PSAC deal to cost $1.3B a year, ‘less than half’ of union’s original demands
Story by Eric Stober • Yesterday
President of the Treasury Board Mona Fortier speaks with reporters in the Foyer of the House of Commons, Monday, May 1, 2023 in Ottawa. THE CANADIAN PRESS/Adrian Wyld© Provided by Global News
The federal government's deal with the Public Service Alliance of Canada (PSAC) will end up costing around $1.3 billion a year — less than half of PSAC's original demands.
That's according to Treasury Board President Mona Fortier, who gave an update on the deal announced overnight Monday.
"This wasn't easy," Fortier said to reporters Monday afternoon. "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."
The deal involves a compounded pay increase of 12.6 per cent over four years, retroactive to 2021 — below PSAC's requested 13.5 per cent over three years — and a one-time payment of $2,500 for workers. While the deal involved all four bargaining units of PSAC, totalling about 120,000 workers, negotiations are ongoing for CRA workers as the tax filing deadline hit on Monday.
PSAC said in a statement Monday that workers on strike would return to work as of 9 a.m., while Fortier said the government is working to resume normal activities "as fast as we can."
PSAC said that the deal is a fair contract that exceeds the government's original offer before the launch of strike action.
“This agreement delivers important gains for our members that will set the bar for all workers in Canada,” said Chris Aylward, PSAC national president, in a statement.
The agreement also laid out a clearer process for handling requests around remote work.
Under the terms of the deal, managers will need "to assess remote work requests individually, not by group, and provide written responses that will allow members and PSAC to hold the employer accountable to equitable and fair decision-making on remote work."
Video: PSAC deal reached, CRA employees still on strike
"It will also result in the creation of joint union-employer departmental panels to address issues related to the employer’s application of the remote work directive in the workplace," the union said.
Fortier noted that because the wording, however, is contained in a separate letter of intent and not in the main collective bargaining agreement, public service workers will not be able to grieve complaints about remote work requests being denied.
"Remote work won't be a grievance," she said.
Fortier said negotiations, which had been at a standstill for about two weeks, began to shift when the federal government recently said it had a final offer.
"We have a really good deal on the table," she said.
Story by Eric Stober • Yesterday
President of the Treasury Board Mona Fortier speaks with reporters in the Foyer of the House of Commons, Monday, May 1, 2023 in Ottawa. THE CANADIAN PRESS/Adrian Wyld© Provided by Global News
The federal government's deal with the Public Service Alliance of Canada (PSAC) will end up costing around $1.3 billion a year — less than half of PSAC's original demands.
That's according to Treasury Board President Mona Fortier, who gave an update on the deal announced overnight Monday.
"This wasn't easy," Fortier said to reporters Monday afternoon. "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."
The deal involves a compounded pay increase of 12.6 per cent over four years, retroactive to 2021 — below PSAC's requested 13.5 per cent over three years — and a one-time payment of $2,500 for workers. While the deal involved all four bargaining units of PSAC, totalling about 120,000 workers, negotiations are ongoing for CRA workers as the tax filing deadline hit on Monday.
PSAC said in a statement Monday that workers on strike would return to work as of 9 a.m., while Fortier said the government is working to resume normal activities "as fast as we can."
PSAC said that the deal is a fair contract that exceeds the government's original offer before the launch of strike action.
“This agreement delivers important gains for our members that will set the bar for all workers in Canada,” said Chris Aylward, PSAC national president, in a statement.
The agreement also laid out a clearer process for handling requests around remote work.
Under the terms of the deal, managers will need "to assess remote work requests individually, not by group, and provide written responses that will allow members and PSAC to hold the employer accountable to equitable and fair decision-making on remote work."
Video: PSAC deal reached, CRA employees still on strike
"It will also result in the creation of joint union-employer departmental panels to address issues related to the employer’s application of the remote work directive in the workplace," the union said.
Fortier noted that because the wording, however, is contained in a separate letter of intent and not in the main collective bargaining agreement, public service workers will not be able to grieve complaints about remote work requests being denied.
"Remote work won't be a grievance," she said.
