The union representing Canada Revenue Agency workers is proposing a series of pay bumps worth more than 30 per cent of current wages to keep up with inflation — a move described by observers as both “unprecedented” and “crazy.”
The Union of Taxation Employees (UTE) is proposing the following wage increases, on top of a one-time nine per cent wage adjustment:
4.5 per cent effective Nov. 1, 2021.
8 per cent effective Nov. 1, 2022.
8 per cent effective Nov. 1, 2023.
When compounded over three years, the four proposed hikes would result in a “historic” wage increase for the largest workforce within the federal public service, at nearly 55,000 employees in 2022, said union president Marc Brière.
About 35,000 of those employees are represented by UTE.
Brière said the proposal aims to address an imbalance between CRA employees represented by UTE and the Canada Border Services Agency (CBSA), which has approximately 14,000 employees.
I’ve never heard of demands anywhere close to this.– Jock Climie, Labour lawyer
The two agencies used to function as one between 1999 and 2003 where employees were paid the same rate. Once they became independent of each other, it created a wage gap of nine per cent because CBSA uses the Excise Act.
“They used to sit side-by-side in the early 2000s. They were the same group and occupation, the same classification, and then making the same amount of money,” Brière said.
As of 2021, wages at the CRA have ranged between $41,658 and $121,923, compared to the CBSA which range from $64,849 and $135,509.
This graph shows how wages compare for similar administrative positions within the two agencies.
However, it appears CRA employees’ wages may also lag behind other federal agencies deemed outside the government’s core public administration.
Direct comparisons are difficult to pinpoint due to differences in roles and salary designations. This chart does show what a mid-level CRA employee makes after three years, compared to administrative counterparts in the next three largest federal agencies.
The discrepancy doesn’t add up with the work CRA employees have been asked to do, said Brière, especially in recent years because of the pandemic.
“We have people that are specialized. The Income Tax Act is complex and they are doing great work. They have proven it during the pandemic, not only administering the income tax programs but even the emergency programs, which is not in our portfolio,” he said.
It’s a big ask at the centre of tense negotiations between the union and CRA management, which have both failed to reach a collective agreement.
UTE announced nationwide strike votes earlier this month that will take place from Jan. 31 to Apr. 7.
The CRA has filed a complaint against the Public Service Alliance of Canada—Union of Taxation Employees with the Federal Public Sector Labour Relations and Employment Board, arguing the union has failed to “bargain in good faith” and “make every reasonable effort to enter into a collective agreement.”
CRA workers are asking for an “unprecedented” pay raise
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Duration 1:23
The Union of Taxation Employees (UTE) is proposing a series of wage increases, which critics say puts unfair pressure on Canadians.
Living costs justify proposal, says union
Until now the biggest wage increase for CRA employees was 3.2 per cent per year from 2000 to 2003, which amounted to a nearly 10-per-cent bump over three years. Its lowest was one per cent per year in 2014 and 2015.
Brière argues this time is different because of inflation and the high cost of living.
“People are having a hard time out there to make ends meet and so that’s why we’re asking for a new contract with decent wage increases,” he said.
It’s an “unprecedented” request, according to Jock Climie, an Ottawa-based labour lawyer who has negotiated bargaining agreements for unions and federal agencies for more than 20 years.
“I’ve never heard of demands anywhere close to this,” Climie said.
This could be a sign of things to come with increasing inflationary pressures causing unions and employees to become “more aggressive in terms of their demands,” he added.
Franco Terrazzano of the Canadian Taxpayers Federation says the proposed pay increase for CRA workers would ‘gouge’ taxpayers. (Craig Ryan/CBC)
Critics say proposal is ‘crazy’
On the other side of the negotiating table, CRA management says the wage proposal would be costly to taxpayers and the threat of a strike during tax season puts unfair pressure on Canadians.
Some other critics agree.
“Everyone struggled through the pandemic but these government employees did not struggle … in the same way that their neighbours, who will have to pay higher taxes to fund these union negotiators’ demands,” said Franco Terrazzano, the federal director of the Canadian Taxpayers Federation, which lobbies for lower taxes.
He said the union is using inflation as “an excuse to gouge Canadian taxpayers that can’t afford these crazy demands.”
The union and the CRA are scheduled to attend Public Interest Commission hearings on Jan. 27 and Feb. 20 with the Federal Public Sector Labour Relations and Employment Board.
The board is expected to put forward recommendations on how the two parties can reach an agreement this spring, but the recommendations are non-binding.
