CANADA
PSAC strike could have domino effect for unionized workers: labour experts
TORONTO — If the current strike by thousands of public sector workers is successful, it could have a domino effect for unionized workers in other industries, labour experts said.
“Strikes in the federal public service are extremely rare. So the fact that PSAC followed through with job action is really significant," said Larry Savage, a professor in the labour studies department at Brock University.
Thousands of public-service workers began their strike Wednesday morning after the federal government and the Public Service Alliance of Canada, representing some 155,000 federal workers up for bargaining, couldn’t reach a deal in negotiations that began almost two years ago.
Almost a third of all federal public servants are involved in the strike, and the union and government alike have warned of disruptions to tax season, border operations, Employment Insurance, immigration and passport applications.
Union militancy, which includes labour disputes, strike votes and strikes, has been more common amid persistently high inflation, said Savage. And it can be contagious, especially if a strike manages to deliver higher wages and better working conditions.
“A successful strike by PSAC members can have a domino effect,” he said.
He said the striking workers have been without a contract for around two years, meaning as inflation climbed they saw zero increases in their wages.
“I think this clearly signals that they're fed up, and now they're turning up the heat.”
Jock Climie, a management-side labour and employment lawyer with Emond Harnden, agreed that inflation is lending itself to higher militancy in unionized sectors, and that PSAC's strike could have far-reaching effects beyond its own members.
“The reality is that when the largest ... federal public service union goes on strike and gets what it's asking for, say they do, it's going to have a profound impact on every bargaining table that comes after it, not just in the public sector," he said.
Wage increases are one of the biggest sticking points in this dispute, with PSAC pushing for 4.5 per cent raises annually over the next three years to keep pace with inflation. The Treasury Board has said it offered a nine per cent raise over three years on Sunday, per the recommendation of the third-party Public Interest Commission.
The two parties began negotiating in June 2021, and the union declared an impasse the following May. Mediated negotiations began in early April of this year.
Normally bargaining works on a relatively consistent cycle, said Climie. In times of fiscal restraint and slow growth, workers make fewer gains, and in times of growth and higher inflation, unions can bargain for more.
“What we've got here (are) cycles moving in different directions colliding with each other,” he said.
For years, Savage said unions have been “treading water” on wage gains, managing to get increases that keep pace with inflation.
“As long as they kept pace with inflation, we did not see significant work stoppages,” he said. “But high inflation is driving workers to use their right to strike. And there's no question the uptick in militancy is being driven by inflation.”
Statistics Canada data shows that while there were fewer individual work stoppages in 2022 compared with 2021, the average length of those stoppages more than doubled.
Inflation has been outpacing wage gains for most of its reign, but in February, average hourly wages began rising faster than inflation.
Inflation in March was 4.2 per cent, down from last summer’s highs but still above the Bank of Canada’s target of two per cent. Meanwhile, in March average hourly wages rose 5.3 per cent.
As inflation comes down, it will be easier for unions to match it with wage gains — but they have a lot of catching up to do if they want to actually make up for the purchasing power their workers have lost, said Savage.
But a lower inflation rate could have a psychological effect that makes workers less militant, he said.
However, unions will be fighting for higher wage gains over the next couple of years as contracts expire, even if that militancy wanes, said Savage.
In the private sector, too, workers are asking for more and getting it, such as in the Ontario construction sector last year, said Savage.
“I think people are rediscovering the right to strike,” he said.
Climie thinks the increase in union militancy will continue throughout 2023, with higher wage demands on the table as high inflation and its effects linger. Eventually, however, bargaining will return to its cycle, he said.
“I think there's no question that as inflation drops, if it continues to drop, you will see less aggressive positions being taken at the bargaining table as far as wages are concerned.”
This report by The Canadian Press was first published April 19, 2023.
Rosa Saba, The Canadian Press
TORONTO — If the current strike by thousands of public sector workers is successful, it could have a domino effect for unionized workers in other industries, labour experts said.
“Strikes in the federal public service are extremely rare. So the fact that PSAC followed through with job action is really significant," said Larry Savage, a professor in the labour studies department at Brock University.
Thousands of public-service workers began their strike Wednesday morning after the federal government and the Public Service Alliance of Canada, representing some 155,000 federal workers up for bargaining, couldn’t reach a deal in negotiations that began almost two years ago.
Almost a third of all federal public servants are involved in the strike, and the union and government alike have warned of disruptions to tax season, border operations, Employment Insurance, immigration and passport applications.
Union militancy, which includes labour disputes, strike votes and strikes, has been more common amid persistently high inflation, said Savage. And it can be contagious, especially if a strike manages to deliver higher wages and better working conditions.
