Fall Economic Statement paves the way for a Green Recovery: energy efficiency, care economy, electric vehicle infrastructure, and nature-based solutions

On November 30, Canada’s  Finance Minister Chrystia Freedland presented the government’s Fall Economic Statement to the House of Commons, Supporting Canadians and Fighting COVID-19.  At over 200 pages, it is the fullest statement to date of how the government intends to finance a green recovery from the Covid-19 pandemic, but Canadians must still wait for a full  climate change strategy, promised “soon”.

The government press release summarizes the spending for health and economic measures, including, for employers, extension of the Canada Emergency Wage Subsidy Canada, the  Emergency Rent Subsidy and Lockdown Support , and new funding for the  tourism and hospitality sectors through the new Highly Affected Sectors Credit Availability Program.  In Chapter 3, Building Back Better,  the Economic Statement addresses the impacts of Covid-19 on the labour market and employment. It includes promises to create one million jobs, invest in skills training, reduce inequality, attack systemic racism, support families through early learning and child care, support youth, and build a competitive green economy.  Most budget allocations will be channeled through existing programs, but new initiatives include “the creation of a task force of diverse experts to help develop “an Action Plan for Women in the Economy”;  launch of “Canada’s first-ever Black Entrepreneurship Program”;  and a task force on modernizing the Employment Equity Act to promote equity in federally-regulated workplaces.  Under the heading, “Better working conditions for the care Economy” comes a pledge: “To support personal support workers, homecare workers and essential workers involved in senior care, the government will work with labour and healthcare unions, among others, to seek solutions to improve retention, recruitment and retirement savings options for low- and modest-income workers, particularly those without existing workplace pension coverage.”

Climate change provisions and a Green Recovery:

Another section in Chapter 3 is entitled A Competitive, Green Economy, which  reiterates the government’s commitment to achieve net-zero emissions by 2050, and reiterates the importance of the Canadian Net-Zero Emissions Accountability Act, currently before Parliament. Funding of  $2.6 billion over 7 years was announced to go towards grants of up to $5000 for homeowners to make energy-efficient improvements to their homes, and to recruit and train EnerGuide energy auditors. A further $150 million over 3 years was announced for charging and refuelling stations for zero-emissions vehicles, and  $25 million for “ predevelopment work for large-scale transmission projects. Building strategic interties will support Canada’s coal phase-out.

Under the heading of Nature-based solutions, proposed investments address the goal of 2 billion trees planted with a pledge of  $3.19 billion over 10 years, starting in 2021-22.  A further $631 million over 10 years is pledged for ecosystem restoration and wildlife protection, and $98.4 million over 10 years, starting in 2021-22, to establish a new “Natural Climate Solutions for Agriculture” Fund.

Reactions from unions, think tanks:

Among those reacting quickly to the Economic Statement, the Canadian Labour Congress  stated generally  “While today’s commitments on key priorities remain modest and reflect past promises, the government has signalled it will make further investments as the recovery begins to take shape.” Unifor issued two press releases, the first stating “This fiscal update shows that Canada’s workers are being heard, and must continue to advocate for the lasting changes required to secure a fair, resilient and inclusive economic recovery”, but a second complains “Canada’s fiscal update fails to support all airline workers .  The Canadian Union of Public Employees similarly issued two statements on December 1:  “Liberals’ economic update offers more delay and disappointment”  and “Canada’s flight attendants union disappointed by the federal economic update” .

Bruce Campbell reacted in The Conversation (Dec. 7)  that “The pace of government action to date does not align with the urgency of the twin climate and inequality crises. Nothing it has done so far is threatening to the corporate plutocracy and its hold on power.”   Several experts from the Canadian Centre for Policy Alternatives contributed to a blog,  A fiscal update for hard times: Is it enough?”, with the answer from Hadrian Mertins-Kirkwood re the climate change provisions : “Planting trees, retrofitting buildings and increasing ZEV uptake doesn’t go far enough without a clear timeline for winding down oil and gas production.”  Climate Action Network-Canada agrees with Mertins-Kirkwood when it states: “ today’s update includes a summary of new and existing spending that we hope will provide an important foundation for Canada’s new national climate plan that we expect in the coming weeks.  ….As part of a larger package, along with Bill C-12, the Canadian Net-Zero Emissions Accountability Act, and the pending new national climate plan, today’s fiscal update provides the backbone to guide Canada through some of the most important global transitions in generations.”

