Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Ken Georgetti

GET UPDATES FROM Ken Georgetti
 

Hey Hudak: You've Got Unions All Wrong

Posted: 07/06/2012 12:52 pm

The International Monetary Fund and the Organization for Economic Cooperation and Development have confirmed that broadly-based collective bargaining is the best mechanism to build a healthy middle class. In short, when workers, through their unions, are able to bargain freely for decent wages, benefits and pensions, there are benefits for the middle class and for society as a whole.

In the not-so-distant past, Canadian governments also endorsed the value and purpose of free collective bargaining. The current federal government, however, has made it a habit of intervening in the economy on behalf of employers and against the people who work for them.

This is evident in the government's plan to make it easier for employers to bring in migrant workers and pay them 15 per cent less than the prevailing wage, and in changes to employment insurance legislation that will force unemployed workers to travel farther afield and to take almost any job at only 70 per cent of their previous wages.

The government has loaded the dice against employees, and this is especially evident in their interventions in labour disputes. In May, they used back-to-work legislation on behalf of Canadian Pacific Rail in its dispute with engineers and other workers. Last year the government intervened in two Air Canada labour disputes, and prior to that one at Canada Post.

All of this should trouble Canadians whether or not they are unionized workers. The erosion of collective bargaining is linked directly to a growing income gap in our society. Corporate profits are at near or record highs while the wages of Canadians have stagnated for an entire generation. There is a direct relationship between attacks upon unions and a shrinking of the Canadian middle class.

Left to its own devices, free collective bargaining really does work for the common good. Unions have been able to ensure that workers share, at least to some extent, in the corporate profits that they helped create. Unions have been successful in reducing systemic wage gaps in workplaces. Being in a union means better wages for women, workers of colour, aboriginal people and people with disabilities.

The more equal wage structure in unionized workplaces sets wage and benefit standards that spill over into other workplaces. Employees tend to be paid better when they live in communities with unionized workers earning decent wages. Finally, countries with strong labour movements have a larger, more vibrant middle class and achieve greater societal fairness because unions advocate for government policies that benefit all working people, not just their own members.

Our government's heavy-handed interventions in the labour market weaken basic labour rights, and that hurts all middle class Canadians. This meddling tips the scales in one direction and means that companies do not have to take bargaining seriously. They can just sit back and wait for the government to ride to their rescue if talks reach an impasse.

If workers are left with no outlet to seek fair compensation and working conditions, they will find other means of collective expression. Their frustration could result in spontaneous work disruptions, with a profound effect on productivity.

The government is setting the stage for an explosion of wage demands in the future, when unemployment falls and labour markets tighten. After years of frustration and stagnant wages, workers will insist on catching up. Heavy-handed government intervention, as we've seen at Canada Post, Air Canada and CP Rail, invites lingering resentment and will take all of those outstanding issues to subsequent bargaining.

For generations, Canadians have endorsed the purpose and understood the value of free collective bargaining. To a great extent, their destiny and that of their communities depends upon it. Employees must be free to negotiate freely for wages that will allow them to pay their mortgages and put their children through school. A healthy middle class means a prosperous Canada.

 

Follow Ken Georgetti on Twitter: www.twitter.com/CanadianLabour

FOLLOW CANADA POLITICS
The International Monetary Fund and the Organization for Economic Cooperation and Development have confirmed that broadly-based collective bargaining is the best mechanism to build a healthy middle cl...
The International Monetary Fund and the Organization for Economic Cooperation and Development have confirmed that broadly-based collective bargaining is the best mechanism to build a healthy middle cl...
 
 
  • Comments
  • 60
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Recency  | 
Popularity
Page: 1 2  Next ›  Last »  (2 total)
photo
HUFFPOST SUPER USER
djelimon17
what's this thing for?
01:44 PM on 07/09/2012
"All workers deserve decent wages and union workers don't deserve better wages and pensions than others just because they have a legal right to blackmail the company they work for and the public in general."

So rather than be upset that non unionized folk get crappier compensation, your reaction is to blame unions rather than the employer?

Also not sure why your vision of the free market seems to not include collective bargaining.
11:53 AM on 07/09/2012
All workers deserve decent wages and union workers don't deserve better wages and pensions than others just because they have a legal right to blackmail the company they work for and the public in general.

