Despite 30 years of government policy reforms and new incentives, Canadian productivity still isn’t growing as fast as it is in the U.S. and many other countries.
Canada’s output per worker was 78% that of the U.S. in 2011.
Canada’s 0.7% annualized labour productivity growth (2001–09) puts us in the bottom quartile of the Organisation for Economic Co-operation and Development (OECD).
An average U.S. worker generates $13 more per hour than an average Canadian worker. An average Norwegian worker generates $29 more per hour.
Please invest some of your time to get a better understanding of productivity in Canada through this recent study by Deloitte (24 pages):
http://www.deloitte.com/assets/Dcom-Canada/Local%20Assets/Documents/Insights/ca_en_future_of_productivity_2013_report.pdf
Well worth reading.
We have to get the dollar lower which attracts new investment and production for export.
When it comes to 'figures', I always have a problem with them because I don't trust their accuracy and especially how it affects the average person.....across Canada.
"We have to get the dollar lower"
A lower Canadian dollar translates directly into higher inflation. Is this what we really want?
Does it always result in higher inflation? I think what it does do is creates more manufacturing for export and more jobs and more investment.
"Does it always result in higher inflation?"
Yes because Canada imports a large percentage of our consumption. As our dollar decreases in value, the price we have to pay for those imports in US$ or € or £ or any other currency goes up.
It is not a problem exclusive to Canada. Fighting stagnation through lower currency values has shown it does not work. Tried many times in South America with disastrous results or in Germany in the early 1920's resulting in hyperinflation.
It should be noted that on the long term while a lower currency leads to inflation, inflation leads to higher interest rates resulting in higher housing costs, etc...
Increasing productivity demands an effort from everyone, not governmental intervention in the currency market.
Your numbers are close enough:
and you present a valid point.
However, 70% (majority) of the Canadian workforce is NOT unionized. How to epxlain their lower productivity?
Comparing taxes between Canadians and Americans is NOT that simple as so many factors have to be taken into account:
http://slumbuddy.wordpress.com/2012/03/01/comparison-of-canadian-and-us-federal-tax-rates-for-2011/
"...we can conclude that the USA has more productive workers who make less money than Canadians...."
My father was like yours a hard worker. Going away to war (he snuck in underage) he was wounded and then returned home to find someone else had his job at the blacksmith shop. But the man had a wife and kids and jobs were scarce so my father refused to take his job back and put the man out of work. He then started driving lumber truck and one day had a load of lumber come lose and drop on him. Still though he went back to work, broken leg and all. We eventually moved to Ontario where he got a job working again with hot steel and in 27 years only had one day off when steel got in his eye. He was at work the next day, including a patched over eye. He went from a worker to foreman of the shop, but still insisted on working with the men. No white coat for him and his hands and chest were scarred with hot steel his whole life. Through all of that, he never worked in a union shop. Then, the business got sold to two men who proceeded to take as much money from it as they could. New homes, swimming pools, cars for the wife and kids. Eventually the company went broke in about 3 years after being in business for over 40 years. The day came even the pay cheques bounced and that's when dad had had enough. Dad could take a lot but he had a line and if anyone stepped over it, all hades broke loose! He went into work, dropped his work boots on the floor in front of one of the owners and then dropped him like a bag of potatoes. There was no union to protect him even though he often worked late and 5 1/2 days a week. I seen what it did to him having nothing in his life to do. He had been the oldest of 17 kids and worked from the first day he could just to support the family. That is when I said to myself ........I'll never work for anyone. What I make, goes in my pocket.
I see nothing wrong with unions and if my father had had one, maybe something could have been done and he wouldn't have been standing alone. But I also agree that some union people, take advantage of the union power. Lots of stories I could tell of people I have known in unions and if they had worked for me.........I would have fired them long ago and given the job to someone who really wanted it.
However if unions go, then you can be guaranteed that employers will take advantage of it to make more money for those new homes and cars and swimming pools.
So are unions good or bad? Both..... and neither. With unions workers have a say. Without them, many will have their lives changed forever.
