By Ken Georgetti, Vancouver Sun September 6, 2013

Re: The union disadvantage, Sept. 4 Terence Corcoran appears to be all for a low-wage Canadian economy.

He suggests workers are better off employed at $8 an hour rather than unemployed at $15. He fails to mention that the majority of Canadians stuck in low-wage jobs are employed by large, highly profitable corporations.

Corcoran is silent on record high corporate profits and the compensation of CEOs. He also fails to mention studies showing these corporations can well afford to pay decent, family-supporting wages.

He neglects to acknowledge the cost to our society of low-wage employers who fail to provide decent pensions and benefits. Decent wages are about fairness and economic growth. The IMF, the OECD and credible economists point to weak domestic demand as a principal constraint on that growth. They argue for measures to stimulate demand; the U.K. is the most recent country to come in for criticism for its austerity policies.

When the real wage paid to low-and middle-income workers increases, it means more money spent in the local economy and businesses. That creates jobs locally rather than having record profits hoarded by big corporations, or being invested abroad in low-wage economies.

Ken Georgetti President, Canadian Labour Congress, Ottawa