1. Windsor-Essex Policy and Solutions Forum Bill Murnighan Research Director Unifor Windsor, May 15, 2014 Business and Labour Perceptions and Reality

2. Windsor-Essex Policy and Solutions Forum Bill Murnighan Research Director Unifor Windsor, May 15, 2014 Business and Labour Perceptions and Reality (..and some bold insights!)

3. Myth # 1: Unions Are Bad for the Business Environment unifor.org 3

4. Reality: Best Global Business Environments = Highly Unionized unifor.org 4 RankForbesWorld Eco. ForumEconomist/Grant 1Ireland44%Switzerland48%Australia40% 2New Zealand17%Singapore15%Chile24% 3Hong Kongn.a.Finland90%Chinan.a. 4Denmark80%Germany62%New Zealand17% 5Sweden91%US13%Canada32% 6Finland90%Sweden91%Finland90% 7Singapore15%Hong Kongn.a.Singapore15% 8Canada32%Netherlands82%Israel56% 9Norway74%Japan16%Sweden91% 10Netherlands82%UK33%Norway74%

5. Reality: Best Global Business Environments = Highly Unionized unifor.org 5 RankForbesWorld Eco. ForumEconomist/Grant 1Ireland44%Switzerland48%Australia40% 2New Zealand17%Singapore15%Chile24% 3Hong Kongn.a.Finland90%Chinan.a. 4Denmark80%Germany62%New Zealand17% 5Sweden91%US13%Canada32% 6Finland90%Sweden91%Finland90% 7Singapore15%Hong Kongn.a.Singapore15% 8Canada32%Netherlands82%Israel56% 9Norway74%Japan16%Sweden91% 10Netherlands82%UK33%Norway74%

6. Myth #2: Unions Get in the Way of a Productive Workplace unifor.org 6

7. Higher value of labour means more investment in skills, better tenure, move firm up the value chain. Unions provide a “voice” in workplace. Research shows that a credible system and process for dialogue and problem solving yields best outcomes. A clear, consistent, mechanism for dealing with upswings and downturns means flexibility, skills retention and fairness in workplace. Increasingly for “millennial” generation, workplace culture and fairness at work are central. Reality: Unions Improve the Workforce and the Business unifor.org 7

8. Myth #3: Unions are Killing off Manufacturing Jobs. unifor.org 8

9. All manufacturing hit hard, but unions certainly not behind the job losses (dollar, trade, lack of policy). In Ontario, since recession in 2009: – Unionized manufacturing up: + 19,000 jobs 2009: 152,000 vs. Now: 171,000 – Non-union manufacturing down: - 40,000 jobs 2009: 598,000 vs. Now: 558,000 Never applaud any job loss. Other factors at work, maybe union is actually a stabilizing force. Reality: Unionized Manufacturing Recovered Better Since Recession unifor.org 9

10. Myth #4: Unions Make Canada a High Cost Location for the Auto Industry. unifor.org 10

11. “Some perspective please.” Detroit 3 automakers pay for an average 29 hours of production labour per vehicle (others the same). “All-in” costs, even exaggerated levels, amount to $1,700 per vehicle, or 4% of final price of a $41,000 vehicle. 96% of cost structure is elsewhere. Despite this, we ensured that our costs fully comparable to U.S. costs in 2012 bargaining. Dollar now 10¢ lower. Non-union: Toyota very similar compensation package. Makes good political sport: but not realistic appraisal. Reality: Labour Costs in Auto Production Only 4% of Total. unifor.org 11

12. Myth #5: Unionized Workers Mean Low Quality and Poor Productivity. unifor.org 12

13. Year-in, year-out, Canadian unionized plants score top quality awards and hit peak productivity. J.D. Power 2013: Chevrolet Camaro and Impala; Chrysler Town & Country; are the top quality vehicles in their segments. Chrysler 300, Chevrolet Equinox and Buick Regal in top three. GM Oshawa: Silver Plant Assembly Line Quality Award for North and South America. Productivity advantage: Harbour Reports (mid-90s through 2008) always had Canadian plants on-top, international industry measures show 5%-10% productivity advantage. Windsor: Silver Designation World Class Manufacturing. Reality: Building to Highest Quality and Productivity Standards unifor.org 13

14. Myth #6: Unions in the Auto Industry are Rare and a Thing of the Past. unifor.org 14

15. All of E.U. (VW, Mercedes, BMW, Peugeot, Fiat, plus…) All of Japan (Toyota, Honda, plus) All of South Korea (Hyundai, Kia) All of Mexico. Almost all of South America, South Asia, Africa. Detailed look at industry-leading Toyota with 60 plants around the world: 90% unionized. ONLY U.S. and Canada among developed nations do we see non-union plants. Global growth: more unions, even in China! Reality: Whole Global Auto Industry is Unionized unifor.org 15

16. Myth #7: What Really Matters for Auto Investment are Low Taxes and Wages. unifor.org 16

17. Many variables. Each decision weights them differently. Research from: – Industry Canada – Public Policy Forum – Canadian Automotive Partnership Council Taxes and labour costs not often near the top. Reality: Dozens of Factors unifor.org 17

18. Myth #8: Canada Already Has An Auto Strategy unifor.org 18

19. Everyone wants what we already have, and governments very active in trying to get it. Why? Goose that lays the golden egg, 10:1 jobs, economic development. Every other jurisdiction has aggressive policies: investment, trade, infrastructure, technology, skills. Key is long-term, engaged, and significant policies. Union plays big role in this: recall our union’s 2012 auto policy recommendations, report and campaign. Building consensus, leading public debate, securing commitments from decision-makers facing competing priorities. Reality: A Few Bits and Pieces but Nothing Comprehensive unifor.org 19

20. Windsor-Essex Policy and Solutions Forum Bill Murnighan Research Director Unifor Windsor, May 15, 2014 Business and Labour Perceptions and Reality