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Unions do much more than promote social and industrial peace and orderly
labour relations. Unions directly raise the standard of living of their members
and indirectly raise the standard of living for all Alberta workers. Unions
reduce social inequality, enable government to provide better public services,
and promote higher productivity.
1. The economic advantage of union membership
Everyone knows that union members make higher wages, but few are aware of
just how much higher the union wage premium is. In Alberta, a wage survey
conducted by StatsCanada in 1996 found that, on average, union members earned 30
per cent more than their non-union counterparts in the same occupations.
At a national level, Labour Force Information (Stats Can 71-001) found that
in March 2001, the average union hourly wage was $19.77 per hour compared to
$15.92 for non-union workers. Average weekly wages for union members were 24 per
cent higher than for non-union workers.
Union members spend their higher incomes in their communities – to the
benefit of local businesses. Union members also pay higher taxes into provincial
coffers – providing the provincial government with the means to provide better
public services. Furthermore, union wage levels provide a benchmark that pushes
up wage levels for non-union workers.
2. The effect of other union benefits
Perhaps the most important union benefit other than wages is the fact that
almost all union members have pension plans. It should come as no surprise that
Alberta has both the lowest unionization rate in Canada at about 24% - we also
have the least number of people with registered pension plans at 25.6 %. Seniors’
poverty and health issues are becoming a more and more critical problem for the
province. If we had higher union density, this problem might not even exist!
Union members also enjoy other benefits that most other workers do not.
Dental plans, sick leave provisions, and other supplemental health care plans
enjoyed by union members take pressure off the public system and promote a
healthier workforce.
3. Unions encourage higher productivity
Higher wage levels commanded by union workers force management to be more
efficient. In fact, high wage economies tend to be more productive and quicker
to adopt new technologies. High wage economies generally have lower levels of
unemployment. And, because of the spin-off effects of higher tax revenues and
more productive company operations, high wage economies tend to support higher
quality public services and social programs, lower crime rates and higher
literacy rates.
If unions are such a good thing …
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