Next year could see more work stoppages across Canada's public sector as frustrations mount between cash-strapped governments and employees, according to the latest forecast by the Conference Board of Canada.

In a 25-page report released Friday, the organization said that labour groups are growing frustrated with "ongoing demands for concessions" from federal and provincial employers.

"The federal and provincial governments are focused on eliminating their respective budget deficits, and this will limit their ability or willingness to offer much more than modest wage increases," said Karla Thorpe, director of leadership and human resources research at the conference board.

"The sense of frustration among public sector unions is growing because they accepted restraint at the outset of the recession. As a result, the potential for job action in the public sector will be greater in 2012 than in previous years," she added.

Next year will see several major contracts come up for re-negotiation as health-care workers will sit down with the governments of B.C., Saskatchewan and Manitoba. Talks are also due with the Canada Revenue Agency and the Toronto District School Board.

The board also noted that the City of Toronto -- which has been cutting its budget since the election last year of Mayor Rob Ford -- appears headed for "conflict with its civic unions."

The federal government cited economic necessity when it intervened in the recent labour disputes at Air Canada and Canada Post.

The Conference Board expects less strife in the private sector, where the fragile economy will "likely limit" unions' willingness to take job action.