CAW encouraged by news that MDA sale halted

TORONTO - The Canadian Auto Workers union considers reports of Industry Minister Jim Prentice's decision to reject the sale of MacDonald Dettwiler and Associates' (MDA) space and information systems division to U.S.-based weapons manufacturer Alliant Techsystems (ATK) very good news.

Union officials say this deal would threaten Canadian jobs, national sovereignty, and intellectual property and jeopardize the future of Canada's space industry.

"Minister Prentice has taken important first steps toward blocking a foreign takeover that would have grave implications for our space industry in the long-term," said CAW national president Buzz Hargrove. "Canadians have too much invested in this industry to let it slip into another nation's hands."

In a move unprecedented since the Investment Canada Act was established in 1989, the federal industry minister declared the sale of MDA would provide no "net benefit" to Canada, effectively halting the sale. But, ATK can appeal the minister's decision within 30 days and can offer to restructure the deal.

"We must continue pressing the government to ensure this sale does not take place," said Dawn Cartwright, CAW director of Aerospace. "No concessions made by ATK can fix this inherently bad deal for Canadians."

MDA represents the heart of Canada's space sector and has been suffering as a result of years of government neglect toward space policy, said Roland Kiehne, President of CAW Local 112 representing MDA workers in Brampton, Ontario.

"The government's decision is encouraging, but this must now translate into more direct support for Canada's important space industry" Kiehne added. "Our continued fight is for a national space strategy, investment for new research and development and to secure a long-term commitment for jobs in this sector."

Under the proposed sale, the ownership of Canada's space industry jewels, including Canadarm2, Dextre and Radarsat-2, along with access to important technological know-how, security information and intellectual property would be transferred to a foreign company. Images generated by Radarsat-2, for instance, are the main source of surveillance Canada has over the Northwest Passage.