Industrial Relations Outlook: Managing Expectations in Uncertain Times

The debacle in global financial markets that has weakened economies and sapped consumer confidence will significantly affect labour relations in 2009. Industrial Relations Outlook 2009: Managing Expectations in Uncertain Times sees that employers will focus on containing costs and improving productivity, while unions will struggle to save jobs. Both must manage expectations in order to balance the interests of labour against survival for employers. Projected wage increases foreseen earlier in 2008 will be reduced during negotiations in 2009. Exceptions are likely to be sectors where labour is in short supply (such as nursing) and where activity is increasing (such as non-residential construction, given governments’ plans for infrastructure spending).

In spite of the uncertain economy, unions, management, and government must continue to pay attention to the aging of Canada’s workforce, concerns about pension access and funding, and labour shortages over the long term.