Research: Government interference in collective bargaining

Earlier this week, the Parkland Institute released a report that I contributed to, entitled Thumb on the scale: Alberta government interference in public-sector bargaining.

This report examines how, in a time when workers’ Charter-protected associational rights appear to be expanding, the rate at which governments interfere with collective bargaining has skyrocketed.

It specifically looks at Alberta’s ongoing use of secret bargaining mandates, which turn public-sector bargaining into a hollow and fettered process.

This report is relevant because both UNA and AUPE have exchanged opening proposals with the government in the last few weeks and will be bargaining against secret mandates. The government opener in both cases was, unsurprisingly, identical and there is a huge gap between what workers are asking for and what the government is offering.

-- Bob Barnetson

New research on unions' impact on wages and benefits

In November, Andrew Stevens and Angele Poirier released a report that examined the union effect on wages and benefits across Canada to 2022, with the data for Saskatchewan also broken out.

Nationally, unionized workers earned an average of 11% more than non-unionized workers. There was significant provincial, gender, age, and sectoral variation. The union advantage appeared particularly pronounced for workers aged 15 to 24 (+26%) and part-time workers (+41%).

Unionized workers were also more likely to have paid sick time (80% versus 555 for nonunionized). Unionized workers were also much more likely to have employment-related pension plans (825 versus 37%) as well as other supplementary benefits.

Interestingly, non-unionized workers experienced slightly higher wage increases between 2020 and 2022. This might reflect pressure on non-union employers to improve wages in order to attract and retain staff (i.e., is a union spill-over effect). It might also reflect that union contracts (which fix compensation for a period of time) may delay increases (e.g., inflationary bumps) or unionized workers (who are very often in the public sector) may have been subject to mandated wage freezes and rollbacks by the state.

-- Bob Barnetson

Six Worries for Workers This Labour Day

This blog was originally posted on the Parkland Institute blog.

What can Alberta workers expect from a United Conservative Party government over the next four years? The UCP’s first term cheapened labour costs for employers. Its 2023 election platform contained few promises related to labour and employment issues beyond the usual nostrums about low taxes creating jobs. We think workers should watch six issues.

1. Low wages, high unemployment, and Inequity

While the number of jobs in Alberta has increased, more job seekers and layoffs mean Alberta’s unemployment rate remains the fifth highest in Canada. For those with jobs, the purchasing power of their average hourly wage has fallen by 4.95% (or about $3,000 per worker) over the past 10 years. Alberta is only one of three provinces to experience this loss.

By October, Alberta’s minimum wage will be the third lowest in the country while Alberta’s cost of living remains among the highest. The UCP is unlikely to raise the minimum wage from 2018’s $15 per hour. This means inflation will further erode the purchasing power of 11.5% of Alberta workers, the majority of whom are women.

Not surprisingly, Alberta also continues to have the highest gender wage gap in Canada. In July of 2023, Alberta women earned 84 cents for every dollar men earned (averaging $31.52 per hour vs. $37.61 per hour). The UCP is unlikely to address this gap.

2. Illusion of low-cost childcare

Under an agreement with the federal government, the UCP has promised to implement $10 per day childcare by 2026 as well as create 70,000 additional spaces. While childcare fees have declined, $10 per day childcare is likely to be a chimera.

In February, the UCP established a cost-control framework for childcare. Government funding will ensure that “core” childcare is provided for $10 per day. But the UCP is encouraging providers to charge fees for “enhanced” childcare, such as food, activities, playground equipment, and better qualified staff. Providers are being told they do not have to spend all of these enhanced fees on the enhanced services (i.e., private providers can pad their profits with these fees).

Since demand for childcare spaces will continue to outstrip supply, parents who decline to pay the enhanced fees (i.e., want $10 per day childcare) may have difficulty securing a space because they reduce the providers’ profits. Further, low wages and limited training and professional development opportunities suggest the goal of 70,000 additional spaces may be wildly optimistic.

3. An Alberta Pension Plan

Alberta has been flirting with the idea of leaving the Canada Pension Plan (CPP) and creating an Alberta Pension Plan (APP) since 2019, putatively to lower premiums. The UCP did not campaign on the APP, likely because more than half of Albertans are opposed to the idea.

Withdrawing from the CPP requires three years of notice. The terms of Alberta’s departure are difficult to predict since no jurisdiction has ever left the plan. Departure may constitute a major change in the plan, which would require the approval of 7 of the 10 provinces (representing two-thirds of the population) and the federal government.

There are many unanswered questions about an APP, including its financial stability and likely returns, operating cost, the portability of contributions, and its susceptibility to political meddling. Quebec’s experience with running its own pension plan suggests that doing so does not necessarily result in lower premiums.

4. Public-sector bargaining

In 2019, the UCP gave itself the power to foist secret bargaining mandates on public-sector employers, rendering collective bargaining a fettered and hollow process. All unions eventually settled for wage increases well below inflation, after years of prior wage freezes. Despite the negative impact that uncompetitive wages have on recruitment, retention, and productivity, it is likely the UCP will go back to this well in the hope of further grinding public-sector wages.

It is unclear whether Alberta’s public-sector workers and their unions have the will to meaningfully resist such a tactic. Resistance would require workers to strike and, perhaps, to do so illegally in the face of back-to-work legislation. That is a risky proposition for both workers and their unions’ leadership. That said, only last fall, Ontario’s unions forced the Ford government to walk back legislated contracts through an illegal strike by education workers that looked set to escalate to a general strike.

