The stand off between Ontario and CUPE points to more labour troubles
Are we entering a wage-price spiral?
Educational Assistants have voted to strike and Ontario has enacted “no strike” legislation creating a stand off between a group of low income government employees who are seeking an 11.7% increase in wages, double time for overtime and a 30 minute paid preparation time for their daily work. The government has offered 2.5%. According to CBC press coverage, on average, these employees earn about $40,000 annually.
The CBC press coverage seems to understate the compensation of this group. Here is the salary schedule contained in the current collective agreement (CUPE Local 5100).
In addition to wages, these employees are enrolled in the OMERS pension plan which provides pension indexed to inflation, receive 11 paid sick days, 120 short term disability days at 90% of normal wages, 8 weeks pregnancy leave, and 7 Personal Activity days. By my rough arithmetic, the total compensation for a member of this group ranges from $55,000 to $75,000 annually.
There are strong arguments on both sides of this labour negotiation. EA’s who are the sole income earner in a household in areas like the GTA must find it hard to make ends meet. Those in remote areas like Timmins or Cochrane would find their compensation attractive compared to other similar private sector jobs in their communities.
Governments are concerned that an across-the-board 11.7% increase sets a benchmark for private sector agreements that leads to a wage-price spiral than exacerbates inflation already on the verge of being out of control.
Educational Assistants didn’t exist when I was in school in the 1950’s and 1960’s except for custodial staff who are also members of this unionized group today. EA’s came into existence to provide support for teachers to help educate children with learning disabilities, behavioural issues, or otherwise needing more attention. In my school years, teachers just had to live with the extra demands such children placed on them and the kids had to muddle through. I grew up in abject poverty and didn’t think I suffered from the absence of EA’s - I didn’t know they existed (because at that time they didn’t).
The idea that government can raise enough taxes to make every person’s life comfortable and protect every person from hardship is left wing nonsense which, if unchecked, destroys the economy with disastrous consequences for everyone. People who choose low paying occupations do so for two reasons - they are second income earners whose family benefits from their contribution or they have no better options. Society cannot guarantee a good outcome for everyone, and the concepts of individual choice and personal responsibility should have some weight.
The political rhetoric over this dispute will grow as the dispute continues, with CUPE arguing their members are exploited and government arguing their proposals are “fair”. How it is resolved will be important to the direction of the Ontario economy. Unfortunately, seven years of Liberal government in Ottawa under Justin Trudeau have created an inflationary environment driven by excess government spending, the attack on our vital energy industry in the name of “climate change” (which is nonsense) contributing to a global energy shortage, and no sign of policies that will lessen inflation other than interest rate rises which will trigger a recession. If governments now set out to protect CUPE employees from inflation through double digit wage increases, the outlook will mirror the late 1970’s and we risk very high rates of inflation, very high interest rates, and a devastating economic collapse.
It will be interesting to watch. If we trigger a wage-price spiral, hold on to your hat.
According to the article below, "EAs are permitted to work for only 35 hours a week and paid for 42 weeks out of the year." I can't be sure, but it looks like your salary calculation is assuming more days / weeks of work than that.
https://www.cbc.ca/news/canada/windsor/educational-assistants-contract-1.6573606
This is the most info I've seen on this stupid dispute. I've been on twitter several times posting "I support Doug Ford and Stephen Lecce ..." The union hides/deceives the public by NOT giving us enough info to make a 'fair' judgement yet they want our support. Your salary schedule does NOT include hours work b/c many are part timers. So maybe $30,000/yr is good if you only work 1M hours a year. I don't know and they wont tell us. But CUPE is willing to have the kids suffer for them. I say private/charter schools.