Thursday, April 1, 2010

Canada loves it some EFCA?

We have previously posted, here, here, here, here and here about Canadian data usefulness as a predictor of what EFCA might produce in the United States. The Economic Policy Institute has released data on first contract arbitration in Manitoba, the Province with the most EFCA-like FCA provisions. The small sample study notes that 87.5% (14 of 16) businesses who engaged in FCA between 2001 and 2007, remain in business. The AFL-CIO blog touts this as "evidence" EFCA is not a jobs killer. That a business remains in business is of course a positive fact, but really provides little proof that the business is no worse off than if it had not been required to submit to an imposed collective bargaining agreement. How successful could the 16 have been without this burden, would the two failed enterprises survived? The news in this piece is not that FCA is good, but rather that it was used only 14 times in 7 years.