Have public unions failed the public?
Published Monday September 5th, 2011
Bill tufts
and Lee Fairbanks Commentary
Bill Tufts and Lee Fairbanks are the authors of a book being released by
John Wiley and Sons next month, called Pension Ponzi,
How Public Sector Unions are Bankrupting Canada's Health Care, Education and
Your Retirement.
http://telegraphjournal.canadaeast.com/opinion/article/1437266
The term "labour
movement" refers to the campaign by workers usually organized in unions
who are "fighting" for better employment conditions from employers.
The movement uses the leverage of strikes and other work campaigns to force
governments and employees to give workers their "rights."
Public-sector
union members protest cuts by the provincial government outside the legislature
in 2009. The number, and benefits, of public sector workers have promoted calls
to reduce the size of government.
At one time, workers in North America required collectivist action to be fairly
treated and properly compensated for their labour.
Most government have now enshrined into labour laws
the working conditions that unions originally protested for - such things as
minimum wages; restrictions on child labour; working
hours; and injured worker compensation. We have the unions to thank for this
protection.
In this century, however, the labour movement has morphed into a protection group focused
on extracting more money from taxpayers. Most unions in Canada are
public sector employee groups.
Canada has some of the most
restrictive laws in the world to protect unions, and also the highest levels of
union participation in government. Currently in Canada, 71 per cent of the public
sector is unionized but only 16 per cent of the private sector. In the U.S., the
numbers are 36 per cent and 8 per cent, respectively.
Public sector unions have created an
environment where any suggestion of reforming their entitlements has become a
third rail for politicians - the third rail being the high voltage cable
running beside an electric train; touch it and you are instantly killed. For
politicians the topic is political death. Politicians have decided that rather
than fight the unions on wages, pensions and other entitlements, they will
simply jump on the bandwagon of taxpayer funded goodies and extract the same
benefits for themselves. These include early retirement, big wages, great
benefits and platinum-plated pensions.
Mark Steyn,
in his new satirical book, 'After America: Get Ready for Armageddon',
made clear that this unholy venture between politicians and our employees has
created the most powerful political party of all, the "government
party". The power of union votes ensures that politicians must listen to
them if they want to be elected. Of course, this means promising them security
for their ever increasing wages, golden benefits and outlandish pensions.
In Canada, no information is available
on how unions spend their money or how much they collect in union dues. In the U.S., unions
are required to fully disclose this information to the Department of Labor on
an annual basis. In Canada,
it is all hush hush.
The amount of money raised and spent
by public sector unions is astounding. One union, for example - the Canadian Union of Public Employees (CUPE) - charges each of its
600,000 members a total of $800 per year. This would amount to $480 million.
Considering that there are 3.6 million public sector employees in Canada, the
dollars become pretty staggering.
The political influence and money
available to public sector unions means that they have become Canada's
protected class. Or, as one commentator puts it, the public servants have
become the masters.
Every year, Statscan
produces a report called Unionization. It tracks the success that unions have
had in the previous year. There are 4.2 million unionized workers in Canada, and a
majority of them come from the 3.6 million public sector employees. Union
workers earn 15 per cent more in wages, and this does
not include benefits or pensions. In the last report, unions saw an average
wage increase of 3.5 per cent versus 2.7 per cent for non-unionized workers.
The biggest success that unions can
point to for their members is in pensions. Today, the public sector has 82 per cent
of its workers with defined benefit pensions, compared to the private sector
with only 15.7 per cent.
Pensions have been a wealth transfer
from taxpayers into the pension accounts of public sector employees. Today in Canada, the
public sector unions have accumulated $800 billion in assets, while private
sector pensions have $350 billion and the total retirement savings for Canadian
in RRSPs is $750 billion. The average Canadian at age
65 has $60,000 in RRSPs, while Montreal released its pension numbers showing
that the average police officer retires at age 53 with a pension for life
starting at $59,000, which is, of course, indexed. In the Montreal example, the employees will earn
twice as much in pensions as they received in salaries over their working
careers.
Changes need to be made in the way
that unions operate in Canada.
In hindsight, unions should never
have been allowed in the public service. U.S. President Franklin D Roosevelt
was a strong supporter for labour rights during the
1930s; however, he predicted the folly of permitting unions into government
workplaces. He wrote, "Meticulous attention should be paid to the special
relations and obligations of public servants to the public itself and to the
government . . . The process of collective bargaining, as usually understood,
cannot be transplanted into the public service . . . a strike of public
employees manifests nothing less than an intent on their part to obstruct the
operations of government until their demands are satisfied. Such action looking
toward the paralysis of government by those who have sworn to support it is
unthinkable and intolerable."
It is time to rethink unions and
their place in our modern society.
We have seen many Western countries
brought to their knees under the weight of public sector union demands. Let's
act before it is too late.
http://telegraphjournal.canadaeast.com/opinion/article/1437266