February 5, 2007

Labour force is altering collective bargaining in '07

OTTAWA

Significant structural changes in Canada’s labour force are introducing a new dynamic in collective bargaining this year, the Conference Board reports in its Industrial Relations Outlook 2007.

“Canada’s aging workforce and tightening labour market are creating a convergence of interests between management and labour, as both parties scramble for workers and members,” said Christopher Hallamore, author of Industrial Relations Outlook 2007: Finding Common Ground Through the War for Workers.

“Employers and unions are increasingly aware that they have to work together to create work environments that attract and retain talented people in unionized settings.”

Canada’s continued economic growth is proving to be a boon to both employers and unions. The bargaining climate will remain stable. Wage increases for unionized employees, forecast at three per cent in 2007, are expected to exceed the cost of living.

Management’s key priorities in 2007 collective bargaining will be to improve productivity and foster workforce flexibility. Some employers are even willing to offer job security.

“In an ever-tightening labour market,” Hallamore said, “management knows it has little to lose by placing job security on the table.”

Labour’s bargaining priorities will be largely driven by its aging membership — 45 per cent of union members are 45 years or older. As a result, unions are giving defined benefit pensions and health benefit plans their full attention in negotiations in 2007.

DCN NEWS SERVICES

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