Union hubris presents opportunity for Provinces

To call it shocking would be an understatement.

Canada’s largest public sector unions have declared a “summer of discontent” over the idea that, starting Sept. 9th, employees will have to report to their assigned office three days a week, rather than two days a week.

Mollycoddled to absurdity, it seems these unions are utterly ignorant of the realities faced by the vast majority of Canadians.

Compared to private sector or self employed workers, government workers enjoy higher pay, more job security, more time off, better pensions, and earlier retirements.

However, to be fair to the unions, the Trudeau government has willingly capitulated to virtually all of their demands.

Last year’s 12 per cent pay hike awarded to PSAC employees, the likes of which private sector workers will never see, is just the tip of the iceberg.

As columnist Jesse Kline recently pointed out in the National Post, since 2015, about 100,000 workers have been added to the federal payroll. From 2015 to 2021 alone, the total cost of the public service rose by 52 per cent.

While pay levels for individual positions can be debated ad nauseam, the far more pressing issue is whether taxpayers are getting fair value for all this spending. Are we getting 52 per cent better services? Not a chance.

The performance of the Canada Revenue Agency is a prime example. The Auditor General of Canada has repeatedly investigated concerns about the CRA, with issues ranging from chronically poor public service, to specific issues like the mishandling of pandemic wage subsidy program.

Of particular note has been the CRA’s track record when it comes to call centres. The budget for these centres has increased by $330 million between 2015-16 and 2022-23. In addition, the government has hired an additional 4,600 employees for the department, with no noticeable decrease in call waiting times.

If taxpayers can’t get fair value from the agency that collects their taxes (PSAC’s second largest bargaining unit), maybe expecting CRA employees to go to the office isn’t completely unreasonable.

Of course, for Canadian Provinces, there is better alternative: Fire the CRA.

Under the Constitution, all Provinces have the right to collect their own taxes. Most currently have tax collection agreements with the federal government, which allow the CRA collect provincial income taxes. However, Quebec has been collecting its own provincial taxes since 1954, while both Alberta and Quebec currently collect their own corporate income taxes.

Considering the CRA’s poor performance and ballooning labour costs, the case for provincial tax collection has never been stronger. Provinces can rightly claim that they can provide superior service at a lower cost, while repatriating jobs.

Alberta, in particular, has been exploring various initiatives to fully exercise provincial jurisdictions, however, this is matter all provinces should investigate.

Compared to the creation of a provincial police force (like Quebec, Ontario, and Newfoundland) or a provincial pension plan (like Quebec), creating a provincial tax agency is relatively simple. It doesn’t require a referendum or much in the way of additional administration.

Considering the runaway labour costs and Trudeau government’s complete capitulation for federal public sector unions, this may be the only way to ensure taxpayers get fair value for their money.

Unlike PSAC’s out-of-touch work-from-home demands, that’s a good deal every day of the week.

- Drew Barnes is a former MLA, and Member of the Government of Alberta’s Fair Deal Panel.