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Jobs and Manufacturing: On the Critical List

Manufacturing Job Loss Campaign

Niagara-St. CatharinesMarch 28, 2007

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A National Wake-up Call

Buzz Hargrove, Dec. Council “I recommend that the CAW lead a campaign to

highlight the ongoing loss of manufacturing jobs in our economy and the effect that will have on our country’s future.

As soon as possible we will prepare our local leadership to hold information forums in the communities.

Working with the CLC, labour councils, other unions and allies in the broader community we will build for a National Day of Action on the government’s inaction on the permanent loss of jobs in the Canadian manufacturing sector.”

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What the Campaign will do

1. Focus attention on the crisis in manufacturing jobs 2. Demonstrate the job loss as a national crisis—

across regions and sectors 3. Move the focus from facts and figures to

community impacts 4. Convince politicians what we already know---

Manufacturing Matters 5. Argue against bad policies and the sense there is

nothing we can do 6. Promote policies that work for good jobs

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Part1: Focus attention on manufacturing job loss

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Leadership in St. Catharines-Niagara has been ringing the alarm

And Fighting Back Purple Ribbon

Campaign Mayoral committees Town hall meetings Buy Domestic Auto Policy Korea Free Trade

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But the problem continues

In last 4 ½ years we’ve lost 15% of manufacturing jobs in St. Catharines-Niagara region From 30,000 in August 2002 to 25,600

in January 2007 A loss of 4,400 jobs

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Symptoms are acute and extensive!

In just 4 1/2 years we have lost about 250,000 manufacturing jobs in Canada. In fact, in the last 2 years the loss has accelerated. That is more than 150 jobs every single day.

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Condition is Chronic

Manufacturing share of jobs in the economy down 25% in 10 years

Not in a recession: Early 80’ and early 90’s Period of economic growth

Not isolated to one sector, one region, or one period of time.

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Part 2: Job loss reaches across regions and sectors

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Ontario lost 171,600 manufacturing jobs: (15%)

St. Catharines area has lost 15% of its manufacturing jobs

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Other Regions: Other Cities

Newfoundland Lost 46%

Nova Scotia Lost 20%

Quebec Lost 18%

Windsor Lost 25%

Toronto Lost 104,600 jobs

Oshawa Lost 21%

Thunder Bay Lost 20%

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The problem is widespread. Across manufacturing industries... We know the alarming

story in auto. Textiles and Clothing

66,000 jobs or 40% Aerospace

8,300 or 16% Shipbuilding

3,300 or 32% Food and Beverage

40,000 or 13%

Primary Metal 12,500 or 13%

Paper 8,500 or 9%

Wood products 10,700 or 8%

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Manufacturing Share of Total Employment (Canada) Jan '87 - Dec '06

10%

11%

12%

13%

14%

15%

16%

17%

Jan 1987 Oct 1988 Jul 1990 Apr 1992 Jan 1994 Oct 1995 Jul 1997 Apr 1999 Jan 2001 Oct 2002 Jul 2004 Apr 2006

16.7% of CDNWorkforce

12.5% of CDNWorkforce

Start of recent decline

Manufacturing is on The Critical List

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Are we in a Free Fall?

Manufacturing Share of Total Employment (Canada) - August 2002-January 2007

11.00%

12.00%

13.00%

14.00%

15.00%

Aug 2002 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Jan 2007

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Part 3: Move focus from the facts and figures to the impact on our communities

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Manufacturing in St. Catharines-Niagara

An Economic Engine for the Region

Manufacturing in St. Catharines-Niagara accounts for: 18.4% of local economy 25,600 workers or 14%

of the entire workforce

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The Diversity of St. Catherines-Niagara Manufacturing Auto is critical

24% (nearly 1 in 4) manufacturing workers in auto assembly and auto parts

But Manufacturing is Diverse 4,900 Metal Workers

(18%) 3,800 Food & Beverage

workers (14%) Petrochemical, Paper and

many others

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Loss of manufacturing jobs in St. Catharines-Niagara affects everyone Manufacturing workers earn and spend

close to $1.5 billion a year. Supports regional economy Major contribution to income tax

But it used to be more The loss of 4,400 manufacturing jobs means

a loss of over $239,000,000 in wages every year.

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That loss causes a big downside ripple effect A crisis that affects

everyone All the spin-offs

Tourism, food and retail, social programs, charities

Chronic Insecurity Even those who have

jobs are constantly threatened

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Just Some of the Major Layoffs and Closures to hit the region.