The worse form of economic activity of a company (from the public's point of view) is a monopoly. Isn't a union a labour monopoly? Why should select groups of people have the legal right to extort more than their fair share of wages and benefits at the public's expense? Unions in Canada are mostly in governments and other monopolies and if they were a company, they would be fined and thrown in jail for price fixing. In their case it is wage fixing!

The market is the only way to set a fair wage and where the jobs are in a monopoly, they should be set at equivalent wages in the market economy. Unions have the job of getting the maximum wages and benefits for their members and this is in direct opposition to the interests of the public. If workers want to participate in profit sharing, they should buy shares in the company like anybody else. The idea that it is the workers that create the profits is just silly. Without capital, the right product, distribution, public demand and even the right government services, there would be no profits at all.

It isn't rich people that pay the unfair extra wages to union members. It is the public who pays through higher prices for
HUFFPOST SUPER USER
mcpogo
05:43 PM on 07/09/2012
So the "Market" is God? Well it has done such a damn fine great job destroying the economies of the Western World, that it will take our grandchildrens great grand children to pay off their pigery and profit-taking corruption. Don't tell me that the Market is the only way - that is nothing but bull-shit! As far as "capital" "invested by the "rich" those parasites sucked the money out of the public long before workers got anthing approaching "fair!
03:20 PM on 07/10/2012
A lot of these HarperCons seem to have Stockholm Syndrome and don't see the deception at all. Sad.
photo
HUFFPOST SUPER USER
djelimon17
what's this thing for?
08:52 AM on 07/09/2012
I agree that collective bargaining benefits the middle class

I disagree that Hudak doesn't understand this.

Check out "cult of impotence" by Linda McQuaig as to why Hudak and other conservatives don't really want a middle class
HUFFPOST SUPER USER
mcpogo
05:46 PM on 07/09/2012
We know why, because Conservatives have a very limited ability to learn anything they don't like or that doesn't fit their stupid mantra. They never see the "big picture" just the suffering they can impose on workers as if they were the class bullies in school. They are fools!
06:17 PM on 07/08/2012
Right on Ken. A survey conducted about 15 years ago demonstrated that the top 30 countries in the world to live in (medical, education, environment, jobs, security etc. ) also happened to be those that were most unionized. Coincidence? I think not. I Government should give this serious consideration.
HUFFPOST SUPER USER
mcpogo
05:50 PM on 07/09/2012
Our governments are corrupt cowards. You don't see other Western democratic governments "proroguing- shutting down the Legislature" every time they get caught do illegal things. Only in Harperland is this his acceptable modus operandi. He must have taken his ball and went home a lot when he was a door-knob of a kid!
12:31 AM on 07/08/2012
I would if made Prime Minister or God tomorrow, outlaw public sector unions, and keep private ones.
HUFFPOST SUPER USER
mcpogo
05:53 PM on 07/09/2012
It is every Canadians constitutional right to form unions whether public or private. It is about time that all workers looked at unionization as the only way to protect their individual rights. If all you do is poo poo unions as "big" bullies that get all the goodies, you will just have to put up with your crappy jobs so quit whining!
12:04 AM on 07/08/2012
My favourite union demand is "job security". How about working hard to keep your damn job!
12:30 AM on 07/08/2012
lol....pick your pants up your age is showing.
This user has chosen to opt out of the Badges program
photo
Douglas Sinclair
sufferin' succotash!
01:11 AM on 07/08/2012
Do you really think an environment where everyone is looking over their shoulders for a metaphorical back-stab is productive? Because that's what work-place Darwinism can lead to.

Ever been profiled?

How long's your hair? Got any tattoos? Does he go out with girl's? Is that a hearing aid? Does he take smoke breaks? What's your Facebook password...............
06:05 PM on 07/07/2012
Collective bargaining only works when the two parties have roughly similar levels of power.

Most of the outrages in cushy and unbelievable settlements ( see severances while keeping your job) have occured in public service unions, who have used their political clout to extract settlements that would never have occurred in private industry. The Canadian taxpayer is now faced with billions of dollars in payments , so that governments can extricate itself from such outrageous clauses.
On the contrary, I think Mr. Hudak gets it , in spades !!!
This user has chosen to opt out of the Badges program
photo
Douglas Sinclair
sufferin' succotash!
01:02 AM on 07/08/2012
I don't know why you would think that any Public Sector unions in this country have any significant political clout. Even a communist government screws the unions if they can get away with it. Ask Lech Wallensa.

