Buffeted by adverse political winds, strong unions still have impact.
ETFO members have spent the last year standing up for the right to engage in free collective bargaining. In the process, we experienced some rude awakenings: a Liberal government that betrayed a decade-long relationship with education professionals and a growing bias against unions. The broader context of this experience helps us to both better understand the anti-union sentiment and fight against it.
On the economic front, the 2008 financial crisis on Wall Street caused reverberations around the globe. In Ontario, it resulted in heavy manufacturing job losses and a steep decline in income tax revenue. The loss of these middle-class union jobs contributed to the widening income gap. The Canadian Centre for Policy Alternatives reports that between 1980 and 2009 pre-tax incomes of the top 20% of income earners in Canada grew by 38.4%, while the middle 20% fell by 0.3% and the bottom 20% fell by 11.4%. A recent Conference Board report gives Canada a “C” grade for ranking 12th among 17 OECD nations in income inequality. The concentration of wealth and political power is driving the policy on tax cuts, expenditure cuts, and attacks on unions.
Ontario fiscal policy is unbalanced. Tax cuts in place since the Harris government have reduced revenue by close to $16 billion annually, an amount higher than the current deficit. In confronting the deficit, the Liberal government did not look to tapping into unprecedented corporate profits or addressing relatively flat taxation rates that benefit the highest earners. Instead, it commissioned banker Don Drummond to examine the expenditure side of Ontario’s finances. It was no surprise that the Drummond Report targeted cuts to public sector jobs, public sector benefits, and programs such as full-day kindergarten and class size. Nor was it a coincidence that the government released the report the same day it summoned the education unions to the ill-fated Provincial Discussion Table. The report was crassly used to give the government the upper hand in establishing the psychology for the “negotiations”.