Public-sector workers are also likely to see further privatization of their jobs, as the UCP did with laundry and laboratory services in health care. The UCP may also provide more public funding to private-sector providers of education and health-care services.

5. Recruitment and Retention

Not surprisingly, declining compensation, childcare shortages, and uncertainty about the CPP have meant some Alberta employers are struggling to recruit and retain workers. The UCP has promised a $1,200 tax credit for workers in fields such as health care, childcare, and the skilled trades who come and work in Alberta for at least a year, and a $3,000 to $10,000 tax credit (spread over multiple years) for new graduates in unspecified fields who stay in Alberta to work.

These promises are essentially an admission that Alberta is not an attractive place to live and work. Neither promise is very significant in monetary terms and, if implemented, they are unlikely to have much impact on worker shortages because of the negative impact of the UCP’s education and health-care agenda. Increasing post-secondary tuition and a defective K-12 curriculum (e.g., “find gravity on a globe”) make Alberta an unattractive place to study or raise children. Ongoing staffing shortages, the unavailability of rural obstetrical care, and the botched privatization of laboratory services suggest the health-care system is also failing.

6. Union Dues and Bill 32

The UCP has promised to fix one of their controversial changes to Alberta’s labour laws (commonly called Bill 32) that accidentally cost community organizations $2.5 million in lost donations from unions. This happened because Bill 32 required unions to get each member to authorize dues deductions for activities beyond collective bargaining and contract administration. This was designed to constrain unions’ abilities to participate in political and advocacy campaigns but also affected donations.

Before the election, many unions quietly decided to simply ignore Bill 32. It will be interesting to watch how (and, indeed, if) the UCP handles enforcement. It may choose to pursue legal action against these unions. Or it may take the position Bill 32 achieved its political goals and ignore widespread non-compliance.

Conclusion

The UCP has a difficult course to navigate over the next four years. Its political goals include low taxes, low wages, a diminished public sector, and increased privatization. None of the outcomes of these goals are attractive to the skilled workers that Alberta requires. Indeed, declining real-dollar wages, failing health-care and education systems, unstable retirement income, and unavailable childcare are likely to impede both worker recruitment and retention.

-- Bob Barnetson, Susan Cake, and Jason Foster

Update: AUFA members to vote on reversing exec decision

Two weeks ago, I wrote about the Athabasca University Faculty Association (AUFA) executive deciding to make a cash donation to a member. Yesterday, the AUFA membership forced a special meeting on the issue and will soon be voting of a motion to reverse this decision.

A good outcome of the meeting was support for the development of a formal member emergency fund. There are lots of examples to choose from. Most have these features:

• a low- or no-interest loan for a fixed period of time,
• available to members on application,
• a requirement for some disclosure of the circumstances giving rise to the need, and
• decisions being made by a committee without a real or perceived conflict of interest.

The meeting itself flushed out some additional information about the executive’s donation. While I am hopeful that a recording of the meeting will be available to all AUFA members prior to the vote, I worry that the disclosure of the member’s identity by a member of the incoming executive during the meeting may preclude the union from sharing the recording. So, for those who could not attend, here is a recap (I have flagged the new info below):

1. In early June, the executive held an emergency meeting three days before a regularly scheduled executive meeting.
2. The purpose of the emergency meeting was to vote on a donation to a member whose salary had been cut off for refusing to comply with an employer direction (i.e., the member choose this outcome).
3. NEW The member did not ask for this money. Rather, this motion was an initiative of a member of the executive.
4. The executive was not told before voting on the donation that the member could have their salary restored simply by complying with the employer’s demand.
5. NEW The donation was to another member of the executive.
6. The recipient was not named in the notion meaning the payment could not be implemented.
7. Multiple members of the executive resigned over the decision.
8. The executive did not communicate this unprecedented move to the membership until nearly a week later and under pressure that I would tell the members if they did not. 
9. The eventual disclosure (which occurred after voting for the next union executive had concluded) left out important information about the donation, including the resignations that had resulted from it.

So, is this decision by the executive one that should be reversed by the members?

One way to answer that is to look at how far the executive’s process deviated from the typical approach to emergency funds that I set out above.

• There was a donation in lieu of a no-interest loan. There is no explanation for this.
• The member never asked for the money; this was an initiative of an executive member. This raises the question of whether the member is even in need of the money? 
• Key facts were not disclosed to the decision makers. Specifically, (1) evidence of hardship, and (2) that the member was refusing to take action that would restore the member’s salary (which is a bit like drowning in a bathtub because you refuse to sit up).
• The recipient was a member of the same committee that made the decision. This may not create a conflict of interest (that is very hard to tell given the information the executive has provided) but it creates the appearance of a conflict of interest.

Overall, this was a bad process that led to what looks like a bad decision that was then communicated in way that was untimely and incomplete. Consequently, I think this decision, at the very least, warrants a do-over using a better process. The way to achieve that is for the members to pass a motion reversing the decision. The executive could, of course, rescind their decision and do a proper job of it once they have a fund set up.

It is notable that the executive has not followed through on the other motion it passed during the emergency meeting: strike a committee to establish a member emergency fund. Had they done that, members could be voting on that right now (there are lots of examples to cut and paste from, including AUFA’s emergency fund from its strike prep). This inaction is notable because the executive are, on the one hand, aggressively defending their decision but, on the other hand, taking no actual steps that would get their decision implemented (and get the member the money).

