Gap highest in the history of HRSD's survey as government spending increases and soaring dollar reigns in private sector
Wages in the public sector grew twice as fast as those in the private sector last year, according to Human Resources and Skills Development (HRSD).
Public-sector wages surged ahead to create the biggest gap on record as private-sector wages were held down by the soaring Canadian dollar as organizations attempted to hold the line on costs to make up for ground lost as a result of the loonie’s strength.
According to a report in the Globe and Mail, private-sector wage increases came in significantly lower than inflation, in effect giving those employees a pay cut. In the public-sector realm, increased spending in health care and education drove wages higher.
Unions in the private sector with more than 500 members received annual raises of 1.5 per cent. Contrast that to the public sector, where unions were able to negotiate 2.9 per cent.
In health care, education and social services, governments untied their wallets and handed over annual increases of 3.4 per cent.
But Douglas Porter, senior economist at BMO Nesbitt Burns, said the public sector can’t sustain these kinds of wage increases for much longer as governments are already being forced to rein in spending in the face of steep deficits.
One in 10 workers had their wages frozen or cut last year, up significantly from the one in 100 who had the same happen in 2002.
HRSD's wage settlement survey began in 1978. It looks at 616,710 workers across Canada.
Public-sector wages surged ahead to create the biggest gap on record as private-sector wages were held down by the soaring Canadian dollar as organizations attempted to hold the line on costs to make up for ground lost as a result of the loonie’s strength.
According to a report in the Globe and Mail, private-sector wage increases came in significantly lower than inflation, in effect giving those employees a pay cut. In the public-sector realm, increased spending in health care and education drove wages higher.
Unions in the private sector with more than 500 members received annual raises of 1.5 per cent. Contrast that to the public sector, where unions were able to negotiate 2.9 per cent.
In health care, education and social services, governments untied their wallets and handed over annual increases of 3.4 per cent.
But Douglas Porter, senior economist at BMO Nesbitt Burns, said the public sector can’t sustain these kinds of wage increases for much longer as governments are already being forced to rein in spending in the face of steep deficits.
One in 10 workers had their wages frozen or cut last year, up significantly from the one in 100 who had the same happen in 2002.
HRSD's wage settlement survey began in 1978. It looks at 616,710 workers across Canada.
