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Prospects for Industrial Relations in the Broader Public Sector John O’Grady

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Prospects for Industrial Relations in the Broader Public Sector John O’Grady. Four Questions:. What are the underlying changes in economic conditions and the fiscal situation of the Ontario government? Are they structural or cyclical?. Four Questions:.

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Presentation Transcript
slide1

Prospects for Industrial Relations

in the Broader Public Sector

John O’Grady

slide2

Four Questions:

What are the underlying changes in economic conditions and the fiscal situation of the Ontario government? Are they structural or cyclical?

slide3

Four Questions:

What are the underlying changes in economic conditions and the fiscal situation of the Ontario government? Are they structural or cyclical?

If those changes are structural, what are their likely implications for the employment environment in the Broader Public Sector?

slide4

Four Questions:

What are the underlying changes in economic conditions and the fiscal situation of the Ontario government? Are they structural or cyclical?

If those changes are structural, what are their likely implications for the employment environment in the Broader Public Sector?

Can the expected changes in the employment environment be addressed by the existing labour relations system?

slide5

Four Questions:

What are the underlying changes in economic conditions and the fiscal situation of the Ontario government? Are they structural or cyclical?

If those changes are structural, what are their likely implications for the employment environment in the Broader Public Sector?

Can those changes in the employment environment be addressed by the existing labour relations system?

If changes in the labour relations system are needed, what are the options?

slide7

Ontario:

Real GDP – Manufacturing, 1997-2011

slide8

Ontario:

Real GDP – Manufacturing,1997-2011

slide10

Average Annual Increases

in Government Spending:

2010-11 to 2017-18

slide11

Implications for

the BPS Employment Environment

Employment reductions.

slide12

Implications for

the BPS Employment Environment

Employment reductions.

Increased public sector employer opposition to restrictions on redeployment rights of public sector managers (seniority, posting).

slide13

Implications for

the BPS Employment Environment

Employment reductions.

Increased public sector employer opposition to restrictions on redeployment rights of public sector managers (seniority, posting).

Increased public sector employer resistance to open-ended pensions and liabilities.

slide14

Implications for

the BPS Employment Environment

Employment reductions.

Increased public sector employer opposition to restrictions on redeployment rights of public sector managers (seniority, posting).

Increased public sector employer resistance to open-ended pensions and liabilities.

Increased public sector employer resistance to pattern-based wage determination.

slide15

Implications for

the BPS Employment Environment

Employment reductions.

Increased public sector employer opposition to restrictions on redeployment rights of public sector managers (seniority, posting).

Increased public sector employer resistance to open-ended pensions and liabilities.

Increased public sector employer resistance to pattern-based wage determination.

Increased attraction to contracting out and divestment and increased opposition to restrictions that impede these.

slide16

Eras of Restraint

  • 1975 – 1978: Wage and Price Controls
  • 1981 – 1982: Public Sector Wage Controls (‘6 and 5’)
  • 1993 – 1995: Social Contract
              • wage freeze / 12 ‘Rae Days’
              • 1993-94: 2.3% cut
              • 1994-95: 0.8% increase
  • 1995 – 1999: Harris Cuts:
              • 1996-97: 3.3% cut
              • 1997-98: 0.3% increase
slide17

Changes in the System

More centralized bargaining.

slide18

Changes in the System

More centralized bargaining.

Addressing the self-referential bias of public sector arbitration.

slide19

Changes in the System

More centralized bargaining.

Addressing the self-referential bias of public sector arbitration.

Limited liability for benefits and pensions.

slide20

Changes in the System

More centralized bargaining.

Addressing the self-referential bias of public sector arbitration.

Limited liability for benefits and pensions.

Integration of pension bargaining with wage bargaining.

slide21

Changes in the System

More centralized bargaining.

Addressing the self-referential bias of public sector arbitration.

Limited liability for benefits and pensions.

Integration of pension bargaining with wage bargaining.

Greater flexibility on re-deployment (overriding seniority and posting)

Fewer impediments to contracting out and divesting.

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