Other reactions:  “Feds’ fall economic statement shortchanges climate” (Corporate Knights, Dec. 2) quotes one observer who calls it  a “meek” effort, and offers a comparison of  the allocations in the Fall statement with earlier proposals from Corporate Knights  and the Task Force for a Resilient Recovery in September . The Energy Mix also cites the Task Force for a Resilient Recovery in its analysis of  the energy efficiency provisions of the Economic Statement , stating, : “the  recommended by C$2.6 billion allocated for a seven-year program raises questions about how seriously the Trudeau government is prepared to confront the climate crisis. In mid-September, the Task Force for a Resilient Recovery called for a $26.9-billion program over five years.”

“Historic” investments in electric vehicles for Canada: Unifor and Ford, Fiat Chrysler agreements (updated)

In a September 28 press release, the Canadian union for auto workers, Unifor, reports that members at the Ford Motor Company voted 81% overall in favour of new three year collective agreements “that include $1.95 billion in investments to bring battery electric vehicle (BEV) production to Oakville and a new engine derivative to Windsor, along with other significant gains…. ….. This agreement is perfect timing and positions our members at the forefront of the electric vehicle transformation, as the Oakville plant will be a key BEV supplier to the North American and European Union markets”. Under the heading, “Making History in Challenging Times”, the Ford Bargaining Report Summary  reports that the retooling is scheduled to begin in 2024, with the first BEV vehicles forecasted to roll off the assembly line in 2026, “and hopefully sooner.” Also, “Through this conversion, Oakville will become the first mass production BEV plant in Canada – and one of only a few currently in North America. Ford’s investment is also the biggest single facility investment in the auto sector since 2015 in Canada.”

The Bargaining Summary highlights changes in wages, pensions, and all topics, including that the company and union agreed on the advantages of having a union Workplace Environmental Representative, and that additional training will be offered to the workplace environmental representatives “related to Global Plant Action”. Unifor and Ford also agreed to develop an Anti-Racism Action Plan, and to establish a new Racial Justice Advocate position which will offer support to those who face anti-Black and anti-Indigenous discrimination.  

Media coverage of the agreement appeared in the Toronto Star on September 20, pointing out that the federal and provincial governments will also contribute to the re-tooling of the Oakville plant.  On September 22, the Star also published “Justin Trudeau’s Liberals are betting that electric vehicles can recharge the economy. But a vision is not a plan” , summarizing some of the policy context of the decisions. And beyond the benefit to the auto manufacturing sector, on September 17,  Canada’s Minister of Natural Resources was making the case that “Mining gives Canada a competitive advantage in electric vehicle market” arguing that “we are the only nation in the western hemisphere with an abundance of cobalt, graphite, lithium and nickel, the minerals needed to make next-generation electric batteries.”

$1.5 billion investment for EV production in Fiat Chrysler agreement

Following the agreement with Ford Canada, Unifor announced the ratification of 3-year contract with Fiat Chrysler (October 19 press release), including a $1.5 billion commitment to electric vehicle production at the Windsor Ontario plant. Jerry Dias states: “This year’s Auto Talks will go down in history as a transformational moment for the Canadian auto sector. Years of government neglect, job loss and worker despair is quickly turning to optimism, hope and a very bright future.” He repeated this message in an October 20 OpEd in the Toronto StarA new green auto strategy for Canada

The Unifor summary document includes all the agreement provisions, and includes the full text of the Product and Investment Commitment Letter, describing the plans for Windsor:

“In addition to the continued production of the current Pacifica and Voyager/Grand Caravan products, including the PHEV, AWD and ICE models, FCA confirms the intention to install a new multi-energy vehicle architecture (including Plug-In Hybrid Electric (PHEV) and/or Battery Electric (BEV) capability) and at least one new model on that architecture, contingent on the necessary agreements in partnership with the Company, the Union, and both Federal and Provincial governments which includes the implementation of this collective agreement and government financial support for the associated investments. With that joint commitment, the Company’s intention is to add the necessary assembly tooling and equipment to manufacture electrified vehicles for future models, currently planned from the 2025 model year. The total impact of this investment and product plan is estimated at 5,700 secured or new jobs by 2024 returning to a 3 shift operation. Potential workforce increase of 2,000 employees over today’s active on-roll employment. Investment related to Windsor Assembly: CDN $1.35B to $1.50B.”

In addition to the headline-grabbing investment commitment for new Electric Vehicle production, the agreement also enhances training for Workplace Environmental Representatives, and increases the frequency of the existing union-management business review meetings. “The parties agree to review company product plans and business forecasts, including on electric, autonomous, connected vehicle and component parts development.”

