The Canadian dollar is sliding lower against the US dollar, while the U.S. is rising against the euro.
That’s bad news for Canadian workers who are still reeling from a steep drop in oil prices and a sharp drop in corporate profits.
“If oil is back to where it was at the start of 2017, we are going to see more and more pay cuts,” said David Smith, chief economist at TD Securities Inc. in Toronto.
“The pay gap is not going to be closed.
We’re going to have to do more and do it faster.”
The U.K. and France have already begun to trim pay by capping the annual increase in pay for workers in the public service, while a new law could see the same legislation applied to private sector workers in Ontario and Quebec.
The move would also be a boon to workers in other industries.
“We’re going from a very high-paying public sector, to one where the public sector is paying very little and private sector is getting a lot more,” said Andrew Hickey, head of research at the Canadian Federation of Independent Business.
In Canada, the public-sector pay gap has narrowed to about $18,500 a year from about $20,000 in 2013, according to Statistics Canada data.
In the private sector, it has widened to about 25 per cent from 12 per cent, while it remains the biggest gap in the industrialized world.
For more: https://www.cbsnews.com/news/canada-pay-gap-closes-after-annual-payback-year/