The Auto Sector Remains Crucial to the Waterloo Region Economy

KITCHENER, ON - An economic analysis of the Waterloo Region highlights the crucial contribution of the region's auto industry and its CAW membership to maintaining and building a strong local community.

But the analysis also shows that the local auto industry has suffered job losses of nearly 1,000 direct local jobs over the last five years. These lost jobs represent a lost payroll in the community of $61 million last year.

"The auto industry directly employs thousands of people in our local economy," said CAW Local 1451 President Mike Devine. "On top of that it also employs many thousands more in spin off industries. Why are the Harper Conservatives in Ottawa refusing to deal with job killing issues such as the high Canadian dollar and unfair trade with Asian and European auto makers?" Devine asked.

"The entire manufacturing sector in our region is facing tremendous uncertainty. Since 2002, the Waterloo Region has lost 7,800 manufacturing jobs," Devine said.

"We need action by all levels of government, the auto industry and other stakeholders just to stem the mounting job losses in the manufacturing sector," said CAW Local 1524 President Tim Mitchell. "Workers, their families and communities are suffering."

The industry produced automotive products worth an incredible $8 billion in the Waterloo Region in 2007. Auto workers' paycheques pumped $752 million into the Waterloo Region economy in 2007.

In 2007, Waterloo Region auto workers paid $188 million in income and sales tax, funds that are needed to support vital public services. The CAW study also indicates that based on average property tax rates, local auto workers supported $37 million in municipal taxes in 2007, helping to fund local services.

While still massive contributions to the local economy, these numbers are down significantly from previous years.

CAW President Buzz Hargrove said as the union heads into a new round of bargaining with the Big Three auto makers later this year, it's extremely important to remember the huge impact that auto manufacturing plays in communities across Ontario.

"Thousands of workers, their families and many, many communities depend on a healthy domestic auto industry," Hargrove said. "The paycheques of our members are spent in local communities and our members pay federal and provincial taxes that support critical public services such as hospitals, schools and social services."

To find an analysis by the CAW of the auto industry's impact on the Waterloo Region area, go to http://www.caw.ca/whatwedo/bargaining/big3automakers/auto08/index.asp