Ottawa - Canada's largest federal public sector union says it has reached a deadlock in negotiations with Ottawa and plans to submit a reconciliation file in hopes of reaching a settlement.

Representatives from the Canadian Union of Public Employees say the federal government has failed to present a wage offer that protects workers from rising inflation.

It says Ottawa offered wage increases averaging 1.75 percent annually over the four-year agreement.

The union represents more than 120,000 federal public service workers currently negotiating with the Canadian Treasury Board.

Meanwhile, Chris Aylward, the union's national president, says daily essentials such as groceries, gasoline, and utilities have become expensive, and workers need better wages to keep up with rising costs.

On the other hand, the union says other main demands include addressing systemic racism in the federal public service and improving workplaces post-pandemic with more remote work options.

Edited by: Dima Abu Khair