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The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes

Author

Listed:
  • Benjamin Dachis

    (C.D. Howe Institute)

  • Robert Hebdon

    (McGill University)

Abstract

When politicians consider intervening in labour disputes, they should also consider the long-term, potentially unintended results of such action. In this study, the authors investigate the lessons from previous government legislative interventions, whether through compulsory arbitration, “back-to-work” legislation or bans on replacement workers during strikes, and find these actions have unintended results that give reason for sober second thought.

Suggested Citation

  • Benjamin Dachis & Robert Hebdon, 2010. "The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 304, June.
    • Handle: RePEc:cdh:commen:304
    as

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    File URL: https://www.cdhowe.org/public-policy-research/laws-unintended-consequence-effect-labour-legislation-wages-and-strikes
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    References listed on IDEAS

    as
    1. Philippe Bergevin & David Laidler, 2010. "Room for Manoeuvre – Monetary Policy Over the Next Eighteen Months, and the Allure of Price-Level Targeting," e-briefs 97, C.D. Howe Institute.
    2. Philippe Bergevin, 2010. "Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 130, May.
    3. William B.P. Robson & Colin Busby, 2010. "Freeing up Food: The Ongoing Cost, and Potential Reform, of Supply Management," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 128, April.
    4. David Johnson, 2007. "School Grades: Identifying Alberta’s Best Public Schools," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 104, September.
    5. Philippe Bergevin, 2010. "Change is in the Cards: Competition in the Canadian Debit Card Market," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 125, February.
    6. Alexandre Laurin & William B.P. Robson & Colin Busby & Finn Poschmann, 2010. "Back to Balance: A Shadow Federal Budget for 2010," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 127, February.
    7. John Stapleton, 2010. "Down but Not Out: Reforming Social Assistance Rules that Punish the Poor for Saving," e-briefs 93, C.D. Howe Institute.
    8. Henning Bjornlund, 2010. "The Competition for Water: Striking a Balance among Social, Environmental, and Economic Needs," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 302, April.
    9. William B.P. Robson, 2010. "Cutting Through Pension Complexity: Easy Steps Forward for the 2010 Federal Budget," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 126, February.
    10. Colin Busby, 2010. "Manitoba’s Demographic Challenge: Why Improving Aboriginal Education Outcomes Is Vital for Economic Prosperity," e-briefs 99, C.D. Howe Institute.
    11. David Johnson, 2010. "School Grades: Identifying Alberta's Best Schools, an Update," e-briefs 96, C.D. Howe Institute.
    12. Michael Parkin, 2010. "How Soon? How Fast? Interest Rates and Other Monetary Policy Decisions in 2010," e-briefs 92, C.D. Howe Institute.
    13. Pierre Siklos, 2010. "Taking Monetary Aggregates Seriously," e-briefs 94, C.D. Howe Institute.
    14. Robert Knox, 2010. "Who Can Work Where: Reducing Barriers to Labour Mobility in Canada," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 131, June.
    15. David Johnson, 2010. "British Columbia’s Best Schools: Where Teachers Make the Difference," e-briefs 100, C.D. Howe Institute.
    16. Martin Cave & Adrian Foster, 2010. "Solving Spectrum Gridlock: Reforms to Liberalize Radio Spectrum Management in Canada in the Face of Growing Scarcity," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 303, May.
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    Cited by:

    1. Pierre Siklos & Andrew Spence, 2010. "Faceoff: Should the Bank of Canada Release its Projections of the Interest Rate Path? – The Cases For and Against," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 134, October.
    2. Lawrence L. Herman, 2010. "Trend Spotting: NAFTA Disputes After Fifteen Years," C.D. Howe Institute Backgrounder, C.D. Howe Institute, issue 133, July.
    3. Bob Baldwin & Brian FitzGerald, 2010. "Seeking Certainty in Uncertain Times: A Review of Recent Government-Sponsored Studies on the Regulation of Canadian Pension Plans," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 310, September.
    4. Clyde Goodlet, 2010. "Too Big to Fail: A Misguided Policy in Times of Financial Turmoil," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 311, October.
    5. Viorel ROTILĂ & Traian PALADE, 2017. "An Analysis of Public Pay Policy from the Perspective of Ethical and Legal Principles. Case Study: Draft Law on Public Employees’ Pay," Book chapters-LUMEN Proceedings, in: Camelia IGNATESCU & Antonio SANDU & Tomita CIULEI (ed.), Rethinking Social Action. Core Values in Practice, edition 1, volume 1, chapter 67, pages 740-746, Editura Lumen.
    6. Michele Campolieti & Robert Hebdon & Benjamin Dachis, 2016. "Collective Bargaining in the Canadian Public Sector, 1978–2008: The Consequences of Restraint and Structural Change," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 192-213, March.
    7. John Richards, 2010. "Reducing Lone-Parent Poverty: A Canadian Success Story," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 305, June.
    8. Landeo, Claudia & Nikitin, Maxim, 2015. "Effective Labor Relations Laws and Social Welfare," Working Papers 2015-11, University of Alberta, Department of Economics.
    9. Benjamin Dachis, 2010. "Picking up Savings: The Benefits of Competition in Municipal Waste Services," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 308, September.
    10. Richard P. Chaykowski, 2019. "Time to Tweak or Re-boot? Assessing the Interest Arbitration Process in Canadian Industrial Relations," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 539, April.
    11. Jan Carr, 2010. "Power Sharing: Developing Inter-Provincial Electricity Trade," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 306, July.
    12. Philippe Bergevin & David Laidler, 2010. "Putting Money Back into Monetary Policy: A Monetary Anchor for Price and Financial Stability," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 312, October.
    13. Dave Sawyer & Carolyn Fischer, 2010. "Better Together? The Implications of Linking Canada-US Greenhouse Gas Policies," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 307, August.
    14. Stuart Landon & Constance Smith, 2010. "Energy Prices and Alberta Government Revenue Volatility," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 313, November.

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    More about this item

    Keywords

    Economic Growth and Innovation; Canadian federal and provincial governments; labour relations; compulsory arbitration; back-to-work legislation;
    All these keywords.

    JEL classification:

    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy

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