Fortier said negotiations, which had been at a standstill for about two weeks, began to shift when the federal government recently said it had a final offer.
"We have a really good deal on the table," she said.
Tentative agreement offers a PR win for PSAC, but unlikely to spark copycat strikes: experts
Story by Taylor Blewett • Yesterday
A labour relations professor thinks PSAC was sending a message to its members Monday, saying, 'Look, your sacrifice over the last couple of weeks was worth it, right?'
PSAC tentative deal: The wages striking workers asked for and what they got instead
What does the PSAC, Treasury Board tentative deal include?
The deal must still be ratified by PSAC members and, countrywide, strike action continues for 35,000 Canada Revenue Agency workers.
Heading into bargaining, PSAC had sought a salary increase of 13.5 per cent over three years, backdated to 2021, when the contract for PSAC’s main bargaining unit expired. That annual increase of 4.5 per cent was at odds with Treasury Board’s offer of less than eight per cent over four years.
Workers hit the picket line on April 19, disrupting services ranging from Agriculture and Agri-foods Canada to Veteran Affairs.
Story by Taylor Blewett • Yesterday
A labour relations professor thinks PSAC was sending a message to its members Monday, saying, 'Look, your sacrifice over the last couple of weeks was worth it, right?'
© Provided by Ottawa Citizen
Labour relations professor Jason Foster noticed something telling in a chart PSAC released Monday, showing the scale of the wage offer it secured after 12 days of striking.
Though they were outlined elsewhere in the release, the union opted not to label the chart with the individual percentage increases, proposed for each year of their new tentative agreement — 1 .5 per cent for 2021; 4.75 per cent for 2022; three per cent plus a wage adjustment for 2023; and 2.25 per cent for 2024. Instead, the union took the compounding approach to its math. The 2023 year on the bar graph, for instance, shows a 10.1 per cent increase, climbing to 12.6 per cent in 2024.
“ That’s an effort in spin, I think, which is fine. I mean, that’s what you do, it’s called public relations,” said Foster, an associate professor of human resources and labour relations at Athabasca University.
The chart also compares the tentative-agreement wage proposal to the compensation offer from Treasury Board before a strike mandate was activated. It puts both of these figures beside a third set of data, which it says represents the settlements achieved by other bargaining agents in the federal public service for the same time period. The chart depicts that these, too, were lower than what PSAC brought in for its 120,000-plus striking members.
“I sense that they’re wanting to, sort of, maximize the sense of what they’ve achieved and what they’ve accomplished,” said Foster.
Part of PSAC’s Monday messaging on its new tentative agreement was that strike action led to an improved wages offer by the Treasury Board.
“Partly a message to their own members to say, ‘Look, your sacrifice over the last couple of weeks was worth it, right? Let’s look at what we got because you were willing to take that action.’
“But I also think it’s trying to just send a message generally that PSAC is strong, our members are united, and that when workers are united, they can achieve gains.”
To Robert Hickey, director of the employment relations program at Queen’s University, PSAC’s Monday presentation of the message that “strike action improves final wage offer” seemed more about securing ratification of the tentative agreement by PSAC members than any call for labour stoppages elsewhere.
“Strike incidence has increased, but I think it will be more of a function of high inflation than inspiration from this particular dispute,” Hickey wrote via email.
While he imagines PSAC’s new contract will inform the bargaining strategy of other public-sector unions, Foster also wasn’t expecting to see additional strikes, prompted by the one that just concluded, that wouldn’t otherwise have occurred.
“Unions take going on strike very, very seriously. And they do it only very reluctantly. And it takes a lot of work and a lot of energy and a lot of mobilizing.”
It’s also a decision with high stakes, for the relationship between a union and its members. The 1991 PSAC strike ended with back-to-work legislation after three weeks , no movement on a wage freeze that year, and many workers feeling bitter towards both the government and their union.
It’s a very different picture in 2023. After fewer than two weeks of lost wages, striking workers are now back to work with a new and improved contract on the table.
“ We know the research really does show that when workers perceive a strike as having been successful, that can spur them in terms of … greater activism in the union, greater support for the union for even a couple of years,” said Foster.
