Modest economic growth will likely constrain demands at collective bargaining tables across the country this year, according to The Conference Board of Canada's Industrial Relations Outlook 2015.
"The state of the economy has led to widespread uncertainty, and this will serve to temper expectations at the bargaining table," said Bryce Swerhun, Research Associate, The Conference Board of Canada. "With neither side in a position to raise expectations, the overall bargaining climate will encourage coordination, if not full cooperation, this year."
HIGHLIGHTS
- Overall bargaining climate is expected to be constrained by modest economic growth.
- Public sector union demands for improved wages and benefits should be limited as most provinces continue to face deficit and debt challenges.
- Average base pay increases for unionized workers in 2015 are projected to be 1.5 per cent in the public sector and 2.2 per cent for the private sector.
- Modest economic growth provides an opportunity for management and unions to address medium and long-term challenges.
A number of public sector institutions will head to the bargaining table this year. In particular, the province of Quebec will be bargaining with unions representing hundreds of thousands of employees. Most provincial governments are expected to remain focused on reducing their deficits and controlling public spending, which will likely constrain public sector employees' demands for improved wages and benefits. On the other hand, positive, if modest, economic growth should curb employer demands for deep concessions.
In the private sector, collective bargaining will likely vary significantly by industry and region. Recent growth in manufacturing activity is encouraging but improvements may be tenuous and employers may not yet be able or willing to forego past concessions.
Average base pay increases for unionized workers in 2015 are projected to be 1.5 per cent in the public sector and 2.2 per cent for the private sector.
The annual Industrial Relations Outlook, published by The Conference Board of Canada, provides a comprehensive overview of issues that may influence labour relations and collective bargaining in Canada over the coming year. The outlook is based on Conference Board of Canada research and the proceedings of an annual roundtable among senior leaders from both labour and management.
