Good afternoon. On behalf of Unifor's 310,000 members, I would like to thank the committee for allowing us to share our views with you here today. You can find the details of our submission in the document of August 5.
The industries where Unifor's members work are essential to the success of the Canadian economy and serve as the nation's leading centres of advanced technology and innovation. They are also Canada's top exporters and a source of increasingly scarce good jobs.
Unifor's members have the highest interest in the success of their industries, and have a long track record of partnering with employers and with governments to enhance productivity and innovation.
Unifor believes in an active role, a leadership role, for government to develop strong and sophisticated policies that leverage strategic investments to secure long-term economic development.
The federal government's automotive innovation fund has served as an important tool for securing investments that anchor the wider auto industry in Canada. However, the structure of the AIF is increasingly out of step with investment attraction programs in other major North American auto-producing jurisdictions. Additionally, in the current low-interest period, the value of a non-interest loan with front-end loaded tax obligations is significantly diminished.
Reflecting the growing consensus in the industry, Unifor recommends the AIF be amended to become a non-taxable granting program with flexible rules, and procedures, and proportionally comparable funding parameters as observed by other leading auto jurisdictions. Canada should develop a one-stop system to win and attract new investment in Canadian assembly and parts plants.
Bombardier's C Series program has been hailed as a game-changer for the commercial aviation industry. Once facing questions about its long-term viability, the program had seen significant orders this year, and this summer saw the first C Series planes come into use with Swiss International Air Lines.
The aerospace industry has significant and positive impact on Canada's economy. Good jobs, superior skills development and productivity, technological innovation, and a positive trade balance are just a few reasons that governments all over the world invest heavily in their aerospace industries.
Unifor recommends the federal government invest $1 billion for a direct equity stake in Bombardier's C Series program in support of good jobs, productivity, and innovation. An equity stake in the company would solidify the long-term viability of this Canadian success story, and given prevailing trends, the government could probably expect a handsome return on its investment through capital appreciation and distributions.
Planned new infrastructure spending is welcome news, including the $20-billion new transit spending over the next decade. Public transit systems will be a key driver of delivering quality-of-life improvements to Canadians, including tackling climate change. Unifor believes these new investments in infrastructure, and especially transit, should also be tied to broader economic development objectives. Buy Canadian and local content rules affixed to new investments are proven job creation and skills development tools. They encourage the development of industrial competencies that foster global competitiveness for Canadian products.
Unifor recommends provisions for “Made in Canada” public transit equipment procurement and local hiring requirements, especially among under-represented workers, including women in the skilled trades, visible minorities, young workers, and indigenous workers.
For Canada to continue to be a leader in advanced technology and innovation, we need to ensure all Canadians have the ability to contribute to Canada's economic growth. Lack of affordable child care continues to be a significant barrier to working families, and especially working women. Government must create an affordable child care program so that all Canadians can contribute to our long-term economic development.
Unifor accepts that we must now address climate change, and as a nation we need to transition to a low-carbon economy. We support the concept of a just transition, which is the principle endorsed by the International Labour Organization when industrial transformation imposes a burden of change on workers and their livelihoods.
Unifor calls on the federal government to implement the principle of just transition, including periodic review of labour market impacts at provincial and community levels to assess affected groups, and to assess which strategies are needed to ensure that the costs associated with the transition to a low-carbon economy aren't unduly borne by working families. And investment of the EI surplus into training programs so new workers can capitalize on the green jobs being created through public investment, and expanding access to EI....
I see my time is up, so I'll thank you with that, and I look forward to your questions.