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Officials approve auto aid package worth about $3.3B
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CTV.ca News Staff
Date: Fri. Dec. 12 2008 8:35 PM ET
The federal and Ontario governments will provide a lifeline worth about $3.3 billion for the struggling Canadian auto sector, but the money won't flow until the U.S. approves its own bailout package, Industry Minister Tony Clement announced Friday.
Clement added that the funds are "contingent" upon the auto industry creating a plan for long-term viability, and he noted that the announcement is intended to send Washington a message that urgent action is necessary.
"What we're signaling here tonight ... is that we want to be part of the solution as well," Clement said in Toronto.
The fund falls short of the nearly $7-billion package which Ford, GM and Chrysler requested from Canadian leaders earlier this month.
"It is up to the automakers, with their parts suppliers and the unions, to work together on a long-term solution for their industry," said Clement.
"Governments can decide to help, but these decisions will only be made in the best interest of the tax payers."
The announcement follows a meeting Friday between Prime Minister Stephen Harper and Ontario Premier Dalton McGuinty in Ottawa where the two leaders hashed out a plan.
Clement said that he expected the "the American administration to come forward very soon" with an aid plan, and added the fund represents 20 per cent of the proposed US$14 billion dollar package in the U.S.
That plan was shot down by the U.S. Senate on Thursday, but there was still hope Washington could deliver some aid.
On Friday, the White House said it may tap into the US$700 billion banking fund to stop the "precipitous collapse" of the auto industry.
With General Motors and Chrysler on the brink of bankruptcy, the announcement marks a sharp policy reversal for the White House, which has previously said that the bank bailout money was off limits.
"A precipitous collapse of this industry would have a severe impact on our economy, and it would be irresponsible to further weaken and destabilize our economy at this time," said White House press secretary Dana Perino on Friday.
The U.S. Senate voted down a $14 billion proposal - which had bi-partisan support from President George Bush and congressional Democrats - after the United Auto Workers refused wage cuts.
But there seemed to be some confusion about which automotive sectors in Canada would in fact get government help.
Earlier in the day, Finance Minister Jim Flaherty said Ottawa is still working with the domestic industry, and he added that the defeat of the bailout in the U.S. would not hold up talks in Canada.
The announcement comes as the once-mighty Detroit automakers drift into increasingly perilous financial waters.
GM puts factories on hold
On Friday morning, General Motors confirmed that it will stop virtually all North American production in January. That would cut 250,000 vehicles from its first-quarter production schedule. In all, 21 factories across North America will be affected.
Chris Buckley, the president of the Canadian Auto Workers local 222, told CTV Newsnet that GM says the Oshawa, Ont., plant will shut down for about six weeks beginning in January. The shutdown would end in the middle of February.
But there will be some production at GM's plants in Ontario, GM spokesperson Stew Low told The Canadian Press.
"There's a lot of plants that are running at that time," Low said. "There's plants that have only part of January out of their schedule and some weeks in February and March. It's very dependant on customer demand."
At a press conference in Toronto Friday, CAW President Ken Lewenza said not all of Canada's car manufacturing plants will shut down at the same time or for a full month.
But Lewenza noted: "All of our plants -- as a result of the declining sales in the U.S. -- are facing unprecedented shutdowns."
He said all workers are facing "temporary layoffs," noting that Ottawa needs to step up and help car manufacturers.
Otherwise, he said, 300,000 or 400,000 Canadians dependent on the industry will lose their jobs.
"I believe if the Canadian government intervenes ... we can avoid this economic crisis in the auto industry," Lewenza said.
He said governments around the world are offering stimulus packages to help their economies and Canada needs to follow suit.
Meanwhile, Honda also announced on Friday that it's cutting more of its North American production due to lower demand. But the Japanese carmaker doesn't plan to layoff any of its 4,600 workers here in Canada. Honda says its plants in Alliston, Ont., will be reduced by 37,000 units by the end of March 31.
With files from The Canadian Press
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Scott
said
Hopefully they can get rid of the arrogant I'm-entitled-to-everything-forever-because-nobody-can-turn-this-bolt-like-I-do types.
