The public-sector union representing Canada Revenue Agency employees has struck a tentative deal with the federal government, ending a strike of 35,000 workers just after the tax season wrapped up.

The announcement of a prospective agreement comes after the government and Public Service Alliance of Canada came to separate deals that ended a strike of more than 120,000 other public servants.

CRA employees represented by PSAC's Union of Taxation Employees were still on strike two days after the federal tax-filing deadline.

The union is telling members to return to work on May 4 by 11:30 a.m. ET at the latest.

In a statement, PSAC said the tentative deal includes wage increases totalling 12.6 per cent compounded over the life of the agreement from 2021-2024, as well as an additional fourth year in the agreement that protects workers from inflation. The tentative agreement also includes a pensionable $2,500 one-time lump sum payment that represents an additional 3.6 per cent of salary for the average member.


In its own release, the CRA said it and PSAC reached a tentative settlement on telework outside of the collective agreement. It said both agreed to undertake a review of the directive on virtual work arrangements, and to create a panel to advise the Commissioner and Deputy Commissioner regarding employee concerns.

The union threatened earlier Wednesday that it would plan to send its members to disrupt a Liberal party convention in Ottawa on Thursday if the employer didn't table a "fair" deal. 

The separate agreements that PSAC negotiated with the government included a 11.5 per cent wage increase over four years.

Earlier in the negotiations, the tax employees' union had been pushing for a 20.5 per cent increase over a three-year period.

This report by The Canadian Press was first published May 4, 2023.