The Auto Sector Remains Crucial to the St. Catharines-Niagara Economy

ST. CATHARINES - An economic analysis of the St. Catharines-Niagara area 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 more than 2,600 local jobs over the last five years. These lost jobs represent a loss of $165 million of payroll in the community last year.

"The auto industry is a mainstay of the local economy," said CAW Local 199 President Wayne Gates. "But the federal government continues to ignore so many of the key issues affecting our industry and other manufacturing industries - the high Canadian dollar, and unfair auto trade with Asian and European countries are creating a growing crisis," said Gates. "Local food banks are struggling to meet demand, local charities and other social service organizations are experiencing a dramatic drop in donations," he said.

The industry made $16 million worth of products each day in St. Catharines-Niagara and the paycheques of auto workers pumped $450 million into the local economy last year. Auto workers built 1,918 engines every day in the community.

In 2007, St. Catharines-Niagara auto workers paid $114 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 $21 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 St. Catharines-Niagara area, go to http://www.caw.ca/whatwedo/bargaining/big3automakers/auto08/index.asp