Several other motions planned for the meeting (including a non-confidence vote in the lame-duck executive) did not get discussed. An important issue going forward is that AUFA members (who almost all work from home) have no effective mechanism to discuss matters of concern as a group. Hopefully next year’s executive will do something about that.

-- Bob Barnetson

AUFA executive resignations follow unusual payment to member

Last Friday, the executive of the Athabasca University Faculty Association (AUFA) held an emergency meeting. After an apparently acrimonious discussion, the executive voted 5-4 to “donate” $2500 to another member. Subsequently, five members of the executive resigned and the treasurer is unable to make the payment because of the wording of the motion. 

The remaining members of the AUFA executive finally released some information about this payment a week later, after I threatened to go directly to the members. But the executive have left out important context and the subsequent resignations. These omissions are very troubling. This information also comes only after the union’s elections have concluded.

This post compiles the information I have been able to verify about these very concerning events. I believe this decision shows very poor judgment and that the remaining members of the executive who voted in favour of this motion should resign. I understand that one of them has done so this morning.

Background

I’ve redacted some of the details but the gist is that a member declined to comply with an employer direction (i.e., was insubordinate). After several unsuccessful attempts to gain compliance, the employer placed the member on an unpaid leave.

As much as I don’t generally like how AU behaves, placing a member on unpaid leave is permissible in these very specific circumstances (that I am carefully not discussing). This has happened periodically over the past 15 years that I’ve been active with the association and is not an unprecedented situation (what is unprecedented is the payment).

The member decided to continue not complying (and thus not be paid). While being placed on an unpaid leave can certainly create a financial emergency for a member, this is not a labour-relations emergency for the union.

Subsequently, a member of the executive sought an emergency executive meeting to authorize payment of $2500 in financial aid. AUFA does not presently have a system for providing financial aid to members. The union did create an emergency-loan system in anticipation of a strike last year. Absent a work stoppage, that system does not operate because the members have not approved expanding its parameters.

Consequently, this request was brought to the union executive as an ad hoc motion. Article 12.8 of the AUFA bylaws permits the executive to authorize unbudgeted payments of up to $5000 without seeking membership approval.

Nine (of then 13) voting members of the executive were able to attend the emergency meeting:

• Davina Bhandar 
• Pamela Holway
• Jonathan Leggo,
• Gail Leicht
• Katie MacDonald
• Darka Pavlovic
• Kristin Rodier
• Rhiannon Rutherford
• Ching Tan

After an in camera discussion, MacDonald and Bhandar moved:

“AUFA make a one-time donation of $2500 to the member in question in support of undue hardship.”

This motion passed 5-4 with Leggo, Leicht, Pavlovic, and Rutherford opposed. A subsequent motion established an ad hoc committee to look into establishing a formal member emergency fund (which is a good idea).

While no one has been prepared to discuss all of the details of the in camera discussion, some attendees have characterized the information provided to them an incomplete. For example, they were not told that the member could have their pay restored by simply complying with the employer’s direction.

Over the next several days, Leggo and Pavlovic along with Florene Ypma and Dave Powell resigned from the executive over the motion. Leicht (who is also the treasurer) has also indicated she will be resigning as soon as the executive can put someone in place to perform financial oversight functions. In the meantime, she has declined to issue the cheque because she does not have a name and mailing address to permit the issuance of a cheque.

Questions

A number of questions jump to mind:

1. Why it was necessary to call an emergency meeting last Friday when there was regularly scheduled meeting three working days later? An emergency meeting likely reduced the number of executive members able to attend.
2. Why the secrecy within the executive about who the member is? How can the executive make an informed and accountable decision without recording to whom the payment was made (even if this information is shared only on a need-to-know basis)?
3. Why was the executive not informed during the discussion that the member who received the payment could have their pay restored by ceasing their insubordination?
4. Why was the funding provided as a donation, rather than as an interest-free loan?
5. Has this decision established a precedent whereby other members who refuse to comply with legitimate employer directions (i.e., are insubordinate) can now seek financial support from the union?
6. Why did the remaining executive not inform the AUFA membership of this significant departure from past practice and the subsequent resignation of five executive members in a timely manner? This question is especially salient since (1) there was an immediate member request for disclosure (within minutes of the meeting ending) and (2) the payment decision was made in the middle of union elections wherein some of the executive members who voted in favour off the payment were running for office.
7. Does this expenditure fall within the definition of non-core expenditures under the Labour Relations Code (as amended by Bill 32 several years ago) and, therefore, does it require the executive to get the permission of members to collect and expend these dues notwithstanding the bylaws? If so, will payment open AUFA up to a complaint to the Labour Relations Board?

Analysis

While the union executive can spend up to $5000 on its own initiative, this sort of expenditure (which was not an emergency) should likely have been subjected to meaningful consultation with the membership. Indeed, many of the executive members who voted for this motion ran last year on a slate that promised greater transparency.

