PSAC strike could have domino effect for unionized workers: labour experts

TORONTO –

If the present strike by 1000’s of public sector employees is profitable, it might have a domino impact for unionized employees in different industries, labour consultants stated.

“Strikes in the federal public service are extremely rare. So the fact that PSAC followed through with job action is really significant,” stated Larry Savage, a professor within the labour research division at Brock University.

Thousands of public-service employees started their strike Wednesday morning after the federal authorities and the Public Service Alliance of Canada, representing some 155,000 federal employees up for bargaining, could not attain a deal in negotiations that started nearly two years in the past.

Almost a 3rd of all federal public servants are concerned within the strike, and the union and authorities alike have warned of disruptions to tax season, border operations, Employment Insurance, immigration and passport purposes.

Union militancy, which incorporates labour disputes, strike votes and strikes, has been extra frequent amid persistently excessive inflation, stated Savage. And it may be contagious, particularly if a strike manages to ship larger wages and higher working situations.

“A successful strike by PSAC members can have a domino effect,” he stated.

He stated the placing employees have been with no contract for round two years, that means as inflation climbed they noticed zero will increase of their wages.

“I think this clearly signals that they’re fed up, and now they’re turning up the heat.”

Jock Climie, a management-side labour and employment lawyer with Emond Harnden, agreed that inflation is lending itself to larger militancy in unionized sectors, and that PSAC’s strike might have far-reaching results past its personal members.

“The reality is that when the largest … federal public service union goes on strike and gets what it’s asking for, say they do, it’s going to have a profound impact on every bargaining table that comes after it, not just in the public sector,” he stated.

Wage will increase are one of many largest sticking factors on this dispute, with PSAC pushing for 4.5 per cent raises yearly over the subsequent three years to maintain tempo with inflation. The Treasury Board has stated it provided a 9 per cent elevate over three years on Sunday, per the advice of the third-party Public Interest Commission.

The two events started negotiating in June 2021, and the union declared an deadlock the next May. Mediated negotiations started in early April of this 12 months.

Normally bargaining works on a comparatively constant cycle, stated Climie. In occasions of fiscal restraint and sluggish development, employees make fewer features, and in occasions of development and better inflation, unions can discount for extra.

“What we’ve got here (are) cycles moving in different directions colliding with each other,” he stated.

For years, Savage stated unions have been “treading water” on wage features, managing to get will increase that hold tempo with inflation.

“As long as they kept pace with inflation, we did not see significant work stoppages,” he stated. “But high inflation is driving workers to use their right to strike. And there’s no question the uptick in militancy is being driven by inflation.”

Statistics Canada knowledge reveals that whereas there have been fewer particular person work stoppages in 2022 in contrast with 2021, the common size of these stoppages greater than doubled.

Inflation has been outpacing wage features for many of its reign, however in February, common hourly wages started rising quicker than inflation.

Inflation in March was 4.3 per cent, down from final summer time’s highs however nonetheless above the Bank of Canada’s goal of two per cent. Meanwhile, in March common hourly wages rose 5.3 per cent.

As inflation comes down, it is going to be simpler for unions to match it with wage features — however they’ve a whole lot of catching as much as do in the event that they need to really make up for the buying energy their employees have misplaced, stated Savage.

But a decrease inflation charge might have a psychological impact that makes employees much less militant, he stated.

However, unions can be combating for larger wage features over the subsequent couple of years as contracts expire, even when that militancy wanes, stated Savage.

In the non-public sector, too, employees are asking for extra and getting it, similar to within the Ontario development sector final 12 months, stated Savage.

“I think people are rediscovering the right to strike,” he stated.

Climie thinks the rise in union militancy will proceed all through 2023, with larger wage calls for on the desk as excessive inflation and its results linger. Eventually, nonetheless, bargaining will return to its cycle, he stated.

“I think there’s no question that as inflation drops, if it continues to drop, you will see less aggressive positions being taken at the bargaining table as far as wages are concerned.”

This report by The Canadian Press was first revealed April 19, 2023