Reports on the future of Ontario’s auto industry: one by experts, one by the Ontario government

future of auto industryIn The Future of Canada’s Auto Industry , released on February 26, co-authors Charlotte Yates and John Holmes assess  the sector’s current state – focusing on trade agreements and technological innovation –  and recommend a suite of policies to boost competitiveness and avoid plant closures, especially timely in the aftermath of the “shocking” closure announcement of GM Oshawa.  Although concentrated in Ontario, the industry is important nationally: “The automotive industry contributes significantly to Canada’s economic prosperity through investment, employment and technological innovation. Currently, it is Canada’s second largest manufacturing industry, adding $18.28 billion a year to GDP, $86.58 billion a year to Canadian exports (17% of total merchandise exports), and employing over 126,000 people directly and half a million people indirectly.”

The authors acknowledge the importance of the future trend to electric and autonomous vehicles, and propose a green industrial policy with targeted supports for companies that commit to building green vehicles sustainably. They point out current  shortages of skilled workers and the aging workforce in the industry, and call for   a workforce development plan that will invest in engineering, technical and data analytic skills, including trades and apprenticeships and income supports for skills retraining towards a just transition for workers.  They acknowledge the challenges of global competitiveness and the need for research and development, and call for financial incentives, including tax credits and grants, and better access to capital for small- and medium-sized Canadian technology companies, as well as more focused R & D investments. In general, they call for deep collaboration between the federal and Ontario government, rising above bureaucratic and jurisdictional interests.  Flagged as the most important condition for future success for the industry:  “government policy needs to prioritize the North American automotive platform centered on the Great Lakes. Canada–U.S. auto production and trade could be further integrated to create even greater competitive advantages of efficiency associated with a larger regional production footprint. Canada continues to need preferential tariff access to the American market for finished goods for this model to succeed.”

The Future of Canada’s Auto Industry was published by the Canadian Centre for Policy Alternatives.  A summary article which appeared in the Toronto Star on February 26,   “Electric, driverless vehicles key to survival of Canada’s auto industry ” gives short shrift to the trade relationships and the complex global dynamics of the auto industry, which figure more prominently in the actual report.  The authors, John Holmes and Charlotte Yates, are both members of Canada’s Automotive Policy Research Centre (APRC), with long and deep knowledge of Canada’s  auto industry.

autostrategy_2019Ontario government discussion paper recommends less red tape and “pro-jobs labour reforms”: 

In a second report, the same issues are discussed but with much different emphasis and level of analysis.  The Ontario government’s  discussion paper, Driving Prosperity: the Future of Ontario’s Automotive Sector  was released in February under the “Open for Business” mandate.  The government describes the paper as:  “… a 10-year vision for how industry, the research and education sector, and all three levels of government, can work together to strengthen the auto sector’s competitiveness and bring new jobs to the province.”  In the introduction, the government states “We are driving prosperity in the industry and creating a pro-jobs environment by cutting red tape, eliminating the cap-and-trade carbon tax, allowing businesses to write off job-creating capital investments faster, and
embracing pro-jobs labour reforms.”

Although the government report acknowledges technological disruption and trade issues as challenges, there is no direct mention of the GM Oshawa plant closing – and in fact, most of the statistics provided are from 2017.   The issue of retraining and skills upgrading is raised in the general context of changing technologies, stating: “ We also want to minimize the disruption caused to workers and their families by technology and production mandate changes. We need to find new ways to respond to complex challenges. We need to establish new relationships with government partners in labour and academia to help Ontarians find faster and smarter training solutions.”

 

Skills and training for Clean jobs in the U.S. : Focus on infrastructure and auto manufacturing

A January 25th blog by the Brookings Institution is a recent addition to a series of publications about  the workforce implications of the transition to a clean economy. “The Green New Deal promises jobs, but workers need to be ready to fill them”   (Jan. 25) broadly discusses the range of occupations which will be affected by the transition to a clean economy, and promises forthcoming research which “will delve deeper” into the workforce issues – going beyond simply job estimates and forecasts to look at skills and training requirements and barriers, as well as working conditions.

Brookings AV workforce infographicSpecific to the transformation of the auto manufacturing industry, Brookings has published “What GM’s layoffs reveal about the digitalization of the auto industry”   (Dec. 13 2018) and in February 2019,  “Equipping today’s AV workforce with skills to succeed tomorrow” , which defines the “digital mobility workforce” to include truck drivers, automotive service technicians and mechanics, and many other jobs beyond the engineers we normally associate with autonomous vehicle production.  The article cites the Michigan Alliance for Greater Mobility Advancement (MAGMA),  a component of the Workforce Intelligence Network for Southeast Michigan (WIN), which  exists to identify the skill needs, and train for, “Michigan’s rapidly changing automotive industry as it moves towards CAV, cybersecurity, embedded software systems, and other emerging technologies.”

