The competitiveness of labour costs is a big piece of keeping jobs in Canada. We've done an analysis of labour costs in Canada relative to our productivity. Our labour costs in the forest industry are the highest in the world. Our labour productivity is middle of the road.
We've done a further analysis that shows that as we increase the sophistication of the machinery in Canada, our increase in labour productivity does not sufficiently reflect the increase in the sophistication of the factory. For example, in Europe, you see a one-on-one movement: a sophisticated machine, and labour productivity goes up. In Eastern Europe, it's almost a flat curve; no matter what they do, the labour productivity is poor.
In Canada, it's middle of the road. We do not translate our sophisticated machinery into sufficient improvements in labour productivity. We're doing a study to find out why, but it's pretty clear that it is because of work organization, that our history of management-labour relations has built-in rigidities that are, to some extent, holdovers from the past. In Europe, even though they're highly unionized and there's a lot of protection for the workers, they know how to work with management to improve productivity. We are still in a more adversarial frame of mind.
So if you wanted to ask, what's the solution, the solution lies both with management and with labour to learn how to translate investment in machinery into productivity, because without productivity, we can't keep jobs.
Specifically—I wasn't dodging your question; I was contextualizing it—do we think we need labour laws that would increase the divisiveness, the polarization, in Canada's marketplace? I don't think we need that right now. I think what we need is to work together to keep the jobs in Canada.