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Pathway ::  Home arrow News arrow National arrow Canadian workers' paycheques in holding pattern

Canadian workers' paycheques in holding pattern PDF Print E-mail
Written by CCPA   
Friday, 29 June 2007
OTTAWA - Canadians are working harder and smarter, contributing to a growing economy, but their paycheques have been stagnant for the past 30 years, says a new study by the Canadian Centre for Policy Alternatives (CCPA).

Rising Profit Shares, Falling Wage Shares finds that Canada's economy grew steadily and workers' productivity improved by 51 per cent in the past 30 years, but workers' average real wages have been stuck in a holding pattern all this time.

  "Canadians are constantly being told they need to improve their productivity and grow the economy - which is exactly what they've done, but their paycheques aren't growing to reflect their work effort," says study co-author Ellen Russell, CCPA senior economist.

The study finds that Canadian workers' wage share of national income is the lowest it's been in 40 years.

If workers' real wages had increased to reflect improved productivity and economic growth, they could be earning an average of $10,000 more each year on their paycheques (in 2005 dollars).

Instead, corporations - not workers - have been banking the lion's share of the benefits of economic growth and improved productivity.

"Corporate profit shares are the highest they've been in 40 years - and we're not talking peanuts here," says Russell.

"In 2005, corporations banked $130 billion more in gross profits than they would have if the profit share had remained at 1991 levels. Sharing those earnings with workers could have gone a long way to reducing Canada's growing income gap."

The full study, co-authored by Ellen Russell and Mathieu Dufour is available at www.growinggap.ca and www.policyalternatives.ca.

 

Comments
Good news !
Written by www.livableincome.org on 2007-06-29 17:37:26
I'm really glad to hear that as a worker my productivity went up not DOWN for once. 
 
Cheers everyone. 
 
 
4. FINLAND’S PRIME MINISTER SPEAKS FAVORABLY OF BIG 
 
NewsRoom Finland reports that the prime minister of Finland, Matti 
Vanhanen, of the Centre Party, said that the structure and level of 
basic security should be reappraised, and that the current wide range of 
benefits could be replaced by a basic income guarantee of about 600 or 
700 euros per month. He argued, however, that BIG should be supplemented 
by incentives to encourage those capable of work to enter the labor 
market. According to NewsRoom Finland, “Mr Vanhanen's comment comes amid 
a clash between the Social Democratic Party [SPD], the Centre's main 
government partner, and the opposition Green League over guaranteed 
minimum income.” The Finnish Greens accused the Social Democrats of 
using made-up arguments to reject basic income. NewsRoom Finland 
reported on February 26, “Finland's opposition Green League on Monday 
accused the SDP of deploying trumped-up and populist arguments to reject 
the idea of a guaranteed minimum income. The Greens' critique was a 
response to a report by the Kalevi Sorsa foundation, an SDP-leaning 
organization, faulting a basic income scheme as promoted by the Green 
League. The leaders of the Green League said in a joint statement that 
the foundation's report played down problems related to social security. 
Ville Kopra, a researcher, says in the foundation's report that basic 
income could endanger both universal validity on the labor market and 
earnings-related unemployment security. The Greens say the Social 
Democrats' resistance to change is dividing people into two classes 
where only those in regular employment should enjoy sufficient basic 
security.” 
 
Two reports are on line at: 
http://newsroom.finland.fi/stt/showarticle.asp?intNWSAID=15100&group=Politics 
http://newsroom.finland.fi/stt/showarticle.asp?intNWSAID=15103&group=Politics 
 
 
 
8. SEVERAL GERMANS ENDORSE BASIC INCOME 
 
Several Germans have recently endorsed basic income. Ulrich Beck, 
prominent sociologist in Germany and author of "The Risk Society," and 
Kayja Kipping, chairperson of the left party PDS, have both endorsed 
basic income as a way to give workers greater negotiating power to 
demand more meaningful work. According to Kipping, many leftist are 
uncomfortable with BIG because they suffer from “work fetishism.” Asked 
to explain she replied, “Many think only paid work is a valuable 
contribution. The ideology ‘whoever doesn't work should not eat' is 
malicious. To me, this is a completely strange understanding of 
contribution. Persons in the arms industry do social harm through paid 
work. On the other hand, many activities that are not paid are important 
for society.” Vienna. Should basic security be only for persons willing 
to work and the needy? Ronald Blaschke , a philosopher, sociologist, 
educator, and spokesperson of the German Basic Income Network also 
argued for BIG and against work fetishism in an interview with Beate 
Lammer on diepresse.com. 
 
