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PSAC strike action: Updates from Parliament Hill

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The first day of striking by 155,000 federal public servants kicked off Wednesday, with pressure on the federal government to reach a deal to prevent prolonged service disruptions for Canadians.

Canada’s largest public service union, the Public Service Alliance of Canada (PSAC), kicked off the strike at 12:01 a.m. Wednesday morning, after saying they had “exhausted every other avenue to reach a fair contract,” which is exactly what the federal Liberals say is already on the table, both in terms of a wage increase and other accommodations.

Those striking include approximately 120,000 members across the core public administration, as well as 35,000 Canada Revenue Agency employees. Though, the federal government says approximately 48,000 of those workers have been designated as essential and will remain on the job.

Negotiations are ongoing in the nation’s capital, but as those talks continue behind closed doors, here’s a rundown of the developments from Parliament Hill as they happened:

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5:15 P.M.: PSAC PRESIDENT UPDATES CTV NEWS ON STRIKE

Appearing on CTV News Channel’s Power Play, PSAC National President Chris Aylward said his message to Canadians—who soon may be seeing their passport application, or tax return delayed depending on how long this strike continues—is that the union doesn’t like having to take this step, but “this government forced us into this position.”

Asked by host Vassy Kapelos whether a strike could have been avoided, he said that this outcome is due to “very slow progress” at the bargaining table since June 2021. He said the Liberals’ current wage offer was only put on the table after the union announced the strike votes in January 2023.

“The majority of our members make between $40,000 and $65,000 a year. They can’t suffer another rollback. That’s what this government is asking them to do,” he said, noting their ask for a 13.5 per cent increase is in-line with current inflation rates, even though inflation is on track to come down.

He said that while the federal government is facing a tough economic situation, it could opt to go after wealthy corporations to recoup the costs of paying federal workers more. He suggested if the federal government — as the largest employer in the country — represses wages, it’ll set a precedent for all Canadian employers.

5 P.M.: TREASURY BOARD’S FORTIER UPDATES CTV NEWS ON TALKS

Appearing on CTV News Channel’s Power Play, Treasury Board President Mona Fortier was asked why the federal government couldn’t avoid this strike. She said it was because when the Liberals tabled their first wage position last year, PSAC chose to walk away from the talks, until they got back to mediation two weeks ago.

She wouldn’t say how long it took, or why it took as long as it did for the government’s current wage offer to be put on the table, saying: “we did not set a date and time for strike action, the union did.”

The federal minister who represents an Ottawa riding also continued to dodge questions around whether back-to-work legislation has been ruled out.

“I’m in the first day of strike action. We’re still working really hard at the table. So I’m putting all our efforts there,” Fortier said.

As for where talks stood around the issue of remote work, Fortier said there are “different solutions being discussed right now,” and that she remains hopeful about finding “common ground” on that issue.

3:15 P.M.: PSAC HILL STRIKE SHRINKS, NOT TOP ISSUE IN QP

Outside of Parliament Hill, the number of public servants picketing diminished on Wednesday afternoon, but inside the House of Commons the issue remained pressing.

While not the dominating issue during question period, Prime Minister Justin Trudeau was asked by various parties about the state of the talks, as well as other pressing and political issues facing the minority Liberals.

“It is a failure to increase the cost of the bureaucracy by 50 per cent with poorer services. It is a failure to have 150,000 workers go out on strike, and the biggest general strike in four decades. But it is an especially incredible achievement of incompetence to do both of those things at the same time. Only the prime minister could pull that off… How will the prime minister fix the government he broke?” asked Conservative Leader Pierre Poilievre.

“Unlike the members opposite in the Conservative Party, we deeply respect the work that unions do across the country to stand up for good middle class jobs. That’s why we’ve ensured that the work is done at the bargaining table. We know there’s progress being made… Yes, Canadians deserve their services, and we need to continue to support the public service that delivers those services to Canadians,” Trudeau replied.

“New Democrats are extremely disappointed that the Liberal government didn’t arrive at a negotiated agreement with the Public Service Alliance of Canada… This government often talks a good game on a collective bargaining but ends up doing very much the same as the Conservatives. So will the prime minister commit to not bring in back-to-work legislation and instead commit to negotiating a fair deal for these workers?” asked NDP Leader Jagmeet Singh.

Trudeau did not commit to not consider back-to-work legislation, saying he remains “very optimistic” to see the strike resolved.

