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Business and Labour Perceptions and Reality. Windsor-Essex Policy and Solutions Forum Bill Murnighan Research Director Unifor Windsor, May 15, 2014. Business and Labour Perceptions and Reality (..and some bold insights!) . Windsor-Essex Policy and Solutions Forum Bill Murnighan

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business and labour perceptions and reality

Business and LabourPerceptions and Reality

Windsor-Essex Policy and Solutions Forum

Bill Murnighan

Research Director

Unifor

Windsor, May 15, 2014

business and labour perceptions and reality and some bold insights

Business and LabourPerceptions and Reality(..and some bold insights!)

Windsor-Essex Policy and Solutions Forum

Bill Murnighan

Research Director

Unifor

Windsor, May 15, 2014

reality unions improve the workforce and the business
Reality: Unions Improve the Workforce and the Business

7

  • Higher value of labour means more investment in skills, better tenure, move firm up the value chain.
  • Unions provide a “voice” in workplace. Research shows that a credible system and process for dialogue and problem solving yields best outcomes.
  • A clear, consistent, mechanism for dealing with upswings and downturns means flexibility, skills retention and fairness in workplace.
  • Increasingly for “millennial” generation, workplace culture and fairness at work are central.
reality unionized manufacturing recovered better since recession
Reality: Unionized Manufacturing Recovered Better Since Recession

9

  • All manufacturing hit hard, but unions certainly not behind the job losses (dollar, trade, lack of policy).
  • In Ontario, since recession in 2009:
    • Unionized manufacturing up: + 19,000 jobs
      • 2009: 152,000 vs. Now: 171,000
    • Non-union manufacturing down: - 40,000 jobs
      • 2009: 598,000 vs. Now: 558,000
  • Never applaud any job loss. Other factors at work, maybe union is actually a stabilizing force.
reality labour costs in auto production only 4 of total
Reality: Labour Costs in Auto Production Only 4% of Total.

11

  • “Some perspective please.”
  • Detroit 3 automakers pay for an average 29 hours of production labour per vehicle (others the same).
  • “All-in” costs, even exaggerated levels, amount to $1,700 per vehicle, or 4% of final price of a $41,000 vehicle.
  • 96% of cost structure is elsewhere.
  • Despite this, we ensured that our costs fully comparable to U.S. costs in 2012 bargaining. Dollar now 10¢ lower.
  • Non-union: Toyota very similar compensation package.
  • Makes good political sport: but not realistic appraisal.
reality building to highest quality and productivity standards
Reality: Building to Highest Quality and Productivity Standards

13

  • Year-in, year-out, Canadian unionized plants score top quality awards and hit peak productivity.
  • J.D. Power 2013: Chevrolet Camaro and Impala; Chrysler Town & Country; are the top quality vehicles in their segments.
  • Chrysler 300, Chevrolet Equinox and Buick Regal in top three.
  • GM Oshawa: Silver Plant Assembly Line Quality Award for North and South America.
  • Productivity advantage: Harbour Reports (mid-90s through 2008) always had Canadian plants on-top, international industry measures show 5%-10% productivity advantage.
  • Windsor: Silver Designation World Class Manufacturing.
reality whole global auto industry is unionized
Reality: Whole Global Auto Industry is Unionized

15

  • All of E.U. (VW, Mercedes, BMW, Peugeot, Fiat, plus…)
  • All of Japan (Toyota, Honda, plus)
  • All of South Korea (Hyundai, Kia)
  • All of Mexico.
  • Almost all of South America, South Asia, Africa.
  • Detailed look at industry-leading Toyota with 60 plants around the world: 90% unionized.
  • ONLY U.S. and Canada among developed nations do we see non-union plants.
  • Global growth: more unions, even in China!
reality dozens of factors
Reality: Dozens of Factors

17

  • Many variables.
  • Each decision weights them differently.
  • Research from:
    • Industry Canada
    • Public Policy Forum
    • Canadian Automotive Partnership Council
  • Taxes and labour costs not often near the top.
reality a few bits and pieces but nothing comprehensive
Reality: A Few Bits and Pieces but Nothing Comprehensive

19

  • Everyone wants what we already have, and governments very active in trying to get it.
  • Why? Goose that lays the golden egg, 10:1 jobs, economic development.
  • Every other jurisdiction hasaggressive policies: investment, trade, infrastructure, technology, skills.
  • Key is long-term, engaged, and significant policies.
  • Union plays big role in this: recall our union’s 2012 auto policy recommendations, report and campaign.
  • Building consensus, leading public debate, securing commitments from decision-makers facing competing priorities.
business and labour perceptions and reality1

Business and LabourPerceptions and Reality

Windsor-Essex Policy and Solutions Forum

Bill Murnighan

Research Director

Unifor

Windsor, May 15, 2014