Lack of labor disrupts labor relations

This text is part of the special Business Challenges section

While Quebec was already experiencing a labor shortage before the pandemic, the situation was exacerbated with the health crisis. A trend that changes the game in terms of professional relations.

In his study entitled “Professional relations at a time of labor shortage” published last March in the journal International chronicle of IRES (Institute of Economic and Social Research)Patrice Jalette looked at the consequences of the lack of employees on labor relations in the private sector.

The professor at the School of Industrial Relations at the University of Montreal has noted changes in the content of collective agreements, particularly with regard to salary increases. Bonuses for attraction, retention, seniority, loyalty… “There are a lot of people who are there now,” he observes.

The very negotiation of collective agreements has undergone changes, specifies the man who is also a researcher at the Interuniversity Research Center on Globalization and Work (CRIMT). He cites as an example the situation of longshoremen in British Columbia last summer. “There are more deal rejections. We accept, we reject and we accept,” he illustrates.

“Some would say that these are great problems for the union, since people are easily mobilized. But, at the same time, we must also be able to reach conclusions at the negotiating table,” he adds.

Some employers have even decided to review their collective agreement early. “We reopen it earlier because we are no longer competitive,” summarizes Mr. Jalette.

Subcontracting and working conditions

The lack of workers also leads to an increase in the use of employment agencies and subcontractors, observes Mr. Jalette. “Sometimes even these companies struggle with labor shortages,” he says.

Repercussions are therefore felt regarding the conditions of employees already hired. “We often think that the labor shortage means that “it’s great”: we are increasing our salaries, our social benefits, we are improving our situation. But for some workers, it means more overtime, more work accidents,” he says. Employees also have difficulty taking leave or vacation due to lack of replacements.

He also observes in the private sector working weeks which include five or ten hours more. “But it is certain that conditions are improving for many people,” he specifies.

The lack of labor has also generated an increase in the number of temporary foreign workers, all regions combined. “There are these people all over the province, in Gaspésie, in Beauce, in Saguenay,” underlines Mr. Jalette. The Ministry of Labor, Employment and Social Solidarity (MTESS) estimated that around 1.4 million jobs should be filled from 2019 to 2028.

Repercussions in the unions

The industrial relations professor also observes a labor shortage in local unions, with a high rate of staff turnover. “There are people who leave, even after 10 or 15 years of seniority,” he says. Thus, presidents, vice-presidents or local executives of these organizations are now sometimes people who have little experience. “This means that the unions are always training people,” he notes.

The leaders of these union organizations also have more difficulty taking time off from work to take part in conferences or training. “They can be released if operations permit. But, in many cases, it’s impossible because we don’t have a replacement,” he says. A situation which has consequences in particular on the union, on its operations and on the affairs of the organization.

Trends that will continue

If the situation was already observable in 2019, Mr. Jalette believes that the health crisis has accelerated the situation. “It seems now that the pressure is easing a little. But I’m not sure that this really translates into remuneration, he believes. The trend will be difficult to reduce or curb for a few years. »

According to the Order of Certified Human Resources Advisors, average salary increases should be around 3.7% in 2024. This year, this figure is more like 3.5%. According to Mr. Jalette, the pressures linked to employee shortages are likely to last “for a little while”.

This content was produced by the Special Publications team at Duty, relating to marketing. The writing of the Duty did not take part.

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