Vehicle Manufacturers Applaud Freeze of Employment Insurance Premiums
Today, the Canadian Vehicle Manufacturers’ Association (CVMA) applauded the federal government’s announcement of a three-year freeze on Employment Insurance (EI) premiums.
“Canada’s automotive manufacturers’ appreciate any measure that helps to make labour costs more predictable,” said CVMA president Mark Nantais. “Actions such as these help reduce future costs and improve manufacturing competitiveness, critical elements for maintaining jobs in Canada in the long-term.”
Under the plan announced by Finance Minister Jim Flaherty today, the EI premium rate for employers will stay at $1.88 per $100 of insurable for 2014, and be no more than that in 2015-16. The government estimates that this will save businesses $660 million in 2014 alone.
“Vehicle manufacturing is a globally competitive industry, with jurisdictions going to great lengths to attract and keep jobs,” concluded Nantais. “There’s good reason for this: for every one automotive manufacturing jobs, nine spinoff jobs are created. That’s a job multiplier that is unmatched by any other industry. We are glad to see that the government is taking action to help keep these jobs in Canada.”
About the Canadian Vehicle Manufacturers’ Association (CVMA)
The Canadian Vehicle Manufacturers’ Association is the industry association that has represented Canada’s leading manufacturers of light and heavy duty motor vehicles for more than 85 years. Its membership includes Chrysler Canada Inc.; Ford Motor Company of Canada, Limited; General Motors of Canada Limited; and Navistar Canada, Inc. Collectively its members account for 65% of vehicles produced in Canada, operate 5 vehicle assembly plants as well as engine and components plants, and have over 1,300 dealerships. 125,000 jobs are directly tied to vehicle assembly in Canada. Direct and indirect jobs associated with vehicle manufacturing are estimated at over 500,000 across Canada. Please visit www.cvma.ca.
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Canadian Vehicle Manufacturers’ Association