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PSAC and Treasury Board Reach Deal

The Public Service Alliance of Canada, a union representing over 120,000 public servants on strike, has reached a tentative agreement with the federal government after negotiating late into Sunday evening and continuing Monday morning.

The strike had lasted for 13 days, beginning on April 19 after the union and government failed to reach new contract deals for agreements that had expired in 2021. The federal government had tabled a new contract offer to the union on Friday, which it described as its final proposal on Saturday.

Details of the collective agreement include a 12.6% wage increase, a one-time lump-sum payment for members approaching retirement, and specific language about remote work. The PSAC national president, Chris Aylward, said, “This agreement delivers important gains for our members that will set the bar for all workers in Canada.” However, strike action will continue for the 35,000 members at the Canada Revenue Agency as contract negotiations resume.

The federal Treasury Board’s latest offer contains an enhanced wage proposal but offered no details, and it includes measures to address other union demands such as policies around remote work, decreasing government use of outside contractors, and the implementation of seniority rules in the event of layoffs. The majority of the bargaining groups, except for Canada Revenue Agency members, are required to return to work at 9 a.m. Monday or their next scheduled shift. The PSAC statement released Sunday night states that details on a ratification vote and next steps will be made public as soon as possible.

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