12:30 P.M.: FEDS UPDATE ON STRIKE, SAY CAN’T OFFER ‘BLANK CHEQUE’

Federal ministers confirmed midday Wednesday that there is still no deal with the striking public servants, because the federal government “cannot write a blank cheque.”

“I can’t stress enough how disappointing this is, based on the progress we’ve made at the negotiating table. This is not where we should be. Over the past two weeks, we’ve been able to resolve a number of issues through mediation. And most importantly, we have put a fair, competitive wage offer on the table,” said Treasury Board President Mona Fortier.

She said that the government is at the table with a “competitive” offer of a nine per cent wage increase over three years—matching the recommendation by the Public Interest Commission— as well as proposals around remote work, increased shift and weekend premiums, and improved leave with pay for family responsibilities.

“To all federal public servants across the country who work hard every day, your work is valued by Canadians and by us. We will continue to work with the PSAC to reach agreements that are fair and competitive, but we cannot do that unless the union is prepared to compromise. We cannot write a blank cheque,” Fortier said.

Joined by CRA Minister Diane Lebouthillier and other federal ministers, the press conference included a detailed update on the services that will be impacted as a result of this strike. You can read more about the expected service delays, here.

12:20 P.M.: GOVERNMENT HOUSE LEADER ON BACK-TO-WORK LEGISLATION

Government House Leader Mark Holland was asked by reporters about the timing of potential back-to-work legislation, given the procedural and timing requirements.

He would not speak to specifics, saying the government’s focus is still on negotiations.

“We want to make sure that a deal is found that’s fair to those who work incredibly hard within the public service and serve Canadians but at the same time that’s fair for taxpayers. So, we’re taking this… step by step… and I wouldn’t engage in sort of a hypothetical about what will happen in the future,” he said.

Pressed to comment on whether there is work underway to prepare legislation in the event that talks collapse, Holland said that while he understands the temptation to look into the future, he’s “not clairvoyant.”

“I can’t tell you where this is going to go, but I can say that there’s a fair deal on the table, and that our objective to make sure that a deal that is fair both to the taxpayers and to the public service.”

12 P.M.: PSAC LEADERS SPEAK FROM PICKET LINE

Outside of the Treasury Board Headquarters, PSAC national president Chris Aylward and PSAC’s national executive vice-president spoke to striking workers and the media from the picket line set up at 90 Elgin St. in Ottawa, otherwise known as the Jim Flaherty Building.

“Workers are fed up, workers are frustrated, and workers are saying enough is enough. We’re not going to take the garbage anymore,” Aylward said. “We’re still at the table. Talks are ongoing, but we’re going to stay out here for as long as it takes, until we get a fair deal… When we work together in solidarity… we will win this fight.”

A key sticking point for PSAC appears to be remote work, seeking that it be enshrined in collective agreements. Aylward questioned why the Treasury Board has said that hybrid work is the way of the future, but now at the table is showing resistance to more flexibility. The federal position is that determining where employees work is a key management right.

“If they don’t get back to the table, and if they don’t start negotiating seriously on our priorities, we will stay out here for as long as it takes,” he said.

According to PSAC there are more than 250 picket locations across the country, making this is one of the largest strikes in Canada’s history.

11:45 A.M.: CONSERVATIVE CRITIC SAYS FEDS NEED TO ‘GET… ACT TOGETHER’

Addressing the strike, Conservative MP and treasury board critic Stephanie Kusie spoke to reporters following a caucus meeting, calling on the federal government to “get their act together.”

“The strike that we are witnessing here today is a complete result of the incompetence of the prime minister… and his government. Canada is broken. And this is just simply another example. After eight years of this Liberal government, public servants are also suffering, with higher costs of living, higher inflation.”

Kusie questioned why with billions of additional spending on the public service, this contract dispute has not been solved.

“It’s Canadians who suffer. It’s Canadians who will not receive their passports. It’s Canadians’ loved ones who will not have their immigration processes completed, and it’s Canadians who will not receive their tax returns,” Kusie said. “We are calling on Justin Trudeau and the Liberal government to get their act together, to resolve this strike, to come to an agreement.”

10:15 A.M.: NDP LEADER JAGMEET SINGH JOINS PICKET LINE

NDP Leader Jagmeet Singh, backed by several members of the New Democrat caucus joined PSAC strikers on Parliament Hill.

