Suncor has ratified a contract with its largest union that will see the oil and gas giant's employees get raises of 3.25, 3.5 and 3.75 per cent in each of the next three years.
Representatives of the Communications, Energy and Paperworkers Union have hammered out a deal with Canada's largest oil company that covers compensation between 2013 and 2016 for nine bargaining units representing Suncor workers in B.C., Alberta, Ontario and Quebec.
"The national settlement sends a strong and positive message for the Canadian economy by raising the purchasing power of our members," CEP president Dave Coles said in a news release.
"The wage and shift premium increases, and the significant related impact of the wage increases to increase their future pensions, means greater economic security for thousands of energy workers across Canada, and for their communities also."
The deal was the result of "tough, but respectful" bargaining with Suncor, CEP national energy bargaining co-ordinator Joseph Gariso said.
The agreement was ratified by all 48 bargaining units that participate in the union's National Energy and Chemical Bargaining Program, which negotiates job contracts in the oil, gas and petrochemical sector, meaning it will be the industry template for contracts at other companies participating in the program.
"It ranks as one of the best economic settlements in the 20-year history of the National Energy Bargaining Program," he said.
The deal will see Suncor workers get pay raises well above the inflation rate, which stood at 0.4 per cent for the 12 months ending April 30.
CEP is in the midst of merging with the Canadian Auto Workers union. Earlier this week, the two unions said the new merged union will be known as Unifor.