So what if we give $3.5B to this charity? Are people going to start ordering Impala's so we can keep Oshawa running in Jan/Feb?
Barry Letang
said
A genuine fiscal conservative would acknowledge that the government must not reward bad decisions, made by incompetent executives who require a change in mentality, by providing auto companies with a bridge loan to nowhere. These same uncompetitive companies would be back with their hands out in six months for even higher subsidies, and will be forced into bankruptcy within a year anyway; thus the government would only be subsidizing failure.
An authentic fiscal conservative would apprehend that a change in the mentality of the executives in the union suites is mandatory if these companies ever expect to become competitive. Tough love is essential to make the union executives appreciate that auto workers’ wages, benefits and legacy costs must be restructured to make them comparative to non-union auto workers. These union executives must recognize that these companies must be in a position where they can compete with non-union auto producers, and that the most appropriate formula to achieve this is through bankruptcy.
If our Prime Minister was a indisputable small-c fiscal conservative he would, under no circumstance, tolerate the country to return to a deficit position. A small-c conservative would cut the $230 billion budget by eradicating ineffectual programs, government assets and worthless crown corporations. He would then use the funds gained to lower the payroll tax which would put dollars into the hands of people who would immediately spend it.
Harper’s plunge to the extreme left by bailing out the auto unions, and creating a deficit are illustrations that legitimate small-c fiscal, social and judicial conservatives are not represented in his Conservative Party. Mass numbers of us will, therefore, remain in our homes next election day.
AZ
said
So you're blaming everyone who bought a honda or toyota vehicle rather then a NA made vehicle????
If they built a good product, for a good price, then they would have done better in the market.
2 groups to blame,
first and foremost, the CAW/UAW. Secondly the corporations for having poor business models.
John Brauweiler
said
WHO
said
$3.5 billion is all the tax dollars of 89,000 Canadians
WOW, that's big
Grant
said
Bob, from N.W. Ontario
said
This will effect every Small Town across Canada by dealer base alone.
I do agree that without the USA's help throwing money at the Big 3, is useless. I do agree that both the UAW and CAW must make concessions, as well as white collar workers.
But the Auto makers did not cause the Credit Crisis, banks and investment firms did. Without companies building things that consumers want to purchase with credit, will the banks survive? No Banks would become little more than fancy Bus Depot Lockers, storing your cash. Banks need to offer credit to be viable, Consumers have to want something to purchase something on credit, Manufactures have to build something that the consumers wish to purchase.
Let follow USA's mistake of bailing out the Banks first, instead of the Manufactures first.
Greg - Oshawa
said
Fair trade is a union red herring to direct attention else where.
Joel Hamilton
said
Ford, Gm and Chrysler in Canada are American owned companies. Let the American government and American taxpayers save them. If we bail them out they will only fail in the near future. The best thing North America could do is let them go bankrupt.
We have been hearing about a recesion for far too long! If we (North America) wants to get back on our feet then bankrupt the auto industry and send North America into a DEPRESSION.
At least when ya call it by its real name there is nowhere to go but up!!!
Neil C.
said
Ken Ottawa
said
Tim Guy
said
Belle
said
3.5 billion dollars GONE. Nobody wants a crappy product and 3.5 billion dollars is not going to change that.
Shawn From Ontario
said
When the same big 3 were posting record profits did the taxpayer receive a dividend cheque?
Why are corporate profits privatized yet their losses are socialized?
Joe
said
John Bruckman
said
Diane W. Oakville
said
salaries and secure benefits. Instead of moaning about losing jobs, why don't they go out and create a job for themselves and make jobs for others like many small businesses do - the ones that are the backbone of Canada not the fat cats with their hands out for Canadians tax dollars. The world is changing - we don't want the cars you are making any more so why should we help you make more of them.
Dan
said
You can buy Hondas, Toyotas and Chryslers in the US far cheaper that here in Canada.
