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

The federal tax collection agency and its unionizedemployees have reached a tentative contract settlement after fouryears of bargaining.

The agreement is a much-needed bright spot for the government asit works to fix its troubled new pay system, which has left morethan 80,000 civil servants short-changed or facing other payrollproblems.

The Public Service Alliance of Canada says a deal was struckearly Fridaymorning that, if approved, would give Canada RevenueAgency employees cumulative pay increases totaling up to 5.75 percent, retroactive to 2012.

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

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

While the union's bargaining team is unanimously recommendingacceptance of the deal, no date has been set for a ratificationvote.