Savvy union leaders go out of their way ensuring that union decisions, particularly about spending, are transparent and above reproach. Last Friday’s decision does not demonstrate this sort of political acumen. Instead, we see executive members:

1. Calling an unnecessary emergency meeting that only a portion of the union executive could attend.
2. Authorizing an unprecedented payment to another member (with the support of only 5 of 13 executive members).
3. Failing to disclose to the executive members in attendance that the member could resolve their problem on their own by complying with the employer’s direction.
4. Not naming the member who is to receive the funding in the motion, which has resulted in the treasurer being unable process the payment.
5. Disclosing information about the decision only after members threatened to release the information directly to the members and only after the end of the union election, in which some of the remaining executive members were candidates.
6. Possibly created a precedent where the union is on the hook to financially support other members who are insubordinate (or, at least, having to fight off claims for such support).

This behaviour demonstrates why it is important for members to pay attention to union operations and be very choosey about who they elect to manage the affairs of their union.

Now What?

The good news is that a new executive will take control of AUFA as of September 1. Many of the key players in this decision will not be a part of that executive.

AUFA members could also call a special meeting (under Article 5.4 of the bylaws). At this meeting, they could demand an explanation from the remaining executive and/or they could advance motions. These motions could include overruling the payment, voting nonconfidence in some or all of the remaining executive members, or setting up a committee to develop an emergency loan system with meaningful oversight and sensible parameters.

Really, though, the simplest way for the remaining executive to restore membership confidence in the executive would be for the members of the existing executive who voted in favour of this motion to tender their resignations. I understand one of them has done so already (that is six resignations now, if you're keeping track). This would still leave enough executive members to get through the traditionally slower summer months and hand the organization over to the incoming executive in September.

-- Bob Barnetson

UCP's record on labour issues

 

Alberta Views recent published an article I wrote about the UCP's record on labour issues. The article reprises and extends a chapter I wrote with Susan Cake and Jason Foster in a new book entitled Anger and Angst: Jason Kenney's Legacy and Alberta's Right (which is also worth a look).

The nub is basically that UCP labour policy can be best understood as an effort to shift the cost of labour from employers to workers by grinding wages and working conditions. The effect, particularly on and in Alberta's public-sector has been significant. Since the Alberta View's article is open access, I'll leave it for you to read more if you like.

-- Bob Barnetson

Notice of termination vs severance

One of the challenges of teaching students about interpreting collective agreements is the effect of clauses is often very hard to know because they can interact with other clauses in the collective agreement as well as other regimes of employment law. As part of a research project, I came across a 2011 decision that is a fun read about termination notice and severance pay.

The decision is:

Canadian Energy Workers Association v ATCO I-Tek Business Services Ltd, 2011 CanLII 81659 (AB GAA)

You can find the decision on canlii.org by searching the CanLII number (81659). CanLii is an excellent repository of Canadian law.

The basic facts are these:

• The employer was outsourcing a significant number of positions and this resulted in significant number of terminations.
• The collective agreement gave the affected workers rights to (1) working notice (or pay in lieu of notice) under Article 30 and (2) severance under Article 32 and a Letter of Agreement.
• The union argued that the permanent workers were entitled to benefit from both sets of rights; the employer argued that workers were only entitled to severance.
• (There was a second issue around a worker signing a release that isn’t really all that interesting.)

The union’s argument was (loosely, I’m paraphrasing in the interest of space) notice is designed to give workers a chance to find alternative employment while severance is compensation for their investment in their workplace that is lost upon termination. Essentially, these two are complementary, rather than alternative, entitlements.

The employer’s argument (again, loosely) was that the entitlements are mutually exclusive and applicable in different circumstances and this the benefits do not compound. Reading the provisions as complementary creates an excessive benefit for the workers.

I won’t spoil the ending for you. The panel’s decision flows from an interesting exploration of the purpose of each of the rights in the contract, the language used, and the effect they have for different employee groups. This decision is a relatively simple example of this kind of inquiry, that occurs in many contract interpretation grievances.

The ultimate decision (that I found to be surprising) highlights how parties can negotiate provisions that each finds acceptable without mutually working through the actual operation of those provisions. This can reflect the nature of bargaining (where ambiguous language may be a strategy to, for example, defer a fight), the complexity of language (which can give rise to legitimately different interpretations), and the impact of practical constraints (e.g., bargaining is often done under the gun by very tired people who sometimes make errors of omission).

-- Bob Barnetson

Should I take a job at Athabasca University?

Every year, I receive phone calls from a couple of dozen candidates considering taking a job at Athabasca University (AU). Usually, these folks find me through this blog or word of mouth.

So, as the academic job-hunting season begins, I thought I’d take the opportunity to write down the pros and cons of taking a job at AU. These comments are mostly directed at folks considering a professorial job.

PROS

Working from home: Pre-pandemic, the vast majority of academic staff worked from home offices). Although the majority of staff live in Alberta, recently staff have been permitted to work anywhere in Canada. This means you can stay in your home community. 

At the time of writing, the university’s Board is engaged in an ill-chosen bun fight with the provincial government over the ongoing loss of jobs in the town of Athabasca (where the university’s headquarters is located). The government wanted, at one point, 65% of staff to work from there (despite there being inadequate housing stocks and office space). It is unclear how this dispute is going to play out or how it will affect where academic staff can live. You’ll definitely want to ask about this in your interview.

Setting your own schedule: For the most part, instruction at AU is asynchronous and text mediated. Since you don’t have to appear at a fixed time each week to lecture, you can largely set your own schedule. Start early or late. Work in the middle of the night. Take your kids to school or you mom to the doctor. As long as you get your work done and show up for the small number of fixed meetings, you basically can organize your life however you want.

