PEI

CRA union compromises on retirement payout

Workers at the Canada Revenue Agency will no longer get a big payout when they retire under a new contract negotiated by its union.

Union negotiates big pay increase

Workers at the Canada Revenue Agency will no longer get a big payout when they retire under a new contract negotiated by its union.

The contract took four years to negotiate, and was sent for ratification by members last week, a process which may take until the end of September.

"I know the team has recommended unanimously that this be accepted but at the end of the day it will be the membership that makes that decision," said Doug Getz, regional vice president on P.E.I. for the Union of Taxation Employees.

"But again, the team wouldn't have unanimously accepted it if we didn't think the members were willing to accept it."

The union represents about 900 workers on P.E.I.

New contract negotiations to begin soon

Gaetz said severance was the sticking point for the contract. Under the tentative agreement, employees will no longer get a week's pay for each year they've worked when they retire. Severance will still be paid out if someone is laid off, terminated before the end of probation, or dies. It won't be paid if someone is fired for incompetence.

The union was able to get a wage increase of 5.75 per cent, retroactive to 2012.

Because the contract took so long to negotiate, it only lasts until the end of October, so negotiations for the next contract will begin fairly soon.

With files from Laura Chapin