Why the head of Canada biggest union sees shorter labour contracts in the future
Mark Hancock predicts year of 'difficult' bargaining ahead as prices rise faster than wages
The national head of Canada’s largest union thinks shorter collective agreements will be one of the tools organized labour turns to in the coming year to protect against high inflation, which has left contact negotiators scrambling for ways to ensure wages keep up with a rising cost of living.
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Mark Hancock said he’s already recommending shorter-term agreements to local units of the Canadian Union of Public Employees (CUPE), as a means of preventing workers from being locked into years-old contracts while prices skyrocket.
“When the cost of rent, vegetables and their housing goes up, and by virtue they’re taking home less money comparative to what they’re spending, that’s a real challenge — and I think it’s going to play out in bargaining tables,” Hancock said in an interview.
Wages rose significantly in 2022, but the gains in most sectors have not kept up with changes in the consumer price index. The year-over-year growth in employees’ average hourly wages was 5.6 per cent in both October and November, marking six consecutive months above the five per cent level, according to Statistics Canada. By comparison, the CPI rose 6.8 per cent year-over-year in November and 6.9 per cent in October.
“On average, prices rose faster than wages,” the agency said in its October report. “Although Canadians experienced a decline in purchasing power, the gap was smaller than in September.”
High job vacancy numbers in recent months have brought attention to how unmet labour demand correlates with higher wages, Statistics Canada said. Despite struggling to fill positions, employers were still offering wage increases that were lower than the rate of inflation.
“There’s a lot of frustrations that people who were viewed as being heroes during COVID are being expected to get by with very low wage increases when you compare it to inflation,” Hancock said.
Another solution the union has been looking into is the negotiation of cost-of-living clauses in collective agreements. The union leader said workers “don’t expect to fall behind” when the cost of living goes up and that there was “a real change” at bargaining tables when Canadians saw a spike in inflation this year.
CUPE, which has around 715,000 members across the country, had an eventful year. Its notable actions included a battle with Ontario Premier Doug Ford that led to a strike by more than 50,000 education workers in Ontario, resulting in hundreds of schools closing for two days.
The walkout ended after the provincial government promised to repeal a law that imposed contracts on CUPE members, banned them from striking and used the notwithstanding clause in the Charter of Rights and Freedoms to allow the override of certain charter rights. Union leaders have called the pre-emptive use of the 50,000 education workers by the government of Ontario Premier Doug Ford as “an attack on the rights of all Canadians.”
“We’ve seen a trend across the country with some very difficult rounds of bargaining, especially here in Ontario with our education workers,” Hancock said. He added that he foresees a lot of “difficult bargaining” in many public sectors and in the private sector as well in the next year.
Hancock said about 1,200 to 1,500 contracts expire or need to be renewed in any given year. He said that while the Ontario education workers recently reached an agreement, there are other large groups in the province and across the country that they’re keeping an eye on.
Hancock, who’s been a CUPE member since 1984, was elected as the union’s national president in November 2015 after leading its British Columbia chapter. He served as president of CUPE B.C. for two terms and as its secretary-general for four terms. Prior to that, he led Local 498 representing Port Coquitlam, B.C. municipal employees for 15 years.
Like many unions, CUPE took a big hit during the COVID-19 pandemic but its membership numbers increased over the past year and are now above pre-pandemic levels, Hancock said. He expects the momentum will keep going in 2023.
“Workers are recognizing that there’s real value in joining a union,” he said.
• Email: dpaglinawan@postmedia.com | Twitter: denisepglnwn
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