PSAC: Remote work demands helping drag out Canada civil-service strike
, Bloomberg News
The right to work from home is one of the key outstanding issues at the center of negotiations to end one of Canada’s largest strikes.
More than 155,000 civil servants have been on strike since Wednesday to demand higher wages from Prime Minister Justin Trudeau’s government, the country’s largest employer. In addition to better pay and a right to work remotely, they’re also pushing for a ban on contracting out jobs and a requirement that seniority be respected during layoffs.
Entrenching the right to work-from-home could set an important precedent in Canada, for both public and private sectors, as workers call for more flexible arrangements while employers try to push back or impose hybrid requirements. Any return to something resembling the full-remote-work model seen during the early months of the Covid-19 pandemic would have major ramifications on real estate in major cities, as well as downtown businesses.
“We have proposed to review, jointly with unions, the current telework directive,” Mona Fortier, president of the Treasury Board, said in an open letter on Monday. “The directive has not been re-assessed for a post-pandemic world, so a formal review would help ensure that our approach is modern, fair, and supportive” for our employees.
Last October, business groups warned that government departments were lagging “significantly” behind the private sector in bringing employees back to offices — particularly in the Ottawa-Gatineau area that is home tens of thousands of federal workers.
The government said the Public Service Alliance of Canada, the country’s largest federal-worker union representing the Treasury Board and Canada Revenue Agency workers who are staging a nationwide strike, came to the table with more than 570 demands, and that it has managed agree “on most of them” during negotiations.
Still, the union said despite some headway on remote work and wage increases, it’s “not there yet.” It threatened to escalate its demonstrations, particularly at ports, as a result.
The strike has resulted in a delay or pause in several government services. Impacts at key agencies include:
- Some Agriculture and Agri-Food Canada programs and services may be affected, including research centers, poultry and wine sector programs, as well as a youth employment program
- There will be delays in processing some income tax and benefit returns at Canada Revenue Agency, particularly those filed by paper
- At Employment and Social Development Canada and Service Canada, services will be partially or fully disrupted including the temporary foreign worker program, job banks and biometrics collection
- Delays are expected for Immigration, Refugees and Citizenship Canada citizenship events, passport services, grants and contributions services, as well as immigration-related appointments and applications processing
- Transport Canada’s regulatory work, aircraft services, issuance of licenses, certificates or registrations, and the complaints and recalls hotline are expected to be partially or fully disrupted
- The public may also have trouble accessing some Government of Canada buildings where services are delivered
Civil servants’ push for remote work has Canadian employers watching anxiously
, Bloomberg News
Canada’s government is grappling with what comes after the “forced experiment” of remote work brought on by the pandemic as it negotiates with striking civil servants, the country’s labour minister said.
More than 155,000 federal employees launched one of the country’s largest strikes a week ago in a dispute that primarily focuses on wages and enshrining the right to work from home.
With talks at a standstill, the union has escalated its demonstrations, targeting major ports for exports of grain and other commodities. While that’s prompted calls from industry for the government to step in, Labour Minister Seamus O’Regan declined to comment on the status of negotiations.
Though O’Regan said the government doesn’t dictate what works for other employers or sectors, a deal that cements a right to remote work may set a precedent. If the civil servants are successful, it may strengthen the negotiating leverage of workers in other sectors to push back against employers who favour a return to office.
“The government as an employer is trying to figure it out. We as a society are trying to work this out,” O’Regan said in an interview at his Ottawa office. “We had a crazy forced experiment of remote work imposed on us. There are some workers who had no choice but to go to work. There were a lot of people who didn’t have to go anymore, and yet we functioned and our economy got through it.”
When most COVID-19 restrictions were lifted, employers started mandating a return to office or hybrid work, saying that it would foster collaboration and boost productivity. But some workers are eager to keep the autonomy and flexibility they enjoyed during the pandemic lockdowns.
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The Public Service Alliance of Canada is demanding that the arrangement be included in a new collective agreement. If that happens, it has the potential to influence the outcome of future talks between unions and provincial governments, municipalities, and even private-sector businesses.
