Ottawa, December 2, 2011 –There is an increased prospect of work stoppages in the public sector in 2012, because labour – which has quietly accepted restraint in recent years – is becoming frustrated with ongoing demands for concessions from government employers, according to The Conference Board of Canada’s
Industrial Relations Outlook 2012: Going Sideways, With a Twist.
“A number of large public sector institutions will be at the bargaining table in 2012,” said Karla Thorpe, Director, Leadership and Human Resources Research. “The federal and provincial governments are focused on eliminating their respective budget deficits, and this will limit their ability or willingness to offer much more than modest wage increases.”
“The sense of frustration among public sector unions is growing because they accepted restraint at the outset of the recession. As a result, the potential for job action in the public sector will be greater in 2012 than in previous years.”
Major bargaining will take place next year between government and health-care workers in British Columbia, Saskatchewan and Manitoba. The governments of British Columbia, Ontario, and Newfoundland and Labrador will also be at the table, as will the Toronto District School Board and Canada Revenue Agency. The City of Toronto also appears set on a course that could lead to conflict with its civic unions.
The federal government cited the fragility of the economy as the rationale for intervening in high-profile labour disputes involving Air Canada and Canada Post. The government’s power to intervene during labour negotiations or designate essential services has implications, for both sides, on collective bargaining.
Compared to the public sector outlook, less conflict is expected in private sector bargaining next year. In general, fragile economy will likely limit private sector unions’ appetites for engaging in costly job actions that might put their members’ employment at risk. That said, enterprises with substantial legacy costs or those facing competitive pressures may be unable to satisfy wage expectations, which increase the potential for conflict.
The private-sector organization with the largest number of workers affected by bargaining this year is the Canadian Media Production Association, which negotiates collective agreements with guilds and unions that represent film and television industry workers. As well, the Detroit Three automakers will also be negotiating with the Canadian Auto Workers next year. This negotiation will put to the test the emphasis on “creative problem-solving approaches” used in bargaining between the United Auto Workers and General Motors earlier this year.
The annual
Industrial Relations Outlook publication is based on the Conference Board’s economic, compensation and industrial relations research, as well as the insights gathered at the Industrial Relations Roundtable held in September 2011. While discussing short-term labour issues, participants at the roundtable shared a strong sense that governments, employers and unions must prepare to address the impact of an aging population on Canadian society – particularly issues such as health-care costs and sustaining retirement incomes.