Saturday, 5 September 2009

Study reveals growing income gap in Saskatchewan - Labour Day 2009


Labour Day is a national holiday to celebrate workers’ economic and social achievements. On the one hand, workers in Saskatchewan have much to celebrate: they continue to be a fundamental driver of the economic and social life of our province. Our labour creates the infrastructure, services and goods that support our communities. We contribute to the economy through our taxes and we spend most of our wages locally.

But this Labour Day, Saskatchewan’s working families are faced with some stark facts about how they have fared from 1976 to 2006. The Canadian Centre for Policy Alternatives (CCPA) Saskatchewan Office has just released the report Boom and Bust: The Growing Income Gap in Saskatchewan. It analyzes Saskatchewan family earnings from 1976 to 2006 and reveals that thousands of low and middle income families have failed to thrive during these years of neoliberal economic policies.

Even though the overall economic pie has been growing, the slices for families raising children, the cohort in the study, showed that income of the bottom half of earners has remained the same, or even worse, decreased in size.
The benefits of the larger pie have gone almost exclusively to the richest 10 per cent of families.

For the half of Saskatchewan families with children that were the least well off, median earnings and after-tax income were actually lower in real terms in 2006 than they were in 1976. And their share of total earnings and after-tax income was lower in 2006 than in 1976. In contrast, the richest 10 per cent of families increased both their real income and their share of total income.

Through periods of both bust and boom in Saskatchewan’s economy, the income gap has widened. Income inequality reached an unprecedented level in 2006.

The data also shows that families are employed more weeks in 2006 as compared to 1976, yet only the richest 10 per cent have made gains in income.

So why does income inequality matter and why should we care that inequality is increasing?

The CCPA study, authored by retired sociology and social studies professor Paul Gingrich from the University of Regina, argues:

The economic costs of poverty are staggering, for taxpaying households and for governments.

• An Ontario report The Cost of Poverty reveals that in real terms poverty costs every household in Ontario from $2,299 to $2,895 every year. The Ontario government loses $10 to 13 billion a year due to poverty, between 10 and 16 per cent of the provincial budget.
• Treating the symptoms of poverty is expensive. Consider the incremental costs to the health system that result from the lower health status of those who are poor, the costs to the justice system, and the costs of government social transfers, when thousands are living on the margins.
• The social costs of poverty are well-known. Societies that allow their social capital to decline face growing incidence of social dysfunctions. When such conditions become endemic, breaking the cycle is extremely difficult, which in turn discourages new capital investment, perpetuating a negative cycle.

The latest international research based on United Nations data sources demonstrate that social problems are related to the distribution of wealth in a society, not to its overall wealth.

• The growing gap in income inequality results in more social problems like mental illness, substance abuse, teen pregnancy, male violence, homicide, incarceration and shortened life expectancy.

Gross income inequalities stand in the way of a vibrant democratic system.

• Frank Cunningham, professor of philosophy and political science at the University of Toronto, sees three attitudinal trends emerging from the growing gap:
• Inequalities foster elitism and resentment. The well off resist progressive change and exert disproportionate influence in the political system.
• As the most well off continue to succeed, they are encouraged ‘to leave the boat’. They isolate themselves from the rest of society physically and psychologically and resist economic measures that are fundamentally redistributive.
• Poor families are threatened with becoming beggars and become dependent on the charity of the well off and of government transfers. These conditions lead to disillusionment, despair, cynicism and low participation in the political system among those at the bottom of the social ladder.

Inequality reduces the life chances and opportunities for children.

• There are too many children trapped in poverty; their full potential to contribute economically and civically is lost. There are also intergenerational and opportunity costs: consider how much productivity and tax revenues society loses when children of successive generations fail to escape poverty.

The findings of this study are critical food for thought and action for governments and communities. Without unions, the gap between rich and poor would be much worse. Unions help reduce the gap by giving workers a vehicle to negotiate better wages, benefits and protections.

