Alberta Labour Market Update for March 2022

Alberta Labour Market Update for March 2022

Alberta Labour Market Update: March 2022

In March, the Alberta Labour Market experienced lowered unemployment rates to 6.5% year over year, with 7,200 jobs added month over month. Service sectors increased by 13,100 jobs, and employment in goods-producing sectors lost 6,000 jobsNationally, unemployment fell to 5.3%, and wages ticked up by 0.1% month over month. Alberta’s labour market participation rate holds steady at 69.3%.

Labour underutilization is up to 13.7%, as many worked less than 50% of their regular number of hours.

Alberta’s Consumer Price Index rose to 5.5% in March 2022.

Average weekly earnings increased 2% year over year. Wages are down 0.1% month over month, and a good portion of the 2% increase results from income other than regular wage rates (overtime, bonuses etc.). Average collective agreement negotiated wage settlements in the private sector is as follows: 2022 = 1.1% 2023 = 1.1%, 2024 = 1.7%. Public sector settlements are as follows: 2022 = 0.8%, 2023 = 2.3%, 2024 = 1.5%. Overall wages settlements are as follows: 2022 = 0.9%, 2023 = 1.9%, 2024 = 1.7%.

Over the past year, the Alberta Labour Market welcomed 32,000 immigrants and lost 1,200 to interprovincial migration, with an overall population increase of 1.1% year over year.

Non-residential construction is up 1.3% month over month. Commercial and industrial increased activity more than offset declines in institution and government investment spending.

Manufacturing increases 7.2% month over month with decreased chemical sales offset by higher volume and prices of petroleum and coal, food and wood. Factory sales were up 30%.

Wholesale trade is up 23% year to date.

Oil and gas prices increased year over year, with oil averaging US$68/barrel and the Western Canadian Standard price differential averaging $13/barrel in 2021. Gas prices averaged $3.41 per Gigajoule in 2021.

Overall there are reasons for cautious optimism. It is wise to continue prudent reluctance to increase structural costs by committing to wage increases—current wage adjustments trend between 0.8%-1.2% for 2022. Employers would be wise to apply innovative approaches to attracting and organizing available skilled teams to increase utilization.

Please visit our homepage for more information about our human resources, recruitment and labour relations firm. We serve all of Canada and have offices in Edmonton, Alberta and Prince George and Victoria, British Columbia. 

 

 

When the Whisper Network Stops Being a Public Service

When the Whisper Network Stops Being a Public Service

September 24, 2019, |Bullying, Compliance, Harassment, Human Resources, Sexual Harassment, Workplace Respect

Inspired in part by Samantha Ip and Alisa Kaletsky of Clark Wilson LLP, in an article Published on www.mondaq.com

Facts: A professor at a Canadian university shared unproven allegations of sexual misconduct/harassment about a former colleague to that former colleague’s new employer.

This triggered a lawsuit against the university for defamation.

In propagating the unfounded allegations, the court found that the professor was acting “on behalf” of the university—this attached responsibility of that professor’s lack of discretion to the university itself. Also (pertinent to this case), it afforded that professor access to a funded defence for herself in response to the defamation lawsuit under the university’s liability insurance plan.

Taken in the best light, the loose-lipped professor may have felt she was acting in the capacity of a Good Samaritan. 

When sharing information about a former employee or colleague is less, a rule of thumb is usually less is better than more; stick to the facts. And, as this case demonstrates, the known facts. 

Also, not that I would want to defend or be an apologist for poor behaviour; one might want to pause for a moment and at least consider that the former employee has presumably already paid a steep price for their mistake, that being, losing their job. One might want to ask, “why then is it necessary to attempt to harm or ruin a person’s career or further trample on their dignity?” Before engaging in any gossip, employees need to ask themselves, does this support, detract from, or is it neutral concerning the target person’s dignity? I’ve witnessed many unrelenting Good Samaritans transform into bullies this way.

This reminds me of Michelle Rempel’s description of the whisper network at the height of the Me Too movement. The whisper network is what happens when organizations fail to confront sexual harassment directly. (Usually) women are left to their own devices to suppress or ward off the behaviour. They use the whisper network to warn each other of unmanaged dangers in the workplace, such as “Don’t be in an elevator alone with that guy.” For a time, and unfortunately, it is still the case in some places, that is the only mechanism available to women to protect themselves in their workplace. To those in that situation, I pray for your safety and hope you get to work with a good employer someday. 

On the other hand, many employers have robust mechanisms for addressing sexual harassment concerns and behaviour. Where that is the case, a formal approach through HR (or the sexual harassment policy owner within the organization) is the preferred tactic to deploy in responding to instances of real or perceived harassment.

It is credible and available, and this formal approach is preferred over relying on the “whisper network.” 

Further, once an organization with a credible sexual harassment policy and investigative framework addresses the issue, vigilante lateral gossip targeting the accused is no longer a public service—it’s just toxic gossip that is an affront to the dignity of those involved and creates unnecessary risks for the employer. 

And when wrong:

  • it is serious;
  • it is defamation;
  • it has major consequences;
  • it creates harm; and,
  • people will (not surprisingly) sue.

This is a complex area of employee relations and human resources. As you may have surmised, this article is more of a discussion and less prescriptive than other articles we have submitted. Each case must be addressed on its own fact set and circumstances. 

