The Gingrich family from Mine Centre moved their business, Gingrich Woodcrafts Inc., from Mine Centre to the Municipality of La Vallee, increasing their staff from 10 to approximately 30.
With the economic downturn in Rainy River District and Fort Frances mill closure, the business has sustained growth and increased the manufacturing shop and diversifying the product line from dove-tailed drawer and table tops to include cabinet doors and finishing products, shipping across Canada and into the U.S.
To implement a union into a small business that has just undertaken major changes to diversify and provide growth potentially will have adverse effects on the firm’s survival.
It is widely understood that unions raise the cost of labour by raising staff wages above the present contract value.
A union also imposes another cost on the employers—it limits discretion in hiring and firing.
A key question staff must be trying to understand today is if the social costs of unionization is worth the wage premium and other cost unions create when the business closes and employment is lost?
My prayers go out to the Gingrich family as they struggled to arrive at this decision as this will not only impact them and the employees, but also other related businesses in Northwestern Ontario.