In the hours after reaching a deal with Canada Revenue Agency, we shared with PSAC-UTE members the highlights of the wage increases, remote work language and other benefits that were negotiated. 

As we prepare ratification kits that contain the full details of the new agreements to share with you in the coming days, we’d like to provide more details and clarification on the key improvements we secured in this round of bargaining. 

Strike action greatly improves final wage offer and other benefits 

Beating the original three-year offer 

It took getting a strong strike mandate and serving notice to strike for the Liberal government and Canada Revenue Agency to finally offer a wage proposal that they had publicly supported for months following the Public Interest Commission’s recommendations for the core public administration tables, but refused to actually put on the table.  

Then when they finally they refused to move from that – or move on anything else. Our national strike made all the difference. Each day of the strike built the pressure we needed to secure more gains at the table. 

This was the employer’s offer as the strike began compared to what we secured for those first three years they offered: 

Year of the agreement	2021	2022	2023	Total compounded increase
Treasury Board offer	1.5%	4.5%	3%	9.3%
PSAC tentative agreement	1.5%	4.75%	3.5%	10.1%
Compounded gains for members	N/A	+0.3%	+0.8%	+0.8%

Securing full inflationary increases for a fourth year 

We moved the dial on the government’s pre-strike offer, but we needed more to reach an agreement. 

That’s why we negotiated a fourth year into the agreement that meets projected inflation. The Bank of Canada projects inflation to average 2.3% in 2024, so we locked in an inflationary increase of 2.25% for that year of the agreement. This only became possible in the second week of the strike. 

Year of the agreement	2021	2022	2023	2024	Total
Wage increase	1.5%	4.75%	3.5%	2.25%	12%
Total compounded wage increase	1.5%	6.4%	10.1%	12.6%	12.6%

Improving on other federal public service agreements 

We didn’t just improve on the employer’s overall offer through our strike, we also secured increases significantly above agreements already signed by other federal public service unions over that same period: 

A $2,500 pensionable lump sum payment equivalent to 3.7% of salary 

As part of their pre-strike offer, the government also tabled a non-pensionable lump sum payment of $500. After our strike action, it moved to $2500 – and fully pensionable. 

For an average member making $68,000 a year, it represents 3.7% of salary, and a lot more for the thousands who make less than that. 

This lump sum payment will be applicable to all members of the bargaining unit employed at the time of signing the agreement. For the 15% of 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 by $500 per year. 

It could be worth over $10,000 in increased pension payments depending on how many years a worker collects their pension. 

The dollars add up – $23,000 more on average in your pocket 

 For PSAC-UTE members, a 12.6% wage increase would add on average of $8,559 to your base salary by 2024. 

If you add up the yearly salary increases, along with the $2,500 lump-sum payment, the average PSAC member will receive an additional $23,000 over the life of the agreement based on an average member’s salary of $68,000.  

	2020	2021	2022	2022*	2023	2023**	2024	2024***
Individual wage Increase	N/A	1.5%	3.5%	1.25%	3%	0.5%	2%	0.25%
Cumulative wage increase (compounded)	N/A	1.5%	5.1%	6.4%	9.6%	10.1%	12.3%	12.6%
Average increase ($)	N/A	$1,020	$3,436	$4,329	$6,499	$6,871	$8,368	$8,559
Average Salary	$68,000	$69,020	$71,436	$72,329	$74,499	$74,871	$76,368	$76,559

* The 4.75% increase in 2022 is made up of a 3.5% general economic increase as well as an additional 1.25% wage adjustment that compounds the economic increase.  
** The 3.5% increase in 2023 is made up of a 3% general economic increase as well as an additional 0.50% wage adjustment that compounds the economic increase.  
*** The 2.25% increase in 2024is made up of a 2% general economic increase as well as an additional 0.25% wage adjustment that compounds the economic increase.  

Other victories we achieved through strike action 

Significant improvements to vacation leave, shift premiums and other leave 

Our team negotiated the best vacation leave accrual for PSAC members in the federal public service, with the threshold for accessing four weeks of vacation dropping from eight to seven years of service. 

PSAC-UTE also has secured an increase in shift premium to $2.50, the highest of any PSAC collective agreement, as well as improved access to family-related responsibility leave and bereavement leave. 

We also reached an agreement to end the CCAAT call monitoring system in call centres within 18 months. 

 Strongest remote work protections in the federal public service 

 Prior to taking strike action, we had not made any gains on remote work as the government dug in on their position. But that all changed by the end of the strike. Our goal was to get the improvements we secured directly into the collective agreement. Instead, as part of the give and take of every round of bargaining, we agreed to have those improvements implemented as part of a letter of agreement that sets us up to win the full victory in our next contract. 

PSAC members will now be protected from arbitrary decisions about remote work. We have negotiated language 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. Having all remote work requests reviewed on an individual basis will prevent future "one size fits all" type mandates like the government announced in December last year.  

That means employee rights around remote work arrangements will be protected through a grievance process, and grievances that are not settled prior to the final step of the grievance process can be referred to a new joint union-management panel for review in each department to address issues related to the employer’s application of the remote work directive in the workplace.  

PSAC and Treasury Board have also agreed to create a joint committee to review and update the telework policy. 

Once the joint committee has been struck, the panel has been created and the joint committee has finalized its review of the policy and releases its findings, PSAC members can begin to challenge decisions on their remote work arrangements based on the new language negotiated, and the union can begin working with the employer to review the overall policy.

Best protection against contracting out in the federal public service 

Our bargaining team has negotiated language to ensure that in the event of layoffs, preference will be given to PSAC-UTE members over outside contractors. This language will protect union members’ jobs and reduce contracting out in the federal public service. 

Flexible hours of work  

We won a decade-long battle with Canada Revenue Agency to provide flexible working hours to our PSAC-UTE members.  

Our team negotiated new language that allows workers to request the ability to start work as early as 6 a.m., and that such requests cannot be unreasonably denied.  

This is a major victory to improve work-life balance, and gives our members the option to shape their workday to match their personal and family responsibilities. 

Seniority under Workforce Adjustment Directive 

PSAC-UTE and the employer have agreed to submit a joint proposal to the Public Service Commission of Canada to include seniority rights in the Workforce Adjustment process. 

Big gains by using our collective bargaining power and strike action 

PSAC secured the strongest collective agreement in the federal public service that raises the bar for our members and all workers in Canada. 

Because over 100,000 PSAC members came together on the picket lines to demand better, you secured: 

• A better first three-year wage offer 
• A fourth year with full inflationary increases 
• A $2500 pensionable lump sum payment 
• Faster vacation accruals, flexible work hours, better shift premiums and leave provisions 
• The strongest remote work protections in the federal public service 
• Protections against contracting out  
• Safer and more inclusive workplaces 
• Seniority protections