— With files from Joanne Laucius
Labour relations professor Jason Foster noticed something telling in a chart PSAC released Monday, showing the scale of the wage offer it secured after 12 days of striking.
Though they were outlined elsewhere in the release, the union opted not to label the chart with the individual percentage increases, proposed for each year of their new tentative agreement — 1 .5 per cent for 2021; 4.75 per cent for 2022; three per cent plus a wage adjustment for 2023; and 2.25 per cent for 2024. Instead, the union took the compounding approach to its math. The 2023 year on the bar graph, for instance, shows a 10.1 per cent increase, climbing to 12.6 per cent in 2024.
“ That’s an effort in spin, I think, which is fine. I mean, that’s what you do, it’s called public relations,” said Foster, an associate professor of human resources and labour relations at Athabasca University.
The chart also compares the tentative-agreement wage proposal to the compensation offer from Treasury Board before a strike mandate was activated. It puts both of these figures beside a third set of data, which it says represents the settlements achieved by other bargaining agents in the federal public service for the same time period. The chart depicts that these, too, were lower than what PSAC brought in for its 120,000-plus striking members.
“I sense that they’re wanting to, sort of, maximize the sense of what they’ve achieved and what they’ve accomplished,” said Foster.
Part of PSAC’s Monday messaging on its new tentative agreement was that strike action led to an improved wages offer by the Treasury Board.
“Partly a message to their own members to say, ‘Look, your sacrifice over the last couple of weeks was worth it, right? Let’s look at what we got because you were willing to take that action.’
“But I also think it’s trying to just send a message generally that PSAC is strong, our members are united, and that when workers are united, they can achieve gains.”
To Robert Hickey, director of the employment relations program at Queen’s University, PSAC’s Monday presentation of the message that “strike action improves final wage offer” seemed more about securing ratification of the tentative agreement by PSAC members than any call for labour stoppages elsewhere.
“Strike incidence has increased, but I think it will be more of a function of high inflation than inspiration from this particular dispute,” Hickey wrote via email.
While he imagines PSAC’s new contract will inform the bargaining strategy of other public-sector unions, Foster also wasn’t expecting to see additional strikes, prompted by the one that just concluded, that wouldn’t otherwise have occurred.
“Unions take going on strike very, very seriously. And they do it only very reluctantly. And it takes a lot of work and a lot of energy and a lot of mobilizing.”
It’s also a decision with high stakes, for the relationship between a union and its members. The 1991 PSAC strike ended with back-to-work legislation after three weeks , no movement on a wage freeze that year, and many workers feeling bitter towards both the government and their union.
It’s a very different picture in 2023. After fewer than two weeks of lost wages, striking workers are now back to work with a new and improved contract on the table.
“ We know the research really does show that when workers perceive a strike as having been successful, that can spur them in terms of … greater activism in the union, greater support for the union for even a couple of years,” said Foster.
— With files from Joanne Laucius
PSAC tentative deal: The wages striking workers asked for and what they got instead
Story by National Post Staff • Yesterday
FILE - PSAC workers and supporters walk a picket line in Halifax on Monday, April 24, 2023.© Provided by National Post
More than 120,000 federal government workers were expected to return to work today after the Public Service Alliance of Canada reached a tentative contract agreement with the Treasury Board, ending one of the largest job actions in Canadian history.
According to the union, the new agreement will see workers receive a 12.6 per cent wage increase over four years in addition to a one-time lump sum payment of $2,500, representing an additional 3.7 per cent of salary for the average union member in Treasury Board bargaining units.
The union also says the agreement also provides “significant” new protections around remote work for PSAC members and protections related to contracting out, among other measures.
“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,” PSAC national president Chris Aylward said in a statement. “This agreement delivers important gains for our members that will set the bar for all workers in Canada.”
FILE - PSAC workers and supporters walk a picket line in Halifax on Monday, April 24, 2023.© Provided by National Post
More than 120,000 federal government workers were expected to return to work today after the Public Service Alliance of Canada reached a tentative contract agreement with the Treasury Board, ending one of the largest job actions in Canadian history.
