Non-unionized Canadian employees anticipate wage increase

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Non-unionized Canadian employees anticipate wage increase

TORONTO

Wage increases for non-unionized Canadian employees are expected to average 3.9 per cent in 2008, with the highest increases going to workers in labour-starved western Canadian provinces, according to the Conference Board’s 26th annual survey of Canadian organizations.

“The shortage of workers in Alberta is creating a ripple effect, putting upward pressure on wages across the country,” said Prem Benimadhu, Vice-President, Governance and Human Resources Management.

“As a consequence, attracting and retaining talent is the No. 1 priority for compensation and human resource leaders.”

All four western provinces are expected to see average wage gains above the national average. Pay increases for non-unionized workers are expected to average 5.2 per cent in Alberta, 4.6 per cent in Saskatchewan and Manitoba, and 4.2 per cent in British Columbia.

In contrast, organizations in Quebec, Ontario and the Atlantic provinces are forecasting increases below the national average.

The oil and gas industry is projecting increases of 5.7 per cent in 2008, highest among all industries.

Alberta’s surging economy will continue to drive competition for workers. Moreover, the province’s labour market is expected to become even tighter, since the number of people relocating to Alberta is subsiding due to high costs of living and improved economic opportunities in neighboring provinces.

Above-average increases are also expected in construction, natural resources (excluding oil and gas), and transportation and utilities sectors. The lowest average increases, at 3.1 per cent, are projected in communications/telecommunications, and services sectors.

Wage settlements for unionized workers are forecast to average 3.1 per cent in 2008.

DCN News Services