Toyota and Canada: A Great Combination

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Toyota is the 8th largest global corporation and largestvehicle maker measured by revenue ($265 billion

U.S. in 2013). And Canada has been critical to Toyota’scontinuing success. Canada accounts for close to 30percent of Toyota’s total North American assembly – andNorth America is now Toyota’s largest market.

Toyota arrived in Canada in the 1980s, helped byspecial trade policies and government subsidies. Oncethey got here, they liked what they found: A high quality,healthy, educated workforce. Good infrastructure. Agood supply chain. Very attractive costs. That’s whyToyota’s Canadian footprint expanded so steadily since.

Worldwide, Toyota’s financial results are gettingstronger every year, since the twin disasters of theworld economic crisis and the Japanese tsunami. Forfiscal 2012-13, revenues were up 19%, and profitsalmost tripled. This fiscal year (which ends March 31),things are going even better. Revenues are up another15%, and year-end profits will possibly double again.Toyota has increased its dividend, too: a sure sign theyare confident about future profits.

Some people worry that forming a union mightundermine Toyota’s economic success in Canada.Given Toyota’s successful history in Canada, and theflexibility and innovativeness Unifor (and before it, theCAW) showed during the auto industry’s recent

challenges, this is not convincing. Toyota’s operationsare not based on the lowest possible wages (if that wastheir strategy, they’d have moved all their plants toMexico, China, or the Philippines long ago). They are inCanada for deeper fundamental reasons; that won’tchange because team members form a union:

● A recognized high-quality, capable workforce.

● Superior productivity and quality (including moreJD Power gold plant awards than any other plants inNorth America).

● First-class infrastructure and supply chain.

● Proximity to final markets.

● Huge fixed investments in two productioncomplexes.

Canada has been very profitable for Toyota. Globalcompanies are not required to divulge their Canadian

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NEWS FOR TOYOTA WORKERS – ISSUE 4www.unifortoyota.ca | join@unifor.org | 226.791.3856

By Jim Stanford, Ph.D., Economist, Unifor

Canada has been very profitablefor Toyota . . .We think Toyotaearned well over $1 billion on itsCanadian business last year.

Toyota’s Canadian Production

continued on page 2...

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profits. But we can make an educated guess. We thinkToyota earned well over $1 billion on its Canadianbusiness last year.

And things are looking even better for Canada nowthat the overvalued loonie is finally coming back toearth. The fall in the dollar last year is alreadyequivalent to reducing Toyota’s labour costs atCanadian plants by over $5 per hour.

Even when the dollar was high, at par with the U.S.dollar, total “fully loaded” labour costs at ToyotaCanada were competitive. Now the dollar is comingback down, and labour costs here are once againcheaper than in the U.S. At 90 cents (U.S.), ToyotaCanada workers are about $3 per hour, or around 5%,cheaper than Toyota’s employees in the U.S. That’s asaving of $40 million per year across Toyota’s totalCanadian hourly workforce.

Toyota’s Canadian investments have been verysuccessful: with outstanding volume, quality, and profit.Those core advantages will not disappear when teammembers form a union. In fact, by requiring thecompany to deal with its workers on an equal footing,with respect and stability, forming a union will enhanceToyota’s long-term success in Canada.

This is a summary of a longer analysis by Unifor EconomistJim Stanford. The complete analysis will be posted on theweb at www.unifortoyota.ca

Toyota and Canada...continued from page 1

Full Year

Fiscal 2012-13 (to March 31, 2013)

First 6 Months Fiscal 2013-14

(to Sept. 30, 2013)

Revenues ( trillion yen) Year/year change (%)

22.064 +19%

12.537 +15%

Profit ( trillion yen) Year/year change (%)

1.083 +194%

1.065 +75%

Vehicles sales Year/year change (%)

8,698,454 +17%

4,455,509 +1%

Yen-$US exchange rate 83 79

Source: Unifor Research from Toyota financial reports.

Toyota Worldwide Financials

How does a union helpwomen in the workplace?

There are many issues that are important toworking women, such as access to child care,

reaching a work/life balance, facing harassmentor favoritism and building healthy workplaces.

Healthy Workplaces are an important issue forwomen working at Toyota. Unifor has manysolutions to some of the most common issuesthat create a barrier to a healthy workenvironment. We know that unionizedworkplaces are safer and healthier; we knowthat a collective agreement is the bestmechanism workers have to force theiremployer to uphold the Ontario Health andSafety Act; and we know that Unifor can make adifference for you.

