Facts

• The Canada Revenue Agency on Thursday revealed it has struck a "tentative" deal with the Public Service Alliance of Canada's Union of Taxation Employees, ending a two-week strike of more than 35K workers.^[1]
• The proposed agreement includes an 11.5% wage increase over four years, retroactive to 2021, and a one-time payment of CA$2.5K (US$1.8K). The deal also requires managers to assess work-from-home requests individually.^[2]
• Given that a 0.5% allowance in the third year has also been enshrined in the deal, the Public Service Alliance of Canada has estimated a "compounded" total wage increase of 12.6% over four years.^[3]
• The announcement comes a day after the union threatened to picket outside the Liberal party's convention in Ottawa on Thursday if the federal government failed to put forward a "fair" agreement.^[4]
• After a separate deal was reached on Monday with several bargaining groups, tax agency employees were the remaining holdouts of the walkout that involved over 155K federal government workers, seeking to retrieve inflation-driven wage losses and guarantee the right to work from home.^[5]
• The roughly 155K union members are expected to vote on whether or not to accept the deals in the coming weeks, with some bargaining groups already expressing their opposition due to alleged insufficient raise in wages and the absence of remote work provisions in the collective agreements.^[6]