Labor shortage Wage increase but with some caveats

Labor shortage: Wage increase, but with some caveats

Faced with labor shortages, several private companies have also decided to raise wages. Saguenay–Lac-Saint-Jean is characterized by a higher average hourly rate increase than elsewhere in Quebec.

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Labor shortages in Quebec have prompted many employers to significantly increase wages in certain sectors. Some of the increases shown are 30%, spread over several years.

“I would tell you that [ce sont] Employers who don’t want to lose their employees. Because of the labor shortage, employers are therefore offering price increases very similar to inflation,” noted Manon Tremblay, CSN Regional President in Saguenay-Lac-Saint-Jean.

In this region, the average hourly rate in Quebec has increased the most.

The hourly rate increased in the region from $27.67 in 2021 to $29.58 in 2022. A 6.9% increase compared to the provincial average of 6.2%. Even so, the average hourly rate in Quebec remains about a dollar higher.

“For all of Saguenay-Lac-Saint-Jean, we don’t reach the average salary for all of Quebec. Given the inflation […] and the costs continue to rise, the basic needs are there. There are many people who have [vraiment] difficult to get past. It doesn’t last anymore,” she says.

Changes requested

The federation of national trade unions wants to include a clause in new collective agreements according to which wages are based on the curve of the consumer price index.

“Some conventions already have it, but that’s not all. This must probably be included in the collective agreements that are to be negotiated. There are industries that are already well paid. Some manufacturing sectors are paid above average. But [ce sont] Retail, hotel and catering, very difficult sectors. And of course the public sector,” explained Ms Tremblay.

The regional president goes on to say that she believes there should be legislation to prevent exploitation of workers given the region’s growing labor shortages.