Five (5) of these questions will appear on the test. You are required to answer two (2) questions, each worth
5% of your final grade.
1. If democracy is about giving people more control over their lives, evaluate the respective merits
of industrial democracy and economic democracy, illustrating your answer with concrete examples, and
what they offered to the workers involved. *Answered on Paper *
Industrial democracy and economic democracy are very different from one another. Despite both
democracies are very different, both aim for the same objective: to create a better labour force. Industrial
democracy is when workers are put in a position in where they are able to have more input in the decisions that
occur within their organization. Merits of this democracy are that workers are consulted about the health and
safety of the workplace, new technology that is being utilized to make work simple, and downsizing employees. In
an industrial democracy they are able to have a voice in the work-group to make the workplace a better place. In
an industrial democracy are that they hold discussions that take place by selected represented workers assuring that
employees and employers al reach one goal. Their main goal is for all the workers to reach one democratized work
environment.An example of an industrial democracy is when co-determination occurred in Germany. In 1890,
Chancellor Bismark legislated work councils. This was mandatory for every business or company that had five or
more employees. Work councils had the right to demand compensation if workers were affected by means of
technology or layed off. They employers were obligated to advise and consult work councils about changes in
work, working hours, pay, and technology changes.
Economic Democracy is when workers are participatory in the place they work in. Merits of economic
democracy are seen in the five forms of workers ownership. The first form is to own a little bit, if the company has
stock shares it would be recommended to buy stocks. Buying stocks would bring more money to the employee if
the company does well. Another form is to take over a sinking ship to buy out the company. An example of a
company being bought out is what happened to theAlgoma Steel Company.Algoma Steel was created in 1901; by
1992 they had over 5000 workers. The major employers were in Sault Ste. Marie, Ontario. When the steel industry
crisis occurred in the US, many workers purchased majority of the shares.Adying steel company was then sold to
the Indian TNC in 2007. With the help from the United Steelworkers and workers taking pay cuts as well as
agreeing to layoffs this buyout was made possible.
2. Describe specific features of the Scandinavian or Nordic countries that we should adopt here in
Canada, and explain why. What opposition do you anticipate, and what response would you offer?
Specific features of the Scandinavian or Nordic countries that should be adopted in Canada would be their
full model that they follow. Aspecific model that leads by example as one of the greatest in maintaining equality is
the Swedish model. The Sweden model is associated with strong commitment to full employment, greater social
equality, the abolition of poverty and the high level of social security. Adopting the Swedish model is a great idea
because it would make our society feel more united and secure. The poverty rate in Sweden ranks among the
lowest in the world, if we followed in their footsteps Canada would eventually get to have a low poverty rate as
well. The Swedish model creates a strong middle class, getting rid of any inequality in our country between the rich and the poor. Swedish residents are entitled to child allowances, pregnancy benefits, and sixteen months of
paternal leave, paternity benefits, health benefits and insurance. All these benefits would support the Canadians
who earn an income below the poverty line, giving them hope that they are not trapped in poor ghettos forever.
The model that Sweden follows is great; they have created a positive mind set for the people to think of their
society as their Folkhemmet (Peoples Home). The motto that the people of Sweden follow is “society is a home –
taking care of people’s needs during unemployment, sickness old and age.”
Anticipated opposition that would attempt to stop this Swedish model to take over Canada would come
from rich wealthy business owners and corporations. I believe they would try to stop it because they want to
remain at the top 0.01 percent and acquire a lot of wealth while paying employees minimum wages. Wealthy
people would not want to be demoted to middle class people. The response I would offer towards these wealthy
owners is to let the people vote, we should hear the voice of lower class, middle class and upper class citizens with
no corruption to occur in the voting stands.
3. Describe the jobs crisis, why it exists, and what can be done to create more high quality jobs.
Job employment is essential for a country to gain economic growth. The reasoning as to why Canada
has a job crisis is in fact because of this imaginary line. This imaginary line divides the rich who want to get
richer and average citizens who want to split it equally amongst each other. Data collected in the early 1980s
by UBC economists Thomas Lemieux and Craig Riddell display that there was not any evidence of a
difference in real income growth for the average citizen between 1982 and 2010. However, the families that
earned more money had a large increase. For instance, the wealthiest people of Canada witnessed a jump of
160% more income than the average person. In 2013, Canada managed to create 240,000 new part time and
full time jobs p