When Workers Organize, Workers Win. That’s the Real Story
Every few months, the Fraser Institute trots out a familiar headline: government sucks, private sector rules. Their latest study claims there’s a “wage premium” for public servants and calls for cutting government employees salaries.
But let’s be clear here: this is has nothing to do with fairness.
This is about taking public anger about feeling stretched too thin financially by capitalists who hike up the price of bread during a pandemic, and turning that anger against nurses, teachers, firefighters, and other public employees who serve us every single day.
All of this spin-effort is to distract the public from the real problem: that far too many private-sector jobs don’t pay fairly, don’t provide pensions, and don’t respect workers’ rights.
Government Workers Are Unionized.
Yes, Statistics Canada shows that public-sector workers earn more on average.
It’s because government workers are far more likely to be unionized. And unions fight for fair wages, pensions, and benefits. They bargain collectively so workers don’t have to beg individually.
That’s why the wage gap between men and women, or between immigrants and non-immigrants, is smaller in the public sector.
So when the Fraser Institute points to a “premium,” they’re really pointing to the union advantage.
Unions and Income Inequality
Here’s a fact that rarely makes the headlines: income inequality in Canada has been rising for decades, driven by corporate profits soaring while wages stagnate. The top 1% pull in staggering sums while many workers live paycheque to paycheque.
Unions are one of the most powerful tools we have to close that gap. Studies show that when union density is higher, income inequality is lower. Why? Because unions don’t just win better wages for their members. They set a standard that ripples across entire industries. They make sure wage growth is shared more fairly, not hoarded by executives and shareholders.
Think about it: without unions, the “market” sets wages based on what employers can get away with. With unions, workers can negotiate from a place of strength, forcing wealth to be distributed more evenly. That’s why the public sector, where unions are strong, has smaller gender pay gaps, smaller racial pay gaps, and less inequality overall.
If we truly want to tackle income inequality, the answer isn’t cutting the wages of government workers. It’s raising the floor for everyone else by organizing, unionizing, and demanding fairness.
What the Fraser Institute Really Wants
The Institute’s end goal is crystal clear: protect the 1% at all costs. It’s evident in all that they say and do.
But lowering wages for the people who deliver our healthcare, educate our kids, and keep our communities safe doesn’t lift anyone up. It drags us all down.
This isn’t about “fiscal responsibility.” It’s about protecting the wealth of the elite.
The same corporations and wealthy interests who fund think tanks like the Fraser Institute. They don’t want workers to have good pensions or secure benefits, because it sets a standard they’d rather not meet because the more money that’s given to employees (you know, the ones whose labour earns them the income) means less money for them and their shareholders. It’s that simple.
The Real Solution: Organize and Raise Standards Everywhere
There’s a reason the Fraser Institute report doesn’t specifically outline what these employees do. Because they’re our postal workers, our teachers, our nurses, the administrator helping you file your EI or testing your kid during their drivers exam, and they’re also members of our Military. These are government employees. They’re not overloards. They’re literally your neighbours.
Instead of tearing down public servants, we should be lifting up private-sector workers. The answer isn’t to cut nurses’ pay, it’s to make sure care aides in private long-term care homes have the same protections. The answer isn’t to shrink public teachers’ pensions, it’s to demand pensions for private early childhood educators too.
Every win for unions has a ripple effect. The 40-hour work week, paid vacation, dental care, parental leave… none of these were gifts. They were won through organizing, striking, and never backing down.
We shouldn’t cut away the hard-won progress just because corporations bust workers attempts to unionize, deliberately keeping private-sector workers behind, stretched too thin and picking up Skip-the-Dishes deliveries just to make rent.
That’s why the Fraser Institute attacks government workers. They know unions raise the floor for everyone. They know if more private-sector workers unionize, the elite will have to share more of their wealth.
Never Stop Fighting for Labour
The truth is simple: the Fraser Institute is an institute to protect the wealth of the elite. They want you to resent your neighbour, the nurse, the teacher, the auditor, instead of the billionaire who made more money in the last year than most people will in a lifetime.
We cannot let them divide us. We need to keep organizing, keep unionizing, and keep pushing for better conditions across the board. Because every worker deserves fair pay, benefits, and dignity on the job, whether you’re in the public sector or the private sector.
The fight for labour rights never ends. And we can’t afford to stop now.
TL;DR
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Overall wages: a new Fraser Institute study (Oct 2, 2025) estimates a 4.8% average public-sector wage premium. The CCPA finds average hourly pay is similar overall, but the public sector narrows gender and newcomer pay gaps relative to the private sector.
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Given everything we know, the people with the largest wage gap is women and racialized people, who are significantly more likely to be underpaid and undervalued by the private sector.
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Statistics Canada shows the public sector skews more highly educated, which explains part of the raw wage gap: in 2024, 52.8% of public-sector employees had a bachelor’s or higher vs. ~33% in the private sector.
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Do government workers “always” earn more? Not always. It depends on identity, occupation and seniority. Public-sector base pay + benefits often exceed private at early/mid career in regulated professions (RNs, teachers, CRA auditors). Top-tier private roles (big-tech, finance, partner-track) can far outpace public. Canada.ca
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Where’s the biggest advantage for public workers? Pension security, paid leave, and stability; plus narrower gender/newcomer pay gaps. Statistics Canada
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Where does private win? Upside potential (bonuses, equity) and faster pay escalation in high-growth firms; greater flexibility to pay above grid for in-demand niches. Bank of Canada
