The State of the Unions in 2012
Karla Thorpe, Director, Leadership and Human Resources Research
February 7, 2012 The new year began with two high-profile work stoppages (Caterpillar in London and Rio Tinto Alcan in Quebec), and the prospect of more bargaining acrimony in 2012 is real. This contentious bargaining environment comes as no surprise to labour relations practitioners, nor to The Conference Board of Canada—we predicted a higher level of labour conflict in our Industrial Relations Outlook 2012. Much of the expected discord will happen in the public sector, where unions are becoming frustrated with government employers and their ongoing demands for concessions. In contrast, we expect less conflict in the private sector in 2012. Although the headlines focused on the two firms that locked out their employees in January, the fragile economy will likely limit private sector unions’ appetites for costly job actions that might put their members’ employment at risk. Structural Change As unions deal with the challenge of bargaining in a difficult climate, they also recognize that they face a “moment of truth”—overhaul themselves or face a slow end. Organized labour represents a declining share of the Canadian workforce. Between 1997 and 2011, union density in Canada fell approximately 1.7 percentage points, from 30.9 per cent of the labour force to about 29.2 per cent. And union density in the private sector now sits at an all-time low of 15.9 per cent. As unions deal with the challenge of bargaining in a difficult climate, they also recognize that they face a “moment of truth”—overhaul themselves or face a slow end. The overall decline would have been greater but for the fact that the highly unionized public sector continues to represent a large share of total employment. Over 70 per cent of the broader public sector is unionized—including government departments, agencies, and Crown corporations, along with publicly funded schools, hospitals, and other institutions. The Broader Role of Unions Union density is not a flawless measure of labour’s influence in terms of bargaining power and wage setting. Collective bargaining agreements often serve as a standard against which other non-unionized organizations set wages and benefits in order to remain competitive. As union density declines, however, so does its use and value as a benchmark. The changing demographic profile of the population is also undermining the role and importance of unions. Baby boomers, who are beginning to exit the workforce, remember well the success of the labour movement in championing pay equity for women, racial equality, and better working conditions. But many members of the younger generation—the Millennials, or Generation Y—hold negative views about the relevance of labour unions. Because people in this generation have grown up in a society where these battles have mostly been won, many don’t value the contributions that unions have made to these issues. A declining base of members and the resulting loss of union dues will affect labour’s ability to play its historically active role in exerting pressure on behalf of working Canadians. Labour has already influenced public policy action to improve issues such as workplace safety and literacy. Even though union density is on the wane, organized labour can continue to have a positive impact on government policy—particularly if it focuses on issues that have broad public appeal, such as creating greater retirement income security for Canadians and protecting Canada’s public health care system.
Related Publications
Compensation Planning Outlook 2012: Mid-Year Pulse Check
Human Resources Trends and Metrics: Valuing Your Talent Related Network
Council of Industrial Relations Executives
|