The Canadian Federal Government and its biggest union have ended a 12-day strike with a tentative deal that fell short of expectations for some Public Servants, but set a standard for wages and working from home that others may follow.
The Public Service Alliance of Canada (PSAC) led more 155,000 Federal employees on one of the country’s largest strikes.
The agreement that ended it could have ramifications for employers and workers across the country as they emerge from a pandemic and wrestle with high inflation and remote work.
The settlement will give workers a 12.6 per cent raise compounded over four years and an agreement on remote work that should open the door to individual arrangements for Public Servants — but will not be enshrined in the contract.
The wage deal fell short of the 13.5 per cent the PSAC had demanded over three years — a 4.5 per cent increase per year — to cover inflation.
President of the PSAC, Chris Aylward said the deal was a win for the union and recommended members accept it in a ratification vote.
“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,” Mr Aylward (pictured) said.
“This agreement delivers important gains for our members that will set the bar for all workers in Canada.”
Many labour observers felt the PSAC was in a tough spot after the Government tabled its final wage offer. It became clear the union wasn’t going to get its wage demands so it had to break new ground on remote work and seek other concessions.
The PSAC said the deal would give workers a one-time, pensionable $C2,500 ($A2,780) lump sum payment that represents an additional 3.7 per cent of salary for the average union member on top of the overall wage increase.
The deal doesn’t apply to 35,000 workers at the Canada Revenue Agency (CRA) who are still on strike, which will continue to slow the processing of tax returns.
CRA workers have much higher wage demands — up to 30 per cent over three years.
Ottawa, 3 May 2023