Earlier Brookings reports focus on infrastructure jobs,  including  Infrastructure skills: Knowledge, tools, and training to increase Opportunity (May 2016), and  Renewing the water workforce: Improving water infrastructure and creating a pipeline to opportunity   (June 2018) .  Opportunity Industries: Exploring the industries that concentrate good and promising jobs in metropolitan America  (Dec. 2018) also provides an important look at the potential to improve workforce development policies, although it focuses on “good jobs” and “ promising jobs”,  rather than green jobs,

Just Transition for energy workers in Northern England includes job quality, skills training

liverpool harbourRisk or reward? Securing a just transition in the north of England  is a study released in late October by the Institute for Public Policy Research North (IPPR), based in Manchester and Newcastle of the U.K. – an area disproportionately at risk for job losses in the shift to a low carbon economy as it is the home of  the majority of England’s coal and gas power stations.  This Interim report estimates that approximately 28,000 jobs in the coal, oil and gas industries could be lost by 2030 as the low carbon economy grows.  In 2017, the IPPR forecasts that up to 46,000 low-carbon power sector jobs and 100,000 jobs could be created by 2030 by its Northern Energy Strategy , including a  Northern Energy Skills Programme .

Risk or Reward?  forecasts job numbers, but also discusses the quality of jobs using compensation levels of representative energy jobs.  The report concludes that “Fundamentally, there is a failure to incorporate a just transition into industrial strategy and decarbonisation policy more generally; but, even if it were acknowledged, the skills system is ill-equipped to provide support for those that need retraining or for the next generation. Compounded by the uncertainty of Brexit amidst international competition for labour and skills, there is a real risk that the transition to a low carbon economy will not be just.”

Risk or Reward is an interim report.  IPPR promises a Final Report in 2019 which will recommend a strategy for government action,  to put just transition “at the heart of decarbonisation and industrial strategy”, and to build a skills system capable of supporting existing and future workers through well-paid, skilled and secure jobs.  “This strategy will also consider other challenges facing the low-carbon sector both now and in the future, including how to ensure it can deliver good working conditions and a diverse workforce. In addition, it will set out the crucial role of trade unions in delivering well-paid, secure and high skilled jobs, as well as a successful industrial strategy and improving productivity.”

Companion reading to Risk or Reward is  the broader perspective of  Prosperity and Justice: A plan for the new economy  – the final report of the IPPR Commission on Economic Justice  , established in the 2016 in the wake of Britain’s vote to leave the European Union.  The Final Report is here; an Executive Summary is hereProsperity and Justice  presents a 10-part plan for economic reform and makes more than 70 recommendations – which it states “ offer the potential for the most significant change in economic policy in a generation”. It includes a chapter titled “Ensuring Environmental Sustainability”  as fundamental to its economic goal of just growth.  The IPPR Commission on Economic Justice published an Interim Report (2017), as well as discussion and policy papers –   including including Power to the people: How stronger unions can deliver economic justice.

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.

Unifor calls for federal leadership in Just Transition and a role for collectively-bargained protections

unifor logoMore than sixty members of Unifor met federal Members of Parliament in Ottawa on May 24, to convey the union’s positions on four major issues: pharmacare, child care, public control of airports, and Just Transition.  The press release is here ; the four page Just Transition backgrounder is here . In it, the union expresses its broad support of the Pan-Canadian Framework on Clean Growth and Climate Change and carbon pricing, calls for federal policy leadership to ensure that workers do not bear the brunt of climate change-induced industrial restructuring, and offers specific recommendations.

Unifor’s Recommendations are noteworthy in that they explicitly call for a role for collective bargaining (or worker representation in non-unionized workplaces).  From the text:  “Unifor sees two potential avenues to finance Just Transition. The first means is through the new federal carbon tax, which need not be entirely revenue neutral. A portion of the proceeds could be used to create a ‘Green Economy Bank’ or some such fiscal mechanism. The second option is to bolster the Low Carbon Economy Fund, which is already explicitly committed to job creation, but should be geared towards good, green job creation, and widen its mission.” …..  Unifor calls for “Labour market impact assessments to monitor the emergent effects of climate related policy; Community benefit agreements, to support regions that are more heavily dependent on carbon-intensive economic activities; The promotion of green economy retraining and skills upgrading, through appropriate funding for postsecondary institutions. This includes mandatory apprenticeship ratio’s linked to college training programs and skills trades certification processes; Preferential hiring for carbon-displaced workers, including relocation assistance; Income support, employment insurance flexibility and pension bridging for workers in carbon-intensive economic regions and industries; Tax credits, accelerated depreciation, grants and/or investment support for firms and industries that bear an extraordinary burden of change; In unionized workplaces, there needs to be a role carved out for the bargaining agent in negotiating and facilitating workplace transition. In non-unionized workplaces we need to envisage a role for workers to provide input on adjustment processes and procedures.”

Unifor is Canada’s largest private sector union, with more than 315,000 members across the country in climate-vulnerable sectors such as energy, mining, fishing, as well as automobile and auto parts manufacturing.   Some of its existing collective agreements, compiled in the ACW database, have long-established workplace environment committees.