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Base rate wage adjustments from major collective bargaining settlements reached in the fourth quarter of the year 2008 averaged 3.4% annually over the contract term; this is lower than the 4.1% increase in the previous quarter. The fourth quarter results are based on 110 agreements covering 154,590 employees.
When the parties to these fourth quarter settlements previously negotiated, the resulting wage adjustments averaged 2.7%, lower than in their current settlements. Contract durations in the fourth quarter 2008 averaged 42.7 months, compared to 38.3 months in the previous round of settlements.

Wage adjustments in the public sector averaged 3.5% and in the private sector, 2.9%. The public-sector results are based on 89 agreements covering 127,850 employees; public sector employees account for 82.7% of the total employee coverage in the fourth quarter. Public-sector agreements in Alberta recorded wage adjustments averaging 5.0%. There was a large number of education-sector settlements in the fourth quarter in Ontario, with wage adjustments averaging 3.0%. The private sector results are based on 21 agreements covering 26,740 employees and private-sector employees account for only 17.3% of the total employee coverage in fourth quarter settlements. Wage adjustments in this sector ranged from a wage freeze for 600 employees with Cooper Standard Automotive Ltd. in Ontario, to a 5.2% increase for 1,470 employees with Real Canadian Superstore in Alberta.

On a jurisdictional basis, the largest average wage adjustment was recorded in both Newfoundland and Alberta at 5.0%, and the lowest increase was in Manitoba at 1.8%. The largest concentration of agreements (65.5%) and employees (55%) was in Ontario where wage adjustments averaged 3.0%. In the federal jurisdiction, 2,100 Canada Post employees received increases averaging 2.6%.
On an industry basis, the largest average wage adjustment was in the education, health, and social services sector at 3.5%, and the lowest adjustment was in manufacturing at 1.8%. The largest concentration of agreements (71.9%) and employees (67.5%) was in the education, health, and social services sector where wage adjustments averaged 3.5%.
The majority of agreements (67.3%) and employees (61.6%) had wage adjustments in the 3.0 to 3.9% range; 16.4% of agreements covering 23.4% of employees recorded adjustments at or above 4.0%; 14.5% of agreements and 13.9% of employees had wage adjustments below 3.0%; 1,520 employees (1%) in 2 agreements (1.8%) were subject to a wage freeze.
| 2008 | ||||
|---|---|---|---|---|
| 1st | 2nd | 3rd | 4th | |
| Public Sector | 3.2 | 3.0 | 4.5 | 3.5 |
| Private Sector | 3.9 | 1.7 | 3.0 | 2.9 |
| 2008 | ||||
|---|---|---|---|---|
| 1st | 2nd | 3rd | 4th | |
| Average Annual Adjustment | 3.4 | 2.4 | 4.1 | 3.4 |
| Non-COLA | 3.3 | 2.7 | 4.1 | 3.4 |
| COLA | 5.1 | 1.4 | 4.1 | 2.3 |
| First-Year Adjustment | 3.3 | 2.3 | 5.6 | 3.6 |
| Non-COLA | 3.2 | 2.9 | 5.6 | 3.6 |
| COLA | 5.6 | 0.5 | 6.0 | 2.3 |
| 2008 | ||||
|---|---|---|---|---|
| 1st | 2nd | 3rd | 4th | |
| Primary Industries | 4.8 | 3.4 | - | 3.2 |
| Utilities | 3.3 | 2.1 | 3.5 | - |
| Construction | 5.8 | - | 4.7 | - |
| Manufacturing | 1.1 | 1.1 | 3.1 | 1.8 |
| Wholesale and Retail Trade | 4.6 | 1.7 | 2.5 | 3.4 |
| Transportation | 3.2 | 2.9 | 3.2 | 2.9 |
| Information and Culture | 2.0 | 2.1 | 1.6 | 2.0 |
| Finance and Professional Services | 2.0 | 2.9 | - | 2.9 |
| Education, Health, and Social Services | 3.5 | 3.8 | 4.7 | 3.5 |
| Entertainment and Hospitality | - | 1.2 | 2.3 | 3.2 |
| Public Administration | 2.1 | 3.3 | 3.0 | 3.4 |
| 2008 | ||||
|---|---|---|---|---|
| 1st | 2nd | 3rd | 4th | |
| Newfoundland and Labrador | - | 5.0 | - | 5.0 |
| Prince Edward Island | 3.0 | - | 3.0 | - |
| Nova Scotia | 3.5 | 2.9 | 4.7 | - |
| New Brunswick | 4.0 | 3.0 | 3.7 | 3.7 |
| Quebec | 2.4 | 2.1 | 2.8 | 2.6 |
| Ontario | 3.0 | 1.8 | 2.9 | 3.0 |
| Manitoba | 4.1 | 3.5 | 3.3 | 1.8 |
| Saskatchewan | 2.3 | - | 6.2 | 3.5 |
| Alberta | 4.0 | 4.7 | 5.3 | 5.0 |
| British Columbia | 3.3 | 3.4 | 2.6 | 2.5 |
| Territories | - | 4.4 | - | - |
| Federal Jurisdiction | 3.4 | 2.6 | 3.3 | 2.7 |
Major settlements are those involving bargaining units of 500 or more employees.
For additional information, please view the Technical Notes (PDF format, 200kb).
Source: Strategic Policy, Analysis, and Workplace Information Directorate, Labour Program, HRSDC.
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