According to the union, the new agreement will see workers receive a 12.6 per cent wage increase over four years in addition to a one-time lump sum payment of $2,500, representing an additional 3.7 per cent of salary for the average union member in Treasury Board bargaining units.
The union also says the agreement also provides “significant” new protections around remote work for PSAC members and protections related to contracting out, among other measures.
“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,” PSAC national president Chris Aylward said in a statement. “This agreement delivers important gains for our members that will set the bar for all workers in Canada.”
What does the PSAC, Treasury Board tentative deal include?
The deal must still be ratified by PSAC members and, countrywide, strike action continues for 35,000 Canada Revenue Agency workers.
Heading into bargaining, PSAC had sought a salary increase of 13.5 per cent over three years, backdated to 2021, when the contract for PSAC’s main bargaining unit expired. That annual increase of 4.5 per cent was at odds with Treasury Board’s offer of less than eight per cent over four years.
Workers hit the picket line on April 19, disrupting services ranging from Agriculture and Agri-foods Canada to Veteran Affairs.
PSAC said they were seeking raises that kept pace with inflation, noting that the sector hasn’t received a raise in line with inflation in more than 15 years. A recent report from the Canadian Centre for Policy Alternatives found that the average federal public sector worker’s wages have not improved since 2007 once adjusted for inflation.
A day before the strike action began, Treasury Board offered a nine per cent increase over three years, which it called a “fair, competitive offer” while also noting that it had “responded to all demands” concerning remote work, shift premiums and measures to support employment equity and diversity and inclusion, among other measures.
A week into the strike, PSAC had said it would not accept the nine per cent offer, even if the government opened up on everything else.
CRA workers, meanwhile, had reportedly been offered the same nine per cent wage increase over three years but countered with a proposal of 22.5 per cent over the course of three years, including a market adjustment of two per cent.
Last year, the government had offered a roughly two per cent annual wage increase over a four-year period, accounting for increases of 1.5 per cent for 2021, three per cent for 2022, two per cent for 2023 and 1.75 per cent for 2024.
“ In this tentative agreement, PSAC has secured a fair contract for members that exceeds the employer’s original offer before the launch of strike action, and provides wage increases above the recommendations of the Public Interest Commission as well as those negotiated by other federal bargaining agents,” PSAC said in a statement.
On social media, responses to the announcement of the agreement ranged from congratulatory to confusion, with some taking issue with the reported wage increase.
“ We were fighting for 13.5% wage increase for the next 3 years, but we only got 10.5% for the next 3 years. Why just didn’t you agree with the initial offer, which was 9%? You wanted us to fight for 1.5% more?” noted one tweet.
In a statement, PSAC said CRA negotiations had resumed with a “new mandate to reach a fair contract,” but disputes over telework, wages and job security remained sticking points.
“We are seeking compensation that will address the cost of living and inflationary pressures. We are also looking for wage adjustments to bring our wages in line with our fellow public service employees,” PSAC said . “The employer’s position for compensation does not provide for such a wage adjustment and is far below inflation, which is unacceptable to us.”
A day before the strike action began, Treasury Board offered a nine per cent increase over three years, which it called a “fair, competitive offer” while also noting that it had “responded to all demands” concerning remote work, shift premiums and measures to support employment equity and diversity and inclusion, among other measures.
A week into the strike, PSAC had said it would not accept the nine per cent offer, even if the government opened up on everything else.
CRA workers, meanwhile, had reportedly been offered the same nine per cent wage increase over three years but countered with a proposal of 22.5 per cent over the course of three years, including a market adjustment of two per cent.
Last year, the government had offered a roughly two per cent annual wage increase over a four-year period, accounting for increases of 1.5 per cent for 2021, three per cent for 2022, two per cent for 2023 and 1.75 per cent for 2024.
“ In this tentative agreement, PSAC has secured a fair contract for members that exceeds the employer’s original offer before the launch of strike action, and provides wage increases above the recommendations of the Public Interest Commission as well as those negotiated by other federal bargaining agents,” PSAC said in a statement.
On social media, responses to the announcement of the agreement ranged from congratulatory to confusion, with some taking issue with the reported wage increase.
