Strike Looming With Federal Employees, Taxes Potentially Affected

By Ryan Long Apr 14, 2023

The Canadian government is currently facing the possibility of a significant strike due to ongoing labor disputes with the Public Service Alliance of Canada (PSAC). With PSAC representing approximately 180,000 federal public service employees, a strike would have wide-ranging implications for various public services across the country. This article will examine the potential impact of a government strike on crucial public services, including healthcare, education, and transportation.

Canada Revenue Agency

A government strike in Canada, such as the one potentially involving the Public Service Alliance of Canada (PSAC), could have significant implications for the Canada Revenue Agency (CRA) and the processing of tax returns. As the CRA is a federal agency, its employees are considered public service workers and may be directly affected by the strike.

The processing of tax returns could be severely delayed as a result of the strike, with fewer staff available to review and assess individual and business tax filings. This could lead to delays in Canadians receiving their tax assessments, notices of reassessment, or refunds. For those relying on tax refunds to support their financial needs, this could create substantial hardship.

Moreover, the strike could hinder the CRA’s ability to provide timely and effective taxpayer support. With reduced staffing levels, the agency’s helplines and online resources may struggle to handle the volume of inquiries, leading to longer wait times and frustration for Canadians seeking assistance with their tax-related concerns.

Tax compliance and enforcement activities could also be impacted by a strike, as the CRA may not have the necessary resources to conduct audits or pursue tax evaders effectively. Consequently, the strike could result in revenue loss for the government and undermine the fairness of the tax system.


A government strike in Canada could have severe consequences on the country’s healthcare system. As many healthcare workers, including nurses, doctors, and support staff, are public service employees, a strike would undoubtedly strain the healthcare system. As a result, patients might experience longer wait times for appointments and elective surgeries, potentially compromising their health and wellbeing.

Moreover, a strike could further strain the country’s response to ongoing public health issues, such as the COVID-19 pandemic. The efforts to distribute vaccines, monitor the spread of the virus, and implement public health measures could be severely hampered, which may result in increased infections and the potential for new outbreaks.


Education is another area that could be significantly affected by a government strike. With many public school teachers and support staff being represented by the PSAC, a strike could disrupt the education of thousands of Canadian students. School closures or reduced hours may force parents to find alternative childcare arrangements, which could put additional stress on families.

Additionally, the strike could impact educational support services, such as special education, guidance counseling, and extracurricular activities. These services play a crucial role in the development and wellbeing of students, and their disruption could have long-lasting effects on students’ academic performance and mental health.


The transportation sector could also face disruption due to a government strike. Employees in the transportation industry, such as air traffic controllers, railway workers, and public transit operators, are often public service employees. A strike could lead to reduced hours or even the temporary suspension of essential transportation services.

Such disruptions could lead to increased travel times, inconvenience for commuters, and potential economic losses as businesses and industries struggle to cope with the reduced availability of transportation services. Furthermore, interruptions in the transportation of goods could result in supply chain issues and delays in the delivery of essential items, such as food and medical supplies.

Social Services

A government strike could also impact social services, including employment insurance, pension benefits, and income assistance programs. Delays in processing applications and providing financial assistance could put vulnerable Canadians at risk, particularly those who rely on these services for their day-to-day needs.

Moreover, other essential services, such as child protection and mental health services, could also be affected. Reduced staffing levels could lead to delays in the provision of these services, potentially endangering the wellbeing of Canadians who depend on them.

Next Steps For Strike

The potential government strike in Canada poses a considerable threat to the country’s public services, including healthcare, education, transportation, and social services. The disruption of these essential services could have significant consequences for Canadians, with long-lasting effects on their health, education, and economic stability.

To mitigate the impact of a strike, the Canadian government and PSAC must work diligently to resolve their labor disputes and reach a fair agreement. It is essential for both parties to engage in constructive dialogue and negotiation to ensure the continuity of public services and protect the wellbeing of all Canadians.