More than 155,000 federal workers in Canada went on strike after wage talks with Prime Minister Justin Trudeau’s government failed.
The labour disruption is expected to impede government functions including the release of economic data from Statistics Canada, passports and immigration applications. More than 35,000 of the workers are employed by the Canada Revenue Agency, the country’s tax-collection body. However, the government has said it doesn’t plan to extend the May 1 deadline for filing personal income taxes.
The strike underscores that many workers are driven to recoup purchasing power they lost during the recent period of high inflation. It could even set the tone for wage negotiations by both public- and private-sector unions in the coming months. Annual consumer price gains drifted lower to 4.3 per cent in March, the slowest pace of inflation in nearly two years. The Bank of Canada sees inflation falling to 3 per cent by midyear, but officials have warned that elevated wage growth could make getting it back to the 2 per cent target “more difficult.”
Four cabinet minister led by Treasury Board President Mona Fortier will hold a briefing on the strike and service disruptions at midday Wednesday.The stakes are high for the prime minister, whose government has increased the size of the public service by more than a third since being elected in 2015.
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