They need to be told the pricing should no longer be held higher by the bull "market size" statement. Thats simply an excuse to take advantage.
joel in alberta
said
Sue
said
RT
said
Ken
said
Mark
said
Fortunate
said
As you well know and as many of the readers on here have pointed out, CAW/UAW are over paid for what they do. In order to pay $30,000 in income tax per you that you claim you add to the government it means your making very close if not slightly above $100,000 a year. How do I know this? Because I am a very very very fortunate person who makes close to $100,000/year and I still haven't paid $30,000 to the government.
All you've done is prove that you are way over paid, and alienated all those hard working Canadians who have to bust their hump everyday to bring home a yearly paycheck that is equal to what you pay in tax per year, who happen to be as educated or more educated than you.
Rod in Kenora
said
Craig - London
said
kjo
said
No one is arguing with you about the costs of retiree packages. That is one of the big costs.
What people are angry about is the fact that your union leadership has stated that there is no way you will take a wage cut. I remember back in 81 / 82. At my company we all took at 20% wage cut to save jobs. No one got laid off.
Maybe people would be more sympathetic to your cause if you folks agreed to some kind of cutback - sort of your contribution to the solution.
In addition, the GM workers seem to pissed that they are going to be out work for 5 - 6 weeks in January and the company is only going to pay them 65% of their wages.
How many people out there would like to keep their jobs and get 65% of something instead of 100% of nothing.
No, the auto workers along with the auto execs are only thinking of themselves. Just like the banks kept the extra quarter point reduction in the prime rate - for themselves.
Maybe it is time for you to become part of the solution, not part of the problem.
john mac intyre
said
Arlo Guthrie, Once Wrote A Song "I'm Changing My Name To Chrysler"...It Was So He Could Go To Washington & Get Some Free Money...That Was In The '70's.
It's Not Surprising The Unions Won't Take A Wage Drop...They Will When There On Pogie.
tom
said
Tony B
said
I make about $10 an hour and now I wil have to help a guy/gal making $30 plus maintain his/her standard of living. I wish someone in governement would be concerned about my standard of living.
Somrthing is really, really wrong in this country.
Gavin
said
hohoho
said
Gurdeep Wakaluk Ajax ON
said
Canada Goose Whistler
said
First you tell canadians to gambling.
Then you tell us our economy is fine and close parliament.
Then you give 2.4 million in christmas presents to your 18 friends.
Now you want to throw away 3.5 billion into mismanaged business.
If were to read these articles the only ones that what this bailout are a handful of people building cars that no one wants to buy. I will never buy any of this junk. Please step down as PM you really suck!
RCR
said
Robert Edmonton
said
Ron
said
Why should we pay for the big 3.We might aswell write a blank cheque to other industries aswell.If the big 3 start with the unions to get them out who needs unions they driven by GREED what I call the money power greed syndrome this is worse then a diseas.Unions where in 1930 to bring progress in the work force Now we don"t need them they overstepped there boundries.let them start with a normal wage like everybody else in the real world you don't need 50 to 100 to put a door on a car Why not give all car companies money Why should Canada bail them out I should ask for money I'm in trouble to what is the difference.
Mr. B.
said
The auto industry is paying the price for years of mismanagement, poor products & extravagant employee wage & benefit packages.
I hope the government really keeps close tabs on where, how & when this bailout money is being spent.
Don't like it.
James T.
said
If the government is going to squander three-thousand, five hundred million dollars of OUR money to wipe the union's bums with, they neither need nor deserve out business.
Carl
said
My own financial planning for my retirement has taken its toll with the economy. I am starting to see myself working into my 70s. Can I get a personal bail out for my losses in retirement investments.
David
said
Christopher Linstead
said
However, in defense of the Conservatives, they have been pinned by an opportunistic opposition into taking this $3.5 billion public relations exercise. Thank you Liberal Party of Canada, NDP and Bloc for continuing the tradition of tarnishing the reputation of the political profession.
