Federal workers reject 'insulting' wage offer as strike threat looms
Tensions are rising between the federal government and public sector workers over wage negotiations. The Public Service Alliance of Canada (PSAC) has rejected the latest offer, calling it 'insulting' and 'unacceptable'. The dispute affects over 120,000 federal employees whose contracts are now up for renewal.
The union had demanded annual wage increases of 4.75 per cent for its members. Instead, the government proposed raises of less than one per cent per year for workers in administrative, operational, and technical roles. PSAC officials argue this would effectively cut take-home pay when accounting for inflation.
In 2023, the same bargaining groups secured a 12.6 per cent pay rise over a three-year period after staging a strike. That agreement covered the years 2021 to 2024. Now, with contracts expiring, the union is pushing for similar gains—but the government’s latest proposal falls far short of expectations.
The rejected offer leaves negotiations at a standstill. Without a compromise, further industrial action could follow. The outcome will determine pay for thousands of federal workers in the coming years.
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