The Treasury Board’s wage proposal has been met with widespread frustration from public service workers, who feel it fails to address rising living costs. Recently, the Public Service Alliance of Canada (PSAC) concluded a three-day mediation with the Treasury Board from April 28 to April 30, 2026.
During this mediation, the Treasury Board proposed a wage increase of 2.0% in 2025 and an additional 0.5% annually from 2026 to 2028. This offer starkly contrasts with PSAC’s previous demand for a more substantial economic increase of 4.75% each year.
That context matters because private sector wage settlements have averaged significantly higher—4.4% in 2024, 3.9% in 2025, and 4.2% in 2026. Public service workers are left wondering why their contributions are undervalued when private industry appears more generous.
On April 29, thousands of PSAC members demonstrated solidarity by wearing black clothing, signaling their discontent with the proposed terms. The Union of Taxation Employees plans to encourage its members to display red and black colors at work on May 5, further emphasizing their unified stance against the Treasury Board’s offer.
The negotiations have faced considerable delays and have seen no meaningful progress after eight months of talks. Many union members feel that this proposal not only undervalues their contributions but also diminishes the essential public services they provide across the nation.
The length of time taken to receive a wage offer suggests a lack of commitment from the Treasury Board. The union has indicated that patience is wearing thin and that it will keep pressing for better wages and improved working conditions.
This situation highlights a growing concern among public service workers regarding their financial well-being amid escalating living costs. The federal government’s wage offer seems inadequate when juxtaposed with these financial pressures.
