As the calendar turns and labour unrest in Canada continues, the Summer of Strikes is evolving into the Autumn of Arbitration (which is way less catchy, but just as important).
- The number of unworked days due to labour action rose 25% year-over-year as of July, with the highest amount of unworked days in the first half of a year since 2002.
Big picture: The report notes taming inflation is the key to achieving employer-employee harmony. Canadians, unionized or not, feel that they’ve been victims of a historic loss in purchasing power — reigning in the cost of living would certainly result in less labour strife.
Why it matters: These startling wage gains are likely to spur further labour action as more unionized workers fight the cost of living crisis as their collective bargaining deals expire.
- Considering Canada’s GDP contracted last quarter, a string of prolonged strikes risks putting the pinch on an already weakening economy.
Yes, but: If the economy falters and the labour market continues to slow, the wage gains party could abruptly end as companies will be less able and/or willing to meet demands.—QH