Repealing the Fair Wages and Hours of Labour Act was the right decision - thestar.com
The Fair Wages Act obliges companies to establish dual wage structures for private and public sector work. This is nonsensical, costly and burdensome. Many small, family-run open shop construction companies simply refuse to bid on federal projects. This results in lower levels of competition and increased construction costs for the government.
Repealing the Fair Wages and Hours of Labour Act sets the stage for millions of dollars in savings for government, open shop companies and taxpayers. This is good for Canada. The antiquated belief that regulating wages increases productivity and wages is simply wrong. In fact, wage regulations needlessly increase the marginal cost of labour. This in turn discourages employers from hiring additional workers, even during times of peak demand. Who gets hurt here? New job seekers, particularly young people and other groups under-represented in the construction trades, such as women and First Nations.
The construction industry is vital to Canada’s economic health. We need competition not regulation, fair wages not artificially set ones, and governing legislation that reflects the society and market conditions in which we live today and not those of the Great Depression.
The Fair Wages Act obliges companies to establish dual wage structures for private and public sector work. This is nonsensical, costly and burdensome. Many small, family-run open shop construction companies simply refuse to bid on federal projects. This results in lower levels of competition and increased construction costs for the government.
Repealing the Fair Wages and Hours of Labour Act sets the stage for millions of dollars in savings for government, open shop companies and taxpayers. This is good for Canada. The antiquated belief that regulating wages increases productivity and wages is simply wrong. In fact, wage regulations needlessly increase the marginal cost of labour. This in turn discourages employers from hiring additional workers, even during times of peak demand. Who gets hurt here? New job seekers, particularly young people and other groups under-represented in the construction trades, such as women and First Nations.
The construction industry is vital to Canada’s economic health. We need competition not regulation, fair wages not artificially set ones, and governing legislation that reflects the society and market conditions in which we live today and not those of the Great Depression.