Ottawa/IBNS: The Public Service Alliance of Canada (PSAC) has reached a tentative contract agreement with the Treasury Board covering more than 120,000 federal government workers across the country.

The union said in a statement early Monday that with the national strike being now over for most workers who fall under the Treasury Board, they are mandated to return to work today at 9 a.m. ET or their next scheduled shift.

But PSAC says strike action for 35,000 Canada Revenue Agency (CRA) workers nationwide continues as the contract negotiations are ongoing.

More than 155,000 federal public servants under the PSAC national strike began on April 19, during which picket lines were formed across the country which disrupted some government services including taxes, passports and immigration.

Three priority issues identified in an open letter published by the Treasury Board on April 24 were remote work arrangements, priority for senior staff in the event of downsizing and a ban on contracting out work.

After the expiry of the contracts for both groups in 2021, the federal government and the unionized workers began their negotiations that year, but the union declared in 2022 it had reached an impasse.

PSAC's previous demand for a 4.5 percent raise each year for 2021, 2022 and 2023 was later lowered but details were provided.

A nine percent raise over three years, a total that matched recommendations of the third-party Public Interest Commission, was the most recent public offer from the government to each group.

In a statement on its website, PSAC said the tentative agreement includes wage increases of 12.6 percent compounded over four years, and a one-time, pensionable lump sum payment of $2,500.

“During a period of record-high inflation and soaring corporate profits, workers were told to accept less – but our members came together and fought for better,” said Chris Aylward, PSAC national president. “This agreement delivers important gains for our members that will set the bar for all workers in Canada,” reads the website.

The agreement includes language on remote work by which members are provided additional protection from arbitrary decisions and necesiates managers to assess requests individually instead of by group. The managers are also required to respond in writing to allow members and PSAC to increase transparency, PSAC said.

PSAC was reported saying that a joint proposal by the union and the government would be submitted to PSAC about including seniority rights in the workforce adjustment process.

PSAC added that shortly after a full explanation and copy of the agreement are provided in the coming days, online ratification votes will be held.

The Treasury Board issued a statement later Monday morning, confirming the tentative deal, which includes provisions on leave with pay for family-related responsibilities, and new paid leave for Indigenous employees to participate in traditional practices.

The Treasury Board president Mona Fortier also said that the two sides had agreed to a review of the directive, outside of collective agreements, on telework and that departmental panels will be created to advise deputy heads about employee concerns.

"In the end, we reached fair, competitive agreements for employees that are reasonable for Canadians," the statement reads.

(Reporting by Asha Bajaj)