Evidence of meeting #12 for Industry and Technology in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was contract.

A recording is available from Parliament.

On the agenda

Members speaking

Before the committee

Mélanie Joly  Minister of Industry
Vincent  Senior Assistant Deputy Minister, Industry Sector, Department of Industry
Jennings  Deputy Minister, Innovation, Science and Economic Development Canada, Department of Industry
Tanton  Assistant Deputy Minister, Innovation Canada, Department of Industry
Martel  Director General, Innovation Canada, Department of Industry

11 a.m.

Liberal

The Chair Liberal Ben Carr

I call this meeting to order.

Good morning, everyone. I hope you had a good weekend despite the Blue Jays' loss.

However, we will move on.

This morning we are gathered at the industry committee to continue our study on the auto sector. Joining us today is the Honourable Mélanie Joly, the Minister of Industry.

Joining the minister today from the Department of Industry are Philip Jennings, deputy minister of Innovation, Science and Economic Development Canada; Charles Vincent, senior assistant deputy minister, industry sector; and Stephanie Tanton, assistant deputy minister, Innovation Canada.

Colleagues, this will be the same approach that we have taken before. The minister will have time for introductory remarks, followed by a line of questioning preallocated based on the proportion of members from recognized parties around the table.

I think everyone knows the rules.

Minister, you have the floor.

11 a.m.

Ahuntsic-Cartierville Québec

Liberal

Mélanie Joly LiberalMinister of Industry

Thank you, Mr. Chair.

Colleagues, let's focus on the facts. What's happening in Brampton at the Stellantis facility is completely unacceptable. Stellantis made a commitment—a promise to invest in that plant and to invest in Canadian workers, and our government expects them to honour that promise, full stop.

Last week, I went to Brampton. I met with the women and men who build the backbone of Canada's auto industry, people who have spent years—even decades—showing up every day with pride and determination. In 2009, when the company faced its darkest times, the workers were there, steady, committed and unwilling to let it fall. The government also stepped in to pull the company back from the brink of bankruptcy.

The workers have stood strong through the 2008 financial crisis, through global upheavals and through a pandemic that tested every one of us, and they did it because they believe in the value of their work and what it means to provide for their families, to contribute to their community and to build something bigger than themselves.

Last week, again, they told me what this uncertainty meant for their kids, for their mortgages and for their future, and I told them what I will tell this committee today: We will always fight for auto workers.

We did not hesitate to act. Within a day of Stellantis's announcement on October 15, I sent a letter to Antonio Filosa, global CEO of Stellantis, stating that the company's actions were unacceptable and that we expected them to honour their legally binding commitments to the Government of Canada. On October 20, I summoned Jeff Hines, then-Canadian CEO of Stellantis, to a meeting in Ottawa where he was joined by Vic Fedeli, Ontario's Minister of Economic Development, and Lana Payne, national president of Unifor. We were clear: Stellantis is on the hook.

On October 23, together with the Minister of Finance, we announced a 50% reduction in Stellantis' annual remission quota. That means Stellantis has 50% less of a market for its cars without tariffs in our country.

Today, we're moving forward. Before the close of business, the government will take the next step under the contracts to recover Canadian taxpayers' money. This means we'll start the 30-day period of the formal dispute resolution process in order to bring back production at the Stellantis Brampton facility. This is the start of the dispute resolution process.

None of these actions are symbolic. They are direct consequences of the violation of clear obligations. We have no choice but to be direct and clear with the company. When a company does not respect a commitment to the Government of Canada for Canadian workers, there are consequences.

Canada’s automotive industry is a cornerstone of our economy. It directly employs more than 125,000 Canadians while supporting hundreds of thousands more jobs in its supply chain, which is made up of small, medium and large businesses. This industry contributes nearly $17 billion per year to our GDP. More importantly, it plays a key role in the success of many communities. I would even say that it is essential to the success of Canada's middle class.

Manufacturing businesses are located in Ontario, obviously, but they have ties to Quebec, the Prairies, the east coast and the west coast. It is therefore in the national interest to fight for their employees and support the sector's growth and development despite American tariffs. That's why our government has made historic investments in this sector. We've invested in EV and battery manufacturing. We've developed partnerships with the provinces, unions and automakers. We've helped businesses modernize, innovate and prepare for the future.

We've been clear. If you invest in Canada, if you create good jobs here, our government will be your strongest partner, but if you make promises and then walk away, you will be held accountable.

We've shown that before. In trade disputes, we didn't back down. We fought for our workers with fairness, with strength and with results. We've gone even further. We've launched the strategic response fund, a $5-billion investment fund, to help industries like the auto sector to adapt, to retool and to stay competitive, because we're not just reacting. We're planning the future of employment in Canada.

What is happening to the Stellantis workers in Brampton is a fight worth fighting. It is bigger than one company or one city. It is about fairness, accountability and solidarity. It's about keeping promises. It's about standing together, not only when times are good but also when times are tough.

What we need now is national unity, with no divisions and no political games. Workers' livelihoods are not pawns in a partisan strategy. These are lives, families and entire communities, so let's work together.

I'm already doing that with the Government of Ontario and Unifor, and we can do that together.

