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Labour Day 2011: What Has Gone Wrong in Canada for Working People?

Posted: 09/05/11 12:31 AM ET

There was a time in Canada -- not that very long ago -- when a working person could expect to have a family-supporting job throughout their life.

For an honest day's labour, a worker could raise their kids, buy a house, pay off the mortgage, take vacations, have weekends off, help send the kids through college and retire with a modest but liveable pension. Your job was relatively secure and the employer showed loyalty for good work. And employers benefited too, because working families had the income to buy their goods and services. Wherever and at whatever occupation you worked, these were common features for most jobs.

This Labour Day as we celebrate the contributions of working people to build a better Canada, we have to ask: what has gone so wrong in our country?

Today the average family needs two full-time jobs just to get by -- one job just doesn't pay the bills. And a 40-hour work week is often a dream. Even getting a decent job is challenging, with more low-paying, part-time jobs than ever. Keeping your job is also difficult, with the regular recessions our world economy is facing and consequent layoffs. Employer loyalty usually amounts to what's legally required -- and sometimes even those minimums are ignored.

Having more than one or two children is simply too expensive. Post-secondary education costs are exorbitant, yet a post-secondary credential is necessary to find employment that demands high skills and specialized training.

And retirement with dignity and security has been replaced by fear that the golden years will be spent languishing in poverty instead. 1.6 million seniors live on under $16,000 a year -- a sad commentary. Those fortunate to have a workplace pension see it attacked as "too expensive," while most chief executive officers enlarge their own multi-million dollar pensions.

And Canadians with Registered Retirement Savings Plans or other investments saw their value drop 15 per cent in just a week as markets crashed in August, for the fourth time in 20 years.

What happened to the lifestyle most Canadian workers celebrated on Labour Days past?

One answer is that the middle class has suffered through a quarter century of wage stagnation -- where real income after inflation barely increases at all.

The Conference Board of Canada acknowledged that recently in a study which found that in the 33 years between 1976 and 2009, median income increased by just 5.5 per cent - from $45,800 in 1976 to $48,300 in 2009.

Another is that unions -- which help workers gain a fair share through better wages and benefits -- have a lower percentage of members, due to regressive labour laws that make it harder to join a union and easier to contract out unionized work.

In the past, non-union workers also benefitted from union contracts won through collective bargaining -- because employers usually matched those gains to keep employees and avoid organizing drives. Now unionized workers are pressured to match the lower standards of non-union workplaces in a race to the bottom.

It's no accident that wage stagnation for 80 per cent of Canadians and the dramatic transfer of wealth to the few began as unions came under sustained attack. But a big third reason also helps explain the first two -- the seemingly insatiable greed of the super rich. At the same time corporate taxes were cut and business profits went up dramatically, Canadian workers were paying the price. But Canada's richest 20 per cent almost doubled their enormous income difference over the poorest 20 per cent, from $92,300 to $177,500.

Apparently these huge gains at ordinary Canadians' expense are not enough -- corporations continue to clamour for even more tax cuts -- despite no evidence that pandering to business creates jobs or investment.

This Labour Day it's time for not just union members but all Canadians to demand changes. If we don't start standing up for ourselves, we'll take an even bigger fall in the years ahead.

That's why the Canadian Labour Congress has joined with seniors' groups and others to call for significant improvements in the Canada Pension Plan that would eventually double benefits from today's poverty line maximum of $11,500 to a liveable $24,000.

We need to ensure that our children and grandchildren will enjoy an even better life than we did - not one that's worse is so many ways.

That's why Canada first celebrated Labour Day in 1872 -- and why it's just as important today.

 
There was a time in Canada -- not that very long ago -- when a working person could expect to have a family-supporting job throughout their life. For an honest day's labour, a worker could raise thei...
There was a time in Canada -- not that very long ago -- when a working person could expect to have a family-supporting job throughout their life. For an honest day's labour, a worker could raise thei...
 
 
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05:51 PM on 09/06/2011
Greed is universal, it's not Canadian. The way to get by, is to try to find our own solutions. Not an easy task, but everyone has to think very carefully about their options, work options, lifestyle options, knowing that the world is not a nurturing environment, that we are left to fend for ourselves, by government, by everyone. We have to make wise decisions while we're still young.
Sometimes it doesn't work out, because life isn't fair. And then, we have to accept that governments, the way they're established nowadays, won't be there to help us.
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walkerhds
09:14 PM on 10/04/2011
so basically, one bad choice (not even a choice that results in a criminal record) and you are hosed? Given that it is much easier to fall than it is to rise with the gates out of poverty closely guarded, a choice early on can be a life-sentence. And that is the society and world we want?
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Cariboofly
Aye, Ready, Aye & Semper Fi
10:46 AM on 09/06/2011
Personal Greed. On the part of everyone. Greed and an almost universal failing work ethic.
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Miller Time
10:35 AM on 09/06/2011
Mr. Georgetti: people like you!
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mirabay
stand for something or you will fall for
03:41 AM on 09/06/2011
what's wrong??...the unions, that's what's wrong..............totally destroyed the concept of the word work............do nothing, get lots of money and complain...............that's what's wrong..............and made it hard for the rest of us to get a decent wage...........
07:05 AM on 09/06/2011
When have they ever had the power to do what you accuse them of? The US has very low unionization rates and they have a stagnant economy.
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walkerhds
09:16 PM on 10/04/2011
how do unions make it hard for everyone else to get a decent wage? You might want to reread the article and look at history during the period of greatest union representation in the workplace, comparing the standard of living then and now.
03:24 PM on 09/05/2011
What has gone wrong for workers in Canada ? Nothing at all. It's the most pampered generation in history. !!
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patrickwwalker
03:38 PM on 09/05/2011
Well, you can say they are pampered in all the ways that don't matter.
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Steve Lives
The Venus Project ... look it up
02:37 PM on 09/05/2011
There is simply going to be less and less jobs for people due to technology. It will get to the point where there is no need for human interaction in relation to production. For the most part, its already here, which is why most of us work in the service sector. And guess what, if you are paying attention, the service sector is being automated as well. Soon, you won't even be able to get a job at McDonalds. You are born into bondage, and shackled by the monetary system. You are in a box, that is cracking, and you can't see beyond it. So instead, you try to repair the cracks. Never wondering if the box it self is relevant.
Zeitgeist Moving Forward just topped 10 million hits on You Tube alone. Not bad for 7 months. If you are inclined, I suggest you give this documentary a watch. I guarantee a thought provoking experience.
Jack Canuckski
Canadian Observer of the passing scene
02:22 PM on 09/05/2011
Back in the 70's, I felt that the union movement should have been focusing on a campaign to shorten the work week. Even at that time it was evident that increasing productivity gains were going to employers, and causing many workers to become redundent. I also felt that unions should have been fighting for representation on corporate boards of directors, as they have done in Scandinavia.

