Evidence of meeting #8 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was support.
A video is available from Parliament.
3:20 p.m.
Conservative
Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC
Okay.
What is the age demographic for someone who works in the auto sector?
3:20 p.m.
National President, Unifor
It's changing, based on the massive hirings at Ford in Oakville and in Windsor. I would say it would be mid-40s.
3:20 p.m.
Conservative
Dan Albas Conservative Central Okanagan—Similkameen—Nicola, BC
Given that you've talked about innovation and the need for the government to support innovation, and about how competitive the world market is, particularly in the auto sector, doesn't more innovation mean more automated plants and things like that? What kinds of challenges does that pose for you and your members?
3:20 p.m.
National President, Unifor
I think you will find that our plants are world class. Billions of dollars have been invested in innovation.
For example, General Motors in Oshawa spent about $1.2 billion making a flexible plant where you can build multiple models. Chrysler has invested about $3.6 billion in the last two years in their Brampton and Windsor assembly plants, putting into place flexible platforms. Ford in Oakville invested $1.2 billion for a flexible platform. I think you will find that Canada is poised as one of the best in the world when it comes to the manufacturing process through the type of innovation that's in place today.
3:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Thank you, Mr. Chair.
I wish to thank everyone on the panel for their comments.
Vanessa and Mary in particular, thank you for your stories and for sharing them with us today.
I have a quick question for you, Mr. Scholz. A number that comes out every week shows Canada-U.S. drilling rig activity. It's really connected with the price of oil, and what happens there determines the level of drilling activity. It's the world price of oil relative to the WTI, correct?
3:20 p.m.
President, Canadian Association of Oilwell Drilling Contractors
That would be correct.
3:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Okay. Thank you.
The Energy East pipeline will be going through the NEB process. Our government has strengthened that process, and obviously the NEB will be consulting with all stakeholders, including indigenous groups. We're going to make sure that the process has the confidence of all stakeholders, and I think that's the way it should be. We'll see where the decision proceeds from there.
Wouldn't you agree that's the right type of process to go under?
3:20 p.m.
President, Canadian Association of Oilwell Drilling Contractors
I would argue that we need the federal government to put some political capital on the line. I think it's incredibly important that the federal government show leadership by making it clear that they are behind these pipelines and that they support the industry.
I can tell you that very many families who have reached out to us through our Oil Respect campaign are in desperate need of a government that understands that in order for them to have a growing and vibrant industry, we need to look at pipeline infrastructure. They're looking for leadership.
3:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
We are providing that leadership in our reforms to the NEB process, and we will be undertaking that.
To Mr. Gibbons from WestJet, thank you for your comments. I think there needs to be an educational process in Canada on the importance of clustering as it relates to airports and airlines. In the GTA, the GTAA is one of the largest employers in the surrounding area. It probably has one of the biggest economic impacts and footprints in the GTA. A number of studies—including one by the Senate, if my memory serves me correctly—show that we in Canada look at airports as ATM machines, with ground lease payments as an example, while south of the border they look at them as economic generators.
I am looking forward to a presentation on Monday, I believe, at the Toronto Region Board of Trade on the importance of the aviation industry. I'll be attending that.
I just wanted to make that comment. I think you're bang on in terms of the way the cost structure impacts airline carriers versus what the rest of the world has. We do have world-class airports and we've done a phenomenal job there, but I think some work can be done on the other side as well.
3:20 p.m.
Director, Government Relations and Regulatory Affairs, WestJet Airlines Ltd.
The report is named “Toll Booth or Spark Plug?”
3:20 p.m.
Director, Government Relations and Regulatory Affairs, WestJet Airlines Ltd.
Senator Dawson chaired that committee. It's a very positive report for us.
3:20 p.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Thank you.
I just want to go to Mr. Dias very quickly.
Jerry, we've chatted a number of times on the auto industry. We all know the story there, and how we need to make sure we're at the table. I want to ask you about the apprenticeship model. The German model seems to be the one that gets a lot of folks streaming into apprenticeships. They're technical jobs. They're sophisticated, whether you're working for Mercedes or Siemens.
What can we do in Canada to maybe replicate some of the things they're doing in Germany?
3:25 p.m.
