Let me begin by thanking the committee for the interest in the auto industry and its significance, its importance to the Canadian economy. I obviously thank each and every one of you for your efforts and your commitment to preserving a very important industry in the Canadian economy.
Just as an introduction, the Canadian Auto Workers represents approximately 225,000 members across Canada. About one-quarter of those are auto-industry-related jobs, very significant jobs to our union, and again, very important.
Needless to say, I want to say right off the bat that Jim and I both flew economy on our way here today, and we were serviced by wonderful CAW members who took care of us from the time we left Toronto to the time we got here today.
I want to raise a couple of issues of major importance, recognizing that the time has changed. Obviously, we have been in collective bargaining with General Motors, Chrysler, and Ford. We selected General Motors to establish what we would call the pattern relative to these sacrifices that have to be made by auto workers and other stakeholders, as dictated by several people in terms of maintaining our Canadian advantage here in Canada.
I want to emphasize that because people are asking me why we opened bargaining in a time when we had a three-year collective agreement, it's very, very clear in terms of the downward pressure and the demand of the U.S. government that the UAW be an active part as a stakeholder in the United States to reopen negotiations. So we had to look at the UAW and say, “What are the competitive disadvantages that might result because of their bargaining relative to Canada's particular position?” In the last couple of days we bargained a collective agreement with General Motors that will be the pattern for Chrysler's and Ford Motor Company's. General Motors indicated to us very strongly at the conclusion of bargaining that we maintain our Canadian advantage relative to future investment decisions of the corporation, which is important.
I also want to recognize, as part of the negotiating process, that both Prime Minister Harper and Premier McGuinty announced in December that they would make a 20% footprint in support of the auto industry in comparison to the United States. That was a very important announcement as the Americans were dealing with how they were going to invest their moneys in the United States. So when Prime Minister Harper and Premier McGuinty suggested they would provide support up to the 20%, that was an important statement. And obviously they said at that particular time that all stakeholders had to make some sacrifices. Minister Clement, from that time forward, has indicated that all stakeholders, including auto workers, have to make some sacrifices.
What our deal contains is very significant. In terms of the provisions, we're obviously saving dollars off our active hourly labour costs. Again, General Motors said our active labour cost is competitive with any jurisdiction in the world, especially in areas like Germany, the United States, and Japan--areas that we compete with in a direct way.
We obviously did some substantial, painful reductions in legacy costs. The committee should understand that at General Motors, for example, we will have 30,000 retirees, with much fewer actives moving forward, so we had to deal with the question of legacy. We were able to significantly reduce legacy costs moving forward.
We said at that particular time that when the Government of Canada and the Province of Ontario introduced a support, or recommended support for the industry, we would be part of the solution, and we have been part of the solution. It is incredibly important now that all the stakeholders have made a contribution. I'm being told the dealers have done their job, the executives have done theirs, and the non-union folks.... Everybody involved in the industry has done their part. It's very important now for the industry to survive, that the Canadian government provide the support necessary on a proportionate level. So that's incredibly important.
Before I introduce Jim, I want to say a couple of words in conclusion. What's important today is that the Government of Canada provide the support. The second thing for us is to take a look at the terms and conditions of the agreement and maintain our proportionate manufacturing footprint right here in Canada as a condition of the loan and ensure that auto workers are also obviously protected. Again, only the government can do it today. People should understand that every country in the world that has an auto industry is providing support for their particular industry.
I also want to raise the importance of the auto industry--GM, Ford, Chrysler, Toyota, Honda, and all major auto producers in Canada--to the auto parts sector in Canada, which is facing a significant restructuring. I would ask the government, during the course of its deliberations, to consider support for the auto sector.
At this time, I would like to introduce the chief economist of the Canadian Auto Workers Union, a man respected from one end of the country to the other, Jim Stanford.