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After more than a year and a half of bargaining leading to one of the largest strikes in Canadian history, the PSAC-UTE bargaining team has reached a tentative agreement for the more than 35,000 Canada Revenue Agency workers who deliver critical services to Canadians. 

PSAC-UTE members held the line for two weeks while the government refused to give CRA a mandate to negotiate a fair contract and treat our members with the respect they deserve.

With the strike now over, PSAC-UTE members are required to return to work on May 4 by 11:30 a.m. ET, at the latest. If your regular start time is earlier than 11:30 a.m., we would encourage you to do your best to begin your workday at that earlier time because the employer may require you to make up those hours otherwise.

In this tentative agreement, PSAC-UTE 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 those negotiated by other federal bargaining agents. It also provides significant new protections against layoffs as well as  improvements concerning hours of work, telework and seniority.

This agreement is a testament to the tenacity of PSAC-UTE members who held the line on fair wages and better working conditions.

The PSAC-UTE bargaining team unanimously recommends this agreement.

Highlights of the tentative agreement

Wages that close the gap with inflation

The PSAC-UTE bargaining team negotiated wage increases totaling 12.6% compounded over the life of the agreement from 2021–2025. PSAC-UTE 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 3.6% of salary for the average PSAC-UTE member.

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%

One-time lump-sum payment

The pensionable one-time lump sum payment of $2,500 will be applicable to all members of the bargaining unit employed at the time of signing the agreement. For PSAC-UTE 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%

New and improved telework language

PSAC members will now be better protected from arbitrary decisions about remote work. We have 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. 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 and to make recommendations to the Assistant Commissioner of Human Resources for her consideration in responding to final level grievances.
 
PSAC-UTE and the CRA have also agreed to create a joint committee to review and update the telework policy for the government last updated in 2020 – before the pandemic began.

Hours of work

In an effort to improve work-life balance the PSAC-UTE bargaining 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 gives workers the option to shape their workday to match their personal and family responsibilities.

Premiums, Leave

PSAC-UTE has secured an increase in shift premium to $2.50, the highest of any PSAC collective agreement. Our team also negotiated an improvement in vacation accrual, with the threshold for accessing four weeks of vacation dropping from eight to seven years of service, representing the best accrual for PSAC members in the public service 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. 

Safer and more inclusive workplaces

Everyone in the federal government can benefit from anti-racism and discrimination training. That’s why we’ve reached an agreement that CRA will review, share and encourage the integration of the recommendations emanating from the PSAC and TBS joint committee created 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.

Protections against contracting out

The PSAC-UTE bargaining team has negotiated language to ensure that in the event of layoffs, preference shall 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.

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.

Other gains at the bargaining table

PSAC-UTE also made important improvements on a number of issues, ranging from an increase to shift premiums, leave for union business and other types of leave. A detailed summary of these improvements will follow in the coming days.

Full text and next steps  

In the coming days, a full explanation of the new agreement, and a copy of the new language, will be provided once it has been fully translated. PSAC-UTE members will shortly thereafter be invited to participate in online ratification votes. Details about the votes will be shared as soon as possible. 

Strike action continues across the country for 35,000 members at Canada Revenue Agency May 1 as negotiations resume with a new mandate from CRA to reach a fair contract. 

Use our picket line finder to find the strike location nearest to you. 

To date, we have successfully resolved some issues related to hours of work and information to be provided to PSAC so that the union can communicate and engage with the membership more easily and effectively. This is progress that we have realized so far because of the strike.  

However, we remain in dispute over key issues with the CRA. These include:  

• Telework: We are seeking language in our collective agreement so that our members have the right to telework arrangements, and if management says no, management must provide an explanation in writing, and if unreasonable, the union can challenge the decision. Other federal employers have agreed to this. CRA has to date taken the position that there is to be no language on telework in our collective agreement.   
    
• Fair wages: We are seeking compensation that will address the cost of living and inflationary pressures. We are also looking for wage adjustments to bring our wages in line with our fellow public service employees. The employer’s position for compensation does not provide for such a wage adjustment and is far below inflation, which is unacceptable to us.  
    
• Job security: We are seeking protections that are in line with other collective agreements, including years of service recognition and protections against the contracting out of our jobs. The employer to date has said no to these proposals.  

Our demands are reasonable. And together, we will make real gains for our members. 

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 and retroactive to June 2021 when the previous contract expired. PSAC also 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.  