This Labour Day let’s celebrate the efforts that the union movement makes to build a more caring and sharing society.

Larry Hubich, SFL president

To read the full the full study, visit www.policyalternatives.ca and www.growinggap.ca

Thursday, 3 September 2009

Celebrate Labour Day 2009 - SFL

CELEBRATE LABOUR DAY

The Saskatchewan Federation of Labour (SFL), which represents 95,000 workers from 36 national and international unions wishes all citizens a safe and enjoyable Labour Day weekend.

SFL President Larry Hubich said “Labour Day is a good time to get together with family and friends to celebrate our work and our successes. As summer comes to an end, we can reflect on the past and re-dedicate ourselves to improving our lives and our communities.”

“Over the years, workers have organized themselves to improve working conditions, wages and benefits,” said Hubich, “these gains by unionized workers have often been passed on to other workers. The eight-hour work day, pensions, occupational health and safety legislation, harassment protection, and our public health system are among the many advances achieved with the assistance of the union movement.”

“Much remains to be done. Recent studies indicate that the rich continue to get richer, while the poor continue to fall behind,” Hubich added. “A recent study Boom & Bust: the Growing Income Gap in Saskatchewan shows that, between 1976 and 2006, the income of the bottom half of earners has remained the same, or even worse, decreased in size, while benefits of the larger economic pie have gone almost exclusively to the richest 10 percent of families.”

“There is much work to be done. For a start, we should: double benefits for the Canada Pension Plan (CPP); increase low income (GIS) pensions by 15% and introduce a national system of pension insurance,” advocates Hubich. “This would assist in providing retirement security for all Canadians.”

“As well, our Employment Insurance (EI) system must be overhauled to provide for those workers who have lost their jobs because of economic mismanagement. They have paid into the system and should have benefits in time of need,” said Hubich.

“Workers’ rights are under serious attack by those who control our economy. Labour Day is a good time to recognize that those who actually produce goods and services are appreciated as the real movers of our economy. Enjoy the holiday, relax, and get ready to build a better world.”

Wednesday, 2 September 2009

The fight for rights

From the September 2009 issue of the SFL Labour Reporter

Times are tough. The economic meltdown means companies are tabling rollbacks and trying to outsource union jobs. Government policies of privatization threaten our public services.

Unions continue to fight this corporate agenda on many fronts – the fall edition of the Labour Reporter will highlight labour’s fightback.

Unions are fighting for decent jobs and for workers’ basic right to unionize. Two current disputes are good examples.

RWDSU local 558 at the Coca-Cola plant in Saskatoon went on strike to protect the contracting out of union jobs. As we go to press, a tentative agreement has been reached.

The CLC has called for a national boycott against Old Dutch. The Alberta plant locked out UFCW 401 and is challenging the corporation’s obligation to deduct union dues.

Many trade unions and workers continue to advocate for their rights using the courts, with some notable successes.

For example, in a landmark Supreme Court decision on freedom of association, RCMP officers recently won the right to unionize.

The New Brunswick Union of Public and Private Employees (NBUPPE/NUPGE) recently had a section of its Public Services Labour Relations Act struck down because it excluded casuals, thereby violating their freedom of association.

Unions are also engaged in strategic campaigns to protect public services and our Crown sector.

Take a look at CUPE’s anti-P3 campaign. It exposes the P3 agenda for what it really is: putting public services like education and health care at risk so right-wing governments can reward their corporate friends.

CEP recently launched the Save Our Saskatchewan Crowns campaign. Find out how the government is making Crown corporations less profitable and potentially easier to dismantle.

Together, Saskatchewan unions are proudly protecting labour rights and the social fabric of our province.