Good benefits and pension plans: The benefits plan for faculty is pretty good, particularly in terms of vision, eyecare, and drug coverage (although costs are reimbursed, not pre-paid).

The pension plan is also pretty good, although you’ll pay about 11% of your salary into the plan. You can collect a full pension when (1) you are at least 55, and (2) your age and years of services equal 80. A full pension is 70% of your average salary during your five best consecutive years of employment. You can take a reduced pension any time after 55 if you have not yet met the 80 factor.

Tenure and promotion is the norm: The vast majority of hires (>99%) can expect to get tenure and promotion. Based on my 18 years of experience, I’d go so far as to say you have to actively and repeatedly fuck-up not to get tenured. That is not to say you don’t have to work—just that the bar is set at a very manageable level.

Faculty are typically hired with a four-year probationary appointment. After a successful review, you receive tenure. You can choose when to apply for promotion in rank. If you apply for and receive promotion before your tenure review, then you also automatically get tenure. Promotion is also rarely denied although the process is more rigorous than just tenure.

Financial stability: AU is financially stable (despite a history of the administration crying insolvency). In 2021/22, AU posted a surplus of $10.4m on expenses of $150.6m. This was the sixth straight surplus and ninth surplus in 10 years. AU has an accrued surplus (i.e., cash in the bank) of $46.9m.

Government funding of AU has been stable over the past few years. Only about 35% of institutional revenue comes from grants (the largest chunk is tuition based). Enrollments have been falling (about 9% per year for last two years) but the nature of AU’s business model is that the costs of revenue losses due to declining enrollment are borne mostly by the tutor pool (i.e., permanent, part-time academics with variable teaching loads).

CONS

Poor wages: Overall, wages are low and have fallen significantly behind inflation. The table below compares the compounded cost-of-living adjustments (COLA) to faculty wages and Alberta inflation from 2013 to 2022. Basically, the purchasing power of staff wages at AU has dropped by ~20% over 10 years.

Going forward, the COLA for adjustment for 2023 will total between 2.75% and 3.25%. Unfortunately, inflation is presently running about 8%, so expect another big loss in purchasing power.

Compounding the erosion of purchasing power is that starting salaries in nominal dollars are roughly the same as they were in 2007. There is also evidence of a gender wage gap (but zero interest by the institution in addressing it). While the institution will often say that salaries are negotiable, in practice that is not the case.

Poor Treatment and Low Morale: The treatment of staff by the university is, in a word, awful. I’ve been on the union grievance committee for a decade. While I can’t tell you everything I’ve seen, here are a few illustrative examples of how individual staff have been treated:

• AU knew it disciplined staff member improperly but took no action to fix. 
• AU accused a staff member of faking sick leave while his spouse was dying of cancer 
• AU forced a staff member to delay maternity leave or lose their sabbatical. 
• AU terminated nurses’ market supplements during a pandemic with no notice and then denied they were doing so. 
• AU dissolved a promotion committee with no cause 
• AU re-opened its campuses with no effective COVID protocols in place

Over the past five years, the employer has twice driven collective bargaining to impasse and the verge of a strike by demanding huge concessions. In between those rounds of bargaining, the employer also tried union busting with an effort to carve two-thirds of the union’s members out of the bargaining unit (and thus out of the pension plan).

The most recent survey of staff (Spring 2022) by the faculty association finds only 20% of staff trust the senior executive and only 39% agree with the statement that “my morale is high.” The employer no longer does staff surveys because the results were so consistently bad.

Workloads have also gone up, particularly for administrative staff, due to COVID. More subjectively, I’m seeing a widespread withdrawal of citizenship behaviours and effort by my colleagues. Essentially, they are realizing AU doesn’t care for them and are (understandably) reciprocating in kind. The upside is the union is tenacious, fights hard, and has strong member support.

Isolation: Working from home with essentially no in-person contact with co-workers or students is extremely isolating and may not be for everyone. Further, AU has no functional orientation process for new staff and most of the institution’s processes do not operate in the way that the various policies and procedures (often decades old) say that they do.

COVID has limited the opportunity for staff to meet socially (which is how we used to cope with the isolation and get our questions answered). In theory, more experienced colleagues in your area should provide you with an orientation and social introductions. In practice, the experiences of new hires is very uneven.

So, with those thoughts and the poor state of the academic job market in mind, one approach to a job offer might be:

• if you have no other option, take the AU job but stay on the market, and
• if you have other options, give the pros and cons of AU very careful thought.

-- Bob Barnetson

Unions positively impact US workers' wages, benefits, democracy

There is an interesting new study out the US that documents the impact of unions on workers lives. Among its findings are:

On average, the 17 U.S. states with the highest union densities have:

• higher than average minimum wages, and minimum wage sup to 40% higher than those in low-union-density states
• higher median annual incomes 
• more unemployed workers eligible to receive unemployment insurance benefits
• fewer workers without health insurance
• a greater likelihood of legislated paid sick leave laws and paid family and medical leave laws 
• fewer restrictive voting laws.

You can read the full study at the link above.

-- Bob Barnetson

AUPE survey on pandemic needs

The Alberta Union of Provincial Employees (AUPE) periodically publishes a magazine (Direct Impact). The fall 2021 issue (not yet online at the time of writing) reports the results of a survey of its members about the impact of COVID.