In an interview with CTV News’ Kevin Gallagher, Singh called on the federal government to keep negotiating beyond the nine per cent cumulative wage offer, and present a “fair contract” that responds to all of PSCA’s demands.

“These workers are the workers that were there for Canadians, when people needed help the most during the pandemic. These are the workers that delivered unprecedented supports, financial supports to people, and now they’re asking for respect and dignity,” Singh said.

“They’re feeling the squeeze of inflation. These are some of the lower-paid for public sector workers. And they’re demanding respect, which I fully support… The solution here is the government has to deliver a contract, fairly negotiated, that respects these workers.”

Singh reiterated that the NDP will never support back-to-work legislation, saying these workers are fighting for “all workers.”

10:10 A.M.: PRIME MINISTER JUSTIN TRUDEAU SPEAKS TO DISRUPTION

Speaking to reporters on his way into a Liberal caucus meeting, Prime Minister Justin Trudeau said that Canadians have the right and deserve to be able to get the services they expect from the federal government, and that’s why public service management and labour representatives need to “get back to the bargaining table.”

Stating he would not negotiate in public, the prime minister wouldn’t comment on why the government wants to force public service workers back into the office to do work that they’ve been doing remotely since the outset of the COVID-19 pandemic. Nor would he say whether back-to-work legislation is an option.

“We understand it’s really important to respect labour rights, and there’s a labour disruption right now. It’s the first day. Let’s make sure that, while this is going on, we are at the negotiating table. That’s why we expect both managers and unions to sit down and keep [doing] the hard work for Canadians,” Trudeau said.

9-10 A.M.: TREASURY, IMMIGRATION, PASSPORT MINISTERS REACT

On their way into a federal Liberal caucus meeting, some of the key ministers whose departments are now impacted by the strike addressed questions about what the work stoppage will mean for Canadians.

The lead minister, Treasury Board Present Mona Fortier, said the federal government is still at the table and is hopeful about making progress today.

“I am convinced that we can,” Fortier said.

Immigration Minister Sean Fraser said he’s looking now at maintaining essential services, but the strike has the potential to have “a serious impact” on service levels, noting the recent progress in reducing processing times that may be lost the longer public service workers remain off the job.

Karina Gould, whose portfolio includes Service Canada and passports, said her relevant staff will only be able to process humanitarian and urgent passports — such as those needed if there was a death in the family or an illness that requires treatment abroad — as long as the strike lasts. Other income support programs are being prioritized.

“We’re going to have to see how this goes. You know, if this job action ramps up quickly, it won’t have a big impact. However, if it goes on for quite some significant period of time, then it will.”

“At this point in time… you know, we’re an hour into it, let’s hope that those negotiations continue to proceed.”

 

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Fires in Happy Valley-Goose Bay under control with no current risk of explosion – CBC.ca

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A burnt out airport hangar is in ruins.
Firefighters battled a blaze at a former airport hangar in Happy Valley-Goose Bay overnight Friday. In a statement released Saturday morning, the RCMP says the fire is now under control. (Submitted by RCMP)

A statement released Saturday morning from Happy Valley-Goose Bay RCMP says the fires in the town and on the Canadian Forces Base are now under control and there is no risk of explosion.

As well, Mayor George Andrews announced that the state of emergency has been lifted and evacuated residents are now permitted to return to their homes. 

“We implore the general public to remain away from the area as we have firefighters and other first responders at the scene in the coming hours and days,” Andrews said.

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“And we just ask the public not to engage in any activity up around the Canadian side,” he said, referring to the North side of the community.

The police say firefighters battled the blaze, which caused extensive damage to a number of commercial structures, throughout the night. No one was injured.

A fire broke out in a former airport hangar in Happy Valley-Goose Bay late Friday, which sparked a number of explosions as well as an evacuation and an official state of emergency.

Andrews says the fire department was assisted by a number of groups, including the military.

“Early this morning our firefighters stood down a little,” Andrews told CBC News on Saturday. “We have a crew here who are battling some hotspots.”

“This looks to me to be a predominantly clean up site,” Andrews said, regarding the damage caused by the fire. “Now, we will be probably on-site here for a number of days because of just the sheer heat and things within that old hanger. If you can imagine, this is a huge old military aircraft hanger.”