German businessman Gotz Werner argues has been arguing for basic income 
in recent years. He renewed his support for BIG in an interview with the 
daily die Tageszeitung, last November. The BIEN Newsletter published the 
following excerpts from the interview: 
Journalist: You speak very positively. You own over 1700 drug stores. 
You have annual sales of 3.7 billion Euros. You are one of the 500 
richest Germans. 
Werner: That is untrue. Like almost all entrepreneurs, I wanted more and 
more in the past. Today maximizing meaning is my top priority. 
Journalist: Do you see the world with different eyes? 
Werner: I have read the classics, Goethe, Schiller. I understand my own 
success is not everything. I want to help others succeed. People are 
central, not business. I try to imagine a positive world. 
Journalist: "Nothing is stronger than an idea whose time has come," you say. 
Werner: Victor Hugo said that. I only quoted him. 
Journalist: Is the time right for your idea? 
Werner: At least the idea could be discussed at last. Two years ago that 
was something for a few experts. The halls are full when I give lectures 
today. 
Journalist: What has changed? 
Werner: The old political slogans have nothing to do with the world 
where people live. Unemployment grows despite temporary announcements of 
success. Unbridled growth damages our resources. If Angela Merkel would 
say "full employment" is possible, nobody would believe her any more… 
Journalist: The unconditional basic income already has supporters in the 
parties - from left to right. Why is this? 
Werner: Because this is the most radical form of socialism and the most 
radical form of capitalism. After one of my addresses, a listener wrote 
to me: "Your basic income model has reconciled my socialist heart with 
my neoliberal mind." 
 
The full interview in German is available at: 
http://www.taz.de/pt/2006/11/27/a0146.1/textdruck 
An English translation is available at: 
http://www.indybay.org/newsitems/2006/12/14/18337615.php 
Other articles on BIG in Germany are on the web at: 
http://portland.indymedia.org/en/2007/02/354533.shtml 
http://portland.indymedia.org/en/2007/02/353198.shtml 
http://portland.indymedia.org/en/2007/01/352187.shtml 
http://www.diepresse.com/textversion_article.aspx?id=607979 
http://www.mbtranslations.com 
http://www.commondreams.org 
http://www.freitag.de/2006/50/06501501.php. 
 
 
9. EDUARDO SUPLICY OPTIMISTIC ABOUT BASIC INCOME IN CHINA 
 
Brazilian Senator Eduardo Suplicy, one of the strongest supports of 
basic income in any ruling government in the world, recently visited 
China and reports substantial hope for the future of basic income in 
China. Senator Suplicy spoke about basic income with several 
highly-placed officials in the Chinese government. He found that 
elements of universal, unconditional support exist in some current 
Chinese anti-poverty programs, and that there is some hope the China 
will move further in that direction. Suplicy also spoke with Professor 
Tian Xiaobao, who is considered to be the first economist in China, 
author of a 2006 book on Social Security in China. 
According to Suplicy, “It was with Professor Tian Xiaobao that I had my 
longest and very productive three hour conversation. After explaining 
all the advantages of an unconditional basic income to him, after 
describing experience of the Alaska Permanent Fund Dividend System and 
the perspective of having such a system in Brazil, I asked him whether 
he considered possible to think about having the institution of an 
inconditional basic income for all 1 billion and 300 million or more 
Chinese in the future. Professor Tain Xiaobao answered that he 
considered the Basic Income a very sound and rational proposal, making 
sense and being consistent with the objective of building a harmonious 
society, such as advocated by Confucius 520 years before Christ. It is 
also consistent with the objectives of today's Chinese government. He 
told me, however, that to attain the objective of paying a basic income 
to all Chinese, it would be required a time of preparation for the next 
three quinquenal plans. Thus, a Basic Income would be desirable and 
possible in 2020.”

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