Bruce Nicholson
said
Canadians should know that without a U.S. bailout Canadians would be throwing money to the wind.Bad business close and new ones open everyday- sometimes its better to start over than to throw a temporary bandage on a failing business .If the U.S. does not get their bailout their parts plants will close -- these are the same plants that supply the Canadian Plants .How then can the Canadian plants stay opened with no parts?I think that this money would be bettered used else where - to stimulate the economy. The auto industry is all one - G.M. has 40% shares in Toyota! Most of the cars built here are sold in the U.S. and they have no money- you do the math.
The unions should agree to bailout
said
Confused in Alberta
said
Oh, and the hockey players need a bailout too...
Oh, and don't forget all of those lawyers...
Manfred
said
Does it make sense to tax someone who makes $15 an hour and give the money to a CAW guy who makes $30 an hour.
jimmy
said
Bailouts for people, not for corporations
said
Edward Steers
said
So if I lose my job at GM, how many of you walmart employees will it take to make up the $30,00.00 /year in income tax I pay to the government every year.
I applied for a job at GM like every one else and I was qualified enough to get hired, and if you didn't well I'm truly sorry. If GM fails I'll be looking for another job, as probably will a majority of you. We may even apply to the same job. We'll see who gets hired then.
Be very careful what you wish for.
Merry Christmas to all.
Brett in Alberta
said
I think the federal government needs to think long and hard about this money, Liberals, NDP, Bloc and Tories, all of them. They are opening Pandora's box if they give money to this industry.
So what happens if this money doesn't help the automotive industry? Then we have pumped billions of dollars into it and we are still left with thousands who are unemployed. This is the start of a true global meltdown if money is spent in this fashion.
The governments job is suppose to be to help the people not the industry. This industry is going down no matter how much money they throw at it. $3.5billion would be able to send 140,000 people to college to get a two year degree. ($12,500 per year, same as any grants or student loans, just make it they don't have to pay it back if they graduate).
DO NOT give the automotive industry this money, retrain the people, that is your job.
Lynda
said
Dennis
said
A pox on the big three!
Justin
said
Rod
said
PM
said
helen in Toronto
said
The whole thing is about POWER!
Union members wants to control the company. The C.E.O. wants to control the company. The Congress wants to control the vote. Now President Bush wants to be the HERO and sign ANYTHING to LOAN the money out - afterall he will out of his office in less than 30 days and it is NOT his money - he DOESN'T give a DAM!
As for the C.E.O. - has to be REPLACED!
As for the union members, they listened too much and too long for the Union Leader. Has been brain washed from those guys!
Time for EVERYBODY to wake up! Business won't pick up if you don't redeuce COST - and consumer also NEED a job - a paycheque in order to APPLY for a CAR LOAN!
All comes around in a circle. The whole system has to be changed once and for all. Everybody has been SPOILED for too long.
Now we all waiting for President Obama to sit down on January, 2009. Give him a pen to SIGN - everything will be all right by then!
Ain't we all proud of Stephen Harper! He DID NOTHING but observe! Can you all picture what will happen if Liberal or N.D.P. in charge INSTEAD?! They will be so egaer to SIGN and GIVE OUT OUR MONEY and LOAN it them DAYS AGO - just try to proof that they are in control!
Good job, Harper - bu doing NOTHING and let everybody COOL down!
MRC in Hamilton
said
Ultimately, we are at the mercy of the Detroit-3/Americans decisions. Maybe this is the time us Canadians realize that we should be engineering our own vehicles????...Hey, there's an idea!
Bob
said
Aaron in Toronto
said
Why nobody would consider the result if the US or our government provide the money to bailout the Big 3? What would happen to the workers (which by the way is also taxpayers). So they keep their job and continue to produce product which no one would buy? (Please note, I am not referring to brand name and design but rather the US general public cannot afford to buy them anymore). Then what? More bailout?
