CAW president calls for end to MDA sale talks, demands national space strategy to protect jobs

TORONTO, April 15 CAW national president Buzz Hargrove is calling on the federal government to formally end talks between MacDonald Dettwiler and Associates (MDA) and U.S.-based weapons producer Alliant Techsystems (ATK) for the sale of MDA’s space and robotics division.

In a letter written to Prime Minister Stephen Harper, Hargrove congratulated the government for halting the sale of Canada’s important space technology and intellectual property to a foreign company. He urged the Prime Minister to formally end talks between ATK and MDA following reports that the company has been provided an opportunity to revise their proposal within a thirty day review period under the Investment Canada Act.

“Our union’s position has been, and continues to be, that the sale of MDA, regardless of its conditions, is simply unacceptable,” Hargrove stated.

Hargrove is calling on the federal government to begin consultations with key labour, business and government agency representatives in an effort to establish a comprehensive national space strategy for Canada, along with new investments for research and development, proper funding for Canada’s Space Agency and a commitment to protect jobs.

Full text of the letter is copied below.

April 14, 2008

Office of the Prime Minister
80 Wellington Street
Ottawa
K1A 0A2

Dear Prime Minister Harper,

On behalf of the Canadian Auto Workers union, I want to congratulate your government for the decision to halt the proposed sale of Macdonald Dettwiler and Associates’ space division to U.S.-based Alliant Techsystems.

As our union has been stating since the sale was announced, transferring ownership and control of this key space technology, equipment and intellectual property to a foreign company would threaten Canadian jobs and our national sovereignty while jeopardizing the future of Canada’s space industry – an industry that lacks direction and has been marred by years of insufficient funding and government neglect.

By blocking the sale of MDA, your government has taken a significant first step in defending the interests of our nation and protecting Canada’s important space sector. However, much still needs to be done.

We are particularly concerned to hear that your government has invited Alliant Techsystems to amend their proposed takeover bid of MDA’s space division over the course of a thirty day window, suggesting that there is a possibility this sale may still take place.

Our union’s position has been, and continues to be, that the sale of MDA, regardless of its conditions, is simply unacceptable. No net benefit for Canada can be realized should this important space technology and the potential for future research and development fall into the hands of a foreign country.

We are asking that your government formally end talks between MDA and Alliant and begin consultations with key labour, business, and government agency stakeholders in an effort to establish a comprehensive national space strategy – an initiative that has long been needed for Canada’s space industry.

Prime Minister, it is clear that now is the time to reverse years of government neglect towards Canada’s space sector and to lay the foundation for a vibrant space program for our country’s future. New investments must be made for space research and development along with a commitment to protect leading edge engineering and skilled manufacturing jobs as well as a vision and proper funding for Canada’s Space Agency, which is long overdue.

This is your government’s opportunity to show true leadership and make a lasting impact on the development of Canada’s space sector. We look forward to working with you and others in the development of a genuinely Canadian space strategy.

Sincerely,

Buzz Hargrove
President, CAW-Canada

cc: Stephane Dion, Leader of the Opposition
Jack Layton, Leader of the NDP
Gilles Duceppe, Leader of the Bloc Quebecois
Jim Prentice, Minister of Industry
Scott Brison, Liberal Party industry critic
Peggy Nash, NDP industry critic
Paule Brunelle, Bloc Quebecois industry critic

For further information: Angelo DiCaro, CAW Communications, (cell) (416) 606-6311