Mark Carney told the Canadian Auto Workers union Wednesday that exporters face more challenges than just the rising value of the Canadian dollar.
Carney became the first governor of the Bank of Canada to address the annual convention of the Canadian Auto Workers union in Toronto on Wednesday.
The CAW has criticized the central bank's monetary policy for the soaring value of the dollar.
In his comments, Carney acknowledged Canada's poor performance on exports such as automobiles in recent years. Canada ranks second-worst in the G20 over the last decade, with only nine per cent of exports going to fast-growing emerging markets such as China and India.
"Some blame this on the persistent strength of the Canadian dollar," Carney said. "While there is some truth to that, it is not the most important reason."
Lewenza blames higher loonie
"Over the past decade, our poor export performance has been explained two-thirds by market structure and one-third by competitiveness," Carney continued. "Of the latter about two-thirds is the currency while the rest is labour costs and productivity."
"So, net, our strong currency explains only about 20 per cent of our poor export performance."
Canada's over-reliance on the U.S. as a trading partner also shoulders some of the blame, Carney said.
"Our underperformance prior to the crisis was more a reflection of who we traded with than how effectively we did it," Carney said.
"We are overexposed to the United States and underexposed to faster-growing emerging markets."
CAW president Ken Lewenza said the high dollar means autoworkers earn a few dollars an hour more their U.S. counterparts, making Canadians less competitive.
"We think the Canadian dollar is 20 per cent above its value. Are we concerned about it? Of course we're concerned about it," said Lewenza.
Merger vote on agenda
Also at the convention, CAW delegates voted in favour of a proposal for the union to merge with the Communications, Energy and Paperworkers Union of Canada (CEP).
- CAW members vote to merge into super-union with CEP
The two unions say the merger comes in response to multiple attacks on the country's labour force, including several pieces of back-to-work legislation passed by the federal government.
Also on HuffPost:
Labour Day: A Canadian Invention
Few Canadians realize it, but Labour Day is as Canadian as maple bacon. It all began in 1872, when the Toronto Typographical Union went on strike to demand a nine-hour workday. When <i>Globe and Mail</i> chief George Brown had the protest organizers arrested, Prime Minister John A. Macdonald passed a law legalizing labour unions. Thus, a Conservative prime minister became a hero to the working class, and Canada became among the first countries to limit the workday, doing so decades before the U.S. The typographers' marches became an annual event, eventually being adopted by the U.S., becoming the modern day Labour Day.
The Winnipeg General Strike
The end of World War I brought social instability and economic volatility to Canada. On May 15, 1919, numerous umbrella union groups went out on strike in Winnipeg, grinding the city to a halt. Protesters were attacked in the media with epithets such as "Bolshevik" and "Bohunk," but resistance from the media and government only strengthened the movement. In June, the mayor ordered the Mounties to ride into the protest, prompting violent clashes and the death of two protesters. After protest leaders were arrested, organizers called off the strike. But the federal mediator ended up ruling in favour of the protesters, establishing the Winnipeg General Strike as the most important strike in Canadian history, and a precursor to the country's modern labour movement.
The Regina Riot
During the Great Depression, the only way for a single male Canadian to get government assistance was to join "relief camps" -- make-work projects set up by the federal government out of concern idle young men were a threat to the nation. The relief camps, with their poor work conditions, became breeding grounds for communists and other radicals. The "On-To-Ottawa Trek" was organized as a protest that would move from Vancouver across the country to Ottawa, to bring workers' grievances to the prime minister. The trek halted in Regina when Prime Minister R.B. Bennett promised to talk to protest organizers. When talks broke down, the RCMP refused to allow the protesters to leave Regina and head for Ottawa, and on June 26, 1935, RCMP riot officers attacked a crowd of protesters. More than 100 people were arrested and two killed -- one protester and one officer.
In May, 1938, unemployed men led by communist organizers occupied a post office and art gallery in downtown Vancouver, protesting over poor work conditions at government-run Depression-era "relief camps." In June, the RCMP moved in to clear out the occupiers, using tear gas inside the post office. The protesters inside smashed windows for air and armed themselves with whatever was available. Forty-two people, including five officers, were injured. When word spread of the evacuation, sympathizers marched through the city's East End, smashing store windows. Further protests against "police terror" would be held in the weeks to come.
Giant Mine Bombing
In 1992, workers at Royal Oak Mines' Giant Mine in the Northwest Territories went on strike. On September 18, a bomb exploded in a mineshaft deep underground, killing nine replacement workers. Mine worker Roger Warren was convicted of nine counts of second-degree murder. The Giant Mine closed in 2004.
The Toronto G20
The Canadian Labour Congress, representing numerous labour groups, participated in protests in Toronto during the G20 summit in June, 2010. When a handful of "Black Block" anarchists rioted through the city core, it brought an overwhelming police response that resulted in the largest mass arrests in Canadian history. More than 1,000 people were arrested, with most never charged with any crime. Numerous allegations of police brutality have been made, and the Toronto police are now the target of several multi-million dollar lawsuits. So far, two police officers have been charged with crimes relating to G20 policing, and charges against other police officers are also possible.
When Vancouver-based magazine Adbusters suggested the public "occupy Wall Street" to protest corporate malfeasance, New Yorkers took the suggestion seriously, and occupied Zuccotti Park in Manhattan. Canadians followed suit, sparking copycat occupations in all major Canadian cities in September, 2011. By December, most of the occupations had been cleared, all of them non-violently. Though the protests achieved no specific goals, they did change the political conversation in North America. What their long-term legacy will be remains to be seen.