Metro grocery workers picket outside a Toronto warehouse last summer, during a year of historic union settlements. Labour costs account for 12.5 per cent of the ticket price in grocery stores and five per cent in vehicle manufacturing, writes Armine Yalnizyan.
Workers who want payback for years of sacrifice as companies go from near collapse to record profits. Workers covering the tasks of unfilled job openings or layoffs with no extra pay. Workers who are losing ground to inflation as others make dramatic wage gains.
From railway workers to airline pilots, a new strike season is unfolding. Expect the volume on the wage rage dial to get cranked up. More people will get angry about workers getting more as their own wages stagnate, and worry othersâ gains will bake in higher prices, further eroding their purchasing power.
Is wage growth for some a problem for all? No.
Let me show you why.
Last fall two major historic union settlements made headlines. Rightfully so.
Ford workers like Rajendra, who has worked full-time on an assembly line at an auto plant for 20 years, made around $65,000 before inflation hit. In 2023, Unifor settled for a 10 per cent pay rise in the first year, two and three per cent in the next two years, as well as a one-time $10,000 signing bonus, among other improvements. Heâll be walking away with $16,500 more this year than last, though $10,000 of that is a one-shot wonder.
Sound outrageous? Youâre forgetting the sacrifices Rajendra and his co-workers made in the wake of the global financial crisis in 2008 to save the big Ontario automakers.
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