A record labour shortage and rising wages may seem like good news for workers, but labour leaders say employees aren't seeing the gains that corporations are experiencing amid sky-high inflation.
Canadian Labour Congress president Bea Bruske says workers are feeling the pinch as the cost of living rises.
Canada's year-over-year inflation rate was 7.6 per cent in July, while wages grew by 5.2 per cent over that same period.
Meanwhile, Bruske says corporations in industries like oil and gas have been posting record profits.
Addressing that imbalance, she says, is one of the priorities of the labour movement going forward.
“It's making sure that we actually meet the affordability crisis by addressing inflation and by having governments look at the gigantic profits that many employers are reaping right now,” Bruske said.
The NDP have been pressing the federal government to extend the windfall tax levied on financial institutions to oil and gas companies, as well as big box retailers.
But some economists are wary of windfall taxes over concerns they could scare away business investment.
According to analysis conducted by David Macdonald, a senior economist with the Canadian Centre for Policy Alternatives, after-tax corporate profits reached a historically high percentage of the total Canadian economy output in the second quarter of this year.
In contrast, Macdonald found workers' compensation as a share of gross domestic product trended downward, falling to the lowest level since 2006.
“It's pretty clear that we're seeing record high profits, and record high proportion of our economy is going to corporate after tax profits as opposed to workers wages,” Macdonald said.
The economist says the current windfall tax is “very limited” and suggests expanding it to the entire corporate sector.
Ottawa and District Labour Council president Sean McKenny says there are some businesses that undoubtedly took a hit during the COVID-19 pandemic, but seeing the high profits of some corporations has been frustrating for workers.
“That bugs workers in general, because, again, the fairness is not there,” McKenny said.
This report by The Canadian Press was first published Sept. 5, 2022.
susieallen on September 6th, 2022 at 00:32 UTC »
We will never get our lost time and stolen wages back and they have the audacity to say the workers are falling behind? I'm 45. I worked my ass off for corporations that abused my mind and my now broken body while being told I was replaceable and they couldn't afford to pay me more as they got richer. I have almost nothing to show for it. Now my adult kids are being paid and treated worse by a generation where working at Kmart bought a car and house and supported a family. If we don't stand up to the rich soon there won't be anything left. Work ethic seems to fade when we realize it's all for nothing. And that's what it is now. It's all for nothing.
stevetheserioussloth on September 5th, 2022 at 22:37 UTC »
If you see the words “Labor shortage,” you’re reading propaganda
CutiePopIceberg on September 5th, 2022 at 21:50 UTC »
"Falling?"
Man we were ground into the dirt during the 2008 recession and corporations have had their fendis on our necks ever since.
The great resignation, silent quitting, record burnout amid record profits for the 1% ... we busted it out during the recession doing the work of 3-5 people each because it was supposed to be a temporary hardship. TEMPORARY! Companies out here expecting the unsustainable from employees with 2 measly weeks vacation and a couple sick days.
Corp America can suck it. Companies kept my money and spent all my good will.
If we didn't need work to get health insurance for our kids, there would be massive resignations and strikes. Sorry about the tangent but it s why universal health care keeps failing despite it being a good idea for 99% of US. The health of ourselves and our families are tied to employment. That needs to end.