 | | Karla Thorpe
Director
Compensation and Industrial Relations Research |
The past decade has seen organized labour decline as a share of the Canadian workforce. Between 1997 and 2011, union density in Canada fell approximately 1.7 per cent from 30.9 per cent to about 29.2 per cent. The overall decline in union density would have been greater but for the fact that the highly-unionized public sector continued to represent a large share of total employment. More than 70 per cent of the broader public sector is unionized—which includes government departments, agencies, and Crown corporations, along with publicly funded schools, hospitals, and other institutions.
In contrast, union density in the private sector now sits at an all time low of 15.9 per cent. This decline is due, in part, to legislative changes restricting union certification processes but also changes in the economy including the “hollowing-out” of the manufacturing sector.
Union density is not a flawless measure of labour’s influence in terms of bargaining power and wage setting. Collectively-bargained agreements can serve as a standard against which other non-unionized organizations set wages and benefits in order to remain competitive. As union density declines, however, the degree to which it serves as the benchmark also diminishes.
The changing demographic profile of the population is also undermining the role and importance of unions. Baby boomers, who are beginning to exit the workforce, can more easily relate to the success of the labour movement in achieving gains around pay equity for women, racial equality, and improved working conditions. Many members of the younger generation—call them Millennials or Generation Y—hold negative views about the relevance of labour unions. This generation has grown up in a society where many of these battles were already won. Therefore, many younger workers fail to see the benefits of belonging to a union. In fact, seniority rules can be impediments to younger workers getting coveted day shifts and vacation time during summer months.
Unions have historically played an active role lobbying on issues affecting working Canadians. Labour’s influence has produced public policy improvements in workplace health and safety in the workplace, pension benefits, wellness, and literacy, to name just a few areas. However, labour’s ability to exert pressure on behalf of workers will undoubtedly be impacted by a declining base of members and the resulting loss of union dues. Even though union density is on the wane, organized labour can continue to have a positive impact on government policy—particularly if they focus on issues that have broader public appeal.