Over 155,000 public sector workers in Canada have embarked on strike after failing to reach a pay agreement with the federal government.
The Public Service Alliance of Canada (PSAC) union stated contract talks will continue while calling on its members working for the Treasury Board and the Canada Revenue Agency to go on strike at midnight.
The union, which has been in collective bargaining for a new contract since 2021, had set a deadline of 9 p.m. (0100 GMT on Wednesday) for a deal.
The PSAC said its members would form picket lines at 250 locations across the country.
The federal government said in a statement that it presented a “fair, competitive offer to the PSAC”, including a 9% wage increase over three years, and that it would continue negotiations with to reach an agreement quickly.
The Treasury Board of Canada, which regulates public administration, stated that even though a competitive deal is on the table, the PSAC continues to insist on demands that are unaffordable and would severely impact the government’s ability to deliver services to Canadians.
The contract negotiations cover two main groups of employees – 120,000 workers under the Treasury Board and more than 35,000 revenue agency workers.
Tax agency workers initially sought a pay bump of more than 30% over three years, while the other group is seeking a 13.5% pay rise over three years. Inflation peaked at 8.1% last year.
The strike will affect several federal services and could delay tax refunds since the walkout by revenue agency workers comes in the middle of the tax filing season. Passport renewals ahead of peak summer travel are also set to face delays.
The strike would also affect 65% of employees at the Canadian Grain Commission, including most inspectors of outbound grain at ports, according to the commission.
Canada is a major exporter of wheat and canola.
