Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 15, 1998, Winnipeg, Manitoba Manitoba workers confront 20 years of stagnant wages by Stevens wild staff reporter incomes for Manitoba residents fell Between 1995 and 1996, continuing a trend of stagnant incomes dating Back almost two decades. Median employment income in Manitoba was $18,500 in 1996, a marginal increase from $18,400 in 1995, statistics Canada reported Laking inflation into account real incomes fell marginally during 1995-96. Nationally the trend was similar. Canadians median employment income was $20,700 in 1996, ii from $20,600 the year before. Statistics Canada reported that the 1996 National median was $230 below the amount required to keep Pace with inflation. Rob Hillard president of the Manitoba federation of labour said the statistics showed the disparity Between the ongoing economic growth and the stagnant personal incomes of working canadians. There is substantial economic growth Hillard said. It s not being reflected in people s wages. There s something wrong a free press analysis of income data shows that before tax family income for Manitoba residents declined Between 1980 and 1996 after adjustments for inflation. In 1996, Manitoba families earned an average of $52,132 Down from $52,151 in 1980. The decline was even More pronounced after rising taxes were taken into account. In 1996, Manitoba families made $42,393 after taxes a Sharp drop from $44,730 in 1980. Income dropped nationally pre tax family income increased to $56,629 in 1996 from $55,901 in 1980. Post tax income dropped to $45,032 from $47,264 during the same period. We Are seeing a very gradual decline in the Standard of living Over the past decade Hillard said. The Canadian Standard of living is slowly diminishing. It s not healthy. It s not just. And it s a warning University of Manitoba economist John Mccallum pointed out that the data came at the tale end of a seven year recession. It was probably the worse seven year period since the 1930s," Mccallum said of the period 1988-1995. A Long recessionary period and High unemployment weakened workers bargaining Power As employees be came More concerned about Job Security than wage increases said Brandon University economist Errol Black. We have had an extended period of joblessness Black said. We Are Only starting to recover from that in the last 18 and changes in the unemployment insurance program which reduce eligibility and benefits for those who qualify often compel people to take jobs that they might not otherwise accept he said. Recent increase Black also said the Canada United states free Trade agreement and the North America free Trade agreement contributed to the problem by increasing the mobility of capital allowing companies to threaten to relocate if they do not get concessions from their employees. And Black pointed out much of the recent increase in employment was in part time and temporary jobs which Are often at the lower end of the pay scale. Dan Kelly of the Canadian federation of Independent business said the increase in taxes has helped keep wages Down by decreasing the amount of Money available to pay workers. But Black said taxes were used by governments to pay for goods and services that help stimulate the Economy. And depressed wages Hurt business because people have less to spend on retail items Kelly said. Neil Cohen executive director of the Community unemployed help Centre said there was a growing disparity Between the affluent and the poor As lower paying jobs replace higher paid ones. We Are creating telemarketing jobs and Call Centre jobs and you have to balance them with the jobs that Are being lost Cohen said. But some observers pointed out that the statistics Canada data was two years old. 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