With the exception of the beleagured manufacturing and export sector, industrial relations in 2008 will be marked by a new pragmatism on both sides of the bargaining table and more open and conciliatory lines of communication, according to the Conference Board’s 23rd annual Industrial Relations Outlook.

“For the most part, employers and unions have ample reason to look forward to 2008. The healthy economy and vibrant job market will remove the usual points of contention for many employers and unions-wages, benefits and job security,” says Prem Benimadhu, vp, governance and human resources management. “Labour and management will focus on positioning the organization to take advantage of growth opportunities in the global economy.”

According to the Conference Board: several factors are behind this more conciliatory tone at the bargaining table.

The Canadian economy continues to be strong and stable, with many companies reporting record-level profits.

Canada’s labour market is growing ever tighter. Employers will have to pay for increasingly scarce talent, and they expect to provide wage increases of 3.1% to unionized employees in 2008. Public sector workers will receive higher wage increases than unionized private-sector workers.

Fierce global competition will keep employers firmly focused on achieving productivity improvements, and neither management nor unions want to put their organization at a disadvantage or risk job loss.

Unlike negotiations in other sectors, the suffering manufacturing and export sectors will experience difficult bargaining in 2008. Employers will be seeking changes to collective agreements that will boost productivity and cut costs. Unions will be anxious to protect jobs, which could make these negotiations more difficult in 2008.

The report, “Industrial Relations Outlook 2008: Opening the Lines of Communication”, is based in large part on a roundtable with industrial relations leaders held in late 2007.