Labor market | Tension rises in collective bargaining

Inflation eroding consumers’ purchasing power and labor shortages have unleashed a “perfect storm” in the labor market which is reflected in job action, strikes and lockouts. The rules of the game have changed when it comes time to negotiate a collective agreement.

Julien Arsenault
The Press

“I haven’t seen such a boil for a very long time,” says Éric Lallier, labor lawyer and partner at Norton Rose Fulbright Canada. “In circles where talks are normally harmonious, there is a lot of tension. There are situations where it is much more complex than we anticipated. »

After the first three months of the year, the Ministry of Labour, Employment and Social Solidarity counted 45 strikes and 2 lockouts – CRH Group and Rolls-Royce – for a total of 47 labor disputes. This is almost four times higher than the average of the last three years over a comparable period, according to data provided to The Press.

This portrait was influenced by the 19 different accreditations of the ambulance sector, which were on strike – while continuing their activities since it is an essential service – before concluding an agreement in principle with the Legault government on May 7. . But even excluding paramedics, walkouts show a marked increase compared to the same period last year.

“There are no longer any sectors that are safe,” says M^and Lallier. We saw white-collar accreditation units and that threat was not there. It exists now. In 2022, there is an evolution. »

The lawyer does not see the situation calming down in the short term. After the “wait-and-see” period of the pandemic, where workers have sometimes accepted rollbacks or wage freezes to get through the crisis, they expect the pendulum to swing back, explains Ms.^and Lallier. This is on top of inflationary pressures which show no signs of abating. In March, prices rose an average of 6.7% – a high since 1991.

At the Conseil du patronat du Québec (CPQ), members are also observing this “perfect storm” which “greatly favors” workers, underlines the president and CEO of the organization, Karl Blackburn.

“It’s good when companies have the means to pay, but in companies in the restaurant and tourism sectors, for example, we don’t have the capacity to survive this inflationary spiral,” says Mr. Blackburn. In some cases, salary increases are well above inflation. »

A more used tool

In the current context, workers are less and less hesitant to give themselves strike mandates – which does not automatically lead to a walkout – in order to show their colours. These data are not compiled, but the stakeholders interviewed by The Press claim to have observed it.

Workers’ expectations are high even before the start of negotiations, recognizes Dominic Lemieux, Quebec director of the Syndicat des Métallos (affiliated with the FTQ). In his view, inflation is a game-changer.

“We see it more and more,” says the union leader. We will look for an agreement that suits the negotiating committee, but which is rejected. When we arrive to present the agreement in principle and the same day, the gasoline jumps, that can derail a meeting. »

The bell sound is similar on the side of M^and Lallier. From now on, an agreement in principle is no longer synonymous with a settlement.

“The parties don’t really know how to behave anymore because they don’t know how the union members are going to react. Habits of a year or two ago are changing. »

Inflationary clauses

At the bargaining tables, labor contracts increasingly take inflation into account. François Longpré, specialized in labor law at BLG, represents employers. Without revealing the identity of his clients, the lawyer says he has signed a first collective agreement with “protection in the event of inflation”.

The lawyer alludes to two conflicts that found themselves in the spotlight last year: the walkouts in the slaughterhouses of Exceldor (Saint-Anselme) and Olymel (Vallée-Jonction). In the first case, the workers had obtained wage increases of 19.75% spread over six years. In the other, the employer had granted increases of 26.4%, including 10% in the first year, spread over six years.

M^and Longpré anticipates “a little more union activism” until we turn the page on the pandemic, that is for another year.

Examples of conflicts and tense situations

Rolls Royce Canada

Aeronautics is generally not synonymous with a labor dispute. However, the 530 union members of Rolls-Royce Canada, who perform aircraft engine maintenance, have been locked out since March 15. Their collective agreement expired in March 2020 and the two parties have still not found a way to resolve the impasse. According to the union, the employer wants to end the defined benefit pension plan and is proposing a salary freeze for the years 2020 and 2021.

Beneva

Dissatisfied with the negotiations with their employer, several hundred office workers at the insurer Beneva (SSQ assurances and La Capitale) held walkout days last March. The three union units ended up ratifying the agreement in principle on April 28. The salary increase for 2022 was around 5.8% and the last year of the employment contract includes an inflation adjustment clause.

ArcelorMittal Long Products Canada

The steel giant’s activities were disrupted for four weeks in Contrecoeur and Longueuil due to a strike. The 800 or so union members obtained important gains at the end of this labor dispute. Wage increases reach 26% over the six years of the collective agreement. “It was the best employment contract in 60 years and despite everything, it only went to 60%,” underlines Dominic Lemieux, Quebec director of the Syndicat des Métallos, to illustrate the expectations of employees.

Sobeys

Three months. This is the duration of the stoppage of the 190 workers of the automated distribution center of Sobeys, owner of the IGA brand. The deadlock was finally resolved on May 10. The negotiations were not easy. The tentative agreement between the union and the employer was rejected on April 11 by the establishment’s employees. According to the company, the union demands represented a 25% wage increase.

Siemens

The German multinational has the means for its ambitions, but it is at an impasse with its Drummondville workers who manufacture electrical boxes. Represented by Unifor, the plant’s 200 union members have just given themselves a strike mandate as negotiations break down with the employer over monetary issues. A potential labor dispute hangs over the site. Siemens and Unifor have been negotiating for about four months.