Tentative Agreement Resolves Strike for Canadian Tax Authority Workers

The Canadian tax authority has successfully reached a tentative agreement with 35,000 striking employees, bringing an end to a two-week work stoppage that became one of the largest public-sector labour disputes in Canada’s history.

On Thursday, the Public Service Alliance of Canada (PSAC) union announced that it had secured a fair contract for its members, surpassing the employer’s original offer that triggered the strike action last month. The agreement, covering Canada Revenue Agency (CRA) workers, includes wage increases exceeding those negotiated by other federal bargaining agents. Additionally, it introduces protections against layoffs, enhancements in work hours, telework provisions, and seniority benefits.

Over 35,000 CRA employees went on strike on April 19, joining 120,000 other federal workers, constituting approximately one-third of Canada’s public sector employees. The striking workers sought cost-of-living raises and increased flexibility for telework.

While Canada had reached an initial agreement with the broader group of 120,000 federal workers earlier this week, the CRA employees had continued their strike until a separate deal was finalized.

The CRA announced on Thursday that the four-year tentative agreement encompasses an 11.5 percent wage increase over four years, retroactive to 2021, benefiting approximately 39,000 employees. In addition, a one-time payment of $1,800 (2,500 Canadian dollars) is included in the deal. The agreement also mandates managers to assess telework requests individually, a significant point of contention, as many employees had embraced remote work during the COVID-19 pandemic.

Expressing gratitude to both bargaining teams for their dedication and hard work, the CRA acknowledged the compromise reached during negotiations, characterizing the tentative agreement as fair to employees and reasonable for taxpayers. The union has instructed its members to return to work on Thursday. The resolution comes as a relief, bringing an end to a significant labour dispute in the Canadian public sector.

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