A summer of discontent? Why public sector workers are preparing to strike in B.C.
Statistics Canada announced a rise in consumer inflation to 8.1 per cent in June 2022. Skyrocketing inflation is the major cause behind worker unrest and collective action. The main driver of inflation is the price of gasoline, but even excluding gas the consumer price index rose 6.5 per cent in June. Hourly wages, on the other hand, only increased 5.2 per cent. The below-inflation increase in wages comes despite a record low unemployment rate of 4.2 per cent. A tight labour market is not resulting in above-inflation wage increases for most workers. Nor is there evidence of a wage-price spiral, which is when wage growth drives price increases, which in turn drives wage growth in the economy. Instead, corporate profits, global price increases, supply chain issues and global conflicts are making consumer goods more expensive, while wages fail to keep pace.
