Government threatened to legislate a deal if offer not accepted
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.
"Given these tough economic times, we feel this is the responsible thing to do," said PSAC president John Gordon.
Union member still have to review the agreement and vote on it. The vote is expected sometime in January.
The deal includes wage increases of 2.3 per cent in the first year and 1.5 per cent in each of the next three years. It also includes more worker mobility within the public service, said Gordon.
