Challenging year expected in public sector bargaining

OTTAWA, Jan. 28 /CNW/ - Labour negotiations will be more arduous in the public sector than the private sector in 2003, according to The Conference Board of Canada's Industrial Relations Outlook 2003.

"The public and private sectors are heading in opposite directions in labour-management relations," said Derrick Hynes, author of the report. "While private sector employers and unions are collaborating in an effort to meet the requirements of today's business realities, government cutbacks in the 1990s have damaged the relationship between the public sector and its unions."

Several provinces faced strikes in health care and public administration in 2002. With a number of major groups in government and public institutions going to the bargaining table across the country in 2003, further acrimony and work stoppages may ensue. Wages will once again be the main issue in public sector negotiations.

Overall, the collective bargaining outlook for 2003 is generally positive. Ninety-three per cent of business leaders surveyed recently by the Conference Board do not expect work stoppages. Only two per cent expect work disruptions. Most leaders in the private sector also believe their labour relationships will remain stable or improve in the next year or two.

Management's bargaining priority in 2003 is flexibility in areas such as job descriptions, retraining, and restructuring, to better respond to changes in their business environments. Employers will also seek to improve productivity and contain the rising costs of benefit plans. Unions will challenge employers to enhance job security and improve pension benefits due to their ageing membership. As Canada continues to experience strong economic growth in 2003, unions will also make higher wages a key issue.