Microeconomics,, 16th Canadian Edition

(Sean Pound) #1

14.2 Labour Unions LO 3


Labour unions seek many goals when they bargain with
management. They may push for higher wages, higher benefits, more
stable employment, or less onerous working conditions. Whatever
their specific goals, they must recognize the inherent conflict between
the level of wages and the size of the union itself.
There is clear evidence in Canada of a union wage premium:
Unionized workers with a particular set of skills in particular types of
jobs get paid 10 to 15 percent more than otherwise identical workers
who are not union members.
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