It seems so warm-and-fuzzy to think of a brotherhood of men and women joining forces to protect the rights of workers against the ravages of savage exploitation by heartless capitalist employers. Well, that kind of image might have made sense a hundred years ago, but it sure isn’t what is going on anymore. Private citizens are now being exploited and abused by Labour Unions.
The “trades” that unions realy represent in the modern economy are largely civil servants, teachers, nurses and hostpital employees. The folks that work for your government – in other words they work for you. Over 80% of union membership is in the public sector. Unions have little to do with the private sector anymore, except in certain industries like autmotive manufacturing, steel and similar old industries which are increasingly disappearing from the Western hemisphere. Less than 15% of private sector workers are members of unions.
Interesting, eh ? So Labour Unions are mainly government employees. These are the people with pension benefits indexed to inflation and based on salary x service (defined benefit plans) rather than the money contributed (defined contribution plans) that create huge funding deficits. These are the people with the platinum-plus health plans for medical, dental and everything else that mortals and private businesses can’t afford. These are the people who never get laid off or early-retired for redundancy when the economy tanks – they are immune to unemployment. And these are also the people who get paid top dollar – union wages are 20% higher on average than the private sector.
How did that happen – that public servants make more and have better benefits than private sector workers ? Didn’t the system used to be that risk and rewards were somehow related ? Not anymore…. because collective bargaining systemically discriminates against the public interest. Government officials, especially eleccted officials are beholden to union votes,which are manipulated to act as voting blocs in elections by the tyrants who run them. When a union strikes the government the public at large suffers the consequences of lost services and even health, safety and security risks that are fundamental to the orderly function of society. Politicians can do the math and see that hard bargaining leading to a strike is political suicide.
And there’s more. Since going to a strike is no good, why not go to arbitration ? The interesting thing about arbitration is that it is performed by a whole industry of professional arbitrators whose very jobs exist only to decide issues between unions and management. In other words, the arbitration industry was created by unions. So this means arbitrators are beholden to unions for their very existence. Should it be any wonder that negotiators have consistently found that going to arbitration invariably results in the arbitration decision siding with the unions ? Recently in Toronto the City government settled a strike with the sanitation workers (and others) by largely giving in to their demands because, they argued in public, it is always cheaper to settle than go to arbitration. Game over.
So now we have government in a situation where it is political suicide to fight the unions and they can’t win anyway because the unions are happy to go to arbitration and win everything they want from arbitrators who share their interests. Small wonder collective bargaining has deteriorated into feeding greedily from the trough. The unions can get anything they want – huge pensions, job security. health benefits, paid sick time, and a host of other benefits.
And then they legislate health and safety conditions that work great in a nice safe office but don’t translate very well to reality. I got a letter a few months back from a crown agency advising me that my one-person company (sole employee yours truly) would have to provide wheelchair access to my office to comply with employment standards, or else they would be unable to do business with me. My offfice is in my basement for heaven’s sake ! Welcome to the fantasy land of government policy makers. Funny perhaps ? – I lost a client. I weep.
Now look at the private sector. It has to compete for labour against this ? Hopeless. Top dollar wages, unsustainable benefits funded by deficits is not a business model that the private sector can compete with. The solution: one of three choices make sense
- Close shop altogether
- Take the jobs overseas or
- Get grants and tax concessions for “job creation” from the government to make the numbers work.
That’s what is happening al over North America. Leviathan is here and it is choking us to death.