One Dish, One Spoon

What can we learn from the One Dish, One Spoon Agreement?

One Dish, One Spoon: “[The treaty] between the Anishinaabe, Mississaugas and Haudenosaunee that bound them to share the territory and protect the land. Subsequent Indigenous Nations and peoples, Europeans and all newcomers have been invited into this treaty in the spirit of peace, friendship and respect.” Land acknowledgement | This is a Canadian Issue: Reflecting on TRC Calls to Action (ryerson.ca)

Members of Indigenous Nations and Europeans are invited to share a meal together, traditionally beaver tail soup, while eating from one bowl with one spoon. This represented the need to come together in peace, to take what was required for sustenance, leave enough for others to eat, keeping the dish and spoon clean.

The dish represents the shared land from which each community ate, and they ate from one spoon. There was a shared responsibility to ensure the dish was clean and never empty. No knives were at the table, meaning that we must keep the peace.

This led to three basic rules:

  • Take only what you need
  • Leave some for everybody else
  • Keep it clean

Dish With One Spoon | Nandogikendan

How might the three rules from this Treaty help ensure a psychologically safe, welcoming and sustainable place of work?

Discuss.

Take the #20percentchallenge

Visit our homepage to learn more about our Indigenous-owned human resources and labour relations consulting firm serving Canada with offices in Edmonton, Alberta and Prince George and Victoria, British Columbia.

Decoupled: Wages and CPI are on a break from one another.

CPI and Wages: With CPI trending between 3.1% and 3.7%, are wages following suit? The answer is no. 

CPI is inflated due to:

  • disruption in energy transition, 
  • increased government spending,
  • cash injections from the Bank of Canada, and 
  • pandemic shifts, 

all of which increase the risk for employers and do not translate to job creators being able to afford increased wages for their employees.

The increased business risk driving increased CPI has significant implications for wage adjustment considerations and collective agreement negotiations.

The path of least resistance, and at times lazy approach labour relations and human resources practitioners take when considering wage adjustment, is blindly following CPI increases. That is precisely the type of thinking that reduces the confidence executive leadership has in labour relations and human resources personnel and reduces their usefulness and effectiveness to the organization.

Wages and collective agreement targets must be driven by fulsome reviews of such adjustments’ affordability, sustainability, and prudence. This analysis and determination must ensure that operations and employment continues to be a going concern, presently and into the future.

CPI and wages are not automatically linked, nor should they be. Human resources and labour relations practitioners would be wise to test the business fundamentals before making promises they can’t keep with their union counterparts. Granting unsustainable wags increases helps no one if it results in shrinking operations and layoffs.

Please visit our home page or our news and knowledge centre for more information.

Respectfully submitted,

Sam Kemble

Executive Operating Officer

With People Inc.

(780) 886-1679

[email protected]

Alberta Labour Wage Settlements and Negotiations Update -Q1 2022

Alberta Labour Wage Settlements and Negotiations Update -Q1 2022

The Current Economic Environment Introduces Head-Scratcher Interactions at Collective Bargaining Tables

Several economic pushes and pulls create head-scratcher moments at collective bargaining tables as negotiators assess:
  • where the fair deal resides, and
  • how best to communicate that to rank and file members.
This phenomenon presents unique challenges for negotiations conducted by human resources and labour relations practitioners, and union leadership.

Oil’s Influence on Negotiations

Oil prices soften to $100.28, and the WCS price differential increases to $11.90/barrel. Alberta’s overall economic activity is up 4.5% year over year, bouncing somewhat from 2019 and 2020 depressed levels. Overall, these factors send positive messages to negotiators currently in collective bargaining.

Employment Impact on Collective Bargaining

Unemployment decreased to 6.8%, with a 69.4% labour market participation rate and 1.1% population growth yearly. While, on the surface, negotiators view this as a positive trend in collective bargaining, they need to realize there is significant displacement within the labour market. 

Inflation and Negotiations

Those engaged in collective bargaining must realize that inflation pressures are not the result of a growing, healthy economy. Instead, it is the result of commodity pressures, supply chain issues, government policy, regulation, taxes and spending. All of which increase the risk profile for employers.

Earnings, Average Wages and Collective Bargaining

Average weekly earnings are up 3%. A significant portion of that increase results from overtime and not hourly wage increases. Average hourly wages remain unchanged (0% increase) year over year.
The split between earnings, CPI/inflation, and wage rates present an inconvenient truth for negotiators currently engaged in collective bargaining. Now is not the time for a significant wage increase, except for perhaps the lowest earners – to offset growing costs of essential expenses.

Collective Agreement Negotiations

So how have negotiators at collective bargaining tables responded? Alberta’s February Bargaining Update shows 2022 settlements averaging 0.91%, 2023 settlements averaging 1.87%, and 2024 settlements averaging 1.70%.

The gap between inflation and wages is symptomatic of a great deal of increased risk, unfriendly business policy and environment, and policies with the stated goal to make certain activities more expensive for Canadians in support of greening the economy. These upward pressures are not the result of a confidence-inspiring, predictable and healthy growing economy, so employers are appropriately cautious and reluctant to lock into structural operational cost increases.
Respectfully submitted,
Sam Kemble
Executive Operations Officer,
With People Inc.
(780) 886-1679