Union Density Lowers the Income Share Going to the Top 1%
Across Canada, union coverage is inversely proportionate to inequality. From lifting wages and securing employment benefits to advocating for public programs, union power is a bulwark against inequality.
Unifor members and supporters on a picket line outside General Motors Canada’s Oshawa Assembly Complex in Oshawa, Ontario, on October 10, 2023. (Cole Burston / Bloomberg via Getty Images)
Strong unions can reduce inequality in society through various means. Most directly, through collective bargaining, they lift wages for union members and negotiate other employment benefits that stabilize incomes and secure household financial well-being for union members.
Within workplaces, unionization also correlates with reduced wage disparities among workers. This is because wages are determined through transparent, negotiated wage schedules that consider factors like seniority and experience, rather than relying on arbitrary management decisions or favoritism.
In the policy and political arenas, unions play a significant role in advocating for public programs that contribute to reducing inequality. This includes support for programs such as public pensions, unemployment insurance, and the implementation of more progressive taxation systems.
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