The impact of globalization is now showing up at the bargaining table in Canada according to a new report form the Conference Board of Canada.

Unions are struggling struggle to maintain their influence, as management becomes more militant, the report says.

“Globalization is transforming the dynamics of labour relations in Canada,” says Prem Benimadhu, vp organizational performance, in a release. “Faced with global competition, management is increasingly determined to hold its ground by demanding concessions or resorting to lockouts.”

“Unions are faced with the difficult choice of accepting concessions or watching jobs go to lower-cost countries. At the same time, unions are looking to maintain their power by building the international labour movement in these same countries.”

Wage increases for unionized employees will average 2.5% in 2006. Although, the Conference Board does not expect significant labour disruptions this year, it notes thatlabour relations remain strained. Many unions and employers are failing to work together to address fundamental business issues, such as productivity, employee engagement and investment in new technologies, it says.

“Both parties will need to change their attitudes about how to conduct labour relations if they are to adjust to the shifting landscape wrought by globalization,” says Benimadhu.