The distributive effects of trade unionism : a look at income inequality and redistribution in Canada’s provinces

In a context of declining distributive justice, this thesis sets out to answer a fundamental ques- tion: Do trade unions shape more equal societies? It aims to investigate whether, despite an in- creasingly hostile environment, trade unions still act as a countervailing power to the forces of capital, promoting equality and solidarity in the distribution of economic resources. Answers are provided through an assessment of the relationship between various dimensions of trade union power, market income inequality, and income redistribution in Canada’s provinces over the last few decades. The thesis also examines whether various patterns of membership composition con- dition the distributive impacts of trade unions. The investigation is set in an original framework combining theories from many perspectives. Power resources theory, which posits that distributive outcomes reflect the balance of power be- tween labour and capital, acts as the main frame of reference. This main frame is complemented by theoretical extensions relative to endogenous sources of union power, the conceptualization of capital power resources, and the income composition trade union members. The membership composition argument – suggesting that the egalitarian effect of trade unions is moderated by the income profile of members – is the most extensive addition to the dominant theory and is built from an integration of economic theory and rational-choice theories of preferences for redistribution. The research design consists of a quantitative analysis of provincial macro-level data from Canada’s provinces over different periods ranging from the early 1980s to the early 2010s. The subnational design, beyond providing a rare laboratory for the study of comparative trade unionism and capitalism, offers a sample in which key relationships can be arguably more easily isolated and studied. Drawing from recent methodological advancements, the bulk of the analytical strategy relies on multilevel analyses of time-series-cross-sectional data using random effect models. This strategy allows for the simultaneous analysis of predictors expected to affect distributive outcomes differently over time. It also opens up possibilities for a substantive evaluation of slow moving trade union and political variables. Despite great changes to the political economy of the provinces over the period analyzed, re- search results suggest that the distributive impact of trade unionism over the last few decades should be understood as egalitarian, but moderate. The effect is moderate as trade unions appear to reduce inequality and favour redistribution only within the middle and upper income segments of the distribution. This targeted impact was found to have much to do with the income profile of unionized individuals. Unpacking the income composition of membership shows that members are disproportionally located in those income segments where the egalitarian impact of unions is significant, suggesting that union solidarity is bounded within the income limits of the unionized population. The results also show that traditional measures of trade union power derived from a “power-in-numbers" perspective offer an incomplete assessment of union influence. When the evaluation of union power is limited to density levels, much of trade unionism’s distributive impact goes unnoticed.

Keyphrases: Trade Unionism, Membership Composition, Inequality, Redistribution, Power resources theory