The survey is fascinating, documenting income losses by two-thirds of members, with the losses being highly racialized. More than a quarter of member households experienced a layoff and almost half (49%) cut back on food purchases. An interesting question was what measures would help AUPE members cope with the financial hardships caused by COVID. I've nicked the graphic (sorry Guy!) and present it below:

Keep in mind that these results represent the view of unionized workers in AUPE who responded to the survey (I don't see a note about response rates). This means we should be cautious about its findings and especially of generalizing to other populations.

The pearl-clutching aside, what is most striking is that workers overwhelming identify price controls as what would help them most. Many of the COVID demands popularized by the broader labour movement (e.g., paid sick leave, presumptive WCB, childcare subsidies) received much less support. 

Further, demanding government intervention in the market (which neoliberalism suggests is anathema, unless it benefits the wealthy) is a surprisingly bold position for such a large portion of the respondents to stake out. Perhaps the pressure COVID is create and how it has pulled back the curtain on class-disparities is starting to more clearly inform rank-and-file views on union priorities?

-- Bob Barnetson

Trucker shortages about jobs quality, not worker shortage

Time magazine recently ran a short analysis of the cause of America’s shortage of truck drivers. Presently, supply chain shortages are compromising Christmas shopping (Bob clutches pearls) and, according to employers and the government, the key factor is a lack of qualified truck drivers. This same narrative operates in Alberta and has been met with truck driver-training initiatives by the province.

What is interesting, according to the article, is that there is no shortage of people qualified to drive big rigs or interested in the doing so. In fact, the labour market is so flooded, employers are able to pick and choose who to hire. Naturally, employers use this loose labour market to grind wages and working condition.

Not surprising, the quality of the jobs on offer  is so poor that people quit. Annual turnover in big US trucking firms is an astounding 92%. The poor quality of jobs was triggered by the de-regulation of American trucking in the 1980s (thanks Reagan!).

I have not seen a similar study in Alberta. What I hear anecdotally is that the difficult nature of the job and low wages makes them unattractive jobs. Further, employers are often reluctant to hire new drivers (especially young ones) because of the high insurance costs associated with such drivers.

Spending tax dollars to train more drivers effectively subsidizes employer’s poor working conditions without necessarily improving the employment prospects of Albertans. Since the UCP has largely given up on evidence-based decision making and instead just shovels subsidies at their donor base (perhaps leavened with loosening the rules around hiring temporary foreign workers), I doubt we’ll see any change in this approach soon.

-- Bob Barnetson

Boss makes a dollar, we make a dime...

Everyone's friend, Bonhomme (not a boss).

One of the challenges of organizing workers to resist an aggressive employer is the tendency of workers to disbelieve (at least, at first) that their employer could actually mean to treat them so badly. 

This initial denial often reflects underlying anxiety (because the boss is powerful) and manifests itself in several ways. For example, workers may:

• question whether the union is mis-informed about what is happening or mis-understands it,
• suggest the employer has made an innocent error and can be talked around or shown the error of their ways, or
• try to make excuses for the employer (“they have no choice”).

Workers can eventually move past these initial responses, especially when the employer repeatedly misbehaves (which eventually creates a “the boss who cried wolf” dynamic). A sly employer can draw out the period of denial with a good “bonhomie” routine or by creative gaslighting. 

One strategy unions can use to get past this is to help workers understand that bosses really aren’t like them. Sure, they wear a skin suit and have kids and like to wakeboard and go on Disney cruises. But their world is fundamentally different.

But how to show this? Well, money talks. So a peak inside the boss's house is a great way to illustrate—in an immediate and material way—that the boss isn’t worried about where their next paycheque comes from. And, when the boss takes a wage freeze or tiny rollback, it doesn't have the same effect as when they try to push that on workers.

My most recently previous boss's house is up on the market and, through the miracle of virtual tours, we can see how the 1% really lives. The address in the posting isn’t exactly correct, based on my pre-picket scouting during our last round of bargaining. I’m not sure how long this posting will be live (the virtual tour is something) so I screen capped a few of the photos.



I’ve been to a lot of members' homes—usually for good reasons, sometimes for sad ones. None of them have come close to this size (3800 sq ft on 3/4 of an acre backing onto a pond) or level of luxury.



The main floor boosts a huge living room (with piano), dining room, kitchen, and master suite. The quality of the finishes put my house (which is pretty nice) to shame.



The master suite includes a soaker tub with its own fireplace, which is important when you need to relax after the difficult days of grinding workers’ wages.



And satin sheets will help you sleep away your guilt at pretending to care about keeping jobs in the Athabasca region, while actually moving them away.



The upstairs has an enormous bedroom (not shown), while the basement features a wet bar area that connects a massive family room with a rec room. What better place to gather your minions and hatch plans to bust your workers’ union!



The point here is that bosses superficially look like workers. But they don’t share our circumstances or our interests. And revealing that difference to workers—in material terms—can go a long way towards undercutting the boss’s messaging.

-- Bob Barnetson

Sugaring and sex work

A few years back, Briarpatch magazine did an interesting piece on sex workers working around the closure of online sites to connect with clients by American legislation, such as the Allow States and Victims to Fight Online Sex Trafficking Act and the Stop Enabling Sex Traffickers Act. One website that continued to function was “Seeking Arrangements”, which connected sex workers and clients in longer term arrangements (often called sugardaddying/babying).

One interesting aspect of the article is that it explores this form of sex work in the content of precarious work (or the gig economy), noting how the criminalization of sex work intensifies the exploitability of these workers. The framing of sugarbabying as “dating” is also used to reduce the income of these sex workers.