Work "ethic", well it's not what it use to be, but then neither is the world. It changes slightly with each generation and as work becomes more technical and laden with machinery that makes the work easier. The new generation for the most part (not all) don't have to push themselves like they use to. I grew up delivering 150 newspapers a day, walking. Now people read the news on the web. When I wanted a new bike, I built it out of other parts I could find. Now kids have their parents go to Wallymart and buy one on a credit card which they get around to paying off eventually. I use to catch fish and fillet them into the night, then sell them to local people just to make a few bucks......of which I was expected to put in 25% into the family....I had to do that with all money I made. I dug out basements by hand one summer where backhoes could not go. I worked on rickity old scaffolding 50 ft up for a contractor another summer just to make some money. No safety rules back then. Worked tobacco in the drying buildings. From 11 years old to the last year in high school I never had a summer off, then I took one week off and went to the beach on my Harley and enjoyed every minute. Then the next week I was back at work full time. Things have changed. So have kids and where they learned their "ethics".
"However if unions go, then you can be guaranteed that employers will take advantage of it to make more money for those new homes and cars and swimming pools. "
I think this comment is slightly over the top. It assumes
1) all employers (but you) are bad and greedy
2) the market for labour is not competitive
Since only a small percentage of the overall Canadian labour market is unionized, that statement has little truth to it. It is a line used by unionized labour to justify its existence.
Fact : Finland is highly unionized (85%), Germany is not (30%).
Question: Do German workers do that badly?
Answer: No
I think too much emphasis is put on the benefits of a unionized workforce by proponents of unions (and the same is true in reverse where opponents of unions believe they are the source of most economic problems in our society).
You personally have stated over and over that you treat your employees fairly. Why should the rest of the world be that different?
"employers will take advantage of it to make more money" You do not do that, do you? Why suggest or imply others would?
It assumes all employers (but you) are bad and greedy
Mea culpa…..I never meant it that way. Interesting thing about discussion forums…forget to add in a word like “some” (as an example) and certain people will grab a hold of that and run with it for their own purpose. There are lots of employers who would treat their employees fair as they do now in non-union shops (both in manufacturing and in other areas of service like medicine). However there are those who would not. If employers and large corportations were fair.......why do they still pay some people in other countries who are manufacturing for them as little as 25 dollars a week?
Since only a small percentage of the overall Canadian labour market is unionized, that statement has little truth to it. It is a line used by unionized labour to justify its existence.
To continue on with my thought. At the present moment unions exist and I believe there is a factor that large shops, if they do not treat their employees well, they know that a union could come into fruition very quickly. To avoid that, they pay their employees reasonable incomes. Still though, there are employers who will manipulate a situation in order to pay as little as possible (under the rules of government) and they get away with it because, jobs in certain areas are so scarce, or due to the need for work, the worker will take whatever they can get…..even if it’s unfair. Make no mistake that these employers exist and if there were no unions or threat of unions then other employers would do the same thing. Most of the existing problems are in the service sectors.
I think too much emphasis is put on the benefits of a unionized workforce by proponents of unions (and the same is true in reverse where opponents of unions believe they are the source of most economic problems in our society)
I’ve never been a big proponent of unions, although I did try to put one into a workplace I was in many years ago because of the unfairness of the employer towards employees (mainly immigrant workers)…….and I got no benefit from it because I was management. I did it only because it was the decent thing to do and I still believe that to this day. It cost me my job when it was discovered that I was behind the union attempts, but I didn’t mind, because in life you have to stand up for what is right and not the most convenient for yourself. I (as I have said many times…but seems to be conveniently forgotten) believe that unions have their good and bad points, like any club or organization.
You personally have stated over and over that you treat your employees fairly. Why should the rest of the world be that different? "employers will take advantage of it to make more money" You do not do that, do you? Why suggest or imply others would?
Because they would and do now. There are lots of employers who manipulate their staff, but you may not see it if you do not revolve in those areas. Construction is one area, small manufacturing, the retirement industry…..just to name three. I am who I am because I was brought up with values, a conscience and never forgetting what happened to my father. That is why I have staff who are happy, some who have been with me in some cases near 30 years, no turn over of staff and staff who I believe should be treated as if they are the company…..because........ they are.
Mikey, anytime.
