HomeMy WebLinkAboutThe Wingham Advance-Times, 1984-04-18, Page 17R 4--Crossroads:—April 1V, 1984
wins a '
Canada
lobs on line
as firms
look south
13y W. Roger Werth
Canadians may be pricing
themselves out of the North
American job market.
Indeed, a'recent study of
300 smaller Ontario manu-
facturing firms suggest high
labor costs, as well as oner-
ous municipal taxes and
payroll taxes, have already
convinced many companies
to set up shop in the United
States, and that a lot more
manufacturers are consider-
ing the move.
"More than 75,000 manu-
facturing jobs are at risk in
Ontario alone, and the trend
has serious implications for
the rest of the country," says
John Bulloch, president of
the Canadian Federation off
Independent Business, the
organization that did the re-
search. "Our medium-sized
manufacturers clearly be-
lieve the business climate is
better in the U.S., and it's
tough to dispel that atti-
tude."
What amazed Federation
researchers was the pheno-
menal response to its ques-
tionnaire, and the in-depth
information supplied by the
medium-sized companies
with more than 20 em-
ployees.
In fact, a full 48 per cent of
the firms contacted respond-
ed. Of those, 16 per cent al-
ready have a plant or branch
in the U.S., and another 25
per cent have investigated
such a move.
"This is ominous news for
Canadians, not only in On-
tario but across the coun-
try," says Bulloch.
The reasons the 41 per cent
gave for relocating or con-
sideringa move? The survey
indicated manufacturers be-
lieve Canadian labor costs
are More than 10 per cent
higher than those in the U.S.;
that the cost of meeting labor
standards is higher here;
and .that municipal, business
and 'payroll taxes far out-
pace those -in the U.S.
• Just as important,. per-
haps, a high percentage of
the manufacturers feel em-
ployee attitudes are better
south of the border:
As Bulloch points out, the
nation's smaller firms are
already supplying the vast
majority of Canada's new
jobs. Any reluctance by
manufacturers to invest
here, rather than the U.S.,
will cost us dearly, either in
jobs that aren't created or
actual employment losses as
companies move south.
So what can be done about
theproblem?
"Municipal property and
business taxes have risen
dramatically in Canada,
placing a great deal of pres-
sure on our smaller firms,"
says Bulloch. "The politi-
cians running our municipal-
ities simply must become
me
more responsible, at least
attemp ' to slow the in-
crease n to es on business'."
Hea payroll taxes such
as Unemployment Insur-
ance, Workers' Compensa-
tion and pension plan contri-
butions also take their toll,
particularly L 'r smaller
compani_es_._:that_ rna-y be
breaking even or losing
money.
In addition, the Federation
is concerned that the odge-
podge of government r ula-
tions at all levels h produc
ed a jungle of red tape, put-
ting a damper on business
expansion.
,"We knew some manufac-
turers were moving to the
U.S., but we were astounded
by the depth of the small
business feeling that turned
up in our survey," says Bul-
loch. "Our competitive
American neighbors have
put out the welcome mat for
Canadian manufacturers
and, unless our governments
changthirways, e• e'
we're go-
ing
Y
ing to lose a lot of jobs."
i,
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