Opposition Parties Demand Assurances Local Jobs Will Be Protected at New Ontario EV Plants

Cables and lithium-ion battery components sit on the production line at a manufacturing plant in Dingolfing, Germany, on Aug. 21, 2014. Krisztian Bocsi/Bloomberg via Getty Images

The federal Conservatives and New Democrats have both called on the Liberal government to assure Ontario workers that their jobs will be protected at four new electric vehicle plants.

Prime Minister Justin Trudeau announced the four-plant $15 billion deal with Honda on April 25.

Tory MP and industry critic Rick Perkins said earlier this week foreign workers being employed in EV plants have been heavily subsidized by Canadian taxpayers, citing a report from Canada’s Building Trades Union (CBTU) that claimed foreign replacement workers were being employed at electric battery plants in southern Ontario.

“Justin Trudeau’s offer of $44 billion in taxpayer money to massively profitable corporations did not even come with a promise that the jobs created would go to Canadian union workers,”  he said. “Instead, he has allowed foreign replacement workers to fill these roles.”

The CBTU has previously criticized the development of the NextStar Energy electric vehicle battery plant in Windsor, Ontario, after it was revealed that hundreds of workers building the plant would be South Korean nationals, rather than Canadians.

“Bringing approximately 900 South Korean workers to handle the installation of this equipment is not only an insult to Canadian taxpayers who funded this project with the understanding that jobs were going to Canadians, but it is a slap in the face to our workers and contractors, including those in Windsor, who are the most highly-skilled tradespeople in the world,” the CBTU said.

In a statement on April 25, following the announcement of the $15 billion Honda deal, the CBTU said it would work with Honda to secure a memorandum of understanding to maximize the number of Canadian unionized workers who would construct the plants.

“We’re also gratified that preliminary discussions with Honda are taking place to ensure Canadian unionized skilled trades workers will help build that future,” said Sean Strickland, executive director of the CBTU.

Mr. Perkins has previously criticized another EV project involving German auto giant Volkswagen, telling the Standing Committee on Government Operations and Estimates on Dec. 14 that a confidential contract with the German company had no clause to protect Canadian jobs.

Liberal MPs have been previously reticent to disclose the details of contracts with electric vehicle battery manufacturers, with Liberal MP Charles Sousa arguing that breaking confidentiality could affect foreign investment.

The federal government promised Volkswagen $13.2 billion in federal subsidies for a plant in St. Thomas, Ontario, while the Windsor plant criticized by the CBTU received $15 billion in subsidies.

The Honda plant announced by Mr. Trudeau, Ontario Premier Doug Ford, and several Honda executives on April 25 is expected to receive $2.5 billion in subsidies from the federal government and about $2.5 billion from the government of Ontario.

When asked about whether Canadian workers would be protected under the new deal, Mr. Trudeau declined to answer.

The Canadian Press contributed to this report.