A recent story in The Monitor – a magazine published by the left-wing, union-friendly think-tank Canadian Centre for Policy Alternatives – provides an important lesson in basic economics. The headline triumphantly proclaims: “Gig workers win the right to unionize.”
The end result was unfortunate for the workers, however. An editor’s note at the top of the story noted that just a couple months after winning the right to unionize, the workers lost their jobs. Their employer, Foodora, shut down its Canadian operations because it concluded that it couldn’t compete in the Canadian market.
The company denied that the push to unionize was behind its decision to exit the Canadian market. It cited competitive pressures as the reason.
But as the Financial Post reported, Ontario Federation of Labour president Patty Coates nevertheless suggested that Foodora’s decision amounted to “union busting.”