Some common issues faced by women are:repetitive strain injury, mental and physicalstress or injury, accommodations in theworkplace, working while pregnant, and WSIB.On the campaign website, you can find moreinformation on these common issues and whatUnifor has suggested as solutions in otherunionized workplaces. Make sure to read up onthem at www.unifortoyota.ca

In the coming weeks, we will try to discuss withyou other issues that are important for you,including some issues that affect predominantlywomen at home and in the workplace.

Questions? Comments? Email us confidentiallyat toyotawomen@unifor.org or call the ToyotaUnifor Women hotline at 1-800-268-5763extension 8439 to start the conversation abouthow Unifor can help you as a woman at Toyota.To find out more about our campaigns, education

programs or issues Unifor women care about, join uson Facebook at www.facebook.com/uniforwomen.

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It was an energetic and solidarity-filled Family Dayweekend for many Toyota workers and supporters

who attended a rally organized by the Canadian Unionof Public Employees (CUPE). Canada’s largest unionhosted a rally in Kitchener to support the Toyotaworkers’ union organizing drive. The rally attracted over250 supporters from CUPE, Unifor and labour councilsfrom the region.

The rally started off with the welcoming remarks ofCUPE Ontario President Fred Hahn: “When workersorganize, it is better for everyone in the community andthe community can thrive,” Hahn said to an enthusiasticcrowd. The crowd welcomed the Toyota workers inattendance with a cheerful standing ovation.

Paul Moist, the national president of CUPE,addressed the crowd and said his union is doingwhatever it can to help the organizing at the Toyotaplants. “These workers are on a journey to bring dignityand fairness to their workplace, and I encourage themto keep up the hard work,” said Moist. “Toyota workerswill be well served by Unifor representing them in theworkplace,” he added.

The Toyota workers who were in attendance spokeand were given a warm welcome by the crowd. Theyspoke to the fact that while many of them like their jobs,they need union representation and a collectiveagreement. They added that this would allow them tohave a say in workplace issues, such as health andsafety, and to prevent unilateral changes bymanagement. One of them highlighted that the majorityof the issues brought forward by their campaign teamhad “nothing to do with money, and everything to dowith respect and treatment at work.”

Unifor President Jerry Dias spoke last and broughtstrong words of support and solidarity to the workers:“Eighty-nine per cent of Toyota plants around the worldare unionized,” he said. “If it is good enough for all theToyota workers around the world, it’s good enough forToyota workers in North America.” He also issued astrong statement of support for the workers and theirorganizing efforts: “We will do all that we can to bring aunion at Toyota and to bring fairness and justice forworking people.”

Dias closed his remarks by calling on everyone inthe community to support Toyota workers: “I encourage everyone to talk to the Toyota workersthey know and tell them to support the campaign. Call 1-877-495-6551 or email join@unifor.org to get intouch with campaign team!”

Rally Bolsters Toyota Organizing Campaign

“These workers are on a journey to bringdignity and fairness to their workplace...”

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Has worked at Toyota 17 years, and is an industrialelectrician.

Is a team leader in Cambridge south.

50 years old and lives in Cambridge.

● “Somehow TMMC has lost the Toyotaphilosophy. It was never perfect, but it was acompletely different place 17 years ago. Thingshave to change,” said Cleveland.

“I want to protect and hopefully improve ourcurrent package, which I know is competitive buthas been eroded by direct cuts and inflation.” 

● He sees support on the job as a key issue asworkers are often alone against management,and need to be heard.

He believes Unifor will help team members bystanding alongside them when they faceproblems and pressure from management. “ If Unifor did nothing else but prevent even oneteam member from having to go through thatalone then I would be happy to pay union dues.”

● He cites ongoing issues such as ergonomicsand safety standards, as well as the status ofcontract workers, as reasons to support Unifor.

● “I believe we can form a new reasonable,progressive, co-operative union that will setthe standard, just like we have done withquality and productivity.”

PROFILE

Ken Cleveland

WHY HE SUPPORTS UNIFOR

Can ContractEmployees Vote?Recently an industry observer commented in

the press that Toyota's contract employeeswill not be entitled to vote. He may know aboutcars but he obviously doesn't know much aboutOntario labour law.

Toyota’s contract workers are employees likeeveryone else and will be eligible to vote. Theonly difference is that they have less jobsecurity, and fewer benefits.

"Toyota contract workers are indisputablyregular employees," said Unifor Chief LegalCounsel Lewis Gottheil, "and are entitled tosign a card, vote and participate in the union."

Unifor President Jerry Dias said: "Unifor iscommitted to include and represent all Toyotateam members, including the contractemployees. They deserve a collectiveagreement that brings them into parity withother Toyota workers."

205 Placer Court, | Toronto, Ontario | M2H 3H9 Toll free: 1.877.495.6551 | Phone: 226.791.3856

You can email us at join@unifor.org

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