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Federal union slams 4-year, 3.5% raise proposal for public servants

PSAC says the offer is a pay cut and that private-sector settlements are running 4.2% this year.

  • On Monday, The Public Service Alliance denounced the federal government's four-year wage proposal as "insulting" and "unacceptable," arguing the offer of 2% for 2025 and 0.5% for 2026, 2027 and 2028 amounts to a pay cut for over 120,000 employees.
  • This proposal falls significantly short of the 4.75% annual increase PSAC sought, sparking renewed tension after the union secured 12.6% wage increases over the 2021–2024 agreement term following two weeks of picket lines in 2023.
  • Bargaining units for Administrative Services, Technical Services, and Operational Services declared an impasse, with PSAC noting private-sector wage settlements averaging 4.2% this year highlight the disparity in the government's offer.
  • The Treasury Board of Canada Secretariat declined to comment on specific bargaining items, though maintains commitment to "negotiating in good faith," while PSAC prepares to request conciliation following the impasse.
  • These negotiations unfold as the federal government aims to reduce the public service by 28,000 positions by 2029, creating fiscal pressures that complicate union demands for improved job security and higher wages.
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Federal public service union calls wage offers 'insulting' and 'unacceptable'

A union representing more than 120,000 federal public servants whose contracts are up for renegotiation says wage offers presented by the federal government are "insulting" and "unacceptable."

·Kelowna, Canada
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CTV News broke the news in Canada on Monday, May 4, 2026.
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