Autoworkers participate in the annual Labour Day prade through downtown Toronto on Sept.3, 2007. A new study shows that over the past two decades, Nova Scotia's economy has grown by 62 per cent, but most of the workers here aren’t sharing in that good fortune.
Think-tank: Nova Scotians working more for less
N.S. is ‘a low-wage ghetto’ - Nova Scotia News - TheChronicleHerald.ca
Nova Scotians are working harder, but their paycheques are shrinking, according to a report by the Canadian Centre for Policy Alternatives.
Co-author Larry Haiven said Thursday that over the past two decades, the province’s economy has grown by 62 per cent, but most of the workers aren’t sharing in that good fortune.
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"I think employers have gotten used to the fact that this is kind of a low-wage ghetto," Mr. Haiven said, "and that the way they can make profits here is not by investing in plants and equipment and new technology, but rather just riding a wave of low wages."
The report, to be released today, said even though Bluenose employees work more hours than many people in other parts of Canada — including a lot of unpaid overtime, working at home and skipped vacation time — their weekly earnings have actually dropped five per cent in the last 15 years. It said the average weekly pay in 2006 was $658.94, down from $676.49 in 1991.
Since 1990, Nova Scotia’s labour productivity has grown by 25 per cent.
"The decrease in the labour share is not surprising: the average weekly earnings of Nova Scotia workers have been diminishing while the economy was growing, so they clearly were not the ones reaping the fruits of their hard work," said the report, co-authored by Mathieu Dufour.
"But if not to workers, the growing prosperity had to accrue to somebody else."
It suggests corporations and their owners are the prime beneficiaries of that growth.
"Nova Scotians have contributed to the province’s prosperity through work and improved productivity, yet most have seen no benefit, and many have suffered. A very select few have profited enormously," the report said. "This is not the way it is supposed to be. Under capitalism, the poor and the working class may fall behind in bad times. But are they not supposed to gain when the economy is booming, especially when their work is contributing to the province’s prosperity?"
Mr. Haiven said government could help out by making unionization easier and using tax incentives to encourage employers to invest in new technology and worker training.
Labour Minister Mark Parent, who had not seen the report, pointed to Premier Rodney MacDonald’s recent comment that surplus employment insurance funds should go toward worker training.
"Certainly, my department is convinced that skill development in the workforce results in significant economic gain," the Kings North MLA said. "The goal of having high-paying jobs is what our strategy is focusing on."
He said the decline in wages may have something to do with the shift from manufacturing jobs to service jobs, which typically pay less.
As for making it easier to unionize, Mr. Parent said, the province has to be a neutral party between employers and employees.
Mr. Parent said his department is trying to bring more aerospace, information technology, finance and other high-paying jobs to Nova Scotia.
Valerie Payn, president of the Halifax Chamber of Commerce, disputes the notion that businesses view the province as "a low-wage ghetto."
She said it’s a workers’ market right now, and employers have to offer competitive wages to attract and retain the best and the brightest.
"Business is in a war for talent and business will do its best to keep this talent, and compensation is one of the issues," Ms. Payn said.
She pointed out that the economic situation has changed recently, and it will be interesting to see if the report’s findings still apply.
Oh they will still apply, and will get worse. We get paid less because the employers claim the market here isn't as good as it is elsewhere in the nation, so they can't offer decent pays..... which is of course absolute Bullsh*t if you ask me, as I see them driving around in their fancy cars and big homes..... people here who decided to stick it out have simply gotten used to the fact that you either take what they give you, or you move out west, because there will always be some schmuck fresh out of university with very little experience they can pay for far less, because they don't know any better..... it's more of a vicious cycle around here that the companies and employers know how difficult it is for people to get jobs around here, there's a large population out there continually looking for work, and we have one of the highest concentrations of universities and colleges in Canada.... so due to the amount of people looking for work, compared to the amount of available jobs and growth here.... the companies can pretty much get away with whatever the hell they want. They don't have to offer you a bigger pay compared to the next company's offer.... they'd just tell you to go work for them if you don't like their offer.... cuz there's hundreds of inexperienced people ready to be suckered just waiting in line behind you.
The overall employment spectrum here in NS has certainly soured my view on things..... this report just explains it in a more PC manner without actually focusing on the real problem so as to not hurt anybody's feelings..... or perhaps so they don't lose their job or get a pay cut..... ha ha... I made a funny. :angry3: