Many Institute groups will be in negotiations in 2007. In preparation for bargaining, the Institute’s Research Section is responsible for monitoring and establishing compensation trends. In 2007, base salary increases are expected to average 3.4% to 3.9% for Canada. This is slightly above the average salary increase of 3.8% in 2006. For the broad public sector, increases are expected to average 3.6% to 4% in 2007. The tight labour market is affecting the public sector which has to develop innovative practices to attract, motivate and retain a broad range of talent.
The wage settlements for unionized workers are expected to average 3% in 2007. Unionized employees usually enjoy superior wage settlements and do not start from low numbers. The difference is also more pronounced when benefits are included.
The Consumer Price Index (CPI) is the measure used to assess if salaries are keeping pace with inflation. For the most part, private and public sector increases have been above the CPI (except for 2000 and 2003 for the private sector).
Statistics Canada provides a tool to measure the average salary of employees across the country. The Average Weekly Earnings (AWE) of payroll employees in Canada was $749.69 (seasonally adjusted) in September 2006. This leaves the year-to-date growth in earnings at 3.1%.
In Canada's largest industrial sectors, year-to-date earnings growth as of August was 3.9% for health and social assistance, 3.8% for educational services, 3.0% for retail trade, and 2.5% for manufacturing.
There were 14,099,100 payroll jobs in Canada in November, an increase of 336,900 employees (+2.4%) from November 2005. Provinces showing the largest percent increases in employment from November 2005 to November 2006 were Alberta (+6.4%), Saskatchewan (+3.8%), and Ontario (+0.9%). The lowest increase was in New Brunswick (+0.1%) and Prince Edward Island (-0.1%). Nationally, payroll employment has increased by approximately 170,000 jobs since the beginning of 2006.
Major Settlements for Unionized Employees
as at November 15, 2006
Human Resources and Social Development Canada (HRSDC) compiles the wage increase information for unionized employees. The following tables show the public and private sector comparison for major settlements (500 employees and more) by sector or by jurisdiction for the year 2006.
Major settlements are those involving bargaining units of 500 or more employees.
For additional information, please view the Technical Notes on the HRSDC Web site.
Source: Labour Policy and Workplace Information, HRSDC -Labour Program.
Wage Settlements Under Collective Agreements -Wage Increase per Sector
Factors Influencing Salary Increases
Contributor: Jean-François Simard, Research Officer
Publish Date: 22-DEC-2006 10:01 AM
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