Wage increases secured by striking workers shouldn't be seen as 'fat cat': experts

Labour experts say the wage increases the country's largest federal public-sector union secured Monday are far from the hefty gains some might perceive them to be.

The experts say the 12.6 per cent wage increase over four years brings the salaries of 120,000 striking workers represented by the Public Service Alliance of Canada more in line with the annual inflation rate, which peaked at 8.1 per cent in June last year before sliding to 4.3 per cent in March this year. The union has said inflation has pushed the cost of living up by 11 per cent since 2021, the year its collective agreement expired.

The deal offers as little as a 1.5 per cent increase in one year and as much as 4.75 per cent in another, but Jim Stanford, an economist and director at the Centre for Future Work, argues it shouldn't be seen as "fat cat" because average wages are growing at more than five per cent a year in Canada.

"This cannot be described as a gold-plated public sector wage deal. It's far from it," he said.