There are a couple of things. There is this myth that workers and manufacturers in Canada are not productive. Just plain numbers will show that is not true. We've lost 250,000 jobs in the last two years and we didn't lose $1 in shipment in manufacturing. That means this country is producing at the same level as in the past without investment in new equipment, new plants, or skilled training, and with 250,000 fewer workers. That means the workers are producing a lot more with less investment and no increase in wages. So the myth of low or less productivity in the workers in Canada in the manufacturing sector doesn't have any basis in numbers when you look at the statistics.
The second issue is the one you mentioned quickly--labour cost. There was a study by KPMG that said Canada had the lowest business cost environment among the G-7 countries. The study is called “Competitive Alternatives”, 2006 edition.
Productivity has been increasing and wages have been stable. There are no numbers that really show that labour cost is an issue for Canadian manufacturing. Productivity is not an issue, again with a lot fewer workers, no investment in training, and no investment in equipment. Productivity is still at the same level and wages are not increasing. Taxes are the lowest compared to the G-7 countries. When you look at numbers and not the rhetoric, labour cost is not an issue in the manufacturing sector.