Canadian businesses brace for tax filing troubles, border slowdowns as more than 100,000 federal workers strike
Strike by PSAC workers affects everything from tax filings to EI applications and could lead to slow downs at border crossings, business groups warn.

Thestar.com
April 20, 2023
Josh Rubin

As thousands of federal civil servants walked out on strike Wednesday morning, concerned business groups were hoping they won’t be out long.

If it’s anything more than a few days, however, they warn the strike by more than 100,000 members of the Public Service Alliance of Canada could affect everything from tax filings, visa and employment insurance applications, and could also lead to slowdowns at vital border crossings.

“If it’s only two or three days, I think the impact will be muted,” said Dan Kelly, president of the Canadian Federation of Independent Business. “If it’s longer than that, I’d be very concerned.”

The most immediate concern, says Kelly, is that businesses who want to ask for advice from the Canada Revenue Agency before they file their taxes won’t be able to.

“If they’re not back in the office Monday, the CRA and the government really need to extend the filing deadline,” said Kelly.

The CRA, meanwhile, says the May 1 deadline won’t be extended.

“There are no plans to extend tax filing deadlines, as a strike in no way impedes the ability of Canadians and businesses to file their taxes electronically or on paper,” a CRA spokesperson said via email.
On the CRA’s website, the agency noted that its “contact centres” will still be open, but that callers will likely face increased wait times.

In an emailed statement, the CRA also said it had made a “fair, competitive offer” to PSAC in bargaining this week. The union represents nearly 160,000 workers, including roughly 40,000 working for the CRA, and 120,000 working for the Treasury Board at various federal agencies. (Approximately 46,000 PSAC workers have been declared essential and are still at work.)

The CRA said it had offered employees a total of nine per cent in wage hikes over three years, and that PSAC’s Union of Taxation Employees unit had countered with a demand for 22.5 per cent over three years.

“We call on the PSAC-UTE to work with us, build on the progress we have already made, reach an agreement and continue to deliver the important services Canadians rely on,” the CRA said.

In an emailed statement, Canadian Chamber of Commerce president Perrin Beatty said the strike is hurting the Canadian economy.

“This is the last thing our economy, Canadian businesses, or Canadians need right now,” said Beatty, who called on both sides to come to an agreement. “These work stoppages are a significant blow to our economy, as well as the businesses that serve as the backbone of communities across the country.

“We respect the right to collective bargaining, but if it’s collective prosperity we want, this isn’t the way to achieve it. Canada needs to stay open for business, and all parties need to come together to ensure that happens.”

Flavio Volpe, president of the Automotive Parts Manufacturers of Canada, said his members respect the collective bargaining process, but admits they’re keeping a close eye on the situation.

“We’re monitoring it closely. We hope it doesn’t last too long,” said Volpe, whose members depend on just-in-time delivery of parts crossing the Canada-U.S. border in both directions.

Still, Volpe says, he feels sympathy for both sides.
“Everybody’s under pressure. The federal government’s under fiscal pressure. Regular Canadians are under fiscal pressure, including PSAC and their members,” said Volpe. “I think it’s important workers know their value and get their value, and the bargaining process sometimes includes strikes.”

In an interview earlier this week, Dennis Darby, president and CEO of Canadian Manufacturers and Exporters (CME), said a strike risks hurting a sector of the economy that had just been starting to recover from the supply-chain havoc wreaked by the global COVID-19 pandemic.

“This is the very last thing we need right now,” said Darby.

One of the biggest concerns for CME members, said Darby, is that applications for work permits and visas -- both for temporary foreign workers and people immigrating permanently -- will grind to a halt in the event of a strike.

“People are waiting for their permits. Businesses are waiting for those people,” said Darby.