Treasury Board workers eyeing more than $10K average pay bump in new deal

Federal workers who reached a tentative new deal Monday with the Treasury Board of Canada after going on strike for nearly two weeks will earn an average of nearly $11,000 more in pay by the end of the deal compared to what they make now, according to figures released by their union.

The Public Service Alliance of Canada (PSAC) and the Treasury Board agreed on a total compounded wage increase of 12.6 per cent.

Those increases will span from 2021, when collective bargaining for the affected 120,000 public servants began, to the summer of 2025, when the new agreement will expire.

Using an annual average salary of $67,300 cited by the union for Treasury Board PSAC members, the total amount such workers will earn above their pre-strike deal comes to $8,471.23.

A $2,500 lump sum payment was also worked into the new collective agreement, which has yet to be ratified.

That lump sum is not meant to make up for money that may have been paid to striking workers during the strike, but that will ultimately be clawed back by the government, the union said. 

"The intent is to help close the gap with inflation, especially because a lump sum payment means more to workers who make less," a PSAC spokesperson said. 

That makes for a total bump of $10,971.23 per worker. 

Here's a more precise dollar breakdown of the compounding wage increases each year, based on the annual average salary used above.