![]() It’s also about potentially starting a recession.” “For the federal government, this isn’t just about settling with public servants. If more than half of that is wiped out, that’s not good,” said Macdonald. The Bank of Canada said it was going to grow at 1 per cent in the second quarter. That might sound pretty small, but growth was expected to be pretty small too. But most forecasters, including the Bank of Canada, notes Macdonald, suggested even before the strike that the economy was set to grow at a snail’s pace this quarter. If the strike were happening when the economy was going gangbusters, it wouldn’t be as big a problem. The salary striking workers would normally be getting represents a small but significant chunk of the country’s gross domestic product, Macdonald explained. The union represents more than 160,000 workers with the Canada Revenue Agency and Treasury Board, but roughly 46,000 of the workers have been declared essential and are therefore not striking. “It’s the sheer numbers,” said Macdonald. The strike by the Public Service Alliance of Canada, which began Wednesday morning, is daunting simply because of its scale, said David Macdonald, chief economist at the Canadian Centre for Policy Alternatives. ![]() If the strike by more than 100,000 federal civil servants is a long one, it could cause enough damage to push Canada’s economy into a recession, some economists worry.
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