Can anyone here actually cite an example of 'settlements that would never have occurred in private industry' ?
03:22 PM on 07/10/2012
Do you have his phone number?
11:50 AM on 07/07/2012
Nicely put Mr Georgetti. I come from an industry where 200,000 Canadians & new immigrants lost work to overseas 12 years ago - and many people do not even know about it - why? - because there were no unions cause enough stink to protect the "rag trade" in Canada. We actually used to manufacture lots of knits and woven fabrics and make clothing and furniture exported around the world. It's a mere fraction of what it used to be.

I have seen the "lazy union worker", I have also seen lazy private sector workers - incompetency is an unfortunate trait, but not political. But, if everyone was making a decent income, top employees to "incompetent", our society would still be stronger, wealthier, happier, healthier and more educated.
This user has chosen to opt out of the Badges program
photo
Douglas Sinclair
sufferin' succotash!
12:52 AM on 07/08/2012
A rising tide lifts all ships.

Its not just a platitude.

P.S. we also used to make damn good footware and leather goods. Thanks NAFTA.
photo
HUFFPOST SUPER USER
Frnkndad
10:28 AM on 07/07/2012
Never in my life have I been pro-union, that is until the recent anti-union crusades being mounted by the Ontario and federal conservatives.
I would rather stand with the unions, than be ground to dust by the 1%.
This isn't about jealousy.
It isn't about envy.
It's about making sure my daughter has a chance of living her life with dignity.
photo
Newfoundlander
I'm a pessimist, an optimist with experience!
05:23 AM on 07/07/2012
You failed to point out, Mr, Georgetti, that Hudak can't see past "unions are bad for the economy", and doesn't realize that corporations are only "unions" of investors.

If workers' unions are bad because they want to improve the lot of the people who produce the wealth, and who have invested their working lives and their families' welfare to do so, then why are shareholders' "unions" good, when all that they have invested is money, the dividends and capital gains resulting from which enjoy prefential tax treatment.

Hudak illustrates all too vividly the Regressive Preservative ideological mantra that the rights of money supersede the rights of people.
09:42 AM on 07/07/2012
Except that a number of unions are now some of the richest corporations in the country. Take a look at the Ontario Teacher's Pension Fund. They benefit greatly from the current tax system just like the corporations you detest only that the payouts go to union members.
11:56 AM on 07/07/2012
ummm, are you talking about teacher's unions or the pension fund? the pension fund, like all pension funds, payouts do go to the retired members, so what exactly is your point?
HUFFPOST SUPER USER
mcpogo
06:02 PM on 07/09/2012
Yes, worshipping false gods like money being the ultimate goal is a pretty big sin in Gods book. So we can hope these sinners get their just dessert when they finally all go to Hell!
photo
lilkitten22
Be the change that you wish to see in the world
02:29 AM on 07/07/2012
It's okay, Hudak doesn't need no stinkin facts, let him shoot himself in the foot some more, and his party will always be a fail.
01:41 AM on 07/07/2012
unions have been shooting themselves in the foot over and over again. everyone knows that unions motto is to get most for the least. with that kind of attitude no wonder politicians and companies alike have realized what unions are up to and now want to make drastic changes. the problem is that unions should reform themselves from within such that they can actually benefit society but in their mindset it's not possible so then governments will come out with laws that essentially will strip them off their powers. the worst thing is that without balanced approach workers will suffer the most as on their backs someone will be stuffing their pockets with money. union leadership is blind for failing to realize the times and the fact that they also have to adapt.
photo
lilkitten22
Be the change that you wish to see in the world
02:31 AM on 07/07/2012
everyone knows that unions motto is to get most for the least.

