Canadian Labour Congress

Canadian Labour Congress

February 01, 2010 11:30 ET

Don't Cut Back on Stimulus Spending

CLC President contacts all MPs, premiers, finance ministers

OTTAWA, ONTARIO--(Marketwire - Feb. 1, 2010) - The president of the Canadian Labour Congress has written to elected leaders urging them not to abandon the economic stimulus measures that saved Canada from sinking into an even deeper recession than it has experienced.

Ken Georgetti says he is concerned to hear some government representatives calling for deep cuts to social programs, public services, and public sector jobs as a means of moving quickly back to balanced budgets. "A government driven recovery is working," Georgetti says in a letter sent to all MPs, provincial and territorial premiers and finance ministers. "I do not believe that now is the appropriate time to cease a policy that is working."

Georgetti says that the private sector has not yet recovered from the recession and cannot, at this point, create a sufficient number of good jobs and economic growth. "Now is time for investment in good public infrastructure and good public services as key drivers of private sector productivity in the future." Georgetti says that many economic forecasters and the Bank of Canada agree that continued government stimulus remains necessary to maintain growth and help Canada avoid recession. "Cutting spending would jeopardize the economic recovery," he adds.

Spending cuts by the federal government would also create hardship among provinces, Georgetti says. "It is clear that a pulling back on stimulus by the federal government will only increase the burden on provincial treasuries. Now is time for industrial development strategies and procurement policies that create jobs for Canadians."

Georgetti's letter is available at: The Canadian Labour Congress, the national voice of the labour movement, represents 3.2 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Contact Information

  • Canadian Labour Congress
    Dennis Gruending
    Cell: 613-878-6040