“ We were fighting for 13.5% wage increase for the next 3 years, but we only got 10.5% for the next 3 years. Why just didn’t you agree with the initial offer, which was 9%? You wanted us to fight for 1.5% more?” noted one tweet.
In a statement, PSAC said CRA negotiations had resumed with a “new mandate to reach a fair contract,” but disputes over telework, wages and job security remained sticking points.
“We are seeking compensation that will address the cost of living and inflationary pressures. We are also looking for wage adjustments to bring our wages in line with our fellow public service employees,” PSAC said . “The employer’s position for compensation does not provide for such a wage adjustment and is far below inflation, which is unacceptable to us.”
Story by Saba Aziz • Yesterday
Public Service Alliance of Canada (PSAC) striking government workers protest on Parliament Hill, in Ottawa, Wednesday, April 26, 2023.© THE CANADIAN PRESS/Adrian Wyld
Atentative agreement with “new protections around remote work” reached between the federal government and the Public Service Alliance of Canada could set a precedent for working from home in the country, experts say.
PSAC and the Treasury Board came to an agreement early Monday, putting an end to a nationwide strike for over 120,000 union employees after nearly two weeks of picketing.
As of Monday morning, Treasury Board workers were required to go back on the job, PSAC announced in a statement. Canada Revenue Agency workers are negotiating their own deal and remain on strike.
According to PSAC, the deal provides “significant new protections around remote work” — which was one of the main sticking points in the labour dispute.
Treasury Board President Mona Fortier said at a news conference in Ottawa on Monday that the agreement supports “fairness, equity and modernization” when it comes to remote work.
Alexandra Samuel, a digital workplace expert, said details of what was exactly agreed upon will shape the future of remote and hybrid work, not just within the federal government, but for the whole country.
“The most important part of this agreement is the idea that we are returning to a model where individual teams, individual managers, individual departments will be able to have specific agreements rather than a single one-size-fits-all policy across the government,” she told Global News.
In December, Fortier announced that public service workers will spend two to three days per week in the office starting in January, to be fully implemented by April.
As it stands, that flexibility remains for public servants to continue, where applicable, having the option of working up to three days from home per week.
Under the tentative agreement, managers will be required to assess remote work requests on an individual case-by-case basis — not by group — and then provide written responses.
This will “allow members and PSAC to hold the employer accountable to equitable and fair decision-making on remote work,” the union said.
This could inspire other unions who are currently negotiating their own deals to ask for similar provisions, said Christina Santini, a senior policy analyst with the Canadian Federation of Independent Business.
“It can be a concern if it sets a precedent and … (puts) pressure on other employers to do the same who don’t necessarily have the capacity to do the same,” she said.
Some jobs are more efficiently done in person, so it is important to treat this on a case-by-case basis, Santini said, adding she would like to see more clarity on the number of federal workers who will be heading back to the office so that it can inform business decisions.
Video: PSAC ends strike as union reaches tentative deal with Treasury Board
PSAC had been pushing for more transparency around remote work policies with the ability to negotiate remote work written into its collective agreement.
While the full details of the tentative deal have yet to be released, the language around remote work is not part of the collective agreement but is instead stated in a separate letter of intent.
This means the union won’t be able to voice any grievances, Samuel said.
As stated in a letter of intent outside the collective agreement, a joint review will update the Directive on Telework that was agreed upon during the COVID-19 pandemic, according to the federal government.
Video: Canadians split on PSAC strike — but most aren’t paying attention: poll
An additional mechanism with departmental panels will also help address individual employee concerns, such as around cultural or management issues, Fortier said.
This does raise hopes of a more equitable and fairer approach and increased transparency around who's getting remote work opportunities and why, Samuel said.
“We want this to be the new normal, frankly, in lots of organizations,” she said.
Samuel said the panel on telework may provide a “hugely useful template for other organizations who want to bring employees back to the office.”
However, much still remains to be seen how all of this will be implemented.
Samuel said she would like to see some guidelines at the government level and departmental level about the circumstances in which it makes sense to have a team or an individual work remotely.