In the graph below, you’ll see a 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 be protected from arbitrary decisions about remote work.  We have 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.   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 for the government last updated in 2020 – before the pandemic began.

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.   

Safer and more inclusive workplaces 

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

Protections against contracting out 

Privatization and contracting out in the federal public service out lead to higher costs, more risk, and reduced quality of services for Canadians. PSAC has negotiated language to ensure that in the event of layoffs, PSAC members will not lose their job if they can perform the duties of a contractor already working with the federal government. This language will protect public service jobs and reduce contracting out in the federal public service. 

The government has also committed to a consultation process on the issues associated with contracting out in the federal public service. 

Seniority under Workforce Adjustment Directive 

PSAC 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. 

Other gains at the bargaining table 

PSAC also made important improvements on a number of issues, ranging from a commitment to review the bilingual allowance, an increase to shift premiums, leave for union business and other types of leave. A detailed summary of these improvements will follow in the coming days. 

Full text and next steps   

In the coming days, a full explanation of the new agreements, and a copy of the new language, will be provided once they have been fully translated for the PA, SV, TC and EB groups. PSAC members will shortly thereafter be invited to participate in online ratification votes. Details about the votes will be shared as soon as possible.  

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

As you know, we’ve been in negotiations with the federal government for the past two weeks to try and reach a fair deal for our members. 

While we’ve made some progress at each of our four bargaining tables over the weekend, we’re still too far apart on several key issues, including wages that keep up with the cost of living, job security and remote work language. There are also still several outstanding table-specific issues to address. 

We know you deserve fair wages and decent working conditions. That’s why we’re committed to remaining at the table for our 120,000 Treasury Board members this week, and today, negotiations resume for 35,000 members at the Canada Revenue Agency.  

We understand you’re frustrated that while negotiations drag on, you continue to fall behind. We’ve already been at the table for nearly two years, and you can’t wait any longer. 

That’s why we’re setting a clock on negotiations. If there is no deal reached by 9 p.m. tomorrow, April 18, we will launch a national general strike beginning at 12:01 a.m. Wednesday, April 19 for all our 155,000 PSAC members working for both CRA and Treasury Board. 

Over the coming days, you’ll continue to receive more information to help you prepare for potential strike action, including how you’ll receive strike pay and how you can join a picket line.  

And later today, we will be launching a picket line finder tool allowing you to use your postal code to find a picket line near you. 

Check out the frequently asked questions page for everything you need to know about the strike, including information about strike pay, essential workers, and more. If you haven’t already, you can also complete our online strike preparation course any time to prepare you for strike action.  

This is a truly historic moment – together, we will show this government what PSAC members can do when they work together. 

In solidarity,  

Chris Aylward 
Public Service Alliance of Canada National President 

More than 155,000 PSAC members working for Treasury Board and the Canada Revenue Agency will begin strike action on April 19 if a deal cannot be reached by 9 p.m. ET April 18 – setting the stage for one of the largest strikes in Canada’s history. 

“We’ve made some progress at each of our four bargaining tables over the past two weeks, but we’re still too far apart on several key issues, including wages that keep up with the cost of living, job security and remote work language,” said Chris Aylward, PSAC National President.   

“We’re committed to remaining at the table until a fair deal is reached for all our members – both for our 35,000 Canada Revenue Agency members who resume negotiations today, and our 120,000 Treasury Board members still at the table.” 

PSAC members have been without a contract since negotiations with the federal government began in June 2021, and last week, voted overwhelmingly in favour of taking strike action. 

“These workers – like all workers – deserve fair wages and decent working conditions. Despite some progress at the bargaining table, our members are frustrated that while negotiations drag on, they continue to fall behind,” said Aylward. 

“We’ve already been at the table for nearly two years, and these workers can’t wait any longer. That’s why we’re setting a clock on this round of bargaining.” 

With so many federal public service workers potentially on strike as of April 19, Canadians can expect to see slowdowns or a complete shutdown of services nationwide, including a complete halt of the tax season, disruptions to employment insurance, immigration and passport applications; interruptions to supply chains and international trade at ports, harbours, and airports; and slowdowns at the border with administrative staff on strike.  

The Public Service Alliance of Canada is Canada’s largest federal public service union, representing nearly 230,000 workers in every province and territory in Canada, including more than 120,000 federal public service workers employed by Treasury Board, and more than 35,000 employed by the Canada Revenue Agency.