y the mid-1970s, the great
industrial expansion of the post-World War II era that swept
North America and Western Europe had ended. In Canada, a
sluggish economy with rampant inflation, ballooning government
deficits, and squeezed corporate profits heralded the dawn of a
new and difficult era for labour. Governments and business blamed
the country's difficulties on labour and the social wage. Unionized
workers, they argued, created deficits, out-of-control price
increases, and shrinking corporate profits by demanding unreasonable
wage increases. Government and business spokespersons also declared
that the social wage programs - the cost of medicare, pensions,
unemployment insurance, social assistance programs - that labour
and other social democratic groups had helped to secure for
Canadians, accounted for much of the country's debt.
In 1975, business leaders and the mass media placed tremendous pressure
on the federal government to curtail labour costs. On Thanksgiving Day,
Prime Minister Trudeau appeared on national television to announce the
introduction of mandatory wage and price controls. Under the new law,
wage increases were monitored and those ruled to be unacceptably high
were rolled back by the government. This legislation was directed at
the best-organized unions or, in other words, the ones most effective
in winning decent wage increases. Provisions in the legislation also
enabled the government to control price increases. However, prices
were never monitored as closely as wages because of the complexities
of the process and the reluctance of business to disclose such information.
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