for the next 3 years. Why just didn’t you agree with the initial offer, which was 9%? You wanted us to fight for 1.5% more?” noted one tweet.
In a statement, PSAC said CRA negotiations had resumed with a “new mandate to reach a fair contract,” but disputes over telework, wages and job security remained sticking points.
“We are seeking compensation that will address the cost of living and inflationary pressures. We are also looking for wage adjustments to bring our wages in line with our fellow public service employees,” PSAC said. “The employer’s position for compensation does not provide for such a wage adjustment and is far below inflation, which is unacceptable to us.”
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