Jobs and Manufacturing:
On the Critical List
Manufacturing Job Loss Campaign
Niagara-St. Catharines
March 28, 2007
1
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.”
2
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
3
Part1: Focus attention on
manufacturing job loss
4
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
5
But the problem continues
 In last 4 ½ years we’ve lost 15% of
manufacturing jobs in St. CatharinesNiagara region
 From
30,000 in August 2002 to 25,600
in January 2007
 A loss of 4,400 jobs
6
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.
7
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
9
Ontario lost
171,600
manufacturing jobs:
(15%)
St. Catharines
area has lost
15% of its
manufacturing
10
jobs
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 is on The Critical List
Manufacturing Share of Total Employment
(Canada) Jan '87 - Dec '06
17%
16%
16.7% of CDN
Workforce
Start of recent decline
15%
14%
13%
12%
12.5% of CDN
Workforce
11%
10%
Jan 1987 Oct 1988 Jul 1990 Apr 1992 Jan 1994 Oct 1995 Jul 1997 Apr 1999 Jan 2001 Oct 2002 Jul 2004 Apr 2006
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Are we in a Free Fall?
Manufacturing Share of Total Employment
(Canada) - August 2002-January 2007
15.00%
14.00%
13.00%
12.00%
11.00%
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. CatherinesNiagara 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

17
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
Camco
Atlas Steel
Dana Corp
Bazaar & Novelty
Phantom Plastics
Welland Pipe
Siemens
Affinia
Approx # of
Layoffs
700
700
500
400
350
250
220
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


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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.
27
What “they” say:

“Tax Cuts and Corporate Agenda”


“Get Used to it because corporations have the
power”


Broad tax cuts, de-regulation, integration, free-trade,
cut workers pay and conditions.
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
32
Canada had an Automotive Trade
Deficit in 2006, 1st time in 18 Years.
15
of nearly $15
billion surplus
in 1999.
 Canada
becomes a
net importer
of automotive
products.
$billion surplus (deficit)
 From a high
10
5
0
96 97 98 99 '00 '01 '02 '03 '04 '05 '06
-5
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In Auto: Off-shore Imports Surge
 Highest levels
25.9
imports % of sales
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.
30
25
20
22.1
15
10
5
65
70
75
80
85
Canada
90
95
'00
'06
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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2. Government Must Use the
Economic Tools it Has
 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.
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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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Not Free Trade, Not Tax Cuts,
Not the Corporate Agenda...
Our Solutions...
 Canada Needs Fair Trade
 Government Must Use the Tools it Has
 Workers Must be Protected
39