OTTAWA – Federal public service unions are condemning the government’s proposed amendments to collective bargaining rules — though they admit they know little at this point about what those changes could entail.
The federal budget, tabled on Tuesday, proposes amendments to the Federal Public Sector Labour Relations Act to ensure the government can “attract and retain the necessary talent” while “respecting Canada’s fiscal circumstances relative to its stated budgetary policies and objectives.”
The budget says public sector compensation “must align with Canadian labour market trends” and the government’s own fiscal position.
Benoit Mayrand, a spokesperson for the Department of Finance, said in an email that the amendments do not “directly” limit wage increases.
Instead, he said, they would “clarify what factors an arbitration board must consider” when making a decision.
Mayrand said those factors include the government’s fiscal circumstances “relative to its stated budgetary policies and objectives.”
Alex Silas, the Public Service Alliance of Canada’s national executive vice president, told a press conference Wednesday that the budget was “vague” and the union doesn’t know what the government has planned.
He said the union is going to make sure the language in its collective agreements is respected.
”(Prime Minister Mark Carney) may not have a lot of experience working with unions or operating in a union world, but he’s going to learn quickly,” Silas said in French.
“He’s demolishing the federal public service and if he thinks he’s going to attack workers’ rights, we’re going to fight with everything we can to protect our rights.”
Silas said legal recourse could be an option.
The public service is renewing collective agreements. In June, the Public Service Alliance of Canada officially launched a new round of negotiations with Treasury Board for more than 120,000 of its members.
Silas said the wording of the budget indicates negotiations are starting in a bad place.
Nathan Prier, president of the Canadian Association of Professional Employees, said public servants aren’t responsible for the deficit.
“If the government wants to start considering its own fiscal crisis that it itself generated, then we are not going to accept that as a basis for worsening our conditions,” Prier said.
“This is a sign, just like Mark Carney gave us a sign when he ordered flight attendants back to work, that these rights are fought for and they are defended.”
In August, just hours after Air Canada flight attendants hit the picket line, Jobs Minister Patty Hajdu invoked Section 107 to order binding arbitration and get workers back on the job.
Flight attendants ignored the order and remained on strike until a deal was reached days later.
“The CUPE flight attendants that were able to stand him down gave us an example of exactly the level of organization and solidarity that we are going to need to face down a prime minister who is ready to trample labour rights in their entirety,” Prier said.
This report by The Canadian Press was first published Nov. 6, 2025.
Read more on the federal budget at thestar.com
