The Auto Sector Remains Crucial to the Greater Toronto Area Economy

TORONTO - An economic analysis of the Greater Toronto 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 local auto industry has suffered job losses of nearly 15,000 direct local jobs over the last five years. These lost jobs represent a loss of $882 million of payroll in the community last year.

"The auto industry is critical to the health of the local economy," said CAW Local 707 President Gary Beck. "But many factors including the high Canadian dollar, unfair trade and lack of federal government action to deal with these problems is creating a growing crisis in one of the most vital industries in the region."

"The domestic auto industry creates highly skilled, high technology jobs for thousands of workers in our community," said Leon Rideout, president of CAW Local 1285. "It's critical that all levels of government and the industry work together to build this important industry."

The industry produced vehicles and parts worth $29 billion in the GTA in 2007 or the equivalent of $78 million each day and the paycheques of auto workers pumped $2.9 billion into the GTA economy last year. Auto workers built 2,436 vehicles every day in Greater Toronto including assembly plants in Oakville, Brampton and Alliston.

In 2007, GTA auto workers paid $711 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, GTA auto workers supported $145 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 greater Toronto area, go to http://www.caw.ca/whatwedo/bargaining/big3automakers/auto08/index.asp