Government committee recommends further study for support for workers amid transition to electric vehicle production

The Standing Committee on Environment and Sustainable Development presented their report, The Road Ahead: Encouraging the Production and Purchase Of Zero-Emission Vehicles In Canada to the House of Commons on April 13.  The Committee had received eighteen briefs and heard from twenty-one witnesses since the Fall of 2020 – available here.  The importance of reducing transportation emissions was accepted, and the topics of discussion included purchase incentives, expanding ev charging infrastructure and the impact on the electricity sector, the potential of hydrogen-powered vehicles, and more. The resulting report makes thirteen recommendations, to which the government is requested to respond. Amongst the recommendations: the existing federal incentive program for EV purchase be continued and expanded to include used EV’s, that the price cap be eliminated, with eligibility geared to income; that the Government of Canada build on existing initiatives, like the Green Mining Innovation program, to improve the environmental performance of Canadian minerals used in battery and hydrogen fuel cell production; and that the federal government  work with provincial and territorial governments to develop recycling and end of life management strategies for ZEV batteries.

Recommendation #6 addresses the concerns of workers: “The Committee recommends that the Government of Canada study opportunities to support automotive sector workers while facilities are transitioning to produce ZEVs, and consider dedicated funding to retrain automotive sector workers for ZEV production.”

Most of the input to the Standing Committee was from industry representatives, but the report attributes Recommendation #6  largely to the testimony of Angelo DiCaro, Research Director of Unifor on November 23, 2020.  From the report: “Witnesses cautioned that it will be challenging to reorient Canada’s automotive sector to produce ZEVs. It takes time for producers to bring vehicles to market, and to retool facilities and retrain workers to produce ZEVs.  Angelo DiCaro suggested that the Government of Canada should ensure that the employment insurance system will support workers during plant retooling. He also noted that the transition to ZEVs could threaten jobs in Canada’s automotive parts sector, especially among businesses that produce parts for the powertrains that propel ICEVs. To compensate, Mr. DiCaro said that Canadian governments should set rules about the afterlife of vehicles that could create jobs in vehicle disassembly and recycling.”    

Specifically, when asked later by NDP MP Laurel Collins, “what kind of retraining and income supports do Canadian auto workers need to support a just transition to a zero-emissions future?” DiCaro identified the powertrain segment of the auto parts industry as the most vulnerable, and continued…. “as plants transition, as will happen with Oakville, we have to see how long these transition times will take in our next round of bargaining. I can assure you that, if this is going to be a two-year or a 16-month transition to get that plant retooled, there are going to be questions about income supports for those workers as they retrain and wait for these cars to come online….. This is front and centre. I think the act of collective bargaining gives us an opportunity to explore that. Certainly our employment insurance system and our training systems are going to have to be looked at more carefully.”

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