Canadian Labour Reporter

employers lower salary increases amid economic uncertainty OTTAWA — Amid economic uncertainty, Canadian employers are lowering projec- tions for salary increases in 2015, according to a new report. The average base salary increases for non-unionized workers is now expected to be 2.7 per cent, down from the original 2.9 per cent projected in the summer of 2014, found the Conference Board of Canada in its Mid-Year Pulse Check —part of its an- nual compensation planning outlook sur- vey. The organization said falling oil prices, coupled with regional economic uncer- tainty, will see employers tightening purse strings when it comes to employee salaries. Many employers will be playing the wait- and-see game, according to Ian Cullwick, vice-president of leadership and human re- sources research. "Many organizations are waiting to see how the economy fares before finalizing plans," he explained. "It is likely that we will see further reductions in salary increases — including pay freezes — from organizations in Alberta and Saskatchewan." In December of last year, employers in Saskatchewan and Alberta were still pro- jecting average salary increases of 3.4 per cent and 3.3 per cent respectively, though both will likely see further downward revi- sions as the year progresses. And while salary growth predictions have been revised slightly downward for most other provinces, Ontario is the only region whose projection is still in line with its summer forecast. "The next few months will be challeng- ing for employers as they balance the need to retain top talent with affordability," Cull- wick said. Retail and wholesale trade sectors are expecting the lowest increases, at 2.3 per cent, followed by education, health and communications at 2.4 per cent. The re- port also noted there will be continued re- ductions to projected pay increases in the energy sector. CP Rail strike ends OTTAWA — Canadian Pacific Railway and the Teamsters Canada union have agreed to seek mediated arbitration, end- ing a one-day strike. "The strike is over," Labour Minister Kel- lie Leitch said on Feb. 16. "Our intention is to get service working at 100 per cent by to- morrow morning." The government had planned to in- troduce back-to-work legislation to force more than 3,000 locomotive engineers and conductors represented by the Teamsters Canada Rail Conference (TCRC) union back on the job. "We are now going to mediated arbi- tration with respect to these parties," said Leitch. "I do believe there are still numerous issues on the table, and I'm confident that the mediation and arbitration process will get them to the place they need to be." CP and the Teamsters union failed to agree on terms, including scheduling and rest time, prompting train engineers and conductors to walk off the job on Feb. 15. CP had reached a deal with another union, Unifor, which represents safety and mainte- nance workers. "This decision ensures both sides will get back to the table," CP's CEO Hunter Har- rison said in a statement. "While we would have preferred a negotiated settlement, this is the right thing to do at this time." In recent years, the government has intervened, or threatened to, in several major transportation-related labour disputes including at CP, where it intro- duced legislation that ended a nine-day strike in 2012. One of the major issues to be discussed is fatigue management and the necessity of implementing effective countermeasures for rail workers, the union said. lAboUr brieFs 2 Canadian HR Reporter, a Thomson Reuters business 2015 FoRmeRly ClV RePoRtS Serving labour relations professionals since 1956 www.labour-reporter.com Published weekly by omson Reuters Canada ltd. 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Labour Reporter Canadian www.labourreporter.com Photo: Richard Carson (Reuters) lAboUr lens The United Steelworkers union pickets outside an oil refi nery in Texas during the biggest strike by U.S.-based refi nery employees in more than three decades.

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