Fact base:
Labour Organizations with Largest Membership—2007 | |||
Name and Affiliation | Number of | Public Sector | |
Members | |||
Canadian Union of Public Employees – CLC | 548,880 | 548,880 | |
National Union of Public and General Employees – CLC | 340,000 | 340,000 | |
United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union – AFL-CIO/CLC | 280,000 | ||
National Automobile, Aerospace, Transportation and General Workers Union of Canada (CAW Canada ) – CLC | 265,000 | ||
United Food and Commercial Workers Canada – CtW/CLC | 245,330 | ||
Canadian Teachers’ Federation | 219,000 | 219,000 | |
Public Service Alliance of Canada – CLC | 166,960 | 166,960 | |
Ontario Teachers’ Federation (1) – CLC | 155,000 | 155,000 | |
Communications, Energy and Paperworkers Union of Canada – CLC | 150,100 | ||
Canadian Federation of Nurses – CLC | 135,000 | 135,000 | |
Fédération de la santé et des services sociaux – CSN | 117,130 | 117,130 | |
Ontario Public Service Employees Union (2) – CLC | 113,500 | 113,500 | |
Teamsters Canada – CtW/CLC | 108,510 | ||
Service Employees International Union – Canada – CtW/CLC | 86,860 | ||
Elementary Teachers’ Federation of Ontario – CLC | 71,690 | 71,690 | |
Alberta Union of Provincial Employees – Ind. | 69,000 | 69,000 | |
Canadian Police Association | 66,800 | 66,800 | |
Laborers’ International Union of North America – CtW | 65,000 | ||
FTQ Construction – CLC | 61,600 | ||
B.C. Government and Service Employees’ Union (2) – CLC | 61,564 | 61,564 | |
Ontario Secondary School Teachers’ Federation – CLC | 60,700 | 60,700 | |
Fédération des syndicats de l’enseignement – CSQ | 60,000 | ||
International Brotherhood of Electrical Workers – AFL-CIO/CLC | 57,130 | ||
Fédération interprofessionnelle de la santé du Québec – Ind. | 55,290 | 55,290 | |
Canadian Association of University Teachers | 55,000 | 55,000 | |
Canadian Union of Postal Workers – CLC | 54,000 | 54,000 | |
Ontario Nurses’ Association (3) – CLC | 51,000 | 51,000 | |
United Brotherhood of Carpenters and Joiners of America – CtW/CLC | 50,000 | ||
Fédération des employées et employés de services publics inc. – CSN | 48,000 | 48,000 | |
UNITE HERE Canada – CtW/CLC | 46,000 | ||
United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada – AFL-CIO/CLC | 45,530 | ||
Professional Institute of the Public Service of Canada – Ind. | 44,830 | 44,830 | |
British Columbia Teachers’ Federation (1) – CLC | 44,750 | 44,750 | |
Christian Labour Association of Canada – Ind. | 42,876 | ||
Syndicat de la fonction publique du Québec – Ind. | 42,500 | 42,500 | |
International Union of Operating Engineers – AFL-CIO/CLC | 40,000 | ||
International Association of Machinists and Aerospace Workers – AFL-CIO/CLC | 38,700 | ||
Centrale des syndicats démocratiques (directly chartered unions) – CSQ | 37,768 | ||
Ontario English Catholic Teachers’ Association (1) – CLC | 36,000 | 36,000 | |
Alberta Teachers’ Association (1) – Ind. | 35,310 | 35,310 | |
Canadian Office and Professional Employees Union – CLC | 34,000 | ||
Fédération du commerce inc. – CSN | 33,940 | ||
Manitoba Government and General Employees Union (2) – CLC | 33,828 | ||
4,374,076 | 2,591,904 | Total | |
(1) Component of Canadian Teachers’ Federation; | |||
(2) Component of National Union of Public and General Employees ( NUPGE); | |||
(3) Component of Canadian Federation of Nurses Union. | |||
Source: Strategic Policy, Analysis, and Workplace Information Directorate, Labour Program, Human Resources and Social Development Canada. |
Arbitration can often make the process much more reasonable than normal negotiating, because it typically drives the parties to be more reasonable than they would otherwise be. For that reason, most unions resist having arbitration as part of the negotiating process.
Thanks for your thoughts Joseph. Arbitration has proven to be one-sided in Canada: the union side always wins. Our politicians are on record saying that arbitration invariably costs more than caving in to union demands at the table. This suggests that arbitrators favour the parties towhich they owe their living: organized labour.
There was a time when labour needed unions. But that time has long passed and it never was appropriate for government employees.
Dave, you’re absolutely right. Unions did have a legitimate purpose at one time…but they are clearly outdated now. It’s no surprise that the industries which still have major unions are largely the ones that are very old with legacy players–auto, airlines, etc. You don’t see unions much in new industries like tech!
