FILE PHOTO: Picketers march around the Office of the Prime Minister and Privy Council as approximately 155,000 public sector union workers with the Public Service Alliance of Canada (PSAC) continue to strike, in Ottawa, Ontario, Canada April 24, 2023. REUTERS/Blair Gable

Canada secures wage deal with federal workers' union

Canada reached an agreement for a new wage deal with a union representing 120,000 federal workers, the union said on Monday, ending the country's largest public sector strike.

(Reuters) - Canada reached agreement for a new wage deal with a union representing 120,000 federal workers, the union said on Monday, bringing an end to the country's largest public sector strike that had crippled services from tax returns to immigration.

While the 120,000 Treasury Board employees are set to return to work, more than 35,000 revenue agency workers striking since April 19 are expected to continue into Monday, the union, which represents both groups, said in a statement.

"Strike action continues across the country for 35,000 members at Canada Revenue Agency," the union said, adding that talks would resume with a new mandate for a fair contract.

Their key outstanding concerns include fair wages, the right to work remotely, and the role of seniority in layoffs.

However, the Treasury workers' deal exceeded "the employer's original offer before the launch of strike action", the union added.

The Public Service Alliance of Canada (PSAC) union, which had been in collective bargaining for a new contract since 2021, ramped up pressure on the government last month by calling for the rare wide-ranging strike.

The resulting shortage of staff at about two dozen government agencies caused delays and disruptions in services such as passport renewals.

(Reporting by Akriti Sharma in Bengaluru and Ismail Shakil in Ottawa; Editing by Jacqueline Wong and Clarence Fernandez)