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The year of negotiations in the Canadian auto sector

The employment contract of union of the three American manufacturers ends on 19 September. This is Unifor representing the majority of unionized. Concentrated Canadian auto industry in Ontario is also very beneficial for the Canadian economy. According to a recent study from the Centre for Spatial Economics, the three Detroit automakers inject $ 26 billion into the Canadian economy, providing 150,000 jobs and recovering $ 4.7 billion to the various levels of government each year. It is a study that was conducted to measure the effect would have been the start of the three builders of Canada.

Unifor represents 40,000 workers in the automotive industry, including 23,000 working for American manufacturers. The National Union announced that it was General Motors that will be the target company to establish the agreement as a model for the round. Time is limited, If they cannot come to an understanding before the end of the collective agreement, workers have already voted in overwhelmingly to give their bargaining committees a strike mandate. The focus of the negotiations is investment in Canada. This means that manufacturers would qu'Unifor assemble more models in their Canadian plants. The will is there, but nothing is gained and there are many outstanding issues.

Approximately 4% of the cost price of a new vehicle is salary. 55% are for parts. Today, about 50% of parts required to assemble a vehicle in Canada from Canada. this proportion We would especially increase.

The cost of the energy produced in Ontario is also an issue. A Hydro-Québec study conducted in 2013 shows that large electricity users in Toronto pay 123% more than those in Chicago, 50% more than Nashville and 37% more than Detroit. The size of the Canadian market is also problematic. Only 10% of vehicles sold in North America are in Canada against 80% in the United States.

The plus side, a Canadian dollar at 77 cents is very profitable for the "Big Three". Enough to stay in Canada? Let's hope so.

 

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