I want my government to be more careful and responsible with my money. If we supply the loan and it would fix the problem then I say go ahead. However, if it is just to delay for a while and back to square one then let them fold. We have to deal with it eventually.
joel from alberta
said
oh and how sad is this, i had purchased a 2005 dodge dakota from a chrylser dealership, 13,000 km and it has been in the shop 3 times already, thank god i had warranty, however the one time it was in the shop for 3 weeks, and the gages/lights/cd player everything was turning off and on at random times. chrysler couldnt figure it out and told me get a lawyer and sue chrysler, customer service is pathetic!
oh and billions of dollars wont help the big 3, just a waste of money, people stop purchasing vehicles from them along time ago.
please dont waste tax payers money!
Drew in NS
said
Should we bail out the NA car industry? I wouldn't put to much care and effort into it!
You want to build a good NA car. Get rid of the unions, take the 1/3 pay decrease, and if your lazy, a screw up and untrainable find some other line of work.
DAN
said
Chris
said
What caused this global economic crisis??? Was it sky-rocketing oil prices that crashed "all of a sudden"??? Or is it the Auto Industry???
Hmmm, OIL...AUTO... hmmm sound too circumstantial doesn't it. Well let's see, we are in an economic war with Japan, China, India, Korea, Europe, and the Middle East. OPEC controls the world's oil supply, so they jack up the costs of oil to force people to stop buying cars. We stopped buying cars (especially cheap pieces of garbage from the Big 3) and we are in deeper.
Looks to me like we've LOST the economic war against the world, which means time to CHANGE PEOPLE!!!!
Albertan
said
Do these people make to much money to work on an assembly line? I do not know never done that job. I do know that we as North Americans over pay our work force as whole.
However wages should not be a concern $70/hour as an average is not that big of a wage. The employee is probably only getting $20 - $30/hour. For the people that are comparing this to wages of McDonald's employees and the like are way off base. These are career jobs not some after school part time gig. $20 - $30 per hour is not alot of money to support a family on. It is done though as I would say 85% of the country makes this. This is called middle class the back bone to our entire economy. To say that we should let 300,000 to 400,000 of these tax paying, comsumers be unemployed is absolutely outrageous. That would devistate our economy.
I can tell that some of the comments on here are from Albertans. I am an Albertan (that works in the Oil and Gas Industry)and I am embarassed of you people saying that they got themselves into this get themselves out. I can tell you this if the economy crashes we will be the hardest hit. We live like there is no tomorrow. Nobody actually owns anything, everybody is making huge wages living on borrowed money.
AG in Ottawa
said
The CAW must understand that we are dealing here with US corporations. Whatever $$ we were to throw at them right now would be meaningless and wasted if they don't get the big donation from Washington. Even then, their big IOU will be to the US government and conditions of the hand-out may very well require the repatriation of their offshore operations.
Nick in Gatineau
said
My family always had GM and all I can remember is recall after recall.
Did government do anything about the Hightech sector losing all those jobs ? NO.
Did government do anything to help Nortel ? NO.
N.A. Cars suck. The minimum is around 15 k (really worth 7 K) and sucks more gas than my civic - yet advertised as being more fuel efficient.
You sell cars for 25 K yet they are only worth 12 K.
Enough with the Union BS. When you strike, they do not pay your bills. BUT. The leaders have a 3000sq/foot home, 1 or 2 cottages, at least 2 cars/trucks, all the toys the grandkids love, and all the toys the adults love.
Oops. Thats the regular unionized Employee. Imagine what the union leaders have !!!
I lost my job a few years back to restructuring. It took 5 people to replace me -for nothing more than a salary and Pension dump.
Where was my bailout ?
I hope the Chinese come up with a 5 K car - which would be equivalent to a N.A. car that sells for around 18 K.
Tell your union rep to advertise what he has and force him to sell it on Ebay.
Enough with the bailouts.
If the big 3 go bankrupt, so be it.... Enough of this garbage.
Tell Harper to reverse his Income Trust Tax regulations if you want to kickstart the economy again.
Edwin from Toronto
said
Thakns to the logic: "their collapse will affect a lot of people"
This is the reason we should send them all the money they need to keep the factory running.
chris
said
Greg
said
Larry NL
said
Kris D
said
Hopefully voters will punish him for not listening. Or will they spin like crazy to defend him?
