The Treasury Board’s wage offer is viewed as an insult to public service workers, prompting an impasse in negotiations. After four months of delays, the Treasury Board proposed a wage increase of 2.0% in 2025, followed by 0.5% increases in 2026, 2027, and 2028. In contrast, the Public Service Alliance of Canada (PSAC) called for annual economic increases of 4.75%. The employer’s offer amounts to less than 1% per year, which many consider a pay cut.
The cost of living has outpaced wage growth in recent years, affecting federal public service workers significantly. Recent private-sector wage settlements averaged 4.4% in 2024, 3.9% in 2025, and 4.2% in 2026. Public service workers argue that the employer’s proposal does not reflect these realities and is thus disrespectful.
PSAC members demonstrated solidarity by wearing black during the National Day of Solidarity. The TC bargaining team declared an impasse due to the employer’s wage proposal. The SV bargaining team received the same wage offer after four months without a response.
Key issues remain unresolved, including job security and remote work arrangements during negotiations. PSAC plans to request conciliation through the Federal Public Sector Labour Relations and Employment Board after declaring the impasse.
Key facts about the wage negotiations:
- Treasury Board proposed a wage increase of 2.0% in 2025 and subsequent increases of 0.5% each year until 2028.
- PSAC’s proposal demands a yearly increase of 4.75%.
- The average private-sector wage settlements are higher than the Treasury Board’s offer.
Observers expect tensions to continue until the next round of talks scheduled for June. If negotiations do not progress, public service workers may escalate their actions to advocate for fair wages and job security.
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