“The fire started in a couple of buildings that were on the back of an old hanger that sits at the airfield on the north side,” said Andrews. “It caused the the hanger that was next door to be engulfed… That hanger is not there anymore.”

Andrews said it’s too early to determine what caused the fire.

“This was a huge, huge effort on behalf of all our emergency services which were engaged and our crews fought very hot, very uncomfortable conditions through the night,” he said.

Download our free CBC News app to sign up for push alerts for CBC Newfoundland and Labrador. Click here to visit our landing page.

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Canada Child Benefit payment on Friday | CTV News – CTV News Toronto

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More money will land in the pockets of Canadian families on Friday for the latest Canada Child Benefit (CCB) installment.

The federal government program helps low and middle-income families struggling with the soaring cost of raising a child.

Canadian citizens, permanent residents, or refugees who are the primary caregivers for children under 18 years old are eligible for the program, introduced in 2016.

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The non-taxable monthly payments are based on a family’s net income and how many children they have. Families that have an adjusted net income under $34,863 will receive the maximum amount per child.

For a child under six years old, an applicant can annually receive up to $7,437 per child, and up to $6,275 per child for kids between the ages of six through 17.

That translates to up to $619.75 per month for the younger cohort and $522.91 per month for the older group.

The benefit is recalculated every July and most recently increased 6.3 per cent in order to adjust to the rate of inflation, and cost of living.

To apply, an applicant can submit through a child’s birth registration, complete an online form or mail in an application to a tax centre.

The next payment date will take place on May 17. 

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Capital gains tax change draws ire from some Canadian entrepreneurs worried it will worsen brain drain – CBC.ca

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A chorus of Canadian entrepreneurs and investors is blasting the federal government’s budget for expanding a tax on the rich. They say it will lead to brain drain and further degrade Canada’s already poor productivity.

In the 2024 budget unveiled Tuesday, Finance Minister Chrystia Freeland said the government would increase the inclusion rate of the capital gains tax from 50 per cent to 67 per cent for businesses and trusts, generating an estimated $19 billion in new revenue.

Capital gains are the profits that individuals or businesses make from selling an asset — like a stock or a second home. Individuals are subject to the new changes on any profits over $250,000.

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The government estimates that the changes would impact 40,000 individuals (or 0.13 per cent of Canadians in any given year) and 307,000 companies in Canada.

However, some members of the business community say that expanding the taxable amount will devastate productivity, investment and entrepreneurship in Canada, and might even compel some of the country’s talent and startups to take their business elsewhere.

WATCH | The federal budget hikes capital gains inclusion rate: 

Federal budget adds billions in spending, hikes capital gains tax

3 days ago

Duration 6:14

Finance Minister Chrystia Freeland unveiled the government’s 2024 federal budget, with spending targeted at young voters and a plan to raise capital gains taxes for some of the wealthiest Canadians.

Benjamin Bergen, president of the Council of Canadian Innovators (CCI), said the capital gains tax has overshadowed parts of the federal budget that the business community would otherwise be excited about.

“There were definitely some other stars in the budget that were interesting,” he said. “However, the … capital gains piece really is the sun, and it’s daylight. So this is really the only thing that innovators can see.”

The CCI has written and is circulating an open letter signed by more than 1,000 people in the Canadian business community to Trudeau’s government asking it to scrap the tax change.

Shopify CEO Tobi Lütke and president Harley Finkelstein also weighed in on the proposed hike on X, formerly known as Twitter.

Former finance minister Bill Morneau said his successor’s budget disincentivizes businesses from investing in the country’s innovation sector: “It’s probably very troubling for many investors.”

Canada’s productivity — a measure that compares economic output to hours worked — has been relatively poor for decades. It underperforms against the OECD average and against several other G7 countries, including the U.S., Germany, U.K. and Japan, on the measure. 

Bank of Canada senior deputy governor Carolyn Rogers sounded the alarm on Canada’s lagging productivity in a speech last month, saying the country’s need to increase the rate had reached emergency levels, following one of the weakest years for the economy in recent memory.

The government said it was proposing the tax change to make life more affordable for younger generations and fund efforts to boost housing supply — and that it would support productivity growth.

A challenge for investors, founders and workers

The change could have a chilling effect for several reasons, with companies already struggling to access funding in a high interest rate environment, said Bergen.

He questioned whether investors will want to fund Canadian companies if the government’s taxation policies make it difficult for those firms to grow — and whether founders might just pack up.