Monday, 31 August 2009

Fraser Institute confirms that Wall government amongst most anti-union in North America

The rabidly anti-union and hard-right Canadian corporate lobby group, The Fraser Institute has confirmed that the Brad Wall conservative Sask. Party government is tied for the 2nd most anti-union government in Canada and the United States combined.
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In under just 2 short years, Wall and his caucus have ignored the constitutional rights of working men and women in Canada, and brought in legislation that makes it almost impossible for Saskatchewan citizens to exercise their entitlement to Freedom of Association under the Canadian Charter of Rights and Freedoms.
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The two images below come from the Fraser Institute's report on the "Comparison of Labour Relations Laws in Canada and the United States" (from the years 2006 and 2009).
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(Click images for larger view)
You will notice that in 2006 the Fraser Institute rated Saskatchewan's laws governing "Certification and Decertification (Organizing a Union)" as 56th out of 61 jurisdictions (You see, in The Fraser's eyes, workers being able to exercise their constitutional rights and form unions - is a bad thing.).

Now in 2009 (after anti-union Wall and his cohorts have gutted labour laws) the Fraser Institute rates Saskatchewan as tied for 2nd most difficult to form a union out of 61 jurisdictions. (The Fraser loves it when workers have no rights.).

To download complete copies of the Fraser Labour Law Reports click below:

Sunday, 30 August 2009

Boom and Bust: The Growing Income Gap in Saskatchewan

The Canadian Centre for Policy Alternatives presents
Boom and Bust: The Growing Income Gap in Saskatchewan


7 pm Thursday September 3rd
SGEU Hall 1440 Broadway St.
Regina, SK.


Featured Speakers:
Prof. Paul Gingrich, University of Regina
Peter Gilmer, Regina Anti-Poverty Ministry

Download printable poster here

Saturday, 29 August 2009

Wall government under the complete control of Sask. Chamber of Commerce


The Saskatchewan conservative government led by Sask. Party Premier Brad Wall is taking all of it's marching orders and direction from the Saskatchewan Chamber of Commerce. Wall's government is so deep into the hip pocket of the Chamber that they (the Chamber) might as well be called the "Real Cabinet". So much for democracy, accountablility, transparency, and legislating/regulating in the public interest.

In Brad Wall's Saskatchewan, it's corporations first - everybody else last.

Wednesday, 26 August 2009

The apple doesn't fall far from the tree

Veteran Regina Leader-Post political columnist, Murray Mandryk has written a recent piece entitled: Government made Devine error. In the column, Mandryk compares the Brad Wall (Sask. Party) conservative government to the most corrupt and incompetent government in Saskatchewan's 100+ year history - the Grant Devine conservative government of the 1980's.
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Are Saskatchewan citizens headed for yet another economic calamity and financial straight jacket due to another ideologically driven and incompetent government? Is the current government (which is totally and completely laden with former Grant Devine loyalists) capable of changing it's spots?
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Only time will tell. Don't hold your breath.

Sunday, 23 August 2009

Canada's Growing Income Gap - CCPA

What it takes to be number one - The Real News

"What it takes to be number one

The strike against Vale-Inco in Sudbury heats up as company threatens to use non-union labor

The nickel miner strike in Sudbury, Canada is about to enter its seventh week, and there is no sign that the company, Vale, is willing to compromise on its demands for concessions. This despite the fact that the demand for nickel has surged causing the price to rise and Vale to default on at least one contract. Worker's argue that the mine is hugely profitable, sighting $4B in profit made in Sudbury alone over the past two years, but as Industry Analyst Marin Kotusa explains, being profitable is just not enough. "You have to be number one in all sectors," he says, referring to the requirements for victory in the global mining game, in which the winners are the ones who integrate all facets of the supply chain, not just mining, into their business. This requires extracting as much profit as possible in order to finance the necessary expansion into other sectors, lest be gobbled up by one's competitors. The union however, believes that the federal government of Canada ought to protect its people against such threats, and that work can be done to unify unions around the world to even the playing field." -
For more information visit The Real News Network.

