Residential construction workers in Quebec produce on average 14% less in terms of values than their neighbors in Ontario, according to a new study by HEC researchers. However, this difference would not imply that salaries are too high, says a co-author.
“What we have noticed for several years in Quebec is that remuneration is growing quite strongly, but is not accompanied by an increase in productivity,” underlines the professor in the applied economics department. from HEC, Robert Gagné.
The Balance Sheet
Mr. Gagné explains that the concept of productivity is “complex” and “poorly understood,” and it is affected by many variables.
To increase productivity, the researcher specifies that you do not necessarily have to “work more”, but rather “work better”.
“Working better can mean […] have the skills and knowledge we need, but also that our work environment is organized so that we are efficient and that we have access to the right technologies, the right tools, to maximize our productivity,” says he.
Furthermore, in an environment favorable to productivity, Mr. Gagné reports that “people come out of work in the evening less tired, less exhausted, while having accomplished more work during the day.”
Overpaid for their level of production?
But the source of the problem is not a question of productivity, according to the HEC professor.
According to him, it is not that construction workers are overpaid, it is rather all the costs associated with their work that reduce the level of production.
He explains these costs by “social charges” such as salaries, among others, but also vacations, sick days, pension funds, CNESST, etc.
“Social charges in Quebec are 60% higher than in Ontario and 70% higher than the Canadian average. Listen, there’s work to be done there,” he warns.
Thus, he mentions that “governments are somewhat responsible for the problem they are trying to solve.”
“Personally, if I were in government, I would pay a little visit to the construction commission and I would bring the unions and everyone around the table to say: “Look, we have a bad problem and the problem is not necessarily the salaries our workers receive, but it is everything we add on top,” suggests Mr. Gagné.
Watch the full interview with Robert Gagné in the main video.
