June 27th, 2014

Conservatives fail to protect Canadian jobs after Nexen takeover

In the wake of new layoffs at Nexen, NDP Industry critic Peggy Nash (Parkdale – High Park) is calling on the Conservatives to enforce the Investment Canada Act and ensure that Chinese state-owned CNOOC, Nexen’s parent company, honours its promise to maintain Canadian jobs.

“From the very beginning the NDP raised concerns about whether a company owned by a foreign state would make protecting Canadian jobs and resources a priority, but the Conservative government stubbornly refused to listen,” said Nash. “Conservatives have a woeful track record when it comes to ensuring that foreign companies respect the promises they make when they buy Canadian firms. This is more evidence that rubber-stamping foreign takeovers, especially in the resource sector, is a very short-sighted economic policy.”

In one of the Chinese state-owned company’s largest overseas takeovers, CNOOC promised to maintain Nexen’s Canadian workforce, keep Nexen’s entire management team; and increase investment in Canada. But just last week some Alberta staff were being laid off and in April Nexen fired its Canadian chief executive.

“Foreign direct investment from countries like China can bring significant benefit but we must ensure that these are done right. Not at the cost of quality Canadians jobs,” said Nash.