Iqaluit (Sep 11/06) - Workers around the North may have a slightly louder jingle coming from their pockets in 2007.

Survey results from a study by pension and benefits consultants, Montreal-based Morneau Sobeco show Canadian workers should soon enjoy their highest salary increases in the last five years.

More than 350 participating organizations took part in the survey.

In Nunavut and the NWT, salaries are expected to rise by 3.3 per cent for operation and production staff while Northern executives topped the scale with an expected 4.3 per cent increase for next year.

Salary increases in the North are slightly higher than the 3.4 per cent Canadian average said, Andre Sauve, spokesperson with Morneau Sobeco.

"It can be difficult to attract people to the North," he said.

Having an attractive salary along with a number of short-term incentives are ways Northern businesses are competing with business in the south, he said. With businesses putting much more emphasis on retaining and recruiting employees, a quality salary is important to keep skilled workers, said Sauve.

A competitive salary, a number of incentives and being involved in an interesting culture can be an advantage when it comes to retaining and recruiting workers, said Jeff Provost, manager of member and public relations for Arctic Co-operatives out of Winnipeg.

"It can be a constant challenge in recruiting," he said.

"There is a lure and a pull towards the oil fields."

Along with competitive wages for employees, Arctic Co-ops offer longer vacation times then comparable positions in the south.

For managers, air fare subsidies and extra travel time are also provided, he said.

Each community offers accommodations to fit managers' and employees' needs, he said.

"We have to think outside the box," he said.

There is a lot of competition to retain workers in the North, said Dennis Lyall, owner of Lyall Construction in Taloyoak.

The company tries to offer his workers a competitive salary in order to keep Northerners in the North, he said.

"It can be hard to keep people happy," he said. With more than 70 workers employed during the run of year, increasing costs can be difficult for a company, he said.

Help in the form of subsidies from both governments would help to keep business in small communities more competitive, added Lyall.