We shall see…
Darlene in Halifax
said
It is not just the economy that has caused this. All three NA automakers have been badly misreading the market for at least the last 10 years. While foreign carmakers went towards hybrid technology and smaller, more fuel-efficient vehicles (and higher sales), the brains at the Big 3 built Hummers and Excursions, subsidized by ill-thought-out tax credits on large vehicle purchases in the US (GWB strikes again). People keep saying it takes years of R&D and can't be done overnight - foreign automakers saw this, why couldn't NA automakers? The Big 3's reaction - cut back costs in the form of quality and put out an inferior product. Resale values attest to this, along with all the service problems. Nobody wants their cars!
Foreign automakers are suffering slumping sales, too, but they're not laying off workers (Cdn workers, too, by the way) and they're not crying for help. This tells any rational person that the problem goes much deeper than the economy. Drastic, fundamental changes need to be made at all levels if they are to survive - throwing money at them isn't going to help. They will still fail, maybe gasping along for another few months, but they will take our tax dollars with them when they go.
Barry Tucker
said
When we asked for government help, it was thanks for asking but forget it.
Pope and Talbot went bankrupt but the employees and 3 investors bought the Harmac pulp mill for $13 million.
The Harmac employees took cuts, invested their own money into the company ($25000 per employee).
Harmac is now up and running.
If the 250000 auto workers are serious about saving their companys, maybe they should follow the lead the Harmac workers set and invest their own money.
Charles B.C.
said
A little note to the people frothing at the mouth about Canadians buying 'what they call' foreign cars. Ignoring the fact that all cars in Canada are foreign, those foreign cars, just like the other foreign cars, being referred to as domestic are built in Canadian factories employing Canadian workers,which incidentally all seem to be riding the storm without lay-offs. Does that tell you something?
David Chan
said
Larry NL
said
Why will the CAW members not take cut backs in wages and benefits?
The CAW is the main reason why I won't buy a Ford, GM, or Chrysler product again.
If the big three could get rid of the UAW/CAW, they would probably get my support.
I have worked under 2 different unions in my time and I got more support from my employer than I ever did from the union that kept taking my hard earned money.
Garry in NS
said
Where did you get your facts? I am a Federal Public Servant and I can assure you that the majority of us earn less than $49,000.00 a year and we don't all drive volvos. We earn on average less than $25.00 per hour - a far cry from the auto workers! Oh yeah, we also pay taxes.
Conor in Edmonton
said
Brian
said
If I buy Big 3 -- and I always have -- am I really buying North American?
Tracy Williams-Witherden
said
John ONT
said
Ernest Kovosi
said
Dan from Windsor
said
AndyL
said
The problem is profitability. The union need to make major concessions. Stop whining about a CEO salary of in the millions, when retiree benefits alone are in the billions. If the union don't want to give in, well I hear McDonalds is doing well in these recessionary times. Start training GM workers to flip hambergers. That job however will be much less money than if they accept pay cuts now.
don of hamilton
said
Pat E.
said
John in Calgary
said
Toyota Corolla (not hybrid) gets 6.6L/100km (city/highway combined) and sells for $14,835 to start
Malibu (hybrid) gets 6.1L/100km's and starts at $23,750 (note they only show highway mileage)
GM's idea of a Joke: Escalade (hybrid) gets 14.6L/100km (combined) and starts at $73,000.
These are just the prices of the cars, a person also needs to take into consideration that the resell value of imports is higher as well.
I will not feel guilty about buying an import, I put months of research into buying a car and the import was leagues above any domestic. I will not give my vote to anybody who puts money into the automotive industry. The unions don't want to take pay cuts, which keeps the price extremely over priced. The Big 3 have had years to adapt to the market and refused.
If they do shut down, Toyota and Honda and others will buy the plants and start making cars here, so nobody will go long without a job.
The big 3 have acted like 6 year olds finding a five dollar bill, they have no thought of what they could do with it in the future, they just need to spend it now. And the Unions don't care about the People they represent, the more money they get you, the higher your union dues are. I know all about unions and what they are good for, I saw it all when CP Express & