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Saskatchewan’s proposed labour legislation changes could set dangerous precedent: report

Projects & Initiatives: Labour Matters

Regina —The Saskatchewan government’s contemplated changes to labour legislation as outlined in the Consultation Paper on the Renewal of Labour Legislation in Saskatchewan will have the perverse effect of lowering wages, undermining workplace democracy and contributing to worsening inequality in Saskatchewan, says a report released today by the Canadian Centre for Policy Alternatives (CCPA).

With Conservative parties in several provinces favouring similar legislation, Saskatchewan has become the frontline in the battle to maintain historic labour rights. Unions in a Democratic Society: A Response to the Consultation Paper on the Renewal of Labour Legislation in Saskatchewan by Christopher Schenk, provides a critical review of the Consultation Paper’s orientation, namely its lack of recognition of the role of labour rights in advancing democracy, equality and economic justice. It also explores how the Consultation Paper fails to understand the historical context and principles behind several key features of the Canadian industrial relations system.

The following provides a few highlights from the report.

  • In most cases, unions are associated not only with improved efficiency but with reducing earnings inequality and contributing to economic democracy.
  • A core principle of Canadian labour relations and the Rand formula is the notion that everybody benefits and so everybody pays. Changes to this provision would mean the end of financial security for labour and a return to workplace conflict and uncertainty for employers.
  • Compulsory union dues should be seen as analogous to taxation. There is no distinction in principle between our overall system of government and the role of taxation within it and the mini-democracy of the workplace.
  • The democratic majority principle applies to both unions and government; if a majority of employees want a union they can vote for one under government supervision, have it certified, and everyone pays dues for the associated benefits. If a majority of citizens want democratic government they can elect one and everyone has to pay taxes for the consequent services. In both cases, those who do not support the policies and priorities of office holders have the option to maintain their views and run for office in the next election.
  • The attempt to distinguish between the economic and political use of union funds rests on the misguided premise that unions can represent the economic interests of workers effectively without engaging in any political activity.
  • American states that have adopted similar “Right-to-Work” (RTW) legislation earn $1,500.00 less annually than workers in free-bargaining states and have lower rates of employee-sponsored health and pension benefits.
  • Globalization has largely rendered RTW laws impotent. Today companies look offshore for cheaper labour costs. No matter how much wages are lowered in North America, there is always a cheaper jurisdiction somewhere else.
  • There is a virtual consensus that unions increase equality in contemporary society. The higher the rate of unionization, the more equality one finds in a society; the lower the level of unionization, the higher the level of inequality.
  • Approximately 15% of Canada’s growth in inequality during the 1980s and ‘90s can be attributed to declining unionization.

“In a period of widening inequality, restrictive labour laws are blatantly unnecessary and regressive. Saskatchewan and the rest of Canada need to move away from austerity policies and weak economic recovery and toward environmentally sustainable economic growth that allows those who need and want to work to do so in a more democratic, equitable society. Unionization contributes to this end and labour laws should respond accordingly,” concludes Schenk.

–30–

The full report is available on the CCPA website: www.policyalternatives.ca

For more information contact Kerri-Anne Finn, CCPA Senior Communications Officer, at 613-563-1341 x306.

Unions in a Democratic Society

A Response to the Consultation Paper on the Renewal of Labour Legislation in Saskatchewan

Reports & Studies
Projects & Initiatives: Labour Matters

How affordable is a university education in your province?

Projects & Initiatives: Education Project

A new report from the CCPA’s Education Project tracks the affordability of university education across Canadian provinces. The study looks at trends in tuition and compulsory fees in Canada since 1990, projects fees for each province for the next four years, and examines the impact on affordability for median- and low-income families using a Cost of Learning Index.

Since 1990, with very few exceptions, the tuition fee burden across the country has been increasing faster than incomes, and the average tuition and compulsory fees for Canadian undergraduate students will continue to rise by an estimated 17.7% by 2015-2016.

