Tentative deal with PSAC estimated to cost Treasury Board about $1.3B per year

A tentative contract agreement has been reached betweenThe Public Service Alliance of Canada (PSAC) andthe Treasury Board, covering more than 120,000 federal government workers across the country.

During a news conference Monday afternoon, Treasury Board president Mona Fortier said the cost to taxpayers is estimated to be about $1.3 billion per year, "less than half of the cost of PSAC'soriginal demands."

She said the negotiations weren't easy, but resulted in an agreementthat was fair to both sidesand "reasonable for taxpayers."

"It also provides an additional year of stability and certainty," Fortiersaid, referring to the decision to bring the tentative agreement up to 2024 instead of 2023.

In an interview with CBC News Monday, PSAC national president Chris Aylward said the union made gains on every majorissue.

"We asked our members to go on strike so that we could achieve something better at the bargaining table," he said. "The members answered that call."

WATCH | PSAC presidents lauds remote work arrangement:

Remote work arrangement a 'major gain' for public servants, union president says

1 year ago

Duration 0:48

PSAC national president Chris Aylward says his union made progress in getting an updated arrangement for remote work during negotiations with the federal government.

Aylward said by late Sunday evening the union'sbargaining teamfelt itcouldn'tachieve muchbeyond the Treasury Board's latest offer, and it wouldn't have beenworth it to extend the strike any longer.

The national strike is now over for most workers who fall under the Treasury Board. They returned to work Monday at 9 a.m. ET or their next scheduled shift, the union said in a statement early Monday.

Strike action continues for 35,000 Canada Revenue Agency (CRA)workers nationwide, with contract negotiations ongoing. Telework, wages and job security are some of the key issues still at play, PSAC said.

Thenational strike for more than 155,000 federal public servants under the PSAC began at 12:01 a.m. April 19.

Two groups covered by the union have been on strike: a group of approximately 120,000 employees under the Treasury Board spread across several government departments and agencies, and a smaller group of more than 35,000 workers at the CRA.

About 110,000 to 120,000 PSAC members were eligible to walk off the job after factoring out staff doing work designated as essential, such as employment insurance or pensions.

Over the course of the strike, picket lines formed across the country while some government services including taxes, passports and immigration were disrupted.

Some buildings at CFB Petawawa temporarily lost heat and hot water after the base's Central Heating Plant shut down.

WATCH |Treasury Board President Mona Fortier on tentative deal:

Treasury Board president reacts to reaching tentative deal with PSAC

1 year ago

Duration 0:33

President of the Treasury Board Mona Fortier says she believes both sides have a really good deal on the table that is reasonable, that is fair for Canadians and that we can now resume activities.

Agreement details

In a statement on its website, PSACsaid the tentative agreementincludes wage increases of 12.6 per cent compounded over four years, and a one-time, pensionable lump sum payment of $2,500.

Outside ofcollective agreements, the two sides agreed toa joint review of the directive on teleworkwhichwas last reviewedin 1993, Fortier saidand departmental panels will be created to advise deputy heads about employee concerns.

PSAC characterized thenew language on remote work asgivingmembers "additional protection" from "arbitrary decisions," andthat it requires managers to assess requests individually instead of by group, and give responses in writing to allow members and PSAC to "hold the employer accountable to equitable and fair decision-making."

"Instead of a one-size-fits-all for the federal public service, it's now case by case," Aylward said.

WATCH | Union leader says tentative deal sets good precedent:

Tentative PSAC deal sets good precedent for all Canadian workers, president says

1 year ago

Duration 1:36

'When workers stand up and fight back, they can achieve gains,' PSAC national president Chris Aylward said after his union representing public servants reached a tentative deal with the federal government.

At the news conference Monday, Fortier said the letter of intent onteleworkdoesnot give employees the right to grieve those decisions; instead, they give employees and managers a space to discuss any issues.

As for seniority rights in the event of layoffs, the union and the government will submit a joint proposal to the Public Service Commission of Canada about including seniority rights in the workforce adjustment process, PSAC said.

Online ratification votes will be held shortly after a full explanation and copy of the agreement are provided in the coming days, PSAC said.

Treasury Board saidthe tentative deal includes provisions on leave with pay for family-related responsibilities, and new paid leave for Indigenous employees to participate in traditional practices.

Aylward said he believes the strike "sets a good precedent" forall workers acrossCanada andpredicteda coming wave of labour unrest.

What led to the strike?

Contracts for both groups expired in 2021. Negotiations between the federal government and PSAC's two groups began that year, but the union declared in 2022 it had reached an impasse.

PSAC had previously asked for a 4.5 per cent raise each year for 2021, 2022 and 2023. It said April 24 it had lowered its ask but didn't elaborate on its demand.

The most recent public offer from the government to each group was a nine per cent raise over three years, a total that matched recommendations of the third-party Public Interest Commission.

Remote work arrangements, priority for senior staff in the event of downsizing and a ban on contracting out work were the other three priority issues identified in an open letter published by the Treasury Board on April 24.