Ottawa, October 13, 2004¿ The Canada Revenue Agency (CRA) has reached a tentative collective agreement with the Public Service Alliance of Canada (PSAC). The negotiating teams worked diligently over the long weekend and into this week and arrived at the new four-year agreement on October 13. "This is a welcome development and I am confident that it will bring an end to the strike activities that have been taking place since early September," said Minister of National Revenue John McCallum. The proposed agreement contains wage increases of 2.5%, 2.25%, 2.4%, and 2.5%, retroactive to November 1, 2003. This is a total of 9.65% over four years, or a cumulative total of 10%. The new agreement is not final until it is ratified by PSAC membership. The agreement also contains certain improvements for term employees. In addition, the CRA has agreed to address, outside of the collective bargaining process, some of the Union's concerns in this area. Approximately 22,000 permanent employees and several thousand term employees have been in a legal strike position as of September 8, with some of these employees engaging in rotating and strategic strikes at CRA buildings across Canada since then. "I appreciate the dedication shown by the negotiating teams and the Board of Management and I also thank CRA employees and the Canadian public for their patience during this challenging time," said Mr. McCallum. "The Agency is already taking steps to resume its usual high level of service to the public." The CRA is a separate employer in the public service of Canada. Its employees collect revenues used to fund important government programs, deliver benefit and credit payments to Canadians, and perform other duties that are vital to our country. Visit the CRA's Web site at: www.cra-arc.gc.ca For media information: Colette Gentes-Hawn Media Relations 613-957-3522