Wage increases secured by striking workers shouldn’t be seen as ‘fat cat’: experts

TORONTO –

Labour experts say the wage increases deal secured by the country’s largest federal public-sector union today are far from the hefty gains some might perceive them to be.

The experts say the 12.6 per cent wage increase over the next four years brings the salaries of 120,000 striking workers represented by the Public Service Alliance of Canada more in line with inflation, which peaked at 8.1 per cent in June before sliding to 4.3 per cent in March.

The deal offers as little as a 1.5 per cent increase in one year and as much as 4.75 per cent in another, but an economist and director at the Centre for Future Work argues it shouldn’t be seen as “gold plated” nor “fat cat.”

Jim Stanford feels this way because average wages are growing at more than five per cent a year in Canada.

Charles Smith, a political studies professor with the University of Saskatchewan, pointed out the offer is also less than the 13.5 per cent the union originally sought but higher than the nine per cent the federal government was once offering.

The union’s deal has yet to be ratified and does not apply to 35,000 Canada Revenue Agency employees, who are still on strike as a separate agreement is negotiated for them.

This report by The Canadian Press was first published May 1, 2023.