Where in the world do you get your information? Unions fight for workers rights, and more money for them, and they let not to let them get s*rewed by the corporation.
02:52 AM on 07/07/2012
you answered your own question.  with that kind of attitude no wonder hudak wants to get away with unions.  the approach should be: we benefit the company in this way, this is what we do and according to market this is the pay/ benefits we could obtain. how can we help as supposed to: i'm a worker so i deserve  a union pay so i can do least for the most.
02:31 PM on 07/07/2012
except that in many cases unions don't realize that what they ask for is beyond the financial capacity of a company. there are many cases where companies went bankrupt b/c unions kept going for more and more and eventually they drove it under. not to mention the environment the unions create- in a union shop there are times where more time spent on dealing with labour issues then doing the work itself.
photo
NTodd
Aude Sapere
03:03 AM on 07/07/2012
If "getting the most for the least" is so bad, then every player in the capitalist system is guilty. Why aren't you demanding "drastic changes" or "reform" from the politicians and companies you defend? Are they not trying to "get the most for the least" themselves? A truly "balanced" approach is one where workers get to bargain with their employers for a mutually binding contract of service. There's nothing more market-oriented than that. The fact is, despite the rhetoric that comes from people who espouse your view, you're not advocating a "balanced" market-based approach at all. What you apparently would prefer is a reversion back to serfdom, or even slavery.
09:55 AM on 07/07/2012
Union bargaining is not market oriented. In many cases, the unions have a monopoly on labour. Unionized teachers do not compete in a free labour market, not even close.
02:22 PM on 07/07/2012
unions have outgrown its original purpose which was to provide basic protection to the employees - nowadays unions go after 'cadillac' deals and everything below it is not acceptable. and that's what irks a lot of people and politicians alike. unions have failed to recognize the times companies operate in and still think that they can function in 1930's union mentality.  what it does is that it ticks employers off and they become anti-union and then unions have to fight even harder for what probably wouldl've been afforded to them without the show and drama.
09:13 PM on 07/06/2012
I think unions days are over. Better would be a sort of enforced employee ownership program. If you get hired you become an actual part owner which would increase year by year. Profits would have to be shared to some percentage but wages/positions would be based on merit. If fired ownership could be retained or sold.

Human nature and the protection of a union have costly consequences for companies that are just too time consuming and inflexible. It just doesn't work. I've worked in unionized environments for a few decades and I know what I'm talking about.

Give a person a real ownership role and a share in the profits and everything is better.
10:28 PM on 07/06/2012
The problem with the "meritocracy" model is that it never works that way. Promotions go to those who are willing to kiss ass and not make waves, not to the most deserving workers. And union days are far from over. We need unions now more than ever.
photo
NTodd
Aude Sapere
03:13 AM on 07/07/2012
Who defines what "merit" is? Who ensures that however "merit" is defined, that it's not corrupted by racism, sexism, or nepotism? Your model settles no questions about accountability. You say you "worked in unionized environments", yet you don't specifically say that you were in a union. Why is that? As far as costly consequences is concerned, as Georgetti points out, recent history has shown that NOT having a union is pretty costly for workers.
11:18 AM on 07/07/2012
There are many ways to judge merit. How do unions avoid racism, sexism or nepotism? Unions reject merit and accountability on principle.
08:20 PM on 07/06/2012
Hudak will be the reason myself and most of my union brothers will NOT be voting PC in the next election eh! The man's a moron and proved that with his comments about Caterpillar's reason for moving to the states. CANADA is not Mexico and as soon as these arseholes in government wake up to this fact and back their people things are going to get real ugly in this country. And trust me it will be sooner then later.
11:23 PM on 07/06/2012
So what were Caterpillar's profits in London?
12:07 PM on 07/07/2012
they were profitable, there were no reasons to ask for the concession. it was a ploy. they never intended to run the London plant. they bought it to acquire the intellectual property developed in Canada,
photo
lilkitten22
Be the change that you wish to see in the world
02:33 AM on 07/07/2012
There's more than enough reasons to never vote PC, this is one of them, and I'm not even in a Union.
photo
HUFFPOST SUPER USER
arkymorgan
Nobody knows the trouble I've been...
07:57 PM on 07/06/2012
Always assuming, Mr. Georgetti, that Hudak and his likeminded colleagues have the slightest interest in supporting a healthy and large middle class.

I suspect they do not. I suspect that the last twenty years have been a concerted attack on the public perception of unions in order to destroy them, and to reduce the bulk of us to the ''working poor'' - a frightened and expendable resource to further enrich the coffers of the few.

The weight of history is against them, of course, but the rich have always been amnesiacs when it comes even to the recent past, and rarely have they realized their peril until the rest of us have reminded them of our power, almost inevitably through violence.

Sadly, they seem on a repetitive collision course, once again.