“A successful strike by PSAC members can have a domino effect,” he said.
He said the striking workers have been without a contract for around two years, meaning as inflation climbed they saw zero increases in their wages.
“I think this clearly signals that they're fed up, and now they're turning up the heat.”
Jock Climie, a management-side labour and employment lawyer with Emond Harnden, agreed that inflation is lending itself to higher militancy in unionized sectors, and that PSAC's strike could have far-reaching effects beyond its own members.
“The reality is that when the largest ... federal public service union goes on strike and gets what it's asking for, say they do, it's going to have a profound impact on every bargaining table that comes after it, not just in the public sector," he said.
Wage increases are one of the biggest sticking points in this dispute, with PSAC pushing for 4.5 per cent raises annually over the next three years to keep pace with inflation. The Treasury Board has said it offered a nine per cent raise over three years on Sunday, per the recommendation of the third-party Public Interest Commission.
Related video: 'Enough is enough:' PSAC president speaks to members on first day of strike (cbc.ca)Duration 1:59 View on Watch
The two parties began negotiating in June 2021, and the union declared an impasse the following May. Mediated negotiations began in early April of this year.
Normally bargaining works on a relatively consistent cycle, said Climie. In times of fiscal restraint and slow growth, workers make fewer gains, and in times of growth and higher inflation, unions can bargain for more.
“What we've got here (are) cycles moving in different directions colliding with each other,” he said.
For years, Savage said unions have been “treading water” on wage gains, managing to get increases that keep pace with inflation.
“As long as they kept pace with inflation, we did not see significant work stoppages,” he said. “But high inflation is driving workers to use their right to strike. And there's no question the uptick in militancy is being driven by inflation.”
Statistics Canada data shows that while there were fewer individual work stoppages in 2022 compared with 2021, the average length of those stoppages more than doubled.
Inflation has been outpacing wage gains for most of its reign, but in February, average hourly wages began rising faster than inflation.
Inflation in March was 4.2 per cent, down from last summer’s highs but still above the Bank of Canada’s target of two per cent. Meanwhile, in March average hourly wages rose 5.3 per cent.
As inflation comes down, it will be easier for unions to match it with wage gains — but they have a lot of catching up to do if they want to actually make up for the purchasing power their workers have lost, said Savage.
But a lower inflation rate could have a psychological effect that makes workers less militant, he said.
However, unions will be fighting for higher wage gains over the next couple of years as contracts expire, even if that militancy wanes, said Savage.
In the private sector, too, workers are asking for more and getting it, such as in the Ontario construction sector last year, said Savage.
“I think people are rediscovering the right to strike,” he said.
Climie thinks the increase in union militancy will continue throughout 2023, with higher wage demands on the table as high inflation and its effects linger. Eventually, however, bargaining will return to its cycle, he said.
“I think there's no question that as inflation drops, if it continues to drop, you will see less aggressive positions being taken at the bargaining table as far as wages are concerned.”
This report by The Canadian Press was first published April 19, 2023.
Rosa Saba, The Canadian Press
No deal at union deadline; federal workers hit the picket lines as talks continue
Story by The Canadian Press • Today
OTTAWA — Negotiations are expected to continue despite thousands of members with Canada's largest federal public-service union walking off the job this morning at 12:01 a.m. ET.
No deal at union deadline; federal workers hit the picket lines as talks continue© Provided by The Canadian Press
A late Tuesday news release from the Treasury Board of Canada Secretariat says the government and the Public Service Alliance of Canada are still at odds when it comes to key contract issues for both sides. The bargaining groups involve some 155,000 federal public servants, including 35,000 Canada Revenue Agency workers.
With picket lines expected to be set up this morning at some 250 plus locations, the union is calling the strike action one of the largest in Canadian history. National President Chris Aylward said during a brief news conference in Ottawa on Tuesday night that despite the move, union officials are still hopeful and the goal is to get a tentative agreement.
A handful of federal ministers, including Mona Fortier, president of the Treasury Board, are expected to address the media later today and provide an update on how the bargaining is going.
Wage increases have been top of mind at the table, with the union pushing for annual raises of 4.5 per cent over the next three years. It says the increases are necessary to keep pace with inflation and the cost of living. The Treasury Board says it offered the union a nine per cent raise over three years on Sunday, on the recommendation of the third-party Public Interest Commission.
Since the strike involves nearly one-third of all federal public servants, both the union and the government have warned of disruptions, including what could amount to a complete halt of the tax season. Other concerns include slowdowns at the border and disruptions to EI, immigration and passport applications.
