The Laws of Unintended Consequence: The Effect of Labour Legislation on Wages and Strikes

Abstract

When politicians consider intervening in labour disputes, they should also consider the long-term, potentially unintended results of such action. In this study, the authors investigate the lessons from previous government legislative interventions, whether through compulsory arbitration, “back-to-work” legislation or bans on replacement workers during strikes, and find these actions have unintended results that give reason for sober second thought.Economic Growth and Innovation, Canadian federal and provincial governments, labour relations, compulsory arbitration, back-to-work legislation