"The federal government responded [to increased labour hostility in Canada due to the 1975 wage controls imposed by the government] by abandoning the idea of generalized wage controls, substituting instead changes in monetary policy that would drive up unemployment. A policy document prepared for cabinet by the Department of Finance in late 1980 argued that a policy of higher unemployment would reduce the bargaining power and militancy of unions and workers, driving down the rate of increase in money wages and eventually inflation."
- Building a Better World: An Introduction to Trade Unionism in Canada, by Errol Black & Jim Silver
If anyone can provide me with further information on the policy document mentioned above, I would much appreciate it.
Sunday, December 11, 2011
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