Ontario, and arguably all of Canada, has entered a challenging and difficult time for collective bargaining. This article outlines how both sides can navigate it effectively.
Ontario, and arguably all of Canada, has entered a challenging and difficult time for collective bargaining for both employers and unions. Shortly following the Great Recession in 2008, both management and unions reached deals relatively quickly, everyone recognizing the dramatic economic issues the parties faced at the time. From 2008 well into 2012, there was little change. Employers tried to deal with the reality of the recession, and unions waited for the anticipated rebound, assuming it would resemble almost all recessions of the past — a difficult period, a holding pattern for a short time, followed by a return to growth in the economy and a resumption of "normal" bargaining. This time, however, that hasn't happened. Certainly not in the way it has in the past.
The economy has, at best, rebounded to the level of "treading water", and bargaining has not returned to anything resembling the pre-2008 environment. For those of us who work in the labour relations field, this creates some real challenges. We are dealing with parties on both sides who are frustrated, sometimes angry, and not entirely sure what to do.
Understanding the New Environment
The first challenge is simply understanding what has changed. The old playbook — stake out your position, make demands, trade concessions, reach a deal — worked reasonably well in a growing economy where there was something to divide. In a stagnant economy, that playbook produces conflict, not deals.
What Employers Need to Understand
Employers who approach bargaining as if the only issue is cost containment are missing the full picture. Employees and their unions are not simply asking for more money. They are asking for security, recognition, and a sense that the organization values their contribution. When those needs are ignored, you get conflict. When they are addressed, even in modest ways, you get cooperation.
What Unions Need to Understand
Unions who approach bargaining as if the economy of 2005 still exists are also missing the full picture. Members need to understand the economic reality their employer faces, not because the employer is always right, but because understanding the reality leads to better negotiations. Unions that help their members understand the full picture are better advocates than those who simply make demands.
Finding Common Ground
The path forward in a difficult bargaining environment requires both sides to invest in understanding each other's genuine needs and constraints. This is not weakness — it is strategy. The parties who do this well reach better agreements, faster, with less damage to the relationship.
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