Latest Updates: Tentative Agreement reached with TB and PSAC

“These agreements address all key priorities put forward by the PSAC. In addition, they include improved provisions, around leave with pay for family-related responsibilities for example. They also include measures to further support employment equity, diversity, and inclusion, such as a new benefit for Indigenous employees who will now have access to paid leave to participate in traditional practices,” reads the government’s release.

As for remote work, the federal government says it remains committed to a hybrid model that will see public servants coming into the office at least a few times a week, but outside of the collective agreements they have “reached a tentative settlement on telework to the satisfaction of both parties.”

The deal seems to be that the federal government will review its telework directive and set up departmental panels to advise senior management on employee concerns.

Saying she was “pleased” to reach this outcome, Treasury Board President Mona Fortier said she appreciated Canadians’ patience over the past two weeks as workers exercised their right to strike.

“We are deeply grateful for public servants who work hard across the country to serve Canadians and look forward to welcoming them back. These deals are fair, competitive, and reasonable, and bring stability to public servants and Canadians,” Fortier said.

You can read the federal government’s full statement, here.

1:30 A.M. ET: PSAC SAYS TENTATIVE AGREEMENT REACHED

In the very early hours of May 1, PSAC issued a statement announcing that, after nearly two years of bargaining, a tentative agreement had been reached for the 120,000 core public servants who were on strike.

With the strike over, workers had to be back on the job as of 9 a.m. ET, or their next scheduled shift.

PSAC said the agreement “secured a fair contract for members that exceeds the employers original offer” and “significant new protections around remote work.”

“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,” said Chris Aylward, PSAC national president in Monday’s statement. “This agreement delivers important gains for our members that will set the bar for all workers in Canada.”

Here is some additional information and figures put out by the union about the tentative deal:

• Wage increases totalling 12.6 per cent “compounded” over the life of the agreement from 2021-2024;
• A pensionable $2,500 one-time lump sum payment that represents an additional 3.7 per cent of salary for the average PSAC member;
• Negotiated language that requires managers to assess remote work requests individually, and provide written responses for accountability;
• Negotiated language to ensure that, in the event of layoffs, PSAC members will not lose their job if they can perform the duties of an already-employed contractor;
• Creation of joint union-employer departmental panels to address issues related to the application of the remote work directive; and
• Creation of a joint committee to review the existing training courses related to employment equity, diversity, and inclusion.

The union says it’ll be providing members a “full explanation” of the new deal and concrete language “in the coming days,” before the 120,000 affected public servants will be invited to participate in ratification votes.

You can read the union’s full statement, here.

PSAC-AFPC: Tentative agreement reached with Treasury Board for 120,000 members

May 1, 2023

After nearly two years of bargaining leading to one of the largest strikes in Canadian history, PSAC has reached tentative agreements for the more than 120,000 Treasury Board workers who deliver critical services to Canadians.

With the national strike now over for Treasury Board workers, members of the PA, SV, TC and EB bargaining groups are required to return to work beginning May 1 at 9 a.m. ET or their next scheduled shift after that date.

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. It also provides significant new protections around remote work for PSAC members.

“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,” said Chris Aylward, PSAC national president. “This agreement delivers important gains for our members that will set the bar for all workers in Canada.”

This agreement is a testament to the hard work and dedication of PSAC members who held the line on fair wages and better working conditions.

Highlights of the tentative agreement

Wages that close the gap with inflation

PSAC negotiated wage increases totaling 12.6% compounded over the life of the agreement from 2021-2024. PSAC secured an additional fourth year in the agreement that protects workers from inflation, as well as a pensionable $2,500 one-time lump sum payment that represents an additional 3.7% of salary for the average PSAC member in Treasury Board bargaining units.

Year of the agreement	2021	2022	2023	2024	Total
Wage increase	1.5%	4.75%	3% + 0.5%*	2.25%	12%
Total compounded wage increase	1.5%	6.4%	10.1%	12.6%	12.6%

One-time lump-sum payment

For PSAC members approaching retirement, the pensionable lump sum payment will contribute to their average salary for their best five years of service, and increase their overall pension payments in retirement.

Lump sum payment $2,500 (pensionable)	Example salary	Lump sum value relative to salary
	$45,000	5.5%
	$55,000	4.5%
	$65,000	3.8%
	$75,000	3.3%

Strike action improves final wage offer

By securing an overwhelming strike mandate and following through with strong strike action, important gains were made to the employer’s final wage offer.