“More than 60 per cent of union members outside Quebec (and 52 per cent in Quebec) work in the public sector,” he writes. “The workforce is becoming increasingly polarized into two groups: non-unionized private-sector workers and unionized public-sector workers. More than five out of every six Canadian workers fall into one of these two categories.”
The well-nigh conclusive evidence that unionization destroys economic value and would struggle to survive in competitive environments: only 13.7 per cent of Canada’s private sector workers were
unionized as of 2023, down from 19.0 per cent in 1997 (the earliest year with comparable Statistics Canada data), while 73.5 per cent of public sector workers were unionized in 2023, up from 69.8 per cent in 1997.
Similarly, in the United States, the Bureau of Labor Statistics
reports private sector unionization excluding agriculture was 6.1 per cent in 2023 versus public sector unionization of 32.5 per cent.
The differences in unionization in the private versus public sector are striking; so too are the significantly higher unionization rates in Canada versus the United States.
Differences in labour relations laws explain much of this. In 2014, the Fraser Institute published
rankings of how balanced labour relations laws were across 61 jurisdictions — the 10 provinces, the Canadian federal government, and 50 US states. The rankings considered such things as whether a secret ballot vote is needed to certify a union, whether workers who do not want to join a union could be forced to pay union dues, whether temporary replacement workers are allowed in the event of a strike, and so on.
Out of 61 jurisdictions, the Canadian federal government placed dead last with labour relations laws that most heavily favoured unions, an imbalance now made even worse with the Trudeau government’s recent legislation to
ban replacement workers during strikes and lockouts in federally regulated workplaces — including railways.
Spots 51 through 60 were taken by the 10 provinces, with Alberta deemed the least worst province in Canada for labour relations laws, but with worse laws overall than all of the states (despite doing better than the states in some areas).
Unbalanced laws that give extraordinary privilege to unions not only destroy economic value and increase the risk of work stoppages, but they fail to protect workers. It is well established that workers are protected
not by unions or government regulation, but by employers bidding for labour.
“The employers who protect a worker,” as Milton Friedman famously
explained, “are the people who would like to hire him, but for whom he doesn’t work. The real protection that a worker gets is the existence of more than one possible employer. That’s what gives him freedom; that’s what enables him to get the full value of his services. It’s competition. It’s a free market.”
The federal government has made it much too easy for them to hold Canada hostage
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