PRINCE ALBERT, Sask. -- The City of Prince Albert, Sask., and its firefighters have announced agreement on a six-year contract.

Under terms of the deal, members of the International Association of Firefighters Local 510 will get a wage increase averaging 3.4 per cent annually over the contract's lifespan.

A release from the city says the union has also given the green light to eliminate vested sick leave, which allowed an employee to accumulate sick leave over the course of their career and cash in the time upon retirement.

The move will save the city $459,000, along with another $210,000 because of the union's agreement to give up one year's worth of retroactive pay due to the time it took to reach the new contract.

Both parties have also agreed to the appointment of a third-party adjudicator, who will work directly with employees requiring short-term disability leave.

The firefighters had been without a contract for three years.

Mayor Greg Dionne said in a statement that giving up the one year of retro pay "sealed the deal."

"I am happy that both sides were able to come to an agreement," he said. "This has built a new relationship with administration and the city and harmony between the two sides."

Union president Lloyd Zwack commended Dionne for getting both sides back to the negotiating table.

"The result is both sides win through saving over $100,000 each by avoiding additional legal costs."

The city said as of Dec. 31, 2015, the overall liability for it to pay vested sick leave was $3.2 million to cover its five labour groups.

Four of the groups have now agreed to phase out sick payout language from their current collective bargaining agreements.

The last one is the Prince Albert Police Association, but Dionne said he's "confident" the city will be able to work with the association to complete a deal by the end of this year that's similar to the one struck with the firefighters.