So now we have government in a situation where it is political suicide to fight the unions and they can’t win anyway because the unions are happy to go to arbitration and win everything they want from arbitrators who share their interests
I take exception to the idea Arbitrators are backed by Unions, and beholden to them. The state of the American union is so bad, that often the Arbitrators are just there to make sure the boss gets what he wants. Deals are often made before negotiations begin. Moreover, so many officers in the unions are just the sponsored lap dogs of the bosses.
Take exception, at least you are thinking. Of course I disagree, utterly with the comment but respect your right to be wrong.
I agree with you ,i think your opinion is right, thank you very much !
Nice to see a post supported by a lot of facts.
I think you are right.It is necessary for us to make good use of labor unions.
I had no idea there were that many in the steel, paper, etc union.
Labor unions can help their members by negotiating collectively for wages and benefits that are often better than individuals could negotiate on their own. A worker would have little chance of success in going to an employer as asking for a pay raise simply because he couldn’t make ends meet. He would likely be fired on the spot, especially in the 19th century, for making such a demand and cutting into the employer’s profits. Unions, however, can make the same requests and have the benefit of representing the entire workforce, with a greater chance of success.
The 19th Century is now officially over. Next argument please.
very useful information and thanks for sharing
this.
nice information!I agree with you ,i think your opinion is right,It is necessary for us to make good use of labor unions.Labor unions can help their members by negotiating collectively for wages and benefits that are often better than individuals could negotiate on their own. A worker would have little chance of success in going to an employer as asking for a pay raise simply because he couldn’t make ends meet.I think deals are often made before negotiations begin.Thanks a lot for Sharing this great Article!
As a manager in a labor union environment, I love this article. Labor unions have too much power. They have almost as much power as the business. They had their place in society. However, they are abusing their power and rights. They do not even protect their members like they should. So, with all the laws of today protecting others, labor unions should be shown the exit door. They destroyed the auto industry. Jobs are continually being shipped overseas. The funny thing is that union members point at consumers for buying foreign products. But some union members were getting paid $30 hr/ or more just to stand there and inspect garbage. I would look to replace those workers too and hire someone for less.
A worker would have little chance of success in going to an employer as asking for a pay raise simply because he couldn’t make ends meet. He would likely be fired on the spot, especially in the 19th century, for making such a demand and cutting into the employer’s profits.
Perhaps this is so, Mr Johnson, but the 19th century is officially over according to sources I trust. In the 21st century unions have undue political influence because they staff the government of the day and can hold providision of government services at ransom and accordingly they are choking the life out of what is left of the “real” economy – that is the economy run by the private sector… which pays 100% of the bills.
These people can actually topple businesses, as they are considered more powerful than the company owners themselves.
I posted this blog on zobba and asked people for their opinion on unions. It seems that a majority of people still think that they are needed for fairness, although 34% think that they aren’t needed anymore and 26% believe that a structure change is necessary.
Here’s the post: http://zobba.com/z/What_is_your_opinion_of_unions
This article really suited for what I’m searching… Thank you for sharing it… I appreciate this post so much… Labor unions is indeed important in our society…
@Dave, good observation
I have to say that unions are outdated and have proved themselves useless in this situation. Its time a new way of discussions were found.
Unions can be of benefit for those battling for better wages and rights in a workplace, however increasingly I’ve seen employers writing into contract that employees agree to wave their right to join a union by working at that company. Good to see a well researched post.
Great article. Can I use it im my work?
Sure thing… but please use appropriate citations and link to the article if online. Basic courtesies apply.
Unions are nothing more than red tape these day, they simply get walked over and crumble at the first sign of trouble.
Great article with many statistics.
I like your type of writing. Don’t stop.
regards
Impressive paper.
I have learned so many things from your post. This is very informative and educational as well. Yes, I agree that it is no good going to a strike, and go to arbitration instead.
Hi,
I am Amy Lewis, a financial writer. I have checked your blog davemcnab.com and found some quite interesting articles on Finance with lots of information. I would be highly obliged if you allow me to do relevant informative guests post in your blog. I’ll be very glad to be your guests writer and I can give you 100% original informative content for your blog. It will be published only on your blog.
Great work. Informative.