Wage increases secured by striking workers shouldn't be seen as 'fat cat': experts
CHEERED AS COVID HEROES
JEERED BY RIGHT WING OVER STRIKE
Story by The Canadian Press • Yesterday
TORONTO — Labour experts say the wage increases the country's largest federal public-sector union secured Monday are far from the hefty gains some might perceive them to be.
The experts say the 12.6 per cent wage increase over four years brings the salaries of 120,000 striking workers represented by the Public Service Alliance of Canada more in line with the annual inflation rate, which peaked at 8.1 per cent in June last year before sliding to 4.3 per cent in March this year. The union has said inflation has pushed the cost of living up by 11 per cent since 2021, the year its collective agreement expired.
The deal offers as little as a 1.5 per cent increase in one year and as much as 4.75 per cent in another, but Jim Stanford, an economist and director at the Centre for Future Work, argues it shouldn't be seen as "fat cat" because average wages are growing at more than five per cent a year in Canada.
"This cannot be described as a gold-plated public sector wage deal. It's far from it," he said.
"In fact, the wage increases in this I would say are modest given the times."
The majority of the striking workers that were on strike since April 19 — a group which includes staff at the Canadian Transportation Agency, Global Affairs Canada and Immigration, Refugees and Citizenship Canada — earn between $50,000 and $75,000. About three per cent earn less than $50,000.
If the deal is ratified, the 12.6 per cent increase will also come with a one-time, pensionable lump sum payment of $2,500 that represents an additional 3.7 per cent of salary for the average union member in Treasury Board bargaining units.
The gains do not apply to 35,000 Canada Revenue Agency employees, who are still on strike as a separate agreement is negotiated for them.
However, Charles Smith, a political studies professor with the University of Saskatchewan, pointed out the offer the rest of the workers received is less than the 13.5 per cent the union originally sought but higher than the nine per cent the federal government was once offering.
"It still has not matched inflation at its current rate, but it's much closer than it was in the initial offer," he said of the wage increase.
"But what it does say is, 'hey, listen, we're closer to parity than we were in 2023 and I think that's a victory given that...the past decade we've seen lots of mandated zeros and even cuts by governments, so this gets these workers much closer to cost of living."
Whether other workers facing contract talks will follow PSAC's lead and strike is difficult to predict, but Smith said times of inflation and economic uncertainty have historically led to more labour conflict.
"I don't think it sets the tone and this will be the benchmark that every union will be asking for, but I think it changes the dynamic in terms of how different public sector unions might contemplate their upcoming negotiations and potential job actions," he said.
However, he and Stanford agree the gains will not go unnoticed by workers, especially those who have seen wage increases of only one or two per cent in recent years.
"The people saying I got one per cent are not being treated well and they should demand something better," Stanford said.
"And if there's a lesson in this experience, it is that if workers get together and stick to their guns, they can win something."
This report by The Canadian Press was first published May 1, 2023.
Tara Deschamps, The Canadian Press
Government keeps remote work rules out of public service collective agreement
Story by Special to National Post • Yesterday
The Public Service Alliance of Canada and the government reached an agreement with compounded wage increases of 12.6 per cent over four years late Sunday night, settling a dispute with 120,000 federal workers.© Provided by National Post
OTTAWA – Striking federal public service employees left the picket lines with a commitment from the government to review remote work policies, but it will not be enshrined in their new collective agreements.
The union and the government reached an agreement with compounded wage increases of 12.6 per cent over four years late Sunday night, settling a dispute with 120,000 federal workers.
The ability to work remotely, a key sticking point throughout negotiations, was not included in the collective agreement, but the two sides agreed through a letter of understanding to address the union’s concerns on the issue.
Currently, the federal government has a hybrid work policy which allows employees to work from home for up to three days a week.
Jesse Kline: Trudeau Liberals buy labour peace with other people's money
PSAC tentative deal: The wages striking workers asked for and what they got instead
According to a statement from the Public Service Alliance of Canada (PSAC), remote work requests must now be addressed on an individual basis. Union-employer departmental panels will also provide workers with additional protections when it comes to remote work decisions.
John Hyde, a specialist in labour law, said the agreement on remote work was an ideal middle ground.
