The Alberta Union of Provincial Employees and the provincial government have come to a tentative agreement Friday for approximately 21,000 employees.

If the deal is ratified, it would give members of the AUPE a three thousand dollar lump sum payment, a wage increase, and a new health savings account.

AUPE president Guy Smith says he is happy about the new deal, describing it as a "historic agreement."

"We are proud of this agreement," said Smith. "Especially in light of the difficult environment in which it was negotiated."

The difficult circumstances Smith is referring to are the slumping economy and the province's initial call for workers to take a wage freeze or even rollbacks.

But it was a different scenario this morning, as the union unveiled details of a tentative deal that follows more than six months of negotiations.

If the two and a half year contract is approved by members, they would receive a four percent raise as of next April. They would also be paid out $3,000 in signing bonuses in two installments over the next year.

It would also add to their benefits plan, by providing an additional $750 in annual health care expenses.

"I think it also is a very direct recognition from the government to its own employees," says Smith. "Of how important it is to maintain staff that isn't leaving because of low wages."

But this agreement is already coming under fire for being too rich.

The Canadian Taxpayers Federation was calling on the union to take a five percent wage rollback; and complains the agreement sets a precedent with more contract negotiations to come.

"We're running a multi-million dollar deficit this year," said Scott Henning. "They're going to be continuing to run multi-billion dollar deficits unless they get their spending under control."

The deal is also being watched by the Health Sciences Association of Alberta as contract talks have just begun for 17,000 health care workers.

"I would think that it should be obviously a priority going forward for both sides to get a good, strong deal in place," says Scott Pattison with the HSAA.

The AUPE represents staff members who work in corrections and probation, social workers and environmental enforcement.

Members will submit their votes by mail, which are expected to be counted by mid May.

The provincial government is declining comment until the deal is ratified. A spokesperson for the treasury board would only tell CTV News that funding for the salary hike will be addressed in the next budget.

With files from CTV's Laura Tupper…