Labour’s perspective on electric vehicles

Unifor’s Road Map for a Fair, Inclusive and Resilient Economic Recovery, published in   the summer, states: “The government must also take the lead in supporting zero-emission vehicle manufacturing and preparing the economy for electrified transportation through targeted subsidies and investment in battery technology innovation. A long-overdue National Auto Strategy, for instance, would help merge Canada’s innovation agenda, trade policy, skills training and infrastructure development to foster a modern supply chain for EV components and parts, leading to final assembly. This need not only apply to light duty, passenger vehicles but other modes of surface transportation, including mass transit, commercial trucking and logistics, student transportation, taxis and light rail. Once in place, such a strategy could serve as a rubric for all transportation sectors and industries.” 

These points are also made by Angelo DiCaro, Research Director for Unifor,  in an essay titled “Canada’s auto sector revival will take more than wishful thinking. We need a plan”, featured in the August/September issue of The Monitor, and at the Canadian Centre for Policy Alternatives website.  DiCaro reiterates the call for a national auto strategy, and sketches out key steps for a national Electric Vehicle strategy, starting with Step 1, a “comprehensive mapping of existing capacities and materials needed to forge a complete supply chain for EVs and component parts in Canada”, followed by setting domestic production targets for vehicle assembly and component manufacturing.

Union workers are strong allies for electric vehicles, as Canada’s Unifor demonstrates appeared in the industry newsletter Electrek in June 2020, quoting favourable statements re EV manufacturing from both Unifor and the United Auto Workers(UAW) in the U.S. The UAW published their report, Taking the High Road: Strategies for a fair EV Future in January, making specific policy recommendations, and stating: “The UAW rejects the idea promoted by climate change deniers that fuel efficiency and environmental regulations lead to closed plants and lost jobs. Fuel-efficient vehicles, clean energy, clean manufacturing, renewable energy and other advanced technologies are an opportunity to create new middle-class jobs with good pay, good benefits, and economic security.”

More recently,  the American Center for Progress released  “Electric Vehicles Should Be a Win for American Workers” on Sept. 23 . It concludes: “Federal funding to incentivize consumer demand, drive manufacturer investments, and build out electric vehicle infrastructure should be made contingent on key job quality and domestic content standards. In structuring funding, policymakers must be realistic about present EV capacity while also ensuring that taxpayer dollars do not subsidize low-road employers or erode job quality standards in the broader industry. By designing federal policies that encourage both rapid vehicle electrification and the creation of high-quality, good-paying domestic jobs throughout the EV ecosystem, policymakers can satisfy the priorities of climate and labor advocates and ensure economic prosperity for future generations. In a period of significant economic and environmental challenges, the transition to EVs presents a powerful and positive opportunity to improve conditions for both American workers and the climate.”

Electric vehicle policy in Canada

In response to the news of the Unifor/Ford agreement, Clean Energy Canada published a Media Brief: “What is a zero emission vehicle standard and why does Canada need one?” . It notes research from the International Council on Clean Transportation that found that Canada is the 12th largest vehicle producer in the world but  is responsible for only 0.4% of global EV production. Assessing that Canada has a EV supply problem,  Clean Energy Canada recommends a ZEV standard as the solution, rather than a voluntary standard or consumer incentives.  “A ZEV standard is a supply-focused policy that requires a gradually rising percentage of vehicles sold by auto manufacturers to be zero-emission (i.e. battery-electric, plug-in hybrid or hydrogen fuel cell vehicles). While purchase incentives help drive demand, ZEV standards secure supply.”  Currently, only British Columbia and Quebec have ZEV standards in place – with B.C. having passed the Zero Emissions Vehicle Act  in May 2019, requiring automakers to meet increasing annual levels of EV sales reaching 10% of new light-duty vehicle sales by 2025, 30% by 2030 and 100% by 2040.  On July 30, B.C. followed up with new ZEV regulations under the Act which set phased-in annual targets and other compliance requirements, as well as a ZEV advisory council to be comprised of industry, ENGOs, local governments, First Nations, infrastructure providers and academics, to provide input into the ministry’s EV programming and policies .  

The Clean Energy Media Brief links to many supporting documents, including a recent academic discussion, “Which plug-in electric vehicle policies are best? A multi-criteria evaluation framework applied to Canada”  which appeared in the June 2020 issue of Energy Research and Social Science.  

Unifor’s campaign to defend Northern Pulp mill jobs in Nova Scotia

northern pulp view

A January 8 general news release, “Nova Scotian forestry workers already struggling as Northern Pulp prepares to close ” summarizes the union’s position in a quote from Atlantic Region Director Linda MacNeil: ““We all agreed Boat Harbour had to close. That closure did not have to come at the cost of thousands of rural jobs ­­– there was a solution for the mill to coexist, but there was no political will from McNeil to make it happen …. Our members and other forestry workers are not the ones responsible for any wrong-doing here. … They deserve better than to be blamed and sacrificed due to the government’s lack of leadership, consultation or clear regulatory expectations.”

