The strike was the culmination of more than a year of collective bargaining following the expiry of the previous collective agreement in 2021, with it ultimately resulting from disagreements between PSAC and the Government of Canada (represented in bargaining by the Treasury Board of Canada Secretariat) on issues related to remote work, enhanced work amenities and wage increases to compensate for inflation.

[13] The report recommended increased allowances for employees, and enhancements of family leave, shift premiums, and flexibilities.

[26] On April 24, Mona Fortier wrote an open letter to public servants and Canadians,[29] in which she identified four main areas of disagreement that remained between the government and PSAC: wages, teleworking, outsourcing contracts, and seniority rules in the event of a layoff.

ET, PSAC confirmed that they had reached a tentative agreement for the PA, SV, TC, and EB bargaining units at the Treasury Board, and that these groups would be required to return to work at 9 a.m.

[4] In a press conference on April 19, 2023, ministers Mona Fortier (President of the Treasury Board), Karina Gould (families, children and social development), Diane Lebouthillier (national revenue), and Sean Fraser (immigration, refugees and citizenship) outlined impacts of the strike on certain federal programs and operations.

[36] Among these impacts were delays in processing income tax returns and immigration applications, as well as providing passports only in humanitarian or emergency situations.

[26] It was speculated by Charles St-Arnaud, chief economist at Alberta Central, that the magnitude of the wage increase resulting from negotiations could prompt other unions to follow suit, which could be inflationary,[60] because if more people ask for higher wages, this can sustain the inflationary cycle by increasing consumers' purchasing power, which in turn stimulates demand for more goods and services and therefore puts price pressures on costs.

[60] Since the labour market is tight, private companies might have to match public salaries to keep prospects from going to work for the government.

[61] As well, since workers on strike did not receive their regular pay (and were instead paid by the union), government spending was reduced (although likely by a less-than-proportinate amount to the foregone salaries[62]), which would negatively impact nominal GDP.

[62] The Canadian Federation of Independent Business, in an April 19 press release authored by its president, Dan Kelly, expressed concern over the strike's impacts.

[63] Restaurants Canada also expressed concern over the impacts of the strike, particularly on the foodservice industry and on small and medium-sized businesses more broadly.

[64] NDP leader Jagmeet Singh expressed his support for federal workers ahead of the strike vote.