Caterpillar is probably going to leave Ontario as labour costs and electrical costs are too high.
In North America, electricity rates are among the highest in Ontario and among the lowest in Indiana – 15th lowest in the USA – where, according to the Institute for Energy Research, more than 90% of electricity generation is from coal.
Basic labour rates at Caterpillar’s Muncie, Ind., plant are about half that of the Ontario operation.
Ironically, the CAW national executive is spending $2 million putting up a wind turbine at its Family Education Centre to teach the world of the wonders of wind energy. Wind has been exposed as a colossal economic failure by Ontario’s auditor general, resulting in electrical-rate increases of 40% over the next two years. Major CAW sector employers will be looking to relocate using power and labour costs as the wedge.
Every CAW member should be enraged that their leadership is spending $2 million of their money advocating for wind policies that will drive up the price of electricity, providing ammunition to manufacturers to effectively end members’ jobs.