Industrial Relations Outlook: A Recovery Offering Little Relief

The 2008–09 economic downturn in Canada was milder than that in 1990–91, and signs of recovery are already emerging. The Industrial Relations Outlook 2010, based on Signal49 Research’ September 2009 Industrial Relations roundtable, observes that employers have an opportunity to develop effective workforce strategies before the recovery returns us to a tight labour market. The Outlook also describes labour’s focus on the recession’s impact on workers and concern that employers will seek further concessions at the bargaining table. In 2010, most public sector employees can expect only modest wage increases as governments implement austerity plans to reduce the recession-fighting deficits. Private sector unions, which can expect less generous increases than in the public sector, will focus on protecting benefits and defending jobs. Finally, the recession and its effect on pension security may spur government, employers, and unions to deal with flaws in the pension system.