Initial negotiations began in June 2021, with the union looking for a new contract. The union declared an impasse in May 2022 and both parties filed labour complaints. Mediated contract negotiations began in early April of this year and continued through the weekend in what the union described as the government's last chance to reach a deal.
This report by The Canadian Press was first published April 19, 2023.
Story by The Canadian Press • Today
OTTAWA — Negotiations are expected to continue despite thousands of members with Canada's largest federal public-service union walking off the job this morning at 12:01 a.m. ET.
No deal at union deadline; federal workers hit the picket lines as talks continue© Provided by The Canadian Press
A late Tuesday news release from the Treasury Board of Canada Secretariat says the government and the Public Service Alliance of Canada are still at odds when it comes to key contract issues for both sides. The bargaining groups involve some 155,000 federal public servants, including 35,000 Canada Revenue Agency workers.
With picket lines expected to be set up this morning at some 250 plus locations, the union is calling the strike action one of the largest in Canadian history. National President Chris Aylward said during a brief news conference in Ottawa on Tuesday night that despite the move, union officials are still hopeful and the goal is to get a tentative agreement.
A handful of federal ministers, including Mona Fortier, president of the Treasury Board, are expected to address the media later today and provide an update on how the bargaining is going.
Wage increases have been top of mind at the table, with the union pushing for annual raises of 4.5 per cent over the next three years. It says the increases are necessary to keep pace with inflation and the cost of living. The Treasury Board says it offered the union a nine per cent raise over three years on Sunday, on the recommendation of the third-party Public Interest Commission.
Since the strike involves nearly one-third of all federal public servants, both the union and the government have warned of disruptions, including what could amount to a complete halt of the tax season. Other concerns include slowdowns at the border and disruptions to EI, immigration and passport applications.
Initial negotiations began in June 2021, with the union looking for a new contract. The union declared an impasse in May 2022 and both parties filed labour complaints. Mediated contract negotiations began in early April of this year and continued through the weekend in what the union described as the government's last chance to reach a deal.
This report by The Canadian Press was first published April 19, 2023.
Government employees want pay hikes. Here's what other unionized workers got recently
Story by Graeme Bruce • Yesterday
As the tense wage-centred labour battle between the federal government and Public Service Alliance of Canada (PSAC) continues, federal data sheds light on which industries in both the public and private sector are driving wage increases.
People attend a Public Service Alliance of Canada (PSAC) rally in Ottawa March 31, 2023.
Story by Graeme Bruce • Yesterday
As the tense wage-centred labour battle between the federal government and Public Service Alliance of Canada (PSAC) continues, federal data sheds light on which industries in both the public and private sector are driving wage increases.
People attend a Public Service Alliance of Canada (PSAC) rally in Ottawa March 31, 2023.
© Patrick Doyle/The Canadian Press
Data collected and published by Employment and Social Development Canada suggests unonized workers in public administration and manufacturing have recently received higher wage increases compared to other industries.
In 2022, unionized workers in public administration negotiated an average 3.8 per cent annual pay bump, the highest amount except for those in manufacturing, which saw an average 4.2 per cent hike.
Many PSAC workers in negotiations with the federal government fall under public administration, however others represent a range of industries.
Related video: Federal workers to strike after bargaining deal not reached: PSAC (Global News)
But when looking at these figures, Adam King, post-doctoral fellow at York University, cautioned that annual data is based on just a small number of contracts. In the case of manufacturing, there were just four contracts signed in 2022, all in Quebec, where union coverage is generally higher. There were three public administration contracts in 2022, in Alberta and B.C.
"Over time, union coverage has declined significantly," he said.
This data also concentrates on wage changes among just unionized workers. Labour Force Survey data from Statistics Canada shows hourly wages among union workers have increased nine per cent between 2019 and 2022, while non-unionized workers saw a 14 per cent hike, unadjusted for inflation.
"This is due to workers not having cost of living adjustments in their agreements and being hurt by the unexpectedly high inflation," said Jesse Hajer, assistant professor in the University of Manitoba's department of economics and labour studies program.
PSAC said on Monday that more than 120,000 workers were ready to strike beginning Wednesday if a deal isn't reached with the government.
PSAC is demanding a 4.5 per cent raise over three years for Treasury Board workers. As of Monday morning, the government offered the Treasury Board unit 1.5 per cent in 2021, 4.5 per cent for 2022 and three per cent for 2023.
Data collected and published by Employment and Social Development Canada suggests unonized workers in public administration and manufacturing have recently received higher wage increases compared to other industries.
