CAW Urges Canada to Adopt National Auto Policy

The Canadian Auto Workers union says Canada should create a national automotive policy to avoid a "precarious" situation in five to 10 years that could threaten domestic jobs.

The CAW wants Canada to reduce the value of its currency, which has appreciated 59% against the U.S. dollar in the past 10 years. The union estimates the overvalued Canadian dollar imposes a $3.7 billion annual cost penalty on carmakers that build vehicles in Canada. A weaker currency also would reduce the CAW's labor cost disadvantage to America.

A CAW white paper also urges the Canadian and Ontario provincial governments to:

Negotiate to obtain manufacturing commitments from carmakers.

Keep its remaining equity stake in General Motors Co. a result of its participation in the company's 2009 bailout to ensure Canadian interests are part of the company's decisions.

Gradually acquire equity stakes in other carmakers with factories in the country for the same reason.

* Investigate the possibility of creating a domestic automaker an idea analysts say is far-fetched.

End free-trade talks with the European Union, Japan, South Korea and Thailand.

The CAW says that since 2000 its membership has shrunk by 50,000, or one-third. The union will negotiate a new national contract this year with Chrysler, Ford and General Motors.