PSAC, government reach tentative agreement
Mohammed Adam , The Ottawa Citizen
Published: Monday, November 24, 2008
Ottawa - After days of sabre-rattling, the federal government and its largest union have surprisingly reached an agreement on a new contract, averting a major confrontation and setting the stage for similar deals across the public service.
John Gordon, national president of the Public Service Alliance of Canada, told a news conference Monday that with many Canadians facing the prospect of layoffs and losing pension benefits, the union accepted the government's wage proposal in exchange for improved "economic security" for its members.
He said the tentative deal, worth a 6.8-per-cent wage increase over four years for more than 100,000 public servants, reflects the reality of the tough economic times facing the country.
"It doesn't take a rocket scientist to look at what the economy is doing right now in Canada and around the globe... Given these tough economic times, we feel this is the right thing to do," Mr. Gordon said. "We are trying to be as responsible as possible."
More than 50,000 members of PSAC in other bargaining units, including those at the National Capital Commission, the Canadian Security Intelligence Service, Parks Canada and the Auditor General's department are currently in negotiations and Mr. Gordon said he hopes his deal will serve as a model for them.
Treasury Board President Vic Toews said the settlement was fair and called on other unions to tread a similar path.
"Canadians understand that we are in some very difficult economic times and I think the union has recognized that," Mr. Toews said.
He would not say whether the agreement reduces the risk of government legislation to control wages, insisting that his task is to settle the outstanding contracts through negotiations.
Mr. Gordon said the tentative agreement was reached so late on Sunday, he hasn't had time to brief sister unions like the Professional Institute of the Public Service of Canada.
The PSAC deal appears to have taken PIPSC by surprise. Last week its president, Michèle Demers, slammed the federal government for trying to intimidate the unions and vowed they would not "roll over." Yesterday, officials said Ms. Demers was not available for comment as the institute was examining its options. However, with a settlement by the largest union, and the threat of a legislated contract hanging over the rest (Mr. Toews made what he called a final offer to them last week), experts say PIPSC has very little option but to settle for a similar contract. But it is not only PIPSC that could be affected by new contract.
Its significance may reach farther than the federal public service. Other public-sector employers, such as provincial and municipal governments facing the same financial squeeze as the federal government, could see the PSAC deal as the model to follow. The City of Ottawa, for instance, briefly considered and rejected a wage freeze to help cope with the financial strain. PSAC's four-year deal, offering wage increases of 2.3 per cent, 1.5, 1.5, and 1.5 per cent over four years, could be attractive.
Ottawa Councillor Diane Deans acknowledged that one key factor city officials often take into account in negotiations is other public-sector settlements.
"A settlement like this will be one of the many key indicators we will look at. But in really uncertain times, you look to do shorter deals, not longer ones," she said.
The PSAC deal was finalized midnight Sunday after days of heightened tension during which both sides talked tough. Citing the need for belt-tightening in the face of an economic recession, the federal government tabled a four-year take-it-or-leave-it wage offer to about 20 unions engaged in contract talks. And to drive the point home, the government warned that it would not hesitate to legislate the offer if the unions rejected it.
Mr. Gordon said PSAC was not intimidated by the government's hard line, saying the union settled because it achieved some long-term goals. During negotiations that began on Thursday, Mr. Gordon said, it became clear that the government would not budge from its wage demands. In the circumstance, the union decided that in the current economic climate, it was best to lower its wage demands and find gains elsewhere.
"We believed in negotiations with Treasury Board officials that they were hard and fast with respect to the economic increases... PSAC, in reviewing this, felt that the best thing to do is take recognition of these economic times but at the same time address issues that we have had for many years," he said. "We went to the table to try to achieve that and I believe we managed to address those areas."
The gains by the union include: new national pay rates for some members who work in trades, for the first time in 41 years; improvement to bereavement and compassionate leave; as well as maternal and paternal leave.
The contract will be put to a ratification vote beginning in December, but the final result won't be known until early January. Union leaders are recommending acceptance.
"It has been a roller-coaster ride for our membership but we feel this is an accomplishment given the challenging times we are in," Mr. Gordon said. "While our expectations were higher, we should be proud of what we were able to achieve."
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