Established in 1945, Prince Edward Island's provincial government employees' organization was first known as the Prince Edward Island Public Servants Association. In 1971 the name was changed to the Prince Edward Island Public Service Association. In 1984 the organization was renamed The Prince Edward Island Union of Public Sector Employees.

When founded, the goal of the Public Servants Association was to promote the interests of full-time provincial government employees, including the employees of various government boards, commissions and institutions. The officers of the organization consisted of a president, vice-president and secretary-treasurer. The executive committee was made up of the officers plus five additional members-at-large. Officers and executive members held one-year terms. The first president of the Public Servants Association was H.R. Carruthers.

Early records show an organization focused as much on recreation activities as it was on matters of wages and working conditions. The 1960's saw an increased sophistication in the Association, its work focused on topics such as pensions, health benefits, job classification and collective bargaining. This period also saw a growing involvement in national labour and social action movements.

In 1961 the PEI Public Servants Association was incorporated by letters patent under the Companies Act. A new constitution and bylaws were approved at this time. Among changes made was the creation of a board of directors. The central governing body of the organization, this board was made up of the executive officers, the head of the Association's professional staff, the immediate past president of the organization and the directors of the Association's units or their alternates.

The Prince Edward Island Union of Public Sector Employees continues as a corporate body.