Introduction

The Ontario Federation of Labour (OFL) is pleased to present its Pre-Budget Submission to the Standing Committee on Finance and Economic Affairs on behalf of our 700,000 affiliated members in unions all across Ontario.  Our members include public sector employees, construction workers, teachers and manufacturing workers plus a growing number of private service sector employees.  With such a multi-sector workforce it is hardly surprising that the OFL soon becomes aware of the human element of employment changes – such as job growth and job loss – in the economy.

Given such a membership we would like to discuss the following issues.

First, some of the changes in the economy that demonstrate a gap between the high job creation numbers and consequent low unemployment rate versus the reality experienced by many workers terminated and laid off in the manufacturing sector.

Second, we will note that there are other gaps confronting our society and workforce such as the widening gap between rich and poor, the income gap faced by the poor, gaps in terms of affordable housing, the environment and more.

Third, we want to engage in a discussion about policies and initiatives that the government could undertake – such as a jobs strategy – that could make a difference for millions of Ontarians who want and need to work and could do so with improved income levels, benefits and job security.

1. The Economy and Jobs

The Toronto Star, Saturday, January 6, 2007, notes that the “labour market sizzles” with 345,000 new positions created in Canada and Ontario, gaining 42,000 jobs over 2006.  Surprisingly the Province of Ontario, rather than Alberta, was responsible for most of the job gains in the country.  It further reports that the “national unemployment rate drops to lowest level in 30 years.” This news was much better than what most economists expected.  The economy seems to be firing on all cylinders.  Yet beneath the “big picture” figures, the reality isn’t so optimistic. The rising economic tide is not raising all boats.