“I don’t know if this is a hot take or not, but sugar babies should just hook,” [said] … . “They make less money than escorts. I want them to make more than they do.”

Essentially, argues the article, clients seek to manipulate sex workers into taking a lower wage. And the atomizing nature of sugaring sites means it is difficult for sex workers to share info about wage rates or unsafe clients.

-- Bob Barnetson

Research: Casinos and captive labour markets

The journal Labour/Le Travail recently published a very interesting case study about the experiences of workers at Casino Windsor. You can read the full text of the article here.

Casinos are often mooted as tools of economic diversification, providing relatively high-waged service industry jobs. This was a part of the back story of the opening of Casino Windsor and, initially, the casino did provide good jobs, particularly to women. Over time, though, economic pressure resulted in declining working conditions.

The workers at the casino faced labour immobility due to high unemployment and the absence of comparable wages elsewhere. This dynamic essentially creates a captive labour market, argues author Alissa Mazar, where the workers are stuck in their job. The employer knows this and uses aggressive disciplining to pressurize workers to perform.

Few options and fear of job loss has meant workers have internalizing the need to provide high quality customer service, despite poor treatment. Essentially, they exert discretionary effort in the hope that it will keep their livelihood intact and the employer uses this extra effort to reduce labour costs.

Mazar’s case study raises numerous questions about the value of casinos as economic engines, particularly when the state constraints the number of casinos and thus creates a captive labour force for the employer.

-- Bob Barnetson

Labour & Pop Culture: He thinks he’ll keep her

My wife flagged this 1993 song by Mary Chapin Carpenter as labour related. It traces the journey of a women who, at 36, opts to leave her marriage and role and primary caregiver to re-enter the workforce.

Most of the song chronicles the unpaid, social reproductive labour that the women does. It is interesting to see this work treated so explicitly as both skilled and demanding labour. And yet these skill have little market value when she decides to rejoin the paid workforce. It also nicely tease is out the often hidden power dynamics of one-income marriages.

I’m not a huge fan of the new country era, but the backup singers on this video are are pretty amazing. Trisha Yearwood, Emmylou Harris, and Patty Lovelace, to name a few.

She makes his coffee, she makes his bed
She does the laundry, she keeps him fed
When she was twenty-one she wore her mother's lace
She said, "forever," with a smile upon her face

She does the carpool, she P.T.A.'s
Doctors and dentists, she drives all day
When she was twenty-nine she delivered number three
And ev'ry Christmas card showed a perfect family

Ev'rything runs right on time
Years of practice and design
Spit and polish till it shines, he thinks he'll keep her

Ev'rything is so benign
The safest place you'll ever find
God forbid you change your mind, he thinks he'll keep her

She packs his suitcase, she sits and waits
With no expression upon her face
When she was thirty-six she met him at their door
She said, "I'm sorry, I don't love you any more"

Ev'rything runs right on time
Years of practice and design
Spit and polish till it shines, he thinks he'll keep her

Ev'rything is so benign
The safest place you'll ever find
God forbid you change your mind, he thinks he'll keep her

For fifteen years she had a job and not one raise in pay
Now she's in the typing pool at minimum wage

Ev'rything runs right on time
Years of practice and design
Spit and polish till it shines, he thinks he'll keep her

Ev'rything is so benign
The safest place you'll ever find
At least until you change your mind (he thinks he'll keep her) all right

-- Bob Barnetson

Bill 32 reduces workers' overtime choice and pay

This blog previous appeared on the Canadian Law of Work Forum.

Alberta is proposing changes to its Employment Standard Code that would permit employers to evade paying overtime (OT) premiums to workers by stripping workers of their right to refuse to participate in overtime averaging agreements. This has the potential to move hundreds of millions of dollars in OT pay from workers’ pockets to employers’ profits.

Background

Like all Canadian jurisdictions, Alberta has set limits on hours of work. In most cases, Alberta restricts work to a 12-hour window (ESC, s.16(1)). Alberta also normally requires that employers pay an overtime premium (1.5 times wage rate) if workers work for more than 8 hours in a day or 44 hour in a week (ESC, s.21). The policy rationale for limiting hours of work and requiring OT premiums centre on ensuring workers’ quality of life, reducing the safety risks associated with worker fatigue, and incentivizing additional hiring.

Alberta also allows employers and workers to enter into overtime averaging agreement (ESA, s.23.1(1)). Averaging agreements allow an employer to average the hours worked by a worker over a period of time when calculating whether the worker has met the weekly OT threshold and is entitled to the OT wage premium. Presently, overtime agreements can specify averaging over a period ranging from one to twelve weeks. Averaging agreements allow for workers and employers to agree to compressed work weeks (e.g., four ten-hour days instead of five eight-hour days) without triggering the OT premiums.

Any overtime paid out at the end of the averaging period is paid at a rate of 1.5 times normal wages. Although the legislation is slightly unclear on this, government policy asserts that time off taken in lieu of OT is paid at straight time. Here is the government’s existing summary of the average agreement device.

Proposed OT Changes in Bill 32

Bill 32 (Restoring Balance in Alberta’s Workplaces Act) was introduced in the legislature in early July. If passed, this bill will make a large number of changes to both the Employment Standards Code and the Labour Relations Code. Relevant to this post, Bill 32 will allow employers to impose OT averaging agreements on workers with two weeks notice (Bill 32, s.1(11)) unless there is a collective agreement in effect. Presently, workers must agree to overtime averaging.

