Job loss and manufacturing decline
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Transcript Job loss and manufacturing decline
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
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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
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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.
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
15
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
16
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
24
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.
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
29
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
33
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.
34
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
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