Manufacturing Matters: Canadians Are Responding to Frank Stronach’s Economic Vision
A recent column by Conrad Black has helped spark further discussion about Frank Stronach’s ideas for building a stronger, more prosperous Canadian economy.
Canada is facing an important question: How do we create an economy that rewards work, encourages entrepreneurship, strengthens Canadian businesses and gives employees a greater stake in the success they help create?
In his recent column, “How to Fix Our Broken Tax System,” Conrad Black reflected on a discussion with Frank Stronach and highlighted some of the principles that helped shape the extraordinary growth of Magna International.
Read Conrad Black’s National Post column
Black specifically discusses Stronach’s long-standing belief that the traditional conflict between shareholders, management and employees should be replaced by cooperation, with each group participating in the success of the company. He points to Magna’s model, which included employee stock grants and profit participation alongside investment in research and technology. Black argues that this type of corporate structure should be encouraged through Canada’s tax system.
But perhaps more important than the column itself is the conversation these ideas continue to generate among Canadians.
“Frank is my hero.”
Following the discussion of Frank’s economic ideas, Canadians have been sharing their own experiences and perspectives with the Canadian Economic Charter.
One response came from David Smith, a former tool and die maker, who spoke about something that is sometimes overlooked in conversations about Canada's economy: the importance of the people who actually make things.
“Frank is my hero. As a former tool and die maker, I fully understand the trade and the skill that these toolmakers bring to the table.
Sadly most people have no idea of the work that needs to be done to achieve success in any manufacturing environment of products. Most people assume blue collar is a dirty word.
If we lose Ontario's manufacturing, we will not survive as a country.
— David Smith
David’s comments get to the heart of a much larger issue.
Canada Needs to Value the People Who Build Things
A prosperous country needs more than financial markets and government programs.
It needs entrepreneurs.
It needs small businesses.
It needs manufacturers.
It needs tool and die makers, machinists, technicians, builders and skilled tradespeople.
And it needs an economic system that gives people the opportunity to participate in the prosperity they help create.
Frank has long argued that Magna's success was not simply the result of building automotive parts. It was also about developing a corporate culture in which employees had a tangible stake in the success of the enterprise.
Black’s column highlights that philosophy and describes how Magna allocated a portion of profits toward employee participation, management participation, research and technology, dividends and other priorities.
A Broader Economic Conversation
These ideas now form part of the larger vision behind the Canadian Economic Charter of Rights and Responsibilities.
The goal is to encourage a national conversation about the economic principles that can help Canada become more productive, competitive and prosperous.
That means asking fundamental questions about how we treat small businesses, how complicated our tax system has become, how much bureaucracy businesses must navigate, how we encourage investment and innovation, and how Canadian workers can participate more directly in the wealth they help create.
We welcome the discussion.
Because Canada's economic future shouldn't be a conversation reserved for politicians, economists or corporate boardrooms.
It should include the people who build this country.
Manufacturing Matters. Skilled Trades Matter. Small Business Matters.
David Smith’s response is one Canadian’s perspective, but it speaks to a much broader concern.
Canada cannot take its productive economy for granted.
We need to celebrate entrepreneurship again. We need to respect skilled trades. We need to make it easier to build and grow businesses. And we need to create an economy where Canadian workers have the opportunity to prosper alongside the companies they help make successful.
That is the conversation the Canadian Economic Charter wants Canadians to have.
What do you think?
Share your story with us at info@economiccharter.ca.
