Iqaluit (Aug 25/03) - Employees of the city of Iqaluit have a new three year agreement.

The 100 or so employees will see pay increases of three per cent every year for the next three years.

Another major change comes into the housing situation.

The housing allowance will increase on a yearly basis, starting at $700 for this year and increasing by $50 in 2004 and 2005 to reach $800 by July 1, 2005.

Employees speaking a second language will be entitled to a $1,000 yearly bonus.

The city also agreed to more vacation days.

City workers will get 25 days of vacation after eight years, 30 days after 15 years and 35 days after 25 years.

A new clause entitles workers to one to two days per year as wellness days, applied against accumulated sick leave.

"I feel both sides reached a reasonable settlement," said Doug Workman, president of the Nunavut Employees Union.

This agreement was reached much differently than the last one in 2001, when workers were locked out for eight weeks and then went on strike for another five.

"This year, we had four days of intensive negotiating and then we reached an agreement," said Workman. The deal was ratified by the union members on Aug. 11, and by the city on Aug. 13.

The deal expires on June 30th, 2006.