2023 Canadian federal worker strike

The Public Service Alliance of Canada (PSAC) is the largest public sector union in Canada, representing 159,000 public service workers, of which 120,000 fall under the Treasury Board of Canada and 39,000 are Canada Revenue Agency (CRA) employees under the Union of Taxation Employees (UTE) component of PSAC. Prior work contracts for PSAC workers had expired in 2021. Since June 2021, PSAC had been bargaining with the Government of Canada to establish a new contract, largely as an attempt to increase worker pay to keep up with a surge of inflation, which had precipitated an increase in the cost of living. CRA workers sought a 30% increase in wages over the next three years, while others were asking for a 13.5% increase, The Government of Canada had offered a 9% increase instead, but PSAC would not accept it. The union had also pushed for greater anti-racism training and increased limits on contract work. In May 2022, the union went to a labour board, leading to the release of a non-binding report in January 2023. Both the Government of Canada and the union agreed that workers needed an increase in wages. However, the size of the wage increase was subject to negotiation. Despite attempts to reach a consensus, discussions between the parties were slow to progress. As a result, on February 22, 2023, a strike vote of the membership was held by the Treasury Board component of PSAC. The UTE component of PSAC held a strike vote on January 31. The Treasury Board bargaining units entered a legal strike position on April 12, followed by the UTE bargaining unit on April 14. == Strike ==

On April 7, the CRA bargaining group voted to enter a legal strike position. On April 12, the national president of PSAC, Chris Aylward, announced that the Treasury Board bargaining unit had voted overwhelmingly in favour of entering into a legal strike position, thus granting the group a 60-day window to initiate a labour strike. Approximately 100,000 of the 159,000 PSAC members left their jobs in order to picket at hundreds of locations across the country. However, approximately 30,000–46,000 jobs (including approximately 8,600 Canada Border Services Agency workers who constitute PSAC's bargaining unit) were deemed essential (i.e., they were considered necessary to the safety or security of the public or a segment of the public), meaning these workers could not participate in a strike and needed to continue to work, nor could strikers impede essential workers' access to their workplaces. National Capital Region In the National Capital Region, striking workers had been demonstrating at 13 different picket locations, including in front of the Office of the Prime Minister and Privy Council, Parliament Hill, Tunney's Pasture, Canada Post headquarters, the Department of Finance, as well as the offices of MPs Greg Fergus, Mona Fortier, Marie-France Lalonde, and Steven MacKinnon. Nationwide Workers struck at various locations throughout Canada, including passport offices in Ontario, the Parole Office in Edmonton, the Natural Resources Canada office in Vancouver, the Canada Pension Plan office in Victoria, military bases in Quebec, as well as local offices in Winnipeg, New Brunswick, Newfoundland, Nova Scotia, and Prince Edward Island. == Negotiations ==

On April 24, Mona Fortier wrote an open letter to public servants and Canadians, in which she identified four main areas of disagreement that remained between the government and PSAC: wages, teleworking, outsourcing contracts, and seniority rules in the event of a layoff. PSAC responded to this letter by reiterating their desire to reach a "fair deal". On April 26, Fortier released a statement, in which she expressed frustration with the offers tabled by PSAC negotiators. On April 28, the Treasury Board of Canada Secretariat presented a "final updated comprehensive offer that addresses all remaining PSAC demands", without releasing details of the offer to the public. The same day, PSAC confirmed that it received the offer, but expected negotiations to continue into the weekend. In the early hours of May 1, at around 1:20a.m. ET, PSAC confirmed that they had reached a tentative agreement for the , , , and bargaining units at the Treasury Board, and that these groups would be required to return to work at 9a.m. ET on May 1, or their next scheduled shift after that date. == Impacts ==

Impacts on federal programs, services, and operations In a press conference on April 19, 2023, ministers Mona Fortier (President of the Treasury Board), Karina Gould (families, children and social development), Diane Lebouthillier (national revenue), and Sean Fraser (immigration, refugees and citizenship) outlined impacts of the strike on certain federal programs and operations. Among these impacts were delays in processing income tax returns and immigration applications, as well as providing passports only in humanitarian or emergency situations. The following table lists these disruptions: Economic impacts The Canadian government had claimed that the strike would not affect the normal flow of people and goods in and out of the country. However, the previous federal strike of this magnitude (in 1991) resulted in delays of some international commodity shipments and disruptions of flights and international travel. because if more people ask for higher wages, this can sustain the inflationary cycle by increasing consumers' purchasing power, which in turn stimulates demand for more goods and services and therefore puts price pressures on costs. As a result, a prolonged strike would impact consumer-facing businesses such as restaurants and retailers the most, and the strike could have broader impacts on the Canadian economy due to the prolonged disruption to government services and programs.), which would negatively impact nominal GDP. == Reactions ==

The Canadian Federation of Independent Business, in an April 19 press release authored by its president, Dan Kelly, expressed concern over the strike's impacts. It urged the Government of Canada to ensure that all departments maintain full service to small business, continue negotiation "to ensure a long-term and affordable collective bargaining agreement is signed", and prepare back-to-work legislation "should strike action last more than a few days". Restaurants Canada also expressed concern over the impacts of the strike, particularly on the foodservice industry and on small and medium-sized businesses more broadly. NDP leader Jagmeet Singh expressed his support for federal workers ahead of the strike vote. He also expressed that the NDP would not back any back-to-work legislation that may be put forth by the Liberals. This sentiment was shared by the Canadian Labour Congress in an April 19 letter written by its president, Bea Bruske, to Mona Fortier, opposing the push by the Canadian Federation of Independent Business for back-to-work legislation. Conservative MP Stephanie Kusie commented on the strike by criticizing prime minister Justin Trudeau's actions since he took office in 2015, attributing the strike to inflation, an increased public service budget, and increased spending on external consulting. ==References==