In 2022, unionized workers in public administration negotiated an average 3.8 per cent annual pay bump, the highest amount except for those in manufacturing, which saw an average 4.2 per cent hike.
Many PSAC workers in negotiations with the federal government fall under public administration, however others represent a range of industries.
Related video: Federal workers to strike after bargaining deal not reached: PSAC (Global News)
But when looking at these figures, Adam King, post-doctoral fellow at York University, cautioned that annual data is based on just a small number of contracts. In the case of manufacturing, there were just four contracts signed in 2022, all in Quebec, where union coverage is generally higher. There were three public administration contracts in 2022, in Alberta and B.C.
"Over time, union coverage has declined significantly," he said.
This data also concentrates on wage changes among just unionized workers. Labour Force Survey data from Statistics Canada shows hourly wages among union workers have increased nine per cent between 2019 and 2022, while non-unionized workers saw a 14 per cent hike, unadjusted for inflation.
"This is due to workers not having cost of living adjustments in their agreements and being hurt by the unexpectedly high inflation," said Jesse Hajer, assistant professor in the University of Manitoba's department of economics and labour studies program.
PSAC said on Monday that more than 120,000 workers were ready to strike beginning Wednesday if a deal isn't reached with the government.
PSAC is demanding a 4.5 per cent raise over three years for Treasury Board workers. As of Monday morning, the government offered the Treasury Board unit 1.5 per cent in 2021, 4.5 per cent for 2022 and three per cent for 2023.
NOR WILL BQ
Story by Christopher Nardi • Yesterday
Federal NDP Leader Jagmeet Singh holds a press conference at the University of Saskatchewan.© Provided by National Post
OTTAWA — NDP leader Jagmeet Singh says he will not support any potential back-to-work legislation tabled by the government if 155,000 federal public servants go on strike Wednesday, potentially forcing the Liberals to look to the Conservatives for support.
Singh, whose party is supporting the minority Liberal government with a supply and confidence agreement, said Tuesday that the possibility of back-to-work legislation to respond to a possible strike by the Public Service Alliance of Canada (PSAC) came up during a discussion with Prime Minister Justin Trudeau. He told Trudeau that he would vote against any such bill, even if it was a confidence vote.
“We envision that there might be a scenario where the government would bring it back-to-work legislation. They’ve done it in the past and I said really clearly to them that … we will never support that,” Singh said.
“I looked directly at the prime minister and said, ‘We’re a workers’ party, we’re not going to support back-to-work legislation. Never consider that as an option for us, because we’re not going to do that’,” he added.
Earlier this week, PSAC leadership gave the government an ultimatum to have a deal by 9 p.m. Eastern on Tuesday, or 120,000 core public service members and over 35,000 Canada Revenue Agency workers will launch the biggest federal public strike since 1991. The union announced last week that its members had voted to support a strike, after two years of contract negotiations with the government have failed to find agreement.
A deal is still possible as the parties fight largely over wages — PSAC wants 13.5 per cent for three years and the government last offered nine per cent over the same period — and return-to-office policies after public servants working from home during the pandemic. But over the weekend, PSAC began laying the groundwork for a strike, setting up trailers and portable toilets conspicuously around Parliament Hill and a website to help members find the closest picket line.
During the last major PSAC strike in 1991 , the government tabled back-to-work legislation just weeks after the work stoppage began, sending bureaucrats back to the office feeling bitter towards both their union and their employer.
But Brian Mulroney’s majority Progressive Conservative government had control of the House of Commons at the time, making the passing of such legislation relatively straightforward.
The Trudeau Liberals currently head a minority government that has to-date leaned heavily on the Singh’s NDP’s support to stay in power and pass key legislation through Parliament. The Opposition Conservatives have voted against most Liberal bills, and to a lesser extent, so has the Bloc Québécois.
But if PSAC launches its strike and the Liberals are compelled to turn to back-to-work legislation to end the work stoppage, the Liberals will have to turn to either the Bloc Québécois or the Conservatives to push the bill through. Historically, the Bloc Québécois positions itself as a working-class party with a strong blue collar base.
The last time such a bill was tabled in Parliament was by the Trudeau Liberals in 2021, to end a strike at the Port of Montreal. At the time, both the NDP and the Bloc Québécois called on the government to keep negotiating with strikers and voted against the bill.
Erin O’Toole’s Conservatives supported the Liberals, arguing that a prolonged strike could seriously hurt the country’s economy all the while blaming Liberal incompetence for allowing the situation to fester to the point of a strike.
