Labor laws in Canada are undergoing some change, namely with regards to the minimum wage, union certification process, and how temporary workers are treated. The “Changing Workplace Review” is proposing that the minimum wage should increase to C$15 an hour (roughly $11 in the US), changing the voting process for union certification (total number of signed cards as opposed to the old secret-ballot vote), and giving more job security for temporary workers. Flavio Volpe, the president of the Automotive Parts Manufacturers, says that all three of these proposals will hurt the industry competitiveness of Canadian parts suppliers in the global market.
Being required to pay temporary workers more and giving them more job security especially hurts Canadian suppliers’ ability to meet just-in-time demand. According to Volpe, “there’s a difference between ‘temporary employment’ and ‘precarious employment'”, and in the automotive supplier market, that is an important distinction to make. Being forced to hire more full-time employees or paying more for temporary ones is a cost that manufacturers will have a hard time fronting, and therefore makes them less competitive with American companies that operate under right-to-work laws. The proposed reforms have not been brought before cabinet, but Volpe said that it will be presented within the week.
Source: Automotive News
I feel like the Canadian Automotive Parts Manufacturers are very much justified in their outrage at the proposed changes to employment regulations and might rightfully deserve an addition to the piece of legislation that would allow them to stay competitive by being able to hire temporary workers.
These liberal advances are in very stark contrast to the current state of American affairs under President Trump. With the President’s promise to return industry to America and the upcoming NAFTA renegotiation, the US may be in order to steal these jobs.
Great post about Canada!. That being said, has Canada previously been competitive in the auto market, or are they more worried that this will hamper growth? Either way, it is important since minimum wage has been a contentious issue in the states as well.
To me it seems like they are more worried about their growth being slowed or possibly even going negative if these changes were to go through.
With the pace at which automation is proceeding, job security is more important than ever for auto industry workers. With this in mind, raising the minimum wage may result in an increased switch towards automation resulting in job loss.