Universal Health Care Message to Americans From Canadian Doctors & Health Care Experts



"Making the Links and Wolf Sun productions have teamed up to put together this video message to Americans. While Americans have heard many ominous accounts of Canadian health care, this video provides important information on health care in Canada. It features Roy Romanow, former Saskatchewan premier and commissioner of an investigation into the future of health care in Canada, Danielle Martin, President of Doctors for Medicare, Linda Silas, President of Canadian Federation of Nurses Unions (CFNU) President, and Stephen Lewis, a prominent leader in Canadian Health policy."

Thursday, 20 August 2009

They're lying about Canada

American corporations are spreading lies about Canadian health care to kill Obama's health plan -- and with it his whole movement for change.

Sign a message to Americans about how Canada's system really works - and how much we value it. Let's set the record straight!

Tuesday, 18 August 2009

Why isn't the Sask Party government enforcing labour laws?

Can someone please explain to me why an employer can be prosecuted and fined for being in violation of the Saskatchewan Labour Standards Act by bouncing a couple of wage cheques as was the case with Tri-Star Security Innovative Security Services Inc. (see: Ministry of Labour website at: Enforcement, Accountability and Performance Measures).

And yet a different employer (Poverino's Pasta Grill) can be found in violation of the same Labour Standards Act for ripping off over $62,000.00 from 135 young workers and nothing happens? (see: Wage Theft in Saskatchewan).

Why isn't the Brad Wall government enforcing labour laws when it would benefit young workers? Why doesn't Labour Minister Rob Norris instruct the Ministries of Labour and Justice to prosecute Poverino's?

Monday, 17 August 2009

Wall Government's Budgetary Meltdown the Result of Fiscal Incompetence: says NDP

Reproduced below is a letter to the editor which has gone out to the mainstream media regarding the dismal and incompetent budget of the Sask. Party Government.

The letter was prepared by NDP Finance Critic, Trent Wotherspoon and was forwarded to me on his behalf.

Wall Government's Budgetary Meltdown the Result of Fiscal Incompetence

Dear Editor:

The Wall government has created a financial mess, but their friends in the corporate news media are busily trying to cover for them. Editorial pages and columnists suggest the government 'had no way of knowing' that its budget forecasts were so faulty, while others argue the situation 'still isn't too bad'. It's time for both the government and its cheerleaders in the corporate media to face reality.

The facts are these. The Wall government forecast $1.9 Billion in potash taxes and royalties this year to balance its budget; a few months later that number is off by 67% or $1.3 Billion! The government based its budget surplus on a forecast of 2.1% economic growth for this year; a few months later they've adjusted that to .6%! The result is that the government had to bleed our public utilities for $480 Million in dividends, and our so-called 'rainy day fund' for another $399 Million, just to maintain the façade of a balanced budget.

These problems are of the Wall government's own making. When its budget was introduced last March, the NDP pointed out the potash revenue projections and economic growth forecasts were out of whack with reality, and private sector forecasts. We urged the government to get its runaway spending under control. Government spending today is 32% higher than in the last NDP budget in 2007.

We urged the government to reconsider its fantasyland budget plan. It scoffed at our warnings and blindly pushed on. Today, Saskatchewan people are being asked to pay the price for the Wall government's fiscal incompetence.

It is worth noting the government created this mess during a time of unprecedented resource wealth for our province. They inherited a booming economy and record resource revenues from the NDP, but during this period they have drained our so-called 'rainy day' fund from more than $2 Billion to only $800 Million. A competent government would have grown the 'rainy day' fund during the boom times, but this crew has blown more than half of our cash reserves at the height of the boom!

Now the Children's Hospital has been delayed another year or more, and school repair projects have been put on hold so the Wall government can continue to pretend that it knows how to balance the budget. Shame on them and shame on the corporate news media for defending this kind of fiscal incompetence!

Trent Wotherspoon, MLA
Finance Critic
New Democrat Official Opposition


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