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Canada needs lower benefits/pensions (or wages) for most public sector jobs and far more restrictions for unions of public / monopoly employees

Thomas Beyer

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Aug 30, 2007
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Reflecting on the Vancouver Island University strike and its impact on students, the lengthy strike by garbage workers in Toronto a while back, the current possibility of a TTC strike, the huge public sector deficits in countries like US, Spain, Greece and Portugal, and the recent restrictions on bargaining rights in Wisconsion and Ohio I think it is time for Canada's politicians on both the federal and provincial level to also address these issues.



Public employee's salaries,and especially their indexed pensions, ARE GENERALLY 25-35% TOO HIGH, and too many jobs that could be done by the private sector are done by public employees. This increases taxes, government deficits and throttles the growth of Canada's economy.



Of course it is paramount that public services are performed by capable employees with comparable salaries to the private sector. The private sector usually comes with the risk of layoffs. This means, similar public jobs needs to be paid 10-15% LOWER as there is almost no risk of layoffs. In addition, most private sector jobs do not come with employer funded pensions. Therefore, if a pension is included, depending on the pension, a salary should be a further 10-20% lower. Add to that the right to strike without the risk of a bankruptcy and far more restrictions need to be placed on unions of public employees in Canada.



If 25 workers strike at Safeway, or 5000 at Ford, or 200 at a manufacturing plant, there is a strong likelihood of bankruptcy of those firms after a lengthy strike. As such moderation, a low degree of strikes and reasonable wages, agreed to by workers and owners (via a union or not) is usually the result. This is not the case if a city worker strikes or a hospital worker or a publicly owned garbage collection department. It has a monopoly.



Union rights in a monopolistic environment, like public service need far greater restrictions than in a competitive private environment.




Canada needs to look at Europe and the US, and avoid their very large deficits teetering on bankruptcy, often due to too high public salaries and wage growth. Ontario is finally waking up to it .. and banning the strike of street car driver in Toronto (see article in paper today here) but ever so slowly. Ottawa isn't doing anything in this area. It is not even an election topic. WHY NOT ?



Your thoughts ?
 
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