The Treasury Board’s wage proposal has been met with widespread frustration from public service workers, who feel it fails to address rising living costs. The Public Service Alliance of Canada (PSAC) concluded a three-day mediation with the Treasury Board from April 28 to April 30, 2026.
The Treasury Board proposed a wage increase of 2.0% in 2025 and 0.5% per year from 2026 to 2028. PSAC’s previous wage proposal called for an economic increase of 4.75% annually. Private sector wage settlements averaged 4.4%% in 2024, 3.9%% in 2025, and 4.2%% in 2026.
The negotiations have faced considerable delays, with no meaningful progress after eight months of talks. The federal government’s wage offer contrasts sharply with the rising living costs faced by public service workers.
On April 29, 2026, thousands of PSAC members demonstrated solidarity by wearing black clothing. The union emphasized that workers deserve better wages and improved working conditions, signaling that patience is wearing thin.
The Union of Taxation Employees will ask its members to display red and black colors in the workplace on May 5, 2026. Many union members feel that this proposal not only undervalues their contributions but also diminishes the essential public services they provide across the nation.
The length of time taken to receive a wage offer suggests a lack of commitment from the Treasury Board. The union signaled that it will keep pressing for better wages and improved working conditions.
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