Amidst all the hysteria over public sector wages (Tim Hudak has again demanded a wage freeze for public sector workers) it is useful to ask if public sector workers are taking more than their fair share of the economic growth in Ontario --or if they are falling behind. OCHU's comments to the Don Drummond Commission on public sector reform in Ontario, reviews just that question and finds that since 1995 hospital wages have risen less than half as quickly as the nominal growth in the economy. Wages are paid in "nominal dollars": they are not, unfortunately, protected against inflation. So you might have a higher dollar wage than you did ten years ago, but if inflation has increased more rapidly than your wage, you are actually less well off. As a result, the comparison between "nominal wages" and "nominal growth" (economic growth including inflation) is appropriate. Are the nominal dollars we are paid keeping up with the nominal growth in the On
Notes from Leftwords -- Doug Allan