By the 90's it was apparent that with the combination of so-called "free-trade", which gave capital total mobility, allowing them to produce wherever labour was cheapest, and the effects of accelerated automation, that capital had the whip hand.

In truth, the present situation that labour finds itself in was foreseeable years ago, but when our labour unions were doing well, they were reluctant to fight for a bigger say in the economy and rock the boat. Now the boat is sinking.
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01:06 PM on 09/05/2011
Nobody has mentioned the devaluation of money since it was taken off the gold standard under Nixon and how the American Fed keeps printing money and even creating money without printing because they are arrogant enough to think they can control the economy. Sure maybe they have delayed the extreme result of constant inflation but the two incomes per home and increase in working hours is a direct result of sloppy, greedy banking practices and time has run out on the delays.
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patrickwwalker
12:23 PM on 09/05/2011
Amen. And not just speaking as one of those unemployable people with a useless engineering degree. The whole article rings true. What makes me sad is that a lot of Canadians REFUSE to acknowledge what is obvious.
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Craig Bovia
Vermont, 1791, women can vote, no slavery allowed
11:27 AM on 09/05/2011
$45,800 in 1976 was Fat City. $48,300 in 2009 is minimum wage. If you think things are tough in Canada, you should come to the US, where the middle class is on the way to Povertyville
02:28 PM on 09/05/2011
not to worry, there are many countries including Canada following merrily along behind to middle class povertyville. Tough times have always been inflicted upon the poor and politicians who are not doing the bidding of the ruling class to satisfaction. Countries need to liquid their bad debts, but with the central banking system they expect larger and larger interest payments forever and ever...helps ensure enough labor class workers! So fear not.....the U.S.A will have much company as Austerity is thrust upon us all for the sake of making the rulers still wealthier.
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Craig Bovia
Vermont, 1791, women can vote, no slavery allowed
03:06 PM on 09/05/2011
fanned for company
Cheers
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CanadaStan
Cogito ergo spud, I think, therefore I yam
05:55 PM on 09/05/2011
Huh?
Better do the math again.
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Craig Bovia
Vermont, 1791, women can vote, no slavery allowed
10:09 AM on 09/06/2011
Just saying you got a helluva lot more more fo your money 35 years ago. No?
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laymancanuck
IGNORANCE has used up its quota of TOLERANCE
11:26 AM on 09/05/2011
Societies with limited Income/wealth disparity are healthier in every way, every wins.
10:53 AM on 09/05/2011
I had a friend return from the Ukraine after visiting his parents. He said we are becoming what they are over there. You just have 2 classes: rich and poor. I guess this is now a global issue.
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SimonLeigh
08:53 AM on 09/05/2011
The super rich are not so much greedy as under-taxed.
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01:38 AM on 09/05/2011
"One answer is that the middle class has suffered through a quarter century of wage stagnation -- where real income after inflation barely increases at all."

Absolute rot. Over the last nine years real wages have improved continuously:

http://worthwhile.typepad.com/.a/6a00d83451688169e2014e6062192e970c-pi

I mean really. Are we just making up facts here?
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SayBlade
This micro bio intentionally left blank.
10:05 AM on 09/05/2011
You have conveniently left out the "after inflation" part. That's why it's called "real" income.
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CarlyQ
Without followers, evil cannot spread.
10:08 AM on 09/05/2011
You're going to argue this, too, in the face of overwhelming proof? (sigh)
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jamster88
12:35 AM on 09/05/2011
'Education is more expensive'.

No education has never been more expansive. I've family in education administration.

What is 'expensive' is the daily cappuccino's, the iPods and iPads, the drinking and partying. The extra 4th honours year which is not a requirement. The need to travel to Mexico for spring break, the clothing etc..

There have never been more courses offered more variety, more fleeting kinds of degrees that have no real productive value (not that I'm against this but recognize our investment).

How about a few less Kinesiology degrees and a few more software Engineers? There are tons of high paying software jobs out there.

How about a few less journalists and a few more plumbers, because the wages are darn good ....
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SayBlade
This micro bio intentionally left blank.
12:46 AM on 09/05/2011
Expensive: Really? I guess you don't pay much attention to the cost of tuition and rental accommodation.
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CarlyQ
Without followers, evil cannot spread.
10:09 AM on 09/05/2011
Tuition costs have skyrocketed in recent years.