A strike has been averted at the Whitehorse General Hospital, as management and the union representing nurses and other health-care professionals signed a new collective agreement late Friday.

The new contract includes a nine per cent wage increase over three years for about 150 nurses, pharmacists, dieticians, social workers, therapists and other health-care staff at the Whitehorse hospital.

The workers will also receive a two per cent market adjustment in the third year of the contract, in order to keep their wages competitive with the rest of Canada, according to a hospital news release issued late Friday afternoon.

The Professional Institute of the Public Service of Canada, which represents the workers, had been in contract talks with the Yukon Hospital Corp. since January.

Employees had threatened strike action as those talks resumed last week with the help of a federally appointed conciliator.

The new contract is retroactive to Feb. 1, 2008, and runs until Jan. 31, 2011.