About a dozen clients who are currently negotiating collective agreements have already asked to delay the process to see the eventual deal from Prime Minister Justin Trudeau’s government, according to Patrick Groom, a labor lawyer at McMillan LLP in Toronto.
“This is going to set the standard for collective-bargaining negotiations and employee expectations, even in non-union environments across the country,” Groom said. “If the federal government agrees to working from home arrangements, that’s going to be a serious and difficult challenge to overcome for employers who want to have their workforces return.”
Employee resistance has left many business districts from Toronto to New York and San Francisco much emptier than in pre-COVID times. That’s been particularly acute in Ottawa, where more than 45% of workers were still working from home last year, compared with a national average of about 25%, according to Statistics Canada.
In an open letter earlier this week, Treasury Board President Mona Fortier — the cabinet minister who’s leading the talks for Trudeau — said the government has proposed to review the current telework directive jointly with unions to “help ensure that our approach is modern, fair, and supportive” for employees.
“We value our workers. We’re like any other firms out there. We want make sure that we retain them,” O’Regan said. “The government has a vested interest in making sure that it gets the best employees at the best value for the taxpayer. I’m very hopeful that we’ll land in a good place.”
Farmers grow concerned as striking PSAC workers block grain exports
Some Canadian farmer groups are becoming increasingly concerned about the economic impact on the country’s agricultural sector after striking federal workers blocked grain exports across several Canadian ports earlier this week.
Union workers from the Public Service Alliance of Canada (PSAC) picketed the Cascadia Terminal in Vancouver on Monday, preventing grain exports from receiving their final inspection before being shipped overseas. Federal workers also picketed outside Thunder Bay, Ont. and Montreal ports, according to Milton Dyck, president of the Agricultural Union within the PSAC.
More than 100,000 federal workers walked off the job last week after failing to negotiate a new contract with the Treasury Board amid a dispute over wages and remote work. Economists estimated that the strike could see between a 0.2 per cent to 1 per cent hit to Canada’s gross domestic product in April, depending on how long the job action lasts.
The Wheat Growers Association, an industry trade group that represents Western Canadian farmers, said in a statement on Tuesday that it was “stunned” to learn that PSAC workers intentionally targeted the Cascadia Terminal and disrupted grain exports.
“A strike is one thing, but to intentionally target a port that is critical to the lives of grain farmers and to the entire Canadian economy is the height of reckless irresponsibility,” said Wheat Growers president Gunter Jochum in a statement. “It’s time for the federal government to intervene.”
The Wheat Growers added that the Canada Grain Act needs to be amended to allow more third-party grain inspectors to handle grading and weighing services to avoid “double inspections.” It noted that Canadian farmers pay over $60 million per year to have staff from the Canadian Grain Commission inspect grain exports.
The Agricultural Producers Association of Saskatchewan (APAS) also issued a statement on Tuesday urging the Minister of Agriculture and Agri-Food Canada Marie-Claude Bibeau to come to an agreement with the federal workers to avoid prolonging any additional impact the strike would have on farmers.
“Delayed inspections will cause backlogs at ports. Every day a ship must wait means demurrage charges to grain companies, and these costs always make their way to the farmer,” said Ian Boxall, president of the APAS, in a statement.
In an interview with BNN Bloomberg, Dyck said that Canadian Grain Commission inspectors should be considered essential workers and are key to ensuring that Canada’s grain exports meet the high-quality standards sought after by importing nations. While he acknowledged that some farmers will likely see additional costs from demurrage charges being passed to them, those are not as significant as what the trade groups are suggesting.
“I can’t see why the costs would be onerous from one day of blocking the port,” he said.
The grain export dispute comes as Statistics Canada issued its latest outlook on farmer crop planting for this year’s harvest with 27 million acres of wheat expected to be planted, an increase of six per cent from 2022 and the biggest amount since 2001. Wheat prices have fallen by nearly 50 per cent since reaching all-time highs in 2022, while they’re up about 16 per cent from pre-pandemic levels.
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