Is the Canadian Federation of Independent Business playing the blame game with unions when it should be checking its math?
The small business lobby group’s
new report — which claims private sector workers earn considerably less than their public sector counterparts — is mathematically flawed, according to Toby Sanger, an economist with the Canadian Union of Public Employees.
The CFIB study also blames the public sector for sacrificing “cost considerations” for “labour peace” with unions.
Here are five reasons why
the CFIB’s new Wage Watch study simply doesn’t add up:
1. FUZZY MATH
According to the CFIB, “disparities between private sector and public administration wages are persistently high. This shows that not enough attention has been paid by public employers to ensure appropriate balance and comparability.”
The CFIB report
says federal public servants make
13% more than similar occupations in the private sector. But a 2014
report by the Canadian Centre for Policy Alternatives, analysing the same 2011 National Household Survey data, found an overall public-sector wage advantage of
2.3%.
This is what Canada’s average annual pay looks like, according to a
CUPE analysis:
What accounts for the disparity in the two reports?
According to Sanger, the CFIB’s report used faulty math:
“They use medians instead of mean averages in order to amplify the difference in public and private sector wages (because public sector wages are more equitable). But you can’t multipy medians or differences in medians to come up with an aggregate.”