The expanded inclusion rate “is just one of the other potential concerns that firms are going to have as they’re looking to grow their companies.”

A man with short brown hair wearing a light blue suit jacket looks directly at the camera, with a white background behind him.
Benjamin Bergen, president of the Council of Canadian Innovators, said the proposed change could have a chilling effect for several reasons, with companies already struggling to access and raise financing in a high interest rate environment. (Submitted by Benjamin Bergen)

He said the rejigged tax is also an affront to high-skilled workers from low-innovation sectors who might have taken the risk of joining a startup for the opportunity, even taking a lower wage on the chance that a firm’s stock options grow in value.

But Lindsay Tedds, an associate economics professor at the University of Calgary, said the tax change is one of the most misunderstood parts of the federal budget — and that its impact on the country’s talent has been overstated.

“This is not a major innovation-biting tax change treatment,” Tedds said. “In fact, when you talk to real grassroots entrepreneurs that are setting up businesses, tax rates do not come into their decision.”

As for productivity, Tedds said Canadians might see improvements in the long run “to the degree that some of our productivity problems are driven by stresses like housing affordability, access to child care, things like that.”

‘One foot on the gas, one foot on the brake’

Some say the government is sending mixed messages to entrepreneurs by touting tailored tax breaks — like the Canada Entrepreneurs’ Incentive, which reduces the capital gains inclusion rate to 33 per cent on a lifetime maximum of $2 million — while introducing measures they say would dampen investment and innovation.

“They seem to have one foot on the gas, one foot on the brake on the very same file,” said Dan Kelly, president of the Canadian Federation of Independent Business.

WATCH | Could the capital gains tax changes impact small businesses?: 

How could capital gains tax increases impact Canadian small businesses? | Power & Politics

2 days ago

Duration 12:18

Some business groups are worried that new capital gains tax changes could hurt economic growth. But according to Small Business Minister Rechie Valdez, most Canadians won’t be impacted by that change — and it’s a move to create fairness.

A founder may be able to sell their successful company with a lower capital gains treatment than otherwise possible, he said.

“At the same time, though, big chunks of it may be subject to a higher rate of capital gains inclusion.”

Selling a company can fund an individual’s retirement, he said, which is why it’s one of the first things founders consider when they think about capital gains.

LISTEN | What does a hike on the capital gains tax mean?: 

Mainstreet NS7:03Ottawa is proposing a hike to capital gains tax. What does that mean?

Tuesday’s federal budget includes nearly $53 billion in new spending over the next five years with a clear focus on affordability and housing. To help pay for some of that new spending, Ottawa is proposing a hike to the capital gains tax. Moshe Lander, an economics lecturer at Concordia University, joins host Jeff Douglas to explain.

Dennis Darby, president and CEO of Canadian Manufacturers & Exporters, says he was disappointed by the change — and that it sends the wrong message to Canadian industries like his own.

He wants to see the government commit to more tax credit proposals like the Canada Carbon Rebate for Small Businesses, which he said would incentivize business owners to stay and help make Canada competitive with the U.S.

“We’ve had a lot of difficulties attracting investment over the years. I don’t think this will make it any better.”

Tech titan says change will only impact richest of the rich

A man sits on an orange couch in an office.
Ali Asaria, the CEO of Transformation Lab and former CEO of Tulip Retail, told CBC News that the proposed change to the capital gains tax is ‘going to really affect the richest of the rich people.’ (Tulip Retail)

Toronto tech entrepreneur Ali Asaria will be one of those subject to the expanded capital gains inclusion rate — but he says it’s only fair.

“It’s going to really affect the richest of the rich people,” Asaria, CEO of open source platform Transformer Lab and founder of well.ca, told CBC News.

“The capital gains exemption is probably the largest tax break that I’ve ever received in my life,” he said. “So I know a lot about what that benefit can look like, but I’ve also always felt like it was probably one of the most unfair parts of the tax code today.”

While Asaria said Canada needs to continue encouraging talent to take risks and build companies in the country, taxation policies aren’t the most major problem.

“I think that the biggest central issue to the reason why people will leave Canada is bigger issues, like housing,” he said.

“How do we make it easier to live in Canada so that we can all invest in ourselves and invest in our companies? That’s a more important question than, ‘How do we help the top 0.13 per cent of Canadians make more money?'”

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