Labour Relations Laws Across Canada Should Be Made More Balanced to Encourage Employment Growth

VANCOUVER, BRITISH COLUMBIA - In order to encourage employment growth as Canada comes out of the recession, the country needs more balanced labour relations laws, concludes a new study from independent research organization the Fraser Institute.

"Empirical evidence from around the world indicates that jurisdictions with more flexible labour markets enjoy better labour market performance," said Niels Veldhuis, Fraser Institute senior economist and co-author of An Empirical Comparison of Labour Relations Laws in Canada and the United States: 2009 Edition.

"When we compare labour relations laws among Canadian provinces and U.S. states, we see that Canada greatly lags the U.S. in terms of balance and laws that allow for labour market flexibility. Regulations in Canada are much more prescriptive and tilted in favour of unions. Ultimately, this will restrict future economic growth."

In An Empirical Comparison of Labour Relations Laws in Canada and the United States: 2009 Edition, Veldhuis and his co-authors provide an empirical assessment of labour relations laws in the private sector for the 10 Canadian provinces, the Canadian federal jurisdiction, and the 50 U.S. states. The study's Index of Labour Relations Laws provides an overall measurement of the extent to which jurisdictions achieve balance in their labour relations laws.

"Canadian labour relations laws inhibit the proper and efficient functioning of the labour market because they favour one group over another, prevent innovation and flexibility, and are overly prescriptive, imposing a resolution to labour disputes rather than fostering negotiation between employers and employees," Veldhuis said.
Of the Canadian jurisdictions measured, Alberta has the most balanced and least prescriptive labour relations laws, earning it a score of 5.3 out of 10, the onl