Read the full report, Eduflation and the High Cost of Learning, to find out which provincial governments are ensuring university education is more affordable for median and low-income families, and which governments are telling students to take a hike.

Check out our Take a Hike! infographic (click to enlarge):

Infographic: Take a Hike!

Eduflation and the High Cost of Learning

Commentary and Fact Sheets
Projects & Initiatives: Education Project

University education in Canada becoming less affordable: study

News Release
Issue(s): Education
Projects & Initiatives: Education Project

Eduflation and the High Cost of Learning

Reports & Studies
Projects & Initiatives: Education Project

The Sustainability Challenge

Hennessy's Index: A number is never just a number

Commentary and Fact Sheets

2012 David Lewis Lecture

Thursday, Oct 4, 2012, 6:30pm - 10:00pm

The Canadian Centre for Policy Alternatives-Ontario presents
the 2012 David Lewis Lecture

Generation Now: Four emerging voices on the
Canadian political landscape

Brigette dePape, writer and activist also known as the “rogue page” who stood in protest in the Canadian Senate chambers

Ben Powless, Mohawk citizen from Six Nations, co-founder of the Canadian Youth Climate Coalition and organizer with Defenders of the Land

Jamie Biggar, founding executive director of Leadnow.ca who coordinates national campaigns designed to get more Canadians engaged in their own democracy

Emma Pullman, freelance writer, campaigner with sumofus.org and research director with Leadnow.ca

They’re actively engaged in the biggest challenges of our time. Find out what they think about Canada’s future.

Thursday October 4, 2012
Doors open: 6:30 pm, lecture starts: 7:30 pm
Wine and cheese social: 9:00 pm
Trinity St. Paul’s Centre, 427 Bloor Street West, Toronto (map)

Lecture only: $40 lower level seating; $20 upper level seating

CCPA Fundraising wine and cheese social, includes a free drink and a chance to meet the guest speakers (limited tickets available): $40

Online ticket sales are now closed, however tickets are still available for purchase at the door or in-person at the Toronto Women's Bookstore, 73 Harbord Street Toronto, 416-922-8744.

For more information about this event, please contact CCPA-Ontario Director Trish Hennessy at 416-525-4927 or by email at ccpaon@policyalternatives.ca.

Bargaining Power and Job Quality in the United States

Projects & Initiatives: Labour Matters

The age and educational attainment of the US workforce have increased significantly since 1979.  Since older and better educated workers generally have higher pay and better benefits, one might expect a greater share of workers to be in good jobs today compared to 30 years ago.

In a Center for Economic Policy and Research brief entitled "Where Have All the Good Jobs Gone?", John Schmitt and Janelle Jones instead find that the proportion of US workers in good jobs -- defined as paying at least at least $18.50 per hour/$37,000 per year, with employer-provided health insurance and a workplace retirement plan -- fell from 27.4% in 1979 to 24.6% in 2010.  Much of this overall decline is accounted for by a drop in the share of workers with employer-provided health insurance, especially among men.

Measured against the expected increase in the share of good jobs resulting from a more-experienced, better-educated workforce, the authors estimate that the US economy lost approximately a third of its capacity to create good jobs over the 30 year time frame.

The authors find that workers at all levels of educational attainment were less likely to hold a good job in 2010 than they were three decades earlier.  Ruling out technological change and the failure of workers' qualifications to keep pace as an explanation, Schmitt and Jones argue that the economy’s declining ability to generate good jobs is linked to the weaker bargaining power of workers, particular those at lower and middle income levels.

Crime and Declining Unionization

Projects & Initiatives: Labour Matters

In an article entitled "Crime and the Decline of Unions," economics professors Robert Baumann and Bryan Engelhardt of the College of the Holy Cross in Worcester, Massachusetts estimate the elasticity of crime with respect to union membership.  They contend that the drop in US union membership between 1993 and 2006, along with the loss of well-paying blue-collar jobs, increased property crime by 15%.  For every percentage point drop in unionization, larceny, arson, burglaries, and auto theft are predicted to increase by roughly 140 crimes per 100,000 people.

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