The offer averaging under 2% a year, over four years was negotiated directly by the PMO (Prime Minister’s Office) in November just prior to the return of parliament.
"The bargaining process was controlled directly from the Prime Minister's Office. We were told we had until 12 noon on the Wednesday to accept the agreement, otherwise when the prime minister's economic statement came down, it was going to be legislated anyway," said Paynter.Apparently in Harpers Canada, if you upset the Prime Minister's plans, his office will directly try to screw you.
"Of course we all know now in hindsight what happened. The prime minister dissolved Parliament and the threats that were made, aren't in fact implemented."
References: CBC about vote here and Globe about deregulation here.