Skip to main content

Management wage increases dwarf others

Earlier I noted that while the provincial government was imposing concessions (and, yes, of course, wage freezes) on unionized public sector workers, the Conference Board of Canada was predicting 2.7% increases for non-union employees in Ontario in 2013 (up from 2.6% actual increases in 2012).

Now, Statistics Canada data suggests this may be part of a long term trend.  Data in a new report indicates that in Canada between 1998 and 2011 the hourly wages of full time management occupations went up 34.7% in real terms (i.e. after accounting for inflation).  

The rest did much worse.  "Health occupations" saw a 3.8% real increase.  That is about a quarter of one percent per year -- management occupations did about  nine times better.  "Social Sciences, education, and government service" did worse still with a 2.5% increase over the 13 years. 

Worst of all? "Occupations unique to processing, manufacturing, and utilities" at 1.5%. 

Outside of management, "occupations unique to primary industries" increased the most at 15% (driven, reportedly by increasing demand for commodities like oil and copper). 

Median hourly wages
1998
2011
Change
(In 2010 dollars)
(In 2010 dollars)
%
Management occupations
24.87
33.5
34.7
Business, finance, and administrative occupations
19.14
19.86
3.8
Natural sciences, applied sciences, and related
26.17
29.79
13.8
Health occupations
22.97
23.84
3.8
Social sciences, education, government service
26.64
27.32
2.5
Sales and service occupations
13.72
14.52
5.9
Trades, transport, and equipment operators
20.42
21.3
4.3
Occupations unique to primary industry
14.04
16.14
15
Occupations unique to processing, manufacturing, and utilities
17.03
17.24
1.2

Gross Domestic Product per capita increased 18.6% in real terms from July 1998 to July 2011, so obviously someone was getting a significant increase.  Apparently that included managers (whose percentage hourly wage increase was almost double the percentage growth in per capita GDP).  

But health care workers, government employees, and education workers (i.e. targets of government austerity) have fallen far behind.

I'm sometimes accused of providing nothing but bad news.  So the good news? Unionized workers (public and private) did a little better.  According to other Stats Can data drawing on the Labour Force Survey, full time, unionized men saw wages increase 6.5% in real terms, while full time, unionized women saw an 11.4% increase. That doesn't keep pace with the growth in the economy, and still falls well short of management wage increases, but it is better than many other workers have seen.

Popular posts from this blog

Deficit? Public spending ain't the cause. Revenue, however...

With the election over, pressure to cut public programs has become quite intense. In almost all of the corporate owned media someone is barking on about it.

Another option -- increasing revenue from corporations and the wealthy is not mentioned.  However, data clearly indicates that Ontario does not have an overspending problem compared to the other provinces.

Instead, it indicates Ontario has very low revenue. 
Ontario has the lowest public spending of all the provinces on a per capita basis (see the chart from the 2014 Ontario Budget below).  So there is little reason to suspect that we have an over-spending problem.  If anything, this suggests we have an under-spending problem.







The Ontario government has also now reported in the 2014 Budget that Ontario has the lowest revenue per capita of any province.  This is particularly notable as other provinces are quite a bit poorer than Ontario and therefore have a much more limited ability to pay for public spending.  (Also notable in this…

Six more problems with Public Private Partnerships (P3s)

The Auditor General (AG) has again identified issues in her annual reportwhich reflect problems with Ontario health care capacity and privatization.   First, here are six key problems with the maintenance of the 16 privatized P3 ("public private partnership") hospitals in Ontario:
There are long-term ongoing disputes with privatized P3 contractors over the P3 agreements, including about what is covered by the P3  (or “AFP” as the government likes to call them) contract.The hospitals are required to pay higher than reasonable rates tothe P3 contractor for  maintenance work the contractor has deemed to be outside of the P3 contract. Hospitals are almost forced to use P3 contractors to do maintenance work the contractors deem outside of the P3 contract or face the prospect of transferring the risk associated with maintaining the related hospital assets from the private-sector company back to the hospitalP3 companies with poor perf…

Health care funding falls, again

Real provincial government health care funding per-person has fallen again this year in Ontario, the third year in a row.  Since 2009 real funding per-person has fallen 2.6% -- $63 per person. 

Across Canada real per person funding is in its fourth consecutive year of increase. Since 2009, real provincial funding across Canada is up $89 -- 3.6%.
In fact the funding gap between Ontario and Canada as a whole has gown consistently for years (as set out below in current dollars).

Ontario funds health care less than any other province -- indeed, the province that funds health care the second least (B.C.) provides $185 more per person per year, 4.7% more.  
Provincial health care spending in the rest of Canada (excluding Ontario) is now  $574 higher per person annually than in Ontario. 

 Ontario has not always provided lower than average health care funding increases-- but that has been the general pattern since 2005.
Private expenditures on health care have exceeded Ontario government increases …