CRA reaches tentative deal with workers after 4 years of on-off bargaining

The federal tax collection agency and its unionized employees have reached a tentative contract settlement after four years of bargaining.

If approved, deal would give CRA employees cumulative pay increases up to 5.75 per cent, retroactive to 2012

A tentative contract settlement has been reached between the Canada Revenue Agency and its employees after four years of on-off bargaining. (Sean Kilpatrick/Canadian Press)

The federal tax collection agency and its unionized employees have reached a tentative contract settlement after four years of bargaining.

The agreement is a much-needed bright spot for the government as it works to fix its troubled new pay system, which has left more than 80,000 civil servants short-changed or facing other payroll problems.

The Public Service Alliance of Canada says a deal was struck early Friday morning that, if approved, would give Canada Revenue Agency employees cumulative pay increases totaling up to 5.75 per cent, retroactive to 2012.

Both sides have also agreed to a so-called wage re-opener, meaning even larger increases could be bargained for 2014 and 2015 wage rates in talks set to begin in the fall.

The agreement also includes increases to lump sum severance payments for employees who leave their jobs.

While the union's bargaining team is unanimously recommending acceptance of the deal, no date has been set for a ratification vote.