The context:

The “years of controversy” over the Northern Pulp mill is summarized in a Backgrounder  in the Halifax Chronicle Herald on December 10 2019, published just before the government of Nova Scotia announced that it would enforce a 2015 law which would require the mill to stop pumping effluent in Boat Harbour.  Paper Excellence Canada , the owner of the Northern Pulp mill,  stated almost immediately  that it would close the mill, but apparently the years of controversy are not over yet.  As reported on January 9 in “NS effluent dumping mill to move ahead with environmental process” in the National Observer , Paper Excellence has issued a new statement: “Our team is currently focused on supporting our employees, developing plans for a safe and environmentally responsible hibernation, and working with the government of Nova Scotia and stakeholders to determine next steps.”

Unifor’s role in the controversy: 

Unifor represents approximately 230 workers at the  mill and has been actively engaged in advocating to protect its members’ jobs by allowing the mill owners, Excellence Paper, to improve the environmental performance of the mill by building a new effluent treatment plant. Unifor’s Save Northern Pulp Jobs campaign  includes “Why Mill Jobs Matter” as a summary;  in early 2019, the union commissioned  a detailed economic impact study by consultants Gardner Pinfold which makes the case for the “keystone” importance of the mill in the region, profiling major businesses from the supply chain of  1,379 companies associated with the mill operation,  and estimating that the mill accounts for approximately 2,679 full-time equivalent jobs, earning approximately $128 million annually.  (Note that Gardner Pinfold completed an earlier economic impact study  for the industry group, Forest Nova Scotia, in 2016).

An ongoing series of Updates chronicle how Unifor has participated in the provincial environmental assessment process and in direct advocacy for their membership.  The January 3 update  reports to members on interactions with government, stating: “the best course of action for a viable and continued forest industry in the province is with Northern Pulp continuing to operate. We reiterated that the $50 million should be used to assist all workers in the industry through a temporary shutdown of the mill to facilitate the construction of Northern Pulp’s new effluent treatment facility (ETF)…. We also suggested the idea of a third-party expert who could serve as intermediary between government regulators and the company to establish a firm and fair process and timelines for the necessary approvals to take place for construction of the ETF.”

The update also states:  “Premier McNeil announced a $50 million transition fund for forestry workers that was of particular interest during the meeting, especially since the fund was never mentioned to the union, or anyone else, prior to his December 20 decision.”

Work and Climate Change Report has summarized the $50 million  Forestry Transition Fund here.

Further documentation: The March 2019 submission of Unifor Atlantic Region to the provincial Environmental Assessment process is here , included in a compilation of all submissions ; comments by Unifor’s National Office to the environmental assessment process in October 2019 appears here (around page 14).

 

northern pulp view

Just Transition and Green New Deal as policy and bargaining issues for Unifor

unifor logoAccording to their website, “Unifor is Canada’s largest oil, gas and chemical sector union, representing over 11,800 members in nearly every province, from offshore platforms off Newfoundland’s outer banks to Suncor in Alberta’s oil sands; from energy crown corporations in Saskatchewan to private refineries in every region of Canada.”

The union’s 3rd Constitutional Convention was held in Quebec City in August , gathering delegates to debate Resolutions , including Resolution #5, submitted by the autoworkers of  Local 222 in the Oshawa area regarding a Worker’s Green New Deal…“defined as “a massive government jobs program and investment in clean energy, green technology and electrification.” A Workers’ Green New Deal must include just transition protection for workers whose jobs are affected and fair labour standards. BECAUSE: • This program meets the needs of and has the potential to unite the labour movement, environmentalists and all those who have been the victims of inequality, discrimination, racism and now, climate change. ….”

and Resolution #21 regarding Just Transition, submitted by the energy workers of Local 707A from Fort McMurray, Alberta:  “…..UNIFOR NATIONAL WILL: 1. Launch and promote a nationally-coordinated awareness and action campaign that will include: a. Awareness materials to the attention of Unifor members explaining the idea of just transition and how it can apply to workers in Canada today to build a more sustainable, fair future for working people with workers at the table when planning for a Just Transition to a regenerative economy. b. A call to all levels of governments to: i. support strategic investments in infrastructure, ii. A recognition of climate change needs and a commitment to meeting international greenhouse gas emission reduction targets, iii. A national strategy on Just Transition for workers c. Unifor’s inaugural Just Transition Conference scheduled for September, 2019 in Saskatoon, Saskatchewan. 2. Encourage all local unions to take part in the campaign in solidarity with Unifor’s energy workers in all provinces…”

