Federal workers agree to lower wage increase

Government threatened to legislate a deal if offer not accepted
|hrreporter.com|Last Updated: 12/10/2008

The union that represents federal civil servants has agreed to a deal that includes a 6.8-per-cent raise over four years.

Treasury Board president Vic Towes publicly offered the deal to federal employees represented by the Public Service Alliance of Canada last week, describing it as final. In the Throne Speech last week, the government also threatened to legislate a deal if necessary.

Given the economic climate, the union, which had been asking for higher wage hikes, has agreed to the deal.