This report looks at merit pay, or pay-for-performance, programs for unionized employees. It is based on interviews with public and private sector organizations, and supplemented by a literature review.
Merit Pay in Unionized Environments
Merit Pay in Unionized Environments
$140.00
Merit pay – pay increases linked to employee performance – has been used as an incentive tool for decades. However, while this type of compensation is well established for non-unionized employees, only 8 per cent of unionized employees were subject to a merit pay, or pay-for-performance, program in 2004.
In the spring of 2005, Signal49 Research interviewed six Canadian organizations in the public and private sectors that had implemented pay-for-performance programs for unionized employees. This report is based on those interviews, supplemented by a literature review.
How have organizations implemented and structured merit pay programs for unionized staff? How does the labour movement view merit pay? Is merit pay the best solution for all situations?
The briefing identifies the common characteristics of the merit pay programs of the organizations interviewed; looks at labour’s views and negotiating merit pay at the bargaining table; and discusses factors to consider in deciding the appropriateness of merit pay programs.
Effective January 26, 2026, AERIC Inc./Signal49 Research discontinued use of ‘The Conference Board of Canada’ name, logo and branding, which had been used by AERIC Inc./Signal49 Research under license from The Conference Board, Inc. The Conference Board, Inc. and its licensees, which are not affiliated with Signal49 Research, own all right, title and interest in THE CONFERENCE BOARD name and trademarks in Canada and have the exclusive right to their use in Canada since January 26, 2026.
