The Auto Sector Remains Crucial to the Oshawa Area Economy

OSHAWA, ON - An economic analysis of the Oshawa area economy 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 auto industry has suffered job losses of nearly 3,000 local jobs over the last five years. These lost jobs represent a lost payroll of $182 million of payroll in the community last year.

"The auto industry is vital to the local economy," said CAW Local 222 President Chris Buckley. "But the high Canadian dollar, unfair trade and lack of federal government action to deal with these problems is creating a growing crisis."

The industry produced vehicles and parts worth $10 billion in Oshawa in 2007 or the equivalent of $29 million each day and the paycheques of auto workers pumped $702 million into the Oshawa economy last year. Auto workers built 2,154 vehicles every day in Oshawa.

In 2007, Oshawa auto workers paid $183 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, Oshawa auto workers supported $31 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 the 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 Oshawa area, go to

http://www.caw.ca/whatwedo/bargaining/big3automakers/auto08/index.asp