Unionized workers for the Potash Corporation of Saskatchewan (PCS) have ratified a deal that includes an 18 per cent wage hike over the course of three years.

The Lanigan local of the Communication, Energy and Paperworkers Union of Canada had reached a tentative agreement with the company March 26 after three months of negotiations.

Given that the industry had been enjoying good times, workers were looking to get an improved deal over their last contract, a spokesperson for the union said in a news release.

"The industry has made enormous amounts of profit over the past few years due in part to the hard work and commitment of our members," Walter Manning, a national representative for the CEP is quoted as saying in the release. "This agreement reflects this, and we are pleased to have successfully concluded these negotiations."

In addition to the 18 per cent overall wage increase, some workers will see other wage adjustments that will take them beyond an 18 per cent hike. The union did not identify which jobs qualified for those additional increases.

The union said it expected to a "harmonious relationship with PCS throughout the next three years."

That relationship might be tested later this month when the company temporarily suspends mining operations to adjust inventories.

Demand for fertilizer, the main use of potash, dropped dramatically since the global economy slowed down suddenly in the latter half of 2008. As a result, mining companies have been implementing shutdowns and making sales from existing inventories.

The PCS mine at Lanigan and another at Allan, Sask., are scheduled to suspend operations in two weeks to adjust inventories, said company spokesperson Bill Johnson.

He noted that another, larger, operation at Rocanville, Sask., began a four-week shutdown on Sunday that will last until early May.

The different locations are represented by different union locals. The collective agreement at Rocanville expires May 31.

With files from The Canadian Press