We must work to avoid a recession that puts many working families at risk, Canadian Business Journal

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OTTAWA, Sept. 23, 2022 (GLOBE NEWSWIRE) — Canadian Labor Council President Bea Bruske issued the following statement following a meeting with the Governor of the Bank of Canada and a delegation of the labor movement.

“Canada’s unions were pleased to have the opportunity to meet with the Governor and Vice-President of the Bank of Canada to explain the realities facing workers and their families today.

“While we understand and respect the Bank of Canada’s mandate to set monetary policy on its own, we do not encourage businesses to cut wages at a time when so many workers are struggling to make ends meet. We remain deeply concerned about the Bank of Canada’s interest in encouraging an approach that takes into account the labor market and maximum sustainable employment targets when establishing monetary policy. We believe it is inconsistent with a change in the bank’s mandate that a strong labor market and Canada’s low unemployment rate must be prioritized and maintained. You risk stepping over the role and taking on the role of business consultant instead.

“We have expressed concern that rapid monetary tightening by banks could push our economy into recession and have devastating effects on everyday people. With Canadians losing their jobs, it means downward pressure on wages that are already well behind inflation, and mortgage and loan defaults could skyrocket. risk of long-term economic harm to workers and their families.

“It is important to remember that our economy is not just a series of data points on a line graph, it is driven by working people. Families of all shapes and sizes, in communities large and small. We know that precarious and low-wage workers, especially women, indigenous and racialized and recent immigrant workers, will be hit hardest if the monetary policy decisions of Diminishing consumer confidence with policies that target the well-being and welfare of the most vulnerable is not the path to the economy we want to build. , is enhanced.

“The wise thing to do now is to delay intervention designed to put the brakes on the Canadian economy. The economy has already started to cool, as seen in the contraction of sectors such as real estate.

“We have to make sure the medicine doesn’t make the disease worse.

“The Government of Canada has ultimate responsibility for determining our country’s fiscal policy. Through our recent agreement with the NDP, we urge the Government to provide targeted inflation relief. We urge them to adopt policies that prevent them from paying the price for an inflationary crisis they did not cause. Of particular concern is the lack of action by governments to ensure adequate dues are paid.

“While some Conservative politicians have used bombastic rhetoric about the conditions Canadians are suffering from, the way forward is the government’s support for families struggling with the affordability crisis. This approach is consistent with the Conservative Party’s past record of cutting health care and other services on which people depend. But cuts like today will make life significantly harder for thousands of working families.”

To arrange an interview, please contact:
CLC Media Relations
[email protected]
613-526-7426

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