All levels of government, all parties and all regions of the country must work together to protect Canadian workers. That's what the people of this country expect from us, and that is what we will deliver. We will always be there for this country's workers. We will always be there for Brampton. We will not allow ourselves to be distracted by political games when jobs are at stake.

To the workers I met in Brampton and to auto workers across this country, know this: We see you, we hear you and we're with you.

Thank you, Mr. Chair.

The Chair Liberal Ben Carr

Thank you, Minister.

Colleagues, we'll start the rounds of questions.

The first round will have six minutes each for the Conservatives, the Liberals and the Bloc.

We'll begin with Ms. Dancho.

The floor is yours for six minutes.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Thank you, Mr. Chair.

Thank you, Minister Joly, for being with us today.

Of course, we have a copy of the redacted contract, the special contribution agreement of up to 15 billion taxpayer dollars and the strategic innovation fund, which represents a $500-million contribution from your government to Stellantis for the NextStar EV battery plant, as you know, courtesy of CBC last week.

Now we have a situation where 3,000 people have been laid off in the Brampton facility, as you know, and you've responded by saying that you're going to sue them, that they've broken their promises. Just today, you've announced that you're starting a formal dispute resolution, so I'm trying to understand what exactly the promises are that you're saying they broke, assuming that means that they broke a promise that they signed in the contract.

Can you tell the committee where in this agreement, courtesy of CBC, is that Canada-wide jobs guarantee? What clause is it?

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

First of all, I think we should be clear. There are three different contracts. This committee will have access to them. The government is acting in good faith. I want to make sure that everybody is aware of these contracts and will be able to have access to them, so it's not courtesy of CBC. The government has already accepted the production of the contracts.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Sure. Am I able to see it?

Is it in that contract, or is it in another SIF agreement?

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

Obviously, you'll see in the contract that all of the contracts are linked. Clearly, it is about protecting jobs. It is also about production at the Brampton facility. You'll see that clearly.

By the way, I must say, Raquel, because I think your question is an important one, this committee—although not necessarily the same members—got access to the contracts for the NextStar facility two years ago. That's why the government has never been clearer that you can obviously have access to it.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Thank you, Minister.

Those were read in confidence. We know they're going to OGGO and now CBC has released them, so this is the first time that we've been able to publicly see the contract.

I'll just say this as an aside. This is, of course, a professional setting, Minister, so I'm extending a professional courtesy to you by referring to you as Minister Joly. I would appreciate that same courtesy to me in this setting. Thank you.

In this contract, there is no jobs guarantee other than the 2,500 at the NextStar plant. Are you saying that the other SIF agreement that was for retooling Brampton and Windsor does contain a Brampton jobs guarantee?

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

I must dispute what you just said. This is not a fact. There are always job number guarantees. That's exactly why the Government of Canada and also the Government of Ontario, in this case, decided to support the company. At the end of the day, why do we do this, MP Dancho? We do this because we believe it's important to create jobs and to protect jobs.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

I agree, Minister, and I know that—

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

You will have access to the information. You will see in the contracts that there are job numbers.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

We have job numbers. Thank you.

We don't—

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

Of course, there are things that are commercially sensitive, but the government will be acting in good faith.

11:05 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Right.

In the contract that we were provided from CBC publicly, there is a jobs commitment to the NextStar plant. There is no mention of Brampton.

I'm asking you this: In the contract we have not been able to see for Brampton is there a jobs guarantee for Brampton?

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

There are jobs guarantees in all of the different contracts, but I must say also that you absolutely need to make sure that you see not only the contract that is linked to the investment through the strategic innovation fund for the Windsor and Brampton facilities but also its amendment—and we'll make sure that's the case.

11:10 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

On the NextStar, in the two contracts you've provided to them that total well over $15 billion, you're tying that contract being paid out to the other SIF agreement for the Brampton and Windsor retooling. Is that correct, because they're in violation of a Brampton—

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

The three contracts are linked. There's a contract and an amendment.

11:10 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Right, they're linked to 14.1(g).

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

There are a couple of things.

Maybe, Charles, you can address the question by MP Dancho.

Before I pass it to Charles, it is really important to understand that in the contract, when you refer to $15 billion, the $15 billion was linked to the production and sale of batteries. When you look at Windsor right now—and, obviously, your colleague would know, because she's from the riding—the facility has been built, but the company is still hiring. There's not been any production or sale of batteries yet, so the government has not spent $5 billion.

11:10 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

Thank you. I appreciate that.

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

I know that some colleagues have been using the term “$15 billion”, but it's not accurate.

11:10 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

It's up to $15 billion, though.

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

It's not been spent yet by the government, and that's an important fact.

11:10 a.m.

Conservative

Raquel Dancho Conservative Kildonan—St. Paul, MB

What you're saying, though, is that because those 3,000 jobs at Brampton were layoffs, they're in violation of their agreements—fair enough. Now you're saying that there is a Brampton jobs guarantee in that other SIF agreement that no one in the media or we, ourselves, have seen. That's going to OGGO, and we welcome the opportunity to see that. You're saying that there's a job guarantee in there that will link it to the NextStar battery plant. Is that correct?

Mélanie Joly Liberal Ahuntsic-Cartierville, QC

It's actually linked to the fact that the Brampton facility must be operating, and there is not a possibility.... If the Brampton facility ceases its production, there will be a violation of a contract.