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Taxpayers can’t afford PSAC’s demands

Author: Franco Terrazzano 2023/04/17

OTTAWA, ON: The Canadian Taxpayers Federation is reminding the federal government that taxpayers can’t afford the Public Service Alliance of Canada’s compensation demands, which would cost taxpayers $9.3 billion over three years.

“Taxpayers can’t afford PSAC’s demands,” Franco Terrazzano, Federal Director of the CTF said. “Canadians who are struggling to afford groceries and gas don’t have billions more to pay for unreasonable demands.”

The Treasury Board of Canada Secretariat provided the CTF with PSAC’s demands for increased wage and non-wage benefits. The PSAC has demanded up to 47 per cent compensation increases over three years. 

“Conservative costing of PSAC's pay proposals and other monetary proposals (e.g. increase in overtime rates, expanded leave provisions) is $3.1 billion per year, every year, ongoing,” according to the TBS. “Over three years, that would amount to a cumulative cost of $9.3 billion.”

The non-wage benefits PSAC has demanded include:

  • A special shift premium whenever members work past 4 p.m.;
  • Taxpayer-funded contributions to the PSAC’s Social Justice Fund, which engages in “advocacy for progressive public policy,” according to the union’s website;
  • An education fund for laid-off members of up to $17,000;
  • Increased paid leave for family related responsibilities from 37.5 hours to 75 hours annually; and,
  • Accrual of four weeks of automatic vacation leave after four years of service, rather than after seven years of service.

“PSAC’s demands come with a huge price tag for Canadian taxpayers,” Terrazzano said. “The government must remember that many Canadians are struggling, so any deal must be affordable for taxpayers.”

Compensation for each full-time federal employee is $125,300 on average when pay, pension and other benefits are added up, according the Parliamentary Budget Officer. A total of 312,825 federal employees received at least one pay raise during the pandemic. The feds paid out $559 million in bonuses since the beginning of the pandemic.


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