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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...