Therefore, the issue of liberalism and personal freedom does not apply when someone is benefiting from the outcome. If some people could opt out of taxation even when they are enjoying the roads, healthcare and other services funded by taxes, then those paying would carry an unfair burden. After some time, tax payers would eventually stop doing it out of resentment of the freeloaders (IAMAW Northwest District 250, 2018). As a result, the country’s government would collapse. While this rebuttal may seem like a compelling argument, it misses the point. Taxes are not the same as union dues because union dues only apply to a small group of people. Conversely, taxes apply to the entire country and are universal. A case in point would be temporary part time employees, who are hired in most retail outlets around the country. These part-timers are often exempted from local bargaining agreements. However, trade unions covering them still collect dues from them. If these workers could opt out, they would be spared from paying for a service
SHOULD THE RAND FORMULA BE ABANDONED? 5 that they do not enjoy. Overall, the trade union context is different from the taxation context as only a select group actually benefit from the work done by unions ( National Union of Public and General Employees, 2019). The relative strength of trade unions and the kind of power they wield can affect the attractiveness of Canada as an investment destination. The Rand Formula acts as a disincentive for foreign investors who may be put off by such punitive measures. In the long run, this could lead to loss of jobs that would have been kept in the country. Businesses would see no limitations in setting up shop in Canada because they would not have to worry about this clause. It is a given fact that multinationals are slowly dominating the global marketplace. Most of them have the resources, expertise and networks to move to any part of the world. However, they often do their research concerning the political, legal, economic, technological, and social landscape of the target destination. If the potential employer weighs the cost of labor in the countries under consideration, those with less stringent requirements are likely to get more foreign employers. Therefore, Canada is losing out on such work because of this clause. The other major concern held by some people is they do not really see value for money from the unions, yet they are continually remitting money to them. At the time of union formation or when the Rand Formula was passed, unions were needed earnestly. The 1940s and 50s were a time when worker’s rights were not protected. However, today these matters have already been tackled ( University of Windsor, 2012). It might be true that workplaces are not entirely problem-free, but they have their one ways of handling other issues that arise. The effects of trade unions are rarely felt. In some provinces, workers do not even know their union representatives. Consequently, few of them ever file grievances or enjoy rewards from those specific groups. It is thus unjust to deduct money from their salaries based on an expectation of value which is rarely delivered.
SHOULD THE RAND FORMULA BE ABANDONED?
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- Fall '15
- DAVID CAMFIELD
- Trade union