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PSAC reaches tentative agreement, workers back on the job this morning, says union

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May 1, 2023
By Talent Canada

(DD Images/Adobe Stock)

The Public Service Alliance of Canada (PSAC) said it has reached tentative agreements for the more than 120,000 Treasury Board workers who deliver services to Canadians with raises of 12.6% covering the period from 2021 to 2024.

“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,” it said in a press release.

PSAC said the tentative agreement provides wage increases above the recommendations of the Pubic Interest Commission, as well as those negotiated by other federal bargaining agents.

“It also provides significant new protections around remote work for PSAC members,” it said.


“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.”

Highlights of the tentative agreement

Editor’s note: The information below was provided by PSAC.

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%
*wage adjustment of a minimum of 0.5% for all bargaining units 

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

The graph below, supplied by PSAC, shows comparison of the employer’s position on wages before PSAC declared strike action; the settlements achieved by other federal public service bargaining agents for the same time period; and the wage offer PSAC negotiated in the tentative agreement.

Based on an annual average salary of $67,300 for PSAC members at TB

New and improved remote work language 

PSAC members will now have access to additional protection when subject to arbitrary decisions about remote work, it said.

“We have also negotiated language in a letter of agreement that requires managers 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,” it said in a press release.

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.

Additional market adjustments and table-specific improvements

PSAC has also secured several table-specific wage adjustments and other improvements that will be fully outlined in the coming days, it said.

Safer and more inclusive workplaces

Everyone in the federal government can benefit from anti-racism and discrimination training, it said.

“That’s why we’ve reached an agreement to create a joint committee to review the existing training courses related to employment equity, diversity, and inclusion, and to ensure employees are fully aware of training opportunities available to them during their work hours.”

“We also know a diverse workforce with strong Indigenous representation means a better public service for all. With the new addition of paid leave for Indigenous employees to engage in traditional Indigenous practices, including hunting, fishing and harvesting, the government will be better able to attract and retain more Indigenous workers and recognize their lived experiences.”

The PSAC bargaining teams recommend the ratification of the tentative agreement.

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