Randall Denley: Liberals unconvincing as champions of thrift against striking union – National Post
Trying to pick a side in the public servants strike? Heres how I break the situation down.
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While not normally the biggest fan of public sector unions, I have to say that the Public Service Alliance of Canadas position is reasonable, in most respects. The exception is the 30-per-cent increase that 35,000 Canada Revenue Agency employees are seeking. The number is so ridiculous its not even worth examining.
The majority of striking public servants, about 120,000 people, are Treasury Board employees who work primarily in administrative positions. According to the union, most make between $40,000 and $65,000 per year.
The union wants a raise of 13.5 per cent over three years, with increments of 4.5 per cent each year. Lets put that in context. Average annual wages increased by 5.1 per cent in Canada in December, so the PSAC demand isnt out of sync with that. The latest inflation figure is 4.3 per cent, just about what the union is seeking.
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The government is offering nine per cent over three years, so the sides arent miles apart. The matter is complicated by the fact that the union contract expired in 2021. This contract is primarily about covering past inflation, not speculating on future inflation. The government wants to pay only 1.5 per cent for 2021, a year of low inflation, followed by 4.5 per cent for last year and three per cent for this year.
The PSAC also wants the contract to spell out details of how the governments hybrid workplace will play out. Given the governments vagueness and confusion on the topic, thats not unreasonable, either.
The union isnt asking for the moon, but Canadians have to put up with a public service strike.Its difficult to see an issue or a gap that justifies a strike, but the union wanted to bring slow-moving negotiations to a head.
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The Justin Trudeau government has put itself in a weak position when it comes to championing thrift. The government has never seen a dollar that it didnt want to spend. In its last budget, it gave up even the pretence of fiscal responsibility, planning deficits for years to come. This is a government that spends hundreds of millions of dollars on consultants and billions on business subsidies. Its easy to see why public servants with middling salaries would expect their own slice of the infinite fiscal pie the Liberals believe exists.
To make things even more challenging for the government, the prime minister had to defend his latest Caribbean vacation freebee in the House on the eve of the strike. Not a good look, as people like to say.
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Given its usual inclinations, the governments stance on public service salaries is inexplicable. Were it a book-balancing government with responsible spending habits, trying to hold down the federal wage bill would be in character. For the Trudeau government, its astounding.
The government cant credibly claim that the raise the PSAC workers want is unaffordable. Inflation has helped create a tax windfall worth tens of billions of dollars, but the government had other priorities for the money.
If the Trudeau government was concerned about the size of its wage bill, perhaps it shouldnt have increased the number of federal employees by nearly 31 per cent since it took office. Did it not see the salary implications?
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While the strike wont be terribly visible across the country, for Ottawa businesses it will mean a short-term financial hit. People making no more than $375 a week in strike pay are going to spend cautiously, especially when inflation has already left them short.
That inflation isnt going away. While the rate of increase is slowing, the cost of living is still going up. Prices are not going back to what they were. Federal employees want help with that, just like everyone else. The government needs to stop pretending it suddenly cares about money and settle the strike.
Randall Denley is an Ottawa political commentator and author. Contact him at randalldenley1@gmail.com
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Randall Denley: Liberals unconvincing as champions of thrift against striking union - National Post
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