Canadian Taxpayers Federation raises alarms about non-wage benefits demands of Public Service Alliance of Canada

BY PAUL JUNOR

Now that the strike is on between the Public Service Alliance of Canada (PSAC) and the federal government, the full impact remains to be seen.

The Canadian Taxpayers Federation has been monitoring the state of negotiation between the two parties. Its analysis of the wish list of the largest union representing the federal bureaucracy reveals some highly problematic demands.

In a communication from Franco Terrazzano, Director of CTF, he mentioned that the demand of a 47% increase over the next three years, would transition to an extra expenditure of $ 9.3 billion by the government. At a time when the federal government is running huge deficits because of increased spending due to the COVID-19 pandemic, this would add significantly to the debt of the government.

In addition, CTF also revealed that during negotiation, the union wanted the following two demands that would include:

• Premiums for working past 4 p.m.
• A $17,000 education fund for laid-off employees and taxpayers contribution toward a union controlled social justice fund

He states, “Canadians can’t afford to keep paying more and more. The federal government has to draw a line and say no to out-of-touch union demands.”

It has been reported that an “overwhelming majority” of PSAC members voted in favour of a strike. The votes were held on February 22^nd, 2023, and April 11^th, 2023, for: workers in program and administrative services, technical services, education and library science, and operational services groups.

Chris Aylward, National Present of PSAC told reporters at a news conference, “An overwhelmingly majority of our members have told us they can’t wait any longer and they are prepared to strike to secure a fair deal that won’t see them fall behind. Our members know that a strike will be difficult for them and for the Canadians who depend on the service they provide, but they’re exercising their bargaining power because they just can’t wait any longer. Their bills can’t wait, their families can’t wait, and their futures can’t wait.”

The union was in a legal strike position as of Wednesday, April 19^th. In a statement after the vote, the federal government stated it was hopeful that the strike would be averted, but unfortunately it did not occur.

The statement reads, “There are many areas where both parties could reach a compromise, including wage increases, and if the PSAC shared our commitment to bargain in good faith, we can reach agreement quickly at the bargaining table.”

CTF has raised concerns about many of the non-wage benefits PSAC is demanding  from the government. Some of them include the following:

• Increased paid leave for family related responsibilities from 37.5 hours to 75 hours annually
• Accrual of four weeks of automatic vacation leave after four years of service, rather than after seven years of service
• Increased and extended eligibility for a variety of allowances and premiums, including  shift premium and meal allowance
• All overtime paid at double-time, where now it is most often paid at time-a-half

Terrazzano notes, “Most Canadians would be laughed out of the room if we asked our boss for these types of benefits. These demands prove the government union negotiators are trying to milk the taxpayers.”

According to a report by the Fraser Institute in 2020, federal government employees already get many non-wage benefits such as: time off for personal reasons, pension plan coverage, and job security.

According to a report from the Parliamentary Budget Officer, a full-time federal government employee makes $125,000 on average compared to around $59,000 for the average Canadian.

Also, there has been at least one raise during the COVID-19 pandemic for around 93% to 98% of federal employees.