Canada, revenue agency workers reach deal, heading off Trudeau confrontation

Canada's government reached a deal with 35,000 revenue agency workers on Thursday, ending a strike that had slowed the processing of annual tax returns and heading off a potential embarrassment for Prime Minister Justin Trudeau. The tentative agreement is very similar to the deal struck on Monday with 120,000 federal employees, according to statements by both the government and the union.

Canada's government reached a deal with 35,000 revenue agency workers on Thursday, ending a strike that had slowed the processing of annual tax returns and heading off a potential embarrassment for Prime Minister Justin Trudeau.

The tentative agreement is very similar to the deal struck on Monday with 120,000 federal employees, according to statements by both the government and the union. Both the revenue agency workers and other federal departments had walked out on April 19. Had a deal not been reached, the union had promised to picket outside the Liberal Party's convention on Thursday evening when Trudeau is scheduled to speak.

"The tentative agreement has secured a fair contract that exceeds the employers' original offer before the launch of strike action, and provides wage increases above those negotiated by other federal bargaining agents," the Public Service Alliance of Canada (PSAC) said. The proposed agreement includes an 11.5% wage increase over four years, with a 0.5% allowance in the third year, and a one-time $2,500 bonus for employees, the Canada Revenue Agency said separately in a statement.

The union calculates the deal as a "compounded" overall wage increase of 12.6% in four years. This agreement, as with Monday's deal, does not enshrine remote work in the collective agreement but does include assurances that each work-from-home request will be handled individually and in writing.

"That means employee rights around remote work arrangements will be protected through a grievance process," PSAC said in a statement. ($1 = 1.3590 Canadian dollars)