As of Tuesday, Conservative leader Pierre Poilievre has remained conspicuously quiet on the battle between the Liberals and PSAC and his office declined to respond to questions about possible back-to-work legislation.
But Monday, Conservative treasury board critic Stephanie Kusie argued that Canadians’ access to government services should not be hampered by the Liberals’ inability to reach a deal on time with PSAC.
The only reason we find ourselves in the situation we are in is because of Justin Trudeau’s incompetence,” Kusie said, taking a swipe at the Liberals’ increased reliance on consulting firms.
“One thing is clear: Canadians’ access to basic and essential services should not be compromised by Justin Trudeau’s inability to do his job,” she added.
But politics can make for strange bedfellows, and both Trudeau and Poilievre might align in a desire to compel bureaucrats to return to work, despite turbulent contract negotiations.
Story by Christopher Nardi • Yesterday
Federal NDP Leader Jagmeet Singh holds a press conference at the University of Saskatchewan.© Provided by National Post
OTTAWA — NDP leader Jagmeet Singh says he will not support any potential back-to-work legislation tabled by the government if 155,000 federal public servants go on strike Wednesday, potentially forcing the Liberals to look to the Conservatives for support.
Singh, whose party is supporting the minority Liberal government with a supply and confidence agreement, said Tuesday that the possibility of back-to-work legislation to respond to a possible strike by the Public Service Alliance of Canada (PSAC) came up during a discussion with Prime Minister Justin Trudeau. He told Trudeau that he would vote against any such bill, even if it was a confidence vote.
“We envision that there might be a scenario where the government would bring it back-to-work legislation. They’ve done it in the past and I said really clearly to them that … we will never support that,” Singh said.
“I looked directly at the prime minister and said, ‘We’re a workers’ party, we’re not going to support back-to-work legislation. Never consider that as an option for us, because we’re not going to do that’,” he added.
Earlier this week, PSAC leadership gave the government an ultimatum to have a deal by 9 p.m. Eastern on Tuesday, or 120,000 core public service members and over 35,000 Canada Revenue Agency workers will launch the biggest federal public strike since 1991. The union announced last week that its members had voted to support a strike, after two years of contract negotiations with the government have failed to find agreement.
A deal is still possible as the parties fight largely over wages — PSAC wants 13.5 per cent for three years and the government last offered nine per cent over the same period — and return-to-office policies after public servants working from home during the pandemic. But over the weekend, PSAC began laying the groundwork for a strike, setting up trailers and portable toilets conspicuously around Parliament Hill and a website to help members find the closest picket line.
During the last major PSAC strike in 1991 , the government tabled back-to-work legislation just weeks after the work stoppage began, sending bureaucrats back to the office feeling bitter towards both their union and their employer.
But Brian Mulroney’s majority Progressive Conservative government had control of the House of Commons at the time, making the passing of such legislation relatively straightforward.
The Trudeau Liberals currently head a minority government that has to-date leaned heavily on the Singh’s NDP’s support to stay in power and pass key legislation through Parliament. The Opposition Conservatives have voted against most Liberal bills, and to a lesser extent, so has the Bloc Québécois.
But if PSAC launches its strike and the Liberals are compelled to turn to back-to-work legislation to end the work stoppage, the Liberals will have to turn to either the Bloc Québécois or the Conservatives to push the bill through. Historically, the Bloc Québécois positions itself as a working-class party with a strong blue collar base.
The last time such a bill was tabled in Parliament was by the Trudeau Liberals in 2021, to end a strike at the Port of Montreal. At the time, both the NDP and the Bloc Québécois called on the government to keep negotiating with strikers and voted against the bill.
Erin O’Toole’s Conservatives supported the Liberals, arguing that a prolonged strike could seriously hurt the country’s economy all the while blaming Liberal incompetence for allowing the situation to fester to the point of a strike.
As of Tuesday, Conservative leader Pierre Poilievre has remained conspicuously quiet on the battle between the Liberals and PSAC and his office declined to respond to questions about possible back-to-work legislation.
But Monday, Conservative treasury board critic Stephanie Kusie argued that Canadians’ access to government services should not be hampered by the Liberals’ inability to reach a deal on time with PSAC.
The only reason we find ourselves in the situation we are in is because of Justin Trudeau’s incompetence,” Kusie said, taking a swipe at the Liberals’ increased reliance on consulting firms.
“One thing is clear: Canadians’ access to basic and essential services should not be compromised by Justin Trudeau’s inability to do his job,” she added.
But politics can make for strange bedfellows, and both Trudeau and Poilievre might align in a desire to compel bureaucrats to return to work, despite turbulent contract negotiations.
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