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