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SOMBA K'E/YELLOWKNIFE - Territorial government employees will now get paid for the mandatory Christmas shutdown and get three years of pay increases under a new tentative collective agreement.

"I believe it's a fair deal," said Todd Parsons, president of the Union of Northern Workers, which represents 4,000 GNWT employees and staff with the Workers' Safety and Compensation Commission in NWT and Nunavut.

Union president Todd Parsons: "I believe it's a fair deal" - NNSL file photo

Workers had been without an agreement since March 31.

Along with a two per cent pay increase for 2009, workers will be paid for the previously unpaid four-day mandatory leave through Christmas.

"It was a rollback in the mid-90s that has remained on each member's pay statement - there was a perception and understanding in membership that it was self-funded leave," Parsons said.

Christmas is one of the most financially-trying times for families, and it was important for the membership to be paid for that period, he said.

Former Premier Don Morin instituted the week without pay - knowns as "Donny Days" - as a cost-cutting measure in 1996.

The week was later reduced to four days, but money came off workers' paycheques throughout the year to cover the unpaid time off.

Workers will have a 2.5 per cent pay increase in the agreement's second year, with another 2.75 increase in the third year.

New steps to the pay grid will also be added in years two and three.

Parsons said pay grid changes add incentive for talented workers to stay in the North.

"It certainly addresses some of the issues with attracting and maintaining a Northern workforce," he said. "I expect it will provide more stability for the government."

There were also improvements made to the Northern allowance, with Yellowknife residents receiving a 38 per cent increase to $3,450 a year.

Debbie DeLancey, deputy minister for the human resources department, said she was very pleased with the agreement.

"I think we have an agreement that's a win for both sides," she said.

"It's an agreement that's affordable."

She said the increases are "reasonable" and within the government's fiscal capability.

Improved compensation and benefits make the GNWT more competitive in the marketplace, she added.

Dave Ramsay, MLA for Kam Lake, said he's not worried about the elimination of unpaid days or pay increases in a tough economy.

"It's a balancing act," he said. "A big part of our economy in NWT is born out of government and government spending. We need to ensure we have a competitive benefits package to attract new employees and keep the ones we have."

Parsons said the bargaining process was slow at first. After the early April bargaining sessions, the GNWT had offered increases of 1.25 per cent, 1.75 per cent and 2.25 per cent for each year of the agreement.

Both sides have been bargaining since the beginning of December.

If ratified, the agreement will be effective as of April 1, 2009.

Parsons said he expects union members to have a decision by the end of May. Then the financial management board must approve the decision, DeLancey said.