TORONTO – Canada’s main stock index fell in late-morning trading, weighed down by losses in base metal stocks, while U.S. stock markets were mixed to start the trading week.
The S&P/TSX composite index was down 44.33 points at 23,912.49.
In New York, the Dow Jones industrial average was down 101.56 points at 42,211.44. The S&P 500 index was down 0.67 points at 5,737.50, while the Nasdaq composite was up 3.97 points at 18,123.56.
The Canadian dollar traded for 74.04 cents US compared with 74.08 cents US on Friday.
The November crude oil contract was up 66 cents at US$68.84 per barrel and the November natural gas contract was up two cents at US$2.93 per mmBTU.
The December gold contract was down US$14.90 at US$2,653.20 an ounce and the December copper contract was down seven cents at US$4.53 a pound.
This report by The Canadian Press was first published Sept. 30, 2024.
NEW YORK (AP) — The union representing U.S. dockworkers signaled that 45,000 members will walk off the job at midnight, kicking off a massive strike likely to shut down ports across the East and Gulf coasts.
The coming work stoppage threatens to significantly snarl the nation’s supply chain, potentially leading to higher prices and delays for households and businesses if it drags on for weeks. That’s because the strike by members of the International Longshoremen’s Association could cause 36 ports — which handle roughly half of the goods shipped into and out of the U.S. — to shutter operations.
ILA confirmed over the weekend that its members would hit the picket lines at 12:01 a.m. Tuesday. In a Monday update, the union continued to blame the United States Maritime Alliance, which represents the ports, for continuing to “to block the path” towards an agreement before the contract deadline.
“The Ocean Carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA Longshore Workers an unacceptable wage package that we reject,” ILA said in a prepared statement. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”
The Associated Press reached out to a USMX spokesperson for comment.
If drawn out, the strike would led would force businesses to pay shippers for delays and cause some goods to arrive late for peak holiday shopping season — potentially impacting delivery of anything from toys or artificial Christmas trees, to cars, coffee and vegetables. Americans could also face higher prices as retailers feel the supply squeeze, all ahead of a tight presidential election.
The coming strike by the ILA workers will be the first by the union since 1977. And the Biden administration has signaled that it will not intervene.
President Joe Biden, during an exchange with reporters on Sunday, said “no” when asked if he planned to intervene to plan a potential work stoppage impacting East Coast ports.
“Because it’s collective bargaining, I don’t believe in Taft-Hartley,” Biden said referring to a 1947 law that allows the president to intervene in labor disputes that threaten the nation’s health or safety.
TORONTO – Canada is poised to see significant growth in Indigenous-related project financing, international credit rating agency Morningstar DBRS said Monday.
In a report released on the fourth annual national day for Truth and Reconciliation, the credit rating agency said Indigenous-related capital markets activity is on a steady upward trend with “considerable potential” for more.
“We have seen a gradual increase in capital markets activity by Indigenous-related organizations and we anticipate this segment of financing will grow significantly in the coming years, supported by increased federal and provincial government guarantees and other forms of support,” the Morningstar report states.
Indigenous communities across Canada are showing growing interest in acquiring equity positions in major projects and infrastructure as a way to generate revenue and economic opportunity for their people.
But historically, one of the biggest barriers preventing Indigenous partners from pursuing equity ownership has been a lack of access to capital. Canada’s Indian Act prohibits First Nations from using their land as collateral, meaning Indigenous communities have struggled to access competitive interest rates through mainstream capital markets.
But the federal and provincial governments are increasingly getting on board with the need to provide Indigenous communities and organizations access to capital to facilitate economic development, Morningstar said.
The report identifies more than $13 billion in available federal and provincial programs, such as loan guarantees, which are leading to increased financing activities by Indigenous communities and groups.
Morningstar pegs the value of Indigenous financing activity, including government loan guarantees, at almost $800 million annually over the past five years.
It also points out there are several high-profile transactions involving Indigenous communities on the horizon, including Ottawa’s planned sale of the Trans Mountain pipeline to Indigenous groups, TC Energy Corp.’s planned sale of its NGTL pipeline system to an Indigenous consortium, and the development of the Cedar LNG project by the Haisla Nation and Pembina Pipeline Corp.
“We believe that there is significant growth potential for Indigenous-related financings in the coming years,” Morningstar said, adding increased Indigenous participation on capital markets is a win-win for everyone.
This report by The Canadian Press was first published Sept. 30, 2024.