Employers Approx # of Layoffs

Camco 700

Atlas Steel 700

Dana Corp 500

Bazaar & Novelty 400

Phantom Plastics 350

Welland Pipe 250

Siemens 220

Affinia 200

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Part 4: Convince politicians what we already know—Manufacturing Matters

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Manufacturing Matters

Manufacturing is a vital source of jobs: 2.1 million Canadians, or 1 in 8 jobs 1 in 6 jobs in Ontario and Quebec

The core of many communities: 1 in 4: jobs in Windsor and Kitchener-Waterloo 1 in 5: Oshawa 1 in 6: Hamilton and Toronto 1 in 7: St.Catharines-Niagara and Montreal 1 in 9: Winnipeg and Vancouver

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Benefits Spread Far and Wide

Canada’s Manufacturing Sector:

Directly accounts for 17% of economic activity

Purchase of goods & services, and spin-offs, total up to 55% of economic activity.

Creates $3.05 elsewhere for every $1 activity.

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If Manufacturing Isn’t The Future?

Has highest value-added sector

Accounts for two-thirds of nation’s exports

Spends three-quarters of private sector R&D

Higher productivity

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These Are Good Union Jobs

Family-supporting Pay: Manufacturing hourly pay in Ontario: $21.33

With overtime, annual pay of $50,900 per year 24% higher than average for all Ontario

Union Jobs: 28% of manufacturing sector unionized Nearly double rest of private sector (16%).

Opportunities for our youth: We need primary wealth creation industries

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Support For Our Communities

Canada’s manufacturing workers: Direct payroll of $94 billion per year Generate income taxes of $20 billion per year

Health Care Education Infrastructure Social Services

Add to this: sales, property and other taxes. If we care about our social programs, we

have to care about manufacturing.

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Part 5: Argue against bad policies and the sense there is nothing we can do.

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What “they” say:

“Tax Cuts and Corporate Agenda” Broad tax cuts, de-regulation, integration, free-trade,

cut workers pay and conditions. “Get Used to it because corporations have the

power” Accept “new realities” and work within them

“An Un-winnable Battle” Job losses are natural “evolution,” fighting direction

is delaying the inevitable.

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Part 6: Promote policies that work for good jobs

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What we Say: “There Are Solutions!”

1. Canada Needs Fair Trade

2. Government Must Use The Economic Tools it Has

3. Workers Must Be Protected

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1. Canada Needs Fair Trade

Balanced and Managed Trade Trade safeguards No to Canada-Korea FTA A New North American Auto Pact Rescind NAFTA New trade rules to govern international trade and

development

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Unbalanced Trade is a major problem

Large and growing manufacturing trade deficit From a surplus of $12 billion to a deficit of $29

billion in a decade.

Deficit grew by 75% during 2006, highest on record. Trade exports have shifted to resources

2005 was the first time that mineral fuel products (oil and gas) passed transport vehicles as our top export.

Losing ground on all accounts Low-tech, resource-based manufacturing, and higher

value-added

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Canada had an Automotive Trade Deficit in 2006, 1st time in 18 Years.

From a high of nearly $15 billion surplus in 1999.

Canada becomes a net importer of automotive products.

-5

0

5

10

15

96 97 98 99 '00 '01 '02 '03 '04 '05 '06

$bil

lio

n s

urp

lus

(def

icit

)

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In Auto: Off-shore Imports Surge

Highest levels in two decades.

26% of Cdn. sales, 22% of U.S. sales.

Japan imports to U.S. grew 24% last year.

Back to crisis levels of 1980s.

25.9

22.1

5

10

15

20

25

30

65 70 75 80 85 90 95 '00 '06

imp

ort

s %

of

sale

s

Canada U.S.

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2. Government Must Use the Economic Tools it Has

The Canadian Dollar Bank of Canada inflation fight wrong, “petro-dollar,”

must support manufacturing (‘90s recession) Government Purchases

“Made-in-Canada Matters,” Transit (TTC & Ottawa), Aerospace and Defense

Investment Public investment in key sectors, financing,

infrastructure, TPC, green car, foreign takeovers

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A Prime Culprit For All Manufacturing:Dollar Surges 37% in 4 Years.

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Industrial Policies Government must lead with sector specific plans: auto,

aerospace, ships, fisheries, etc… Natural Resources

Energy and other resources must be used to develop the economy: e.g. aluminum, nickel into manufactured goods

Balanced Economy Less reliance on private sector investment and external

trade.

2. Government Must Use the Economic Tools it Has

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3. Workers Must be Protected

Bankruptcy Protect wages, severance, Bill C-55

Pensions Pension Charter, guarantee fund,

public plans Employment Insurance

Improve benefits and funds for adjustment

Pay and Conditions Resist the downward spiral

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Our Solutions...

Canada Needs Fair Trade Government Must Use the Tools it Has Workers Must be Protected

Not Free Trade, Not Tax Cuts, Not the Corporate Agenda...