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The Munk Debates Podcast
Friday Focus: Govt Strikes – Stephen Kotkin
Apr 21, 2023
Discussion of Canada's federal public service strike and its impact on government service delivery. Interview with Stephen Kotkin exploring topics like the war in Ukraine and China-US relations. Highlights the importance of a well-trained public service and state capacity. Future outlook for the government and options for resolving the strike and government intervention on AI.
24:04
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Quick takeaways
- The demand for significant wage increases and work-from-home arrangements in the public sector poses challenges to maintaining a dynamic private sector and could potentially blur the distinction between public and private sector employment, impacting entrepreneurship and economic rationality.
- The ongoing labor unrest in Canada raises concerns about the federal government's ability to fulfill its functions effectively, jeopardizing state capacity and long-term economic prosperity by prioritizing work-from-home requests and higher compensation over investing in talent and maintaining a learning environment in the public service.
Deep dives
Labor Unrest in Canada and its Global Parallels
Labour unrest in Canada is mirroring similar trends seen in other advanced economies and democracies worldwide. Strikes and demands for new benefits and pay accommodations have surged, reflecting the changing nature of work post-COVID. The demand for significant wage increases in the context of rising inflation, such as the 13% increase requested by PSAAC, is seen as reasonable. However, the pushback against returning to the office, with employees citing productivity and environmental concerns, has generated controversy. Balancing the desires of the public service with maintaining a dynamic private sector poses challenges, as private sector workers are now outpacing their public sector counterparts in terms of income. The distinction between public and private sector employment could blur if the right to work from home becomes a widespread demand. Such a shift could negatively impact entrepreneurship and economic rationality.
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