Just as the resolutions regarding Green New Deal and Just Transition call for advocacy and action campaigns, the 50-page Collective Bargaining Program approved at the Convention deals with these issues not as bargaining priorities, but as policy challenges: “…we demand that governments: • Bolster our public health care and education systems; • Secure industries and workplaces most vulnerable to ongoing trade disputes; • Establish more rigorous income assistance and just transition supports for workers adjusting to labour market changes (including those that are climate-related) (italics added by WCR); • Invest in public and social infrastructure, including long-overdue universal public Pharmacare and Child Care programs; • Develop a coordinated national, sustainable industrial development strategy.”

The National Unifor Just Transition Conference   is scheduled for September 22 -24 in Saskatoon, and is described in this July letter  from the  National Health, Safety and Environment Director .  “The Conference plenaries, workshops and discussions will focus on the importance of climate policies aimed at reducing emissions along with those aimed at building resilience and adaptive capacity. These large table discussions that will take place at the conference will set the tone for Unifor’s position on carbon footprint reduction and job security as the entire country moves forward to address the need for climate change initiatives.”  Unifor’s previous lobby document,  The International Climate Crisis and Just Transition, from 2018, is here.

A June press release,  “Unifor energy workers ratify historic national agreement” announced a new pattern-setting four-year collective agreement with Suncor Energy, and highlights gains in wages, severance, and a new framework for addressing domestic violence. The Suncor agreement will set the pattern for all energy sector employers in Canada – the text is not  publicly available as of early September 2019.

Unifor’s Energy Council met in June, as summarized here , to discuss the new pattern bargaining and the union’s new promotional campaign for the sector, anchored around a YouTube video  produced by Unifor.

Canadian-made Pacifica van priced out of Electric Vehicle incentives in Budget 2019-Update: layoffs announced at Windsor van plant

Hybrid Pacifica 2019 modelUpdated March 29 re associated layoffs at Windsor plant

Canada’s federal Budget 2019 delivered on March 19, included a number of policies  aimed at speeding  up EV adoption: a 2040 deadline to phase out new internal combustion vehicle sales, $130 million over the next five years  to build electric vehicle charging stations,  and consumer rebates for purchases of electric and hybrid vehicles ($5000 for purchases under $45K).  On March 22, CTV Windsor reported on a protest rally by Unifor Local 444  and local  NDP politicans, who are  infuriated that the EV consumer incentives program carries a price limit set at $45K  – which excludes the Canadian-built Pacifica Hybrid, priced at $54,000.  The  CBC also reported  “Federal rebate on electric cars will push consumers to buy American, NDP says” .

Brian Masse, NDP Member of Parliament for Windsor-West is promoting a petition demanding to have all Canadian-built hybrids, including the Pacifica Hybrid, added to the list of incentive-eligible vehicles.

Update:  On March 28, the Windsor Star reported  “FCA Canada to stop third shift at Windsor Assembly Plant, cutting 1,500 jobs”.  The article quotes a company email which states: “In order to better align production with global demand at its Windsor Assembly Plant, FCA notified Unifor today that it intends to return the plant to a traditional two-shift operation, beginning Sept. 30, 2019….Retirement packages will be offered to eligible employees. The Company will make every effort to place indefinitely laid off hourly employees in open full-time positions as they become available based on seniority.”  The plant will also be on shutdown for the weeks of April 8 and 15.  Although Premier Ford is quoted as saying that the government will “fight tooth and nail” for the workers, there is no mention of restoring the electric vehicle purchase incentives which the Ford government discontinued in Summer 2018.

In further critiques of the electric vehicle incentive package:  Almost immediately, critics pointed out  that there were no sales mandates for auto manufacturers, despite previous findings that car dealers were failing to meet a high consumer  demand- for example, in Batteries Not Included (2018).

Stalled: why North American lags as China and Europe lead the way on electric vehiclesis an Opinion piece by Will Dubitsky in the National Observer (March 20), which calls the EV purchase incentives “a halfway measure offering less than the consumer rebate programs elsewhere,” and judging the $130 million over five years  for charging and refuelling stations “mediocre” compared to equivalent commitments in California and the EU.

Hadrian Mertins-Kirkwood calls the incentives “modest” in his overall analysis of Budget 2019, “Budget fiddles while climate crisis burns” (March 20).