“It’s going to be a lot more work for management, but I think it’s reasonably fair under the circumstances,” Hyde said.
Speaking to reporters Monday, Treasury Board President Mona Fortier said the government will also be reviewing its directive on telework, which hasn’t been reviewed since 1993.
Despite the increased involvement of the union in decision making, Fortier said decisions on remote work will not be grievable by employees and managers will have the final say.
Patrick Groom, another specialist in labour law, said this was a great deal for both sides.
While the decision to assess each case individually could be an administrative burden, it will give the union more involvement while protecting both sides from expensive litigation costs, he said.
“Every work-from-home assessment, should it have gone to arbitration, would have incurred hundreds of thousands of dollars in litigation costs,” Groom said. “Both sides have found a way to administer this without great expense and without a huge administrative burden.”
The new committees’ roles, Fortier said, will be to see how they can “improve” the government’s current teleworking directive.
“We’re going to create an external mechanism that will allow a union representative and a manager to discuss specific cases, so that we can give an opportunity for people to discuss options before management makes a decision,” Fortier said in French.
But assessing remote work requests on a case-by-case basis could also lead to potential conflicts, Groom and Hyde said.
Groom said he can see conflicts over the number of days employees can work from home and the kind of work that can be done remotely.
Hyde, on the other hand, said managers could make their decisions based on the overall performance of employees, or how much they trust the individual making the remote work request.
Unless there are mechanisms in place to address these concerns, there could be greater issues, he said.
Including the remote work agreement in a letter of understanding rather than the collective agreement means it can be more easily revisited in future rounds of bargaining, but Hyde said he foresees no major conflicts “if everyone plays by the rules.”
Although the deal did not meet all the union’s demands, Groom and Hyde said the addition of some language around remote work sets a precedent for other labour negotiations across the private and public sectors.
“You’re going to see other unions pushing for it. The question ultimately is whether or not unions will go on strike over this one issue,” Hyde said.
The government’s success in ultimately maintaining control over location of work, however, could also be a major factor in negotiations.
“The level of control that an employer will have because it’s not enshrined in the collective agreement is also an important element that is going to translate across all sectors,” Groom said.
TORONTO — Labour experts say the wage increases the country's largest federal public-sector union secured Monday are far from the hefty gains some might perceive them to be.
The experts say the 12.6 per cent wage increase over four years brings the salaries of 120,000 striking workers represented by the Public Service Alliance of Canada more in line with the annual inflation rate, which peaked at 8.1 per cent in June last year before sliding to 4.3 per cent in March this year. The union has said inflation has pushed the cost of living up by 11 per cent since 2021, the year its collective agreement expired.
The deal offers as little as a 1.5 per cent increase in one year and as much as 4.75 per cent in another, but Jim Stanford, an economist and director at the Centre for Future Work, argues it shouldn't be seen as "fat cat" because average wages are growing at more than five per cent a year in Canada.
"This cannot be described as a gold-plated public sector wage deal. It's far from it," he said.
"In fact, the wage increases in this I would say are modest given the times."
The majority of the striking workers that were on strike since April 19 — a group which includes staff at the Canadian Transportation Agency, Global Affairs Canada and Immigration, Refugees and Citizenship Canada — earn between $50,000 and $75,000. About three per cent earn less than $50,000.
If the deal is ratified, the 12.6 per cent increase will also come with a one-time, pensionable lump sum payment of $2,500 that represents an additional 3.7 per cent of salary for the average union member in Treasury Board bargaining units.
The gains do not apply to 35,000 Canada Revenue Agency employees, who are still on strike as a separate agreement is negotiated for them.
However, Charles Smith, a political studies professor with the University of Saskatchewan, pointed out the offer the rest of the workers received is less than the 13.5 per cent the union originally sought but higher than the nine per cent the federal government was once offering.
"It still has not matched inflation at its current rate, but it's much closer than it was in the initial offer," he said of the wage increase.
"But what it does say is, 'hey, listen, we're closer to parity than we were in 2023 and I think that's a victory given that...the past decade we've seen lots of mandated zeros and even cuts by governments, so this gets these workers much closer to cost of living."