National President, Unifor
Well, I think you just nailed it. In Germany, for example, they value the auto industry and they use the auto industry as a foundation for their export. They will have everyone in a room. I used to sit as part of the co-determination group as a Canadian with the Daimler-Chrysler merger. They have a tripartite—well, more than tripartite—system that includes the companies, the unions, and the educational facilities, and they'll have everybody in one room to talk about the challenges and the future, and about how they're going to cope with it. As a result of that tripartite discussion, they will talk about the skills that are necessary and, therefore, the apprenticeships. They'll talk about the changing technology, and then the educational community can put into place the training and educational matrix in order to be prepared for the next generation.
Probably about four years ago, the previous government cancelled all of the sector councils through which everybody would get into a room to discuss the challenges of the industry and what the future would look like. I would suggest that this government should look at reinstating that common sense dialogue so that we can deal with the future.
3:25 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you, Mr. Sorbara.
Mr. Fast, you can have a couple of quick questions.
3:25 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Thank you, Mr. Chair.
Let me begin by thanking both Vanessa Gamblin and Mary Pidlaski for their input here. You put the human face on what we do when we discuss budgets. Thank you, Mary, for sharing your touching story with us. When we talk about budgets, often we talk about deficits, surpluses, industrial investments, or infrastructure, and often the human face of our country gets left behind. Thank you for highlighting that for us today.
Andy Gibbons, it's nice to see you again. As you discussed the challenges and the aviation cost structure that is presenting challenges for your industry and for WestJet, you didn't mention airport rents to any significant degree. I understand airport rents actually have a significant impact on your profitability and the viability of routes. Can you comment?
3:25 p.m.
Director, Government Relations and Regulatory Affairs, WestJet Airlines Ltd.
Thanks for the question. It's great to see you again, too, Mr. Fast.
Airports have paid over $5 billion to the Government of Canada in airport rents. Our request is that airport rents be capped and that the money, like the air travellers security charge and the excise tax on aviation jet fuel, be reinvested into the sector. That's what happens in the United States. The sector is seen as an economic mobilizer more so than it is in Canada.
Going back to what Mr. Sorbara was saying about a toll booth or a spark plug, we're working to change the overall approach to the sector. Airport rent is a part of that.
3:25 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Thank you.
I have one last question for Mr. Dias.
You mentioned the TPP. You and I are on different pages on that agreement. Canada has concluded negotiations on trade agreements with 51 different countries. Of those agreements, how many has Unifor and its predecessor, CAW, ever supported?
3:25 p.m.
National President, Unifor
We would actively like to support one that benefits Canadians.
We would like a government to negotiate a trade deal that actually is about trade, where I give you something and you give me something, as opposed to a one-way street. I think you will find that we are on a different page, especially as it relates to the TPP and even the previous trade deal with Korea, because the Korea deal has now been in place for 14 months, and exports from Canada to Korea have decreased 5% while imports from Korea to Canada have increased 8%.
3:25 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Actually, it was a very simple yes-or-no question. Has Unifor ever supported one of the trade deals with 51 other countries—
3:25 p.m.
National President, Unifor
Unifor is a little over two years old, so no, we have not supported Korea. Apparently nobody is supporting CETA, because it still hasn't been passed in two and a half years, and certainly we are not supporting the TPP.
As for the former CAW, I can't speak for its incredible history, but I know that we did oppose NAFTA, and I think the reason is clear if we look at things today. All of the jobs in the most important sectors are being created in Mexico, and they're not being created here in Canada.
3:25 p.m.
Liberal
The Chair Liberal Wayne Easter
I'll have to cut you off there, Jerry.
Mr. Ouellette, you can wrap it up. You have three minutes.
3:25 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Thank you very much. I really appreciate that, and I appreciate all of the witnesses coming here today. I enjoyed hearing some of the information they brought.
My question is actually for Vanessa from Siloam Mission.
The federal government has established policing programs in various cities around the country, and often homeless citizens are involved in the justice system. There are additional costs to being homeless. Siloam Mission has been preparing one of the solutions, which has been very innovative, and that's the “housing first” strategy. I was wondering if you could talk about the housing first strategy.
3:30 p.m.
Manager of Drop In and Shelter, Siloam Mission
Currently we do have that operating. Siloam operates within that strategy.
What we are now doing on this side is just starting to work with and consult with the Winnipeg police. We're going to be looking at ways of better communication with the justice system for our homeless population. Currently we're seeing a staggering number of behaviours coming in, and our community members are being subjected to more violence within the police department. We're just trying to work with them now on different types of communication.