Bill 32 will also increase the period of time over which OT can be averaged from 12 weeks to 52 weeks and do away with the two-year limit to such agreement and loosen the rules around changes in work schedules (which otherwise require 24-hours of notice).

These changes provide employers with oppportunities to evade paying OT premiums. For example, the weekly overtime threshold is 44 hours. If a worker works a 60-hour week (say six 10-hour days), they would normally be eligible for 16 hours of pay at over-time rates. Under an overtime averaging agreement, those 16 hours could be averaged (i.e., spread across) up to 52 weeks (roughly 20 minutes per week). This would spread the OT far enough not to engage the 44-hour weekly OT threshold (the daily OT threshold can be evaded under averaging agreement).

Under such an agreement, a worker could work up to 208 OT hours a year (i.e., more than five extra weeks) and the employer would never have to pay any OT premiums. The changes effectively guarantee that very few, if any, non-union Alberta workers will ever receive overtime pay, unless the employer agrees to pay it as an act of altruism or a job perk. Further, when a worker is entitled to be paid OT under an averaging agreement, that pay may be delayed until the end of the averaging period (now as long as 52 weeks).

Bill 32 also compounds 2019 changes to how banked OT is paid out. Under those changes, a worker who enters into an OT banking arrangement (which is notionally voluntary, but practically up to the employer) and wishes to take banked time as time off with pay (instead of being paid out), does so at straight time.

Analysis

The amendments proposed in Bill 32 will enhance employers’ opportunities to avoid paying OT premiums. When the government makes it easier for to require over-time work without paying workers the over-time premium (as it is with Bill 32), the government is effectively transferring money from workers’ pockets to employers’ profits. Statistics Canada data from 2018suggests that there is roughly $3.3 billion in over-time premiums annually.

Rationally, every employer should enter into an OT averaging agreement. Not every employer will be able to do so. Unionized employers will remain subject to whatever their collective agreement says (this covers about 20% of the workforce in Alberta). Other employer may not be sophisticated enough to operate an agreement. There is no credible way to estimate the value of the transfer from workers to employers, but the annual amount is likely to be in the hundreds of millions of dollars.

Minister Copping framed these changes as “expanding choice for workers”in a Calgary Herald op-ed, noting:

…some workers may prefer to work four 10-hour days, instead of five eight-hour days. Then, they could receive three-day weekends. But changes made by the previous NDP government effectively made it difficult for employers to set up these schedules… .

This is the precise spin that conservative governments across the country have used to justify legal rules that permit employers to avoid overtime pay. In this framing, Copping fails to note that (1) under the present system, workers (as a group) have the opportunity to choose (or refuse) flexible schedule, and (2) Bill 32 takes away that choice by vesting decision-making with the employer. He also ignores that employers can manipulate this system to evade paying overtime premiums and that that long shifts increase the risk of injury to workers.

-- Bob Barnetson

Sex work, income support and COVID-19

LBST 415 (Sex work and sex workers) spends a lot of time examining the ways in which different jurisdictions regulate sex work and sex workers. There are a number of different models.

Canada has adopted the Nordic model, wherein the sale of sex is not (usually) illegal but the purchase of sexual services is. In theory, this model is designed to extinguish demand for sexual services while making it possible for sex workers to access police help if necessary. In practice, neither of these outcomes occurs.

New Zealand, by contrast, has decriminalized sexual services. Sex workers are able to access all of the normal protections that workers access. The research suggests that this seems to offer the best outcomes for sex workers.

COVID-19 offers an interesting lens through which to view and assess these models. In Canada, sex workers are reporting that their income had dropped significantly as a result of the pandemic. Further, sex workers indicate they either don’t qualify for or are too afraid to apply for the Canadian Emergency Response Benefit (CERB).

For example, people who engage in sex work on the side to top up their (inadequate) disability payments (in order to feed their kids) are concerned that applying on the CERB could later come back to affect their disability payments (because applying indicates income over $5000). Applying on the CERB also requires sharing banking information, which could be used to track back to their clients.

These concerns reflect the stigma and persecution that sex workers continue to experience in Canada, despite the decriminalization of selling sexual services. As a result of declining income, sex workers may consider accepting riskier clients (thus heightening sex workers’ risk of injury or death). Economically forcing sex workers to continue to work during a pandemic also puts them at risk for infection.

By contrast, sex workers in New Zealand had full and immediate access to New Zealand’s emergency wage subsidy. New Zealand sex workers are also immediately eligible for job-seeker benefits (basically EI in Canada) if the decide they wish to leave sex work and seek other employment. Canadian sex workers would not qualify for EI and, if they did, would be forced to endure a waiting period. This is not to suggest the conditions of sex work are perfect in New Zealand, but simply the New Zealand model seems to offer better working conditions for sex workers.

While debate over the best regulatory model for sex work often focuses on working conditions and financial outcomes for sex workers and concerns about community effects, COVID-19 highlights that sex work (like all work) is entangled in a complex web of issues of policy issues. The ability of New Zealand sex workers to stop-out of sex work during the pandemic highlights how labour market policy and income support (which largely ignore sex worker in Canada) affect sex workers’ ability to control the conditions under which they work and how this has knock-on effects for people who have little or no direct contact with sex workers.

-- Bob Barnetson