Whether other workers facing contract talks will follow PSAC's lead and strike is difficult to predict, but Smith said times of inflation and economic uncertainty have historically led to more labour conflict.
"I don't think it sets the tone and this will be the benchmark that every union will be asking for, but I think it changes the dynamic in terms of how different public sector unions might contemplate their upcoming negotiations and potential job actions," he said.
However, he and Stanford agree the gains will not go unnoticed by workers, especially those who have seen wage increases of only one or two per cent in recent years.
"The people saying I got one per cent are not being treated well and they should demand something better," Stanford said.
"And if there's a lesson in this experience, it is that if workers get together and stick to their guns, they can win something."
This report by The Canadian Press was first published May 1, 2023.
Tara Deschamps, The Canadian Press
Government keeps remote work rules out of public service collective agreement
Story by Special to National Post • Yesterday
The Public Service Alliance of Canada and the government reached an agreement with compounded wage increases of 12.6 per cent over four years late Sunday night, settling a dispute with 120,000 federal workers.© Provided by National Post
OTTAWA – Striking federal public service employees left the picket lines with a commitment from the government to review remote work policies, but it will not be enshrined in their new collective agreements.
The union and the government reached an agreement with compounded wage increases of 12.6 per cent over four years late Sunday night, settling a dispute with 120,000 federal workers.
The ability to work remotely, a key sticking point throughout negotiations, was not included in the collective agreement, but the two sides agreed through a letter of understanding to address the union’s concerns on the issue.
Currently, the federal government has a hybrid work policy which allows employees to work from home for up to three days a week.
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According to a statement from the Public Service Alliance of Canada (PSAC), remote work requests must now be addressed on an individual basis. Union-employer departmental panels will also provide workers with additional protections when it comes to remote work decisions.
John Hyde, a specialist in labour law, said the agreement on remote work was an ideal middle ground.
“It’s going to be a lot more work for management, but I think it’s reasonably fair under the circumstances,” Hyde said.
Speaking to reporters Monday, Treasury Board President Mona Fortier said the government will also be reviewing its directive on telework, which hasn’t been reviewed since 1993.
Remote work arrangement a 'major gain' for public servants, union president says
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Despite the increased involvement of the union in decision making, Fortier said decisions on remote work will not be grievable by employees and managers will have the final say.
Patrick Groom, another specialist in labour law, said this was a great deal for both sides.
While the decision to assess each case individually could be an administrative burden, it will give the union more involvement while protecting both sides from expensive litigation costs, he said.
“Every work-from-home assessment, should it have gone to arbitration, would have incurred hundreds of thousands of dollars in litigation costs,” Groom said. “Both sides have found a way to administer this without great expense and without a huge administrative burden.”
The new committees’ roles, Fortier said, will be to see how they can “improve” the government’s current teleworking directive.
“We’re going to create an external mechanism that will allow a union representative and a manager to discuss specific cases, so that we can give an opportunity for people to discuss options before management makes a decision,” Fortier said in French.
But assessing remote work requests on a case-by-case basis could also lead to potential conflicts, Groom and Hyde said.
Groom said he can see conflicts over the number of days employees can work from home and the kind of work that can be done remotely.
Hyde, on the other hand, said managers could make their decisions based on the overall performance of employees, or how much they trust the individual making the remote work request.
Unless there are mechanisms in place to address these concerns, there could be greater issues, he said.
Including the remote work agreement in a letter of understanding rather than the collective agreement means it can be more easily revisited in future rounds of bargaining, but Hyde said he foresees no major conflicts “if everyone plays by the rules.”
Although the deal did not meet all the union’s demands, Groom and Hyde said the addition of some language around remote work sets a precedent for other labour negotiations across the private and public sectors.
“You’re going to see other unions pushing for it. The question ultimately is whether or not unions will go on strike over this one issue,” Hyde said.
The government’s success in ultimately maintaining control over location of work, however, could also be a major factor in negotiations.
“The level of control that an employer will have because it’s not enshrined in the collective agreement is also an important element that is going to translate across all sectors,” Groom said.
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