GM Oshawa closure – a sign of the disruption to auto manufacturing

chevy boltAfter the November 26 bombshell announcement that the GM plant in Oshawa will close at the end of December 2019, Unifor President Jerry Diaz has demanded that GM allocate product to the Oshawa plant, putting his faith in the newly-signed USMCA trade agreement and stating  “Oshawa has been in this situation before with no product on the horizon and we were able to successfully make the case for continued operations.”  But in a CBC interview, “Why can’t they make the future in Oshawa?‘”(Nov. 27),  the Canadian Vice President for Corporate and Environmental Affairs states firmly that there is no hope for further production in Oshawa.  “This decision has to do with simply being able to make the transition to the future and reallocate capital into the massive investments that are needed for electric vehicles and autonomous vehicles.” He forecasts that about half of the existing Oshawa workers will be eligible to retire with enhanced full pensions, some (but not all) others may find work at GM plants in Ingersoll or St. Catharines, and the rest will be covered by whatever compensation, benefits and timing is negotiated with their union, Unifor.  In a more recent CBC article, “GM Canada president says electric vehicles are the future — but they won’t be made in Oshawa” (Dec. 4), the president reiterates that there are no changes planned for the CAMI plant in Ingersoll or the St. Catharines facility, and points to the growth of the new GM Canadian Technology Centre opened in Markham in January 2018, which has already hired approximately 450 software engineers and coders, with plans to hire more.

Although Ontario Premier Ford somehow blamed the previous government’s cap and trade policies for GM’s decision, others are recognizing the GM closure as part of the disruption and transformation of the auto industry.   From the Energy Mix, “GM Plant Closure Shows Industry Transition Catching Canada, Ontario Flat-Footed” (Nov. 30) ; (also of interest: “Lost Opportunities Show Cost of Canada’s Moribund Cleantech Manufacturing Strategy”   (Nov. 30), which discusses the dilemma of electric bus manufacturers in Canada).  In “GM and Canada’s transition to a zero-emissions fleet”  in IRPP Policy Options (Dec. 3) , author  Ryan Katz-Rosene of the University of Ottawa  states that  “ the 20th-century auto-sector model (in which a handful of global automakers commanded the market and much of the supply chain associated with it) is pretty much dead now.” The article asks, “Where does this leave Canada in terms of its preparedness to participate in the 21st century automobile sector, which is largely centred on electric and autonomous vehicles? And, what role (if any) should governments, at all levels, play to improve Canada’s industrial positioning in that sector?”   And Barry Cross of Queen’s University asks “Have we reached peak car?” in The Conversation (Dec. 2) – a quick view of the future of autonomous vehicles and car sharing.

Good news and bad news about electric vehicles: B.C. mandates, Oshawa plant closing

Electric vehicles Wikimedia Commons 768x512The Good News: British Columbia:   In the latest encouragement to electric vehicle ownership in British Columbia, the Premier announced on November 20  that he will introduce legislation in Spring 2019 to phase in targets for the sale of zero-emission vehicles in the province –  10% ZEV sales by 2025, 30% by 2030, and 100% by 2040.  This will be accompanied by funding to expand charging infrastructure, and for consumer incentives in addition to the existing incentives under the Clean Energy Vehicle program . The new policies are  in line with the Intentions Paper on Transportation,  part of a public consultation in Summer 2018.  (For background, read  “Fuelled by strong demand, B.C. adds $10 million to electric vehicle incentive program” (Sept 27) and “B.C. proposes mandate for electric vehicles”  (July 27), both in the National Observer.) Mandates for EV sales are already in place in Quebec, California, and other U.S. states.

gm oshawaThe Bad news: Ontario:  Mandates for EV sales in the U.S. was part of the modernization strategy  by General Motors in its comments  to the U.S. government under the  Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule on October 26, 2018.  According to the  National Observer  at the time, “Transport Canada welcomes GM’s electric car plan”. Apparently, Transport Canada didn’t know what was in store.  As of November 26, GM’s  global modernization strategy came crashing down on Ontario auto workers – announced in the November 26 corporate press release:  GM Accelerates Transformation . The brief and unexpected press release names the GM Assembly plant in Oshawa Ontario as one which will be “unallocated” in 2019, along with  Detroit-Hamtramck Assembly ( Detroit) and Lordstown Assembly (Warren, Ohio). The Toronto Star makes the connections in “GM plant closure in Oshawa part of company’s shift to electric, self-driving autos”   (Nov. 26) .

Unifor, which represents approximately 2,500 GM Oshawa workers who will lose their jobs, was only informed of the decision one day ahead of the public announcement, and has stated  : “Based on commitments made during 2016 contract negotiations, Unifor does not accept this announcement and is immediately calling on GM to live up to the spirit of that agreement.”  Ontario’s Premier Ford issued a statement  saying: “As a first step, I will be authorizing Employment Ontario to deploy its Rapid Re-Employment and Training Services program to provide impacted local workers with targeted local training and jobs services to help them regain employment as quickly as possible….we are asking the federal government to immediately extend Employment Insurance (EI) eligibility to ensure impacted workers in the auto sector can fully access EI benefits when they need them most….We are also asking the federal government to work with their U.S. counterparts to remove all tariffs so that impacted auto parts suppliers can remain competitive after the Oshawa Assembly Plant closes its doors.”

 

 

Ford government sued by Greenpeace for cancellation of cap and trade without consultation

Doug FordUpdated September 11:

On September 11, CBC News broke the news that “Greenpeace suing Ontario government over cancellation of cap-and-trade program” The lawsuit was filed  in Ontario Superior Court by EcoJustice and the University of Ottawa’s Ecojustice Environmental Law Clinic.  It asks the Court to quash the legislation, on the grounds that the Conservative government “unlawfully failed” to hold public consultations before cancelling  the program, as required by Ontario’s Environmental Bill of Rights. An expedited hearing on the matter has been granted and scheduled for September 21.  The EcoJustice press release of September 11 is here .

At issue is Bill 4, The Cap and Trade Cancellation Act, 2018 , introduced in July to honour a campaign pledge to repeal Ontario’s cap and trade program, authorized through the Climate Change Mitigation and Low-carbon Economy Act, 2016  of the previous Wynne government.  Yet as the National Observer  reported on August  15, “Ontario legislature adjourns without adopting Ford government bill to cancel cap and trade” .  The article also compiles expert opinion and reaction to the move, and notes  that the government will be expected to propose new greenhouse gas emissions reduction targets when the Ontario legislature returns for its fall sitting on Sept. 24.

In “Ford government does U-turn, expands electric vehicle rebates for Tesla buyers”  (Aug. 31), CBC reports on another Court case involving the rookie Ford government.  The Court ruled against the government and in favour of  Tesla, which had claimed that it had been discriminated against when the government discontinued electric and hybrid vehicle sales incentives.   The CBC quotes Sara Singh, an Ontario NDP MP, who stated in August:  “This is likely only the first of many decisions against the Ford government’s decision to rip up hundreds of cap-and-trade and green energy contracts.” The Huffington Post compiled a list the legal actions against the government, on a variety of fronts, on Sept. 5.

Others who have weighed in on Ford’s climate and energy policies: Climate Action Network, along with 37 signatories,  sent an Open Letter to Premier Ford  on August 8.  It documents the heat and fire emergencies throughout the province in the summer of 2018, and calls for a public commitment, along with a detailed plan,  to achieve Ontario’s existing legislated emissions reduction goals.  Environmental Defence maintains an online petition calling for similar action.

Regarding Ford’s cuts to renewable energy programs: A widely-cited article appeared in Forbes magazine: “Ontario’s Economic Investment Outlook Dims With New Government Energy Actions”  (Aug. 13)   (and was re-posted by the Pembina Institute )  stating:  “In one fell swoop Ontario’s government has dramatically slashed a source of funding for clean transportation infrastructure to help consumers lower travel costs, erased hundreds of clean energy projects to help consumers reduce electricity costs, dimmed the prospects for jobs and economic growth from clean tech industries, and took a major step backwards in making the province an attractive climate for business and investment today – and into the future.”

New York state announces new funds for clean energy training, electric vehicles 

New York State Governor Andrew Cuomo issued a press release on September 4,  announcing $15 million to help promote clean energy workforce development and training programs at various campuses of the State University of New York (SUNY). Some of the programs awarded funding include: a  “Solar Ready Vets” program on site at Fort Drum to train veterans transitioning to civilian life in renewable energy ; updates including electrical/solar photovotaic information for continuing education curricula for architects, engineers, and building and code inspectors at  Erie Community College; development of a wind operations technician training program  at the Off-Shore Energy Center of  SUNY Maritime . These initiatives are part of the Clean Climate Careers Initiative, announced in June 2017,  which aims to  create 40,000 new, good-paying clean energy jobs by 2020. The Clean Climate Careers Initiative partners the state government with Cornell University’s Workers’ Institute, as well as  Climate Jobs NY , a labour union coalition led by the Building and Construction Trades Council of Greater New York, New York’s Central Labor Council, and the Service Employees International Union.

According to the latest available report from the  New York State Energy and Research Development Authority (NYSERDA) in Q12018, 3,919 New Yorkers had been trained in a range of energy efficiency and renewable energy courses, through the Green Jobs – Green New York Act (2009). The funding program ended in December 2016, although one training program still continues.   The New York Clean Energy Industry Report for 2017  reported that there were  146,000  clean energy  jobs in New York State by December 2016 – 110,000 of those in energy efficiency roles.

Electric vehicles:  Governor Cuomo issued another press release on September 5,  announcing that the state will utilize $127.7 million received from the 2016 Volkswagen diesel emissions settlement to increase the number of electric and clean vehicles, by reducing the cost of  new transit and school buses, trucks, and other vehicles, as well as supporting electric vehicle charging equipment.  The new proposals are detailed in  the NYS Beneficiary Mitigation Plan.    The existing Charge NY  program to incentivize electric vehicle adoption is credited with a 67 percent increase in ev’s sold in New York state between 2016 to 2017.

B.C. consultation on “Clean Growth” policies for transportation, industry, and the built environment

Flag_of_British_Columbia.svgWhile British Columbia is understandably preoccupied with the devastating wildfires raging across the entire province, an engagement process called Towards a Clean Growth Future in B.C.  was launched on July 20, with a short, summertime deadline of August 24.

Three brief Intentions Papers have been published to solicit public input : Clean Transportation ,which discusses policies to incentivize Zero Emissions Vehicles – including the possibility of a ban the sale of new gasoline and diesel light duty vehicles by 2040;  Clean, Efficient Buildings,  which proposes five steps to cleaner buildings, including Energy efficiency labeling information, financial incentives, and additional training for workers in energy efficient retrofitting and in the new-build Energy Step code; and A Clean Growth Program for Industry , which includes the province’s Industrial Incentive under the carbon tax regime and addresses the potential dangers of “carbon leakage”.

Public Submissions are available online  and to date have been submitted by: Canadian Centre for Policy Alternatives (CCPA), written by Marc Lee ; Closer Commutes ;   The Wilderness Committee ; and  The Pembina Institute , which at 37 pages is extremely detailed, and includes 5 recommendations relating to Training and Certification for Clean Buildings,  including  a call for “a construction labour strategy that addresses skilled labour gaps and equity issues in the building industry. Integrate with emerging technology and innovation strategy to foster greater use of automation and prefabrication.”

The West Coast Environmental Law Association (WCEL)  also posted a thorough discussion of the Clean Growth proposals on its own website on August 16.  “BC’s decade-delayed climate strategies show why we need legal accountability” by Andrew Gage notes that the intentions papers are largely built on existing proposals (some dating back to the 2008 Climate Action Team  Report ), and that they are not complete, as the government is also developing proposals through its  Climate Solutions and Clean Growth Advisory Council  and the newly appointed Emerging Economy Task Force .  (The Wilderness Committee calls the proposals “underwhelming”). Whatever the final policies that flow from these consultations, WCEL emphasizes the importance of demanding accountability, and like Marc Lee in his submission, points to the success of the U.K.’s Climate Accountability Act (2008). WCEL has previously critiqued  Bill 34, B.C.’s  Climate Change Accountability Act which received Royal Assent on  May 31 2018.

Another commentary, appearing in the National Observer (July 27) addresses the weakness of the transportation proposals.  “B.C.’s climate plan needs a push – from you”  refers to the author’s more detailed report, Transportation Transformation: Building complete communities and a zero-emission transportation system in BC , which was published by the CCPA in 2011.

The CCPA also published an article on August 2, 2018 in Policy Note:  “The Problem with B.C.’s Clean Growth climate rhetoric” . Author Marc Lee reviews the history of the term “clean growth” and offers his critique, noting that clean growth “promises change without fundamentally disrupting the existing economic and social order.”

Individuals have until August 24 to can email their input to clean.growth@gov.bc.ca .