industries

Pay Gap Numbers Paint Disheartening Picture

A new report paints a disproportionate pay picture for our neighbours to the south. Could the same wage gaps come to Canada? While this isn’t a big surprise to many Americans, The Guardian reports U.S. executive pay jumped 27 to 40 per cent in 2010. The spike adds insult to injury when we review wages for the majority of Americans, which haven’t increased enough to even keep up with inflation rates.

By Lindsey Peacock /

Unemployed Workers | BCBusiness
Even as U.S. unemployment numbers remain high, U.S. executives received significant pay raises in 2010.

A new report paints a disproportionate pay picture for our neighbours to the south. Could the same wage gaps come to Canada?


While this isn’t a big surprise to many Americans, The Guardian reports U.S. executive pay jumped 27 to 40 per cent in 2010. The spike adds insult to injury when we review wages for the majority of Americans, which haven’t increased enough to even keep up with inflation rates.

So begins my rant.

The U.S. Labor Department enthusiastically reports “positive” news – jobless claims unexpectedly fell to their lowest in three years, to only 366,000 for the week ending Dec. 10.

That means “only” 366,000 Americans filed new jobless claims for that period. But even that number is deceiving. It doesn’t include people still receiving unemployment benefits – which rose 4,000 to 3.6 million for the week ending Nov. 26 – or the growing number of Americans who are underemployed or have stopped looking for work altogether.

It also doesn’t factor in unemployment rates in my age group (16-25), which sits around 18.4 per cent (double the national rate of 9.6 per cent).

In contrast, the highest-paid executive of 2010, John Hammergren, CEO of healthcare provider McKesson, earned $145 million.

I know a number of students who graduated from my alma mater, a well-regarded university, the same year as myself who are thankful to get a full-time job at Starbucks.

Starbucks is one of the few U.S. employers that offer medical benefits to its low-wage, full-time coffee slingers.

My greatest fear, in addition to these wage gaps widening in the U.S., is that these kind of disproportionate earnings will come to Canada. We are jokingly referred to as the 51st state, after all.

Sure, pay executives well according to their unique skill sets. But no one needs $145 million, especially when their country is in dire straits. But that only makes sense, and we Americans are notorious for being tactless.