Description: Statistics Canada tells us that in Toronto and other cities in southern Ontario, wages for men have either been flat – no increases – or on the way down for the 15 year period between 2000 and 2015. In contrast, wages for males elsewhere in Canada went up by 13% over the same period. According to economist Sheila Block “This quantifies what everyone felt was true.” The reduction in manufacturing jobs has been tough not just on the manufacturing workers themselves, but also on their surrounding communities.
Date: January 15, 2020
1) Do you know anyone impacted by this situation with manufacturing jobs?
2) One of the people quoted in the story puts the blame on poor government negotiation on trade deals, noting that Canada has slipped a long way from its old fourth-place standing in auto production. What do you think the government could do to secure better trade terms?
3) In Chapter 2 of Wiley’s Managerial Accounting: Tools for Business Decision-Making, is a thorough discussion of cost behaviour. Which of the various costs discussed in this chapter would be impacted by a freeze or a cut in wages over that 15 year period?