Most federal workers back on job after union, government reach tentative deal

Updated on Monday, May 1, 2023 at 4:40 p.m.

Thousands of federal public service workers are now off the strike picket lines as the Public Service Alliance of Canada reached a tentative deal with the government early Monday.

If ratified, the new collective agreement with the Treasury Board would provide a 12.6 per cent wage increase over four years, from June 2021 to June 2024.

The union had sought a 13.5 per cent increase over three years, while the Treasury Board originally offered a nine per cent increase over the same timeframe. The new agreement compromises on the wage increase and adds a fourth year to the original proposals.

The agreement also adds a pensionable lump-sum payment of $2,500, and addresses PSAC members’ key priorities on remote work, contracting out and seniority, a spokesperson for the union said in a statement Monday.

The agreement puts an immediate end to the nationwide general strike that began April 19, one of the largest workers’ strikes in Canadian history.

However, the tentative deal does not apply to the 35,000 employees of the Canada Revenue Agency. The bargaining teams entered into further negotiations Monday to reach a deal and this strike continues.

More than 100,000 PSAC members joined approximately 250 picket lines across the country throughout the strike, including picket lines in Nunavut where around 150 members work.

“PSAC members held the line together and secured a fair contract that keeps up with the cost of living, increased protections around remote work, and creates safer, more inclusive workplaces,” said PSAC president Chris Aylward in a statement.

Treasury Board president Mona Fortier, the federal cabinet minister responsible for the government’s side of the negotiations, said the deal is “excellent news” for employees.

“This wasn’t easy. We negotiated, we compromised and we found creative solutions and after many long days, nights and weekends of hard work, we’ve reached a fair and competitive deal for employees,” she said in a statement on Monday.

The Public Service Alliance of Canada is the country’s largest federal public service union, representing nearly 230,000 workers, including more than 120,000 federal public service workers employed by the Treasury Board, and more than 35,000 employed by the Canada Revenue Agency.