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Jobs and Manufacturing: On the Critical List

Jobs and Manufacturing: On the Critical List. Manufacturing Job Loss Campaign Niagara-St. Catharines March 28, 2007. A National Wake-up Call. Buzz Hargrove, Dec. Council

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Jobs and Manufacturing: On the Critical List

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  1. Jobs and Manufacturing: On the Critical List Manufacturing Job Loss Campaign Niagara-St. Catharines March 28, 2007

  2. 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.”

  3. 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

  4. Part1: Focus attention on manufacturing job loss

  5. 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

  6. 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

  7. 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.

  8. 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.

  9. Part 2: Job loss reaches across regions and sectors

  10. Ontario lost 171,600 manufacturing jobs: (15%) St. Catharines area has lost 15% of its manufacturing jobs

  11. 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% Other Regions: Other Cities

  12. 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% The problem is widespread. Across manufacturing industries...

  13. Manufacturing is on The Critical List 16.7% of CDN Workforce Start of recent decline 12.5% of CDN Workforce

  14. Are we in a Free Fall?

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

  16. Manufacturing in St. Catharines-NiagaraAn Economic Enginefor the Region • Manufacturing in St. Catharines-Niagara accounts for: • 18.4% of local economy • 25,600 workers or 14% of the entire workforce

  17. The Diversity of St. Catherines-NiagaraManufacturing • 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

  18. 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.

  19. 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

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

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

  22. 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

  23. 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.

  24. 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

  25. 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

  26. 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.

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

  28. 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.

  29. Part 6: Promote policies that work for good jobs

  30. 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

  31. 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

  32. Unbalanced Trade is a major problem • Large and growing manufacturing trade deficit • From a surplus of $12 billion to a deficit of $29billionin 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

  33. 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.

  34. 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.

  35. 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

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

  37. 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.

  38. 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

  39. 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

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