Canadian Labour Reporter

CANADIAN LABOUR REPORTER 7 Canadian HR Reporter, a Thomson Reuters business 2014 Continued from page 1 JP Moczulski (Reuters) More than 3,000 workers at CN Rail averted a strike mere days before they were slated to walk off the job. Before reaching a tentative deal last month, the federal government made it known it would enact back-to- work legislation had the work stoppage transpired. Sluggish negotiations on the horizon: Union ent and future of negotiations sluggish, and predicts tough bargaining times ahead in 2014 as pressure continues to reduce costs. But it isn't all bad news. The end could soon be in sight for this period of constraint. The private sector saw moder- ate wage gains in 2013, accord- ing to Karla Thorpe, director of leadership and human resources research at the Conference Board of Canada. Gains were especially apparent in the primary industries. "The impact on unions, on workers, is maybe not as serious as it might seem at face value," she said. Overall, private sector settle- ments put wage gains at around 2.2 per cent, with the construction industry averaging just under three per cent. "Unions are now in a position to hold on to the benefits they have, rather than make substan- tial gains at the bargaining table," Thorpe said. Backed into a corner Because organizations do not have the financial flexibility to of- fer up generous salary hikes, cau- tion should be exercised should they choose to compensate by swapping out other provisions — which could leave employers in a tight spot. "One of the dangers on their part is that, because they don't have a lot of chips to use at the bargaining table in terms of financial compensation, sometimes it can lead them to make concessions in other areas where there may not be an immedi- ate financial impact — but can have some longer term implica- tions for the organization," Thorpe said. For instance, an employer might give up certain manage- ment rights' provisions pertaining to scheduling practices, which can have a financial impact or create operational chal- lenges down the road. So what does the near future hold for collective bargaining? "While we see negotiations being contentious, it also seems like there is very little appetite — certainly on the part of the federal government — for work stoppages," said Thorpe, add- ing that does not necessarily translate to more strikes as govern- ments give teeth to intervention policies. Take, for example, the 3,000 employees at CN Rail, who nar- rowly averted a strike in February after signing a tentative col- lective agreement in the eleventh hour. But before that, Ottawa swiftly made it known it would go ahead with back-to-work legislation had workers walked off the job. Mortimer agreed, predicting that in the next few years the labour movement will return to its roots and adopt more aggres- sive bargaining models at the bargaining table. The rise of the short-term has also emerged, Mortimer add- ed. Two-year agreements are growing increasingly popular, compared to three or four-year agreements. In doing so, both employer and union are able to cautiously test the waters to determine if the financial situation will pick up in the near future. Like emerging from a dark cave, most view this era of restric- tion as nearing its end. That said, the immediate future looks bleak, and it will be up to both labour and management to col- laborate on recovery strategies.

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