Stats Canada says 4.7 of our 18 million workers are covered by a collective agreement. Since 20% of our workforce is employed by the government — and gov workers are 80% unionized — this leaves just over 1.8 million within the private sector, or 12.5%.
Opponents feel unionization has outgrown its purpose and question current validity. They say unions interfere with free-market economics and only serve to give lazy people a job. Regardless, there are two instances where unions are essential:
- sole employer
- blue-collar trades
Since government services are almost always provided by a monopoly, there is no opportunity for the free market to operate. For example, teachers can only work for the province. That’s why we have the Alberta Teachers Union. There is no marketplace for individual talents to be tendered among numerous employers.
And hey, unions do more than just collective bargaining. They provide apprenticeship training and sometimes manage employee benefits. These two additions are popular in the construction industry. White-collar trades like law and accountancy, have societies that collect dues and perform similar duties for their profession, but their educational component is delivered by public institutions (say, a university). Tradespeople aren’t taught solely in a classroom so the public system doesn’t work for them. Most of their training comes “on the job,” administered by a union.
Plus, certain occupations aren’t conducive to long-term employment within a single firm. Many tradespeople (e.g., welders, pipefitters, steamfitters) work for a number of companies throughout the year. In their world, general contractors win the work and then hire from the local union hall. When the job is done, the employees are done. And because of this hopping around, instead of using the system where employers manage benefit plans, the union does it—because it makes sense.
Middle class
Government and the construction industry are unique in their requirements for unionization but there is another type of company where unions are popular: large blue-collar corporations that provide essential goods, especially in regulated industries.
The theory goes like this: since everyone must buy water, why shouldn’t the guy pumping it be well paid? That’s why unions are prevalent throughout airlines, auto manufacturers, breweries, energy companies, power companies, telephone companies, and the like. None of which need the administration of benefits (since they provide long-term employment) or the training to certification process (because they are non-trade occupations). So these unions exist primarily for the purpose of collective bargaining. Bargaining which ensures society maintains a middle class.
Unionized workers plus non-union government employees (e.g., management) represent 30% of our workforce. Add in regulated white-collar industries (like, banks and insurance companies) and you see why most Canadians live well. Plus, these groups affect non-union wages. For example, computer programmers in industry are compensated along the same line as those working for government. It’s like gov unofficially regulates white-collar wages, while unions do it for blue.
Summary
Most of today’s unions act as minimum wage for the middle class. Decent wages, good benefits, and pension plans. Tenets that illustrate some of our advancements over raw capitalism. And though some argue that unionization of the manufacturing industry has led to jobs being shipped overseas, that isn’t true. The general reasoning behind globalization has a lot more to do with it.
In the end, we’ve arrived at a point where we have rich people, who do great; a large middle class, who live well; and minimum wage for those who make us hamburgers. Hey, it works.