Saab Faces Scrutiny Over 10,000 Jobs Promise in Canada

UPDATE: Saab’s claim of creating 10,000 jobs in Canada is under intense scrutiny as critics question the validity of the Swedish defense company’s assertion. This comes amid ongoing discussions about the potential establishment of a production hub for Gripen fighter jets in Canada.

Industry experts are raising alarms about Saab’s lack of detailed evidence supporting its ambitious job estimate. Jenny Gerdes, Saab’s spokesperson, stated that the figure reflects the anticipated “scale of work” should their Gripen jets be selected by the Canadian government. However, she acknowledged that specifics on how the estimate was calculated are not currently available, citing ongoing negotiations with Ottawa.

Critics, like Richard Shimooka from the Macdonald-Laurier Institute, have dismissed Saab’s claims as “completely unrealistic,” arguing that the projection exceeds the entire workforce of Saab Aerospace in Sweden. Shimooka emphasized that such inflated figures create misconceptions among the Canadian public. “This is all make-believe,” he stated, urging for more transparency and realistic expectations.

As Ottawa reviews its plans to procure up to 88 F-35 stealth fighters from Lockheed Martin, Saab is positioning itself as a viable alternative. James Bezan, the Conservative defense critic, echoed skepticism over Saab’s job creation claims, referencing Brazil’s partnership with Saab, which resulted in only a few hundred jobs rather than the thousands promised.

Despite the criticisms, Saab’s CEO Micael Johansson maintains that a production facility in Canada could generate between 9,000 and 10,000 direct and indirect jobs over decades. However, he conceded that establishing a Canadian hub would take three to five years and would hinge on the government’s decision to purchase Gripen jets. “We’re not campaigning,” Johansson clarified, emphasizing that they are simply providing information as requested by the government.

The urgency surrounding the F-35 procurement process has intensified since Prime Minister Mark Carney initiated a review in March 2023, largely influenced by trade tensions with the U.S. and calls for more robust industrial benefits from defense contracts. Melanie Joly, the Industry Minister, has conveyed that the government believes the F-35 deal lacks adequate job creation, stating, “There needs to be more jobs created out of the F-35 contract.”

The Department of Innovation, Science and Economic Development has noted that it cannot provide details about Saab’s job estimate methodology, as this information remains proprietary to the company.

Academics are also weighing in on the debate, with experts like Philippe Lagassé and Ugurhan Berkok expressing skepticism about the feasibility of Saab’s projections. Berkok noted the Canadian defense sector employs around 60,000 individuals, with many directly involved in defense, and questioned the viability of Saab’s ambitious figures.

Meanwhile, David McGuinty, Canada’s Defense Minister, confirmed that the government’s review of the fighter jet procurement is ongoing and critical to ensuring Canadian companies remain competitive in future contracts. He reiterated Canada’s foundational role in the F-35 program, asserting, “If Canada isn’t part of that family, it will be very difficult for Canadian companies to participate.”

As the situation develops, all eyes will be on Saab and the Canadian government’s forthcoming decisions regarding the Gripen fighter jets and the implications for the Canadian workforce. The conversation surrounding this critical defense procurement will undoubtedly continue to evolve, prompting further scrutiny and debate in the coming weeks.