Canada’s government has reached a tentative agreement with the Public Service Alliance of Canada (PSAC) that will affect approximately 120,000 employees involved in federal bargaining units. The agreements were announced on May 1, 2023, following months of negotiations between the parties.

If the agreement is ratified, it will cover a retroactive four-year period from 2021-2025. It will include wage increases of over 11.5% over the four years, a group-specific allowance in year three, and a one-time payment of $2,500. 

Moreover, the agreements aim to enhance workplace wellness, diversity, and inclusion by implementing new mental health support measures and anti-harassment provisions. The government also continues to support the hybrid workplace model.

The government is diligently working to continue negotiating in good faith with bargaining units across the public service sector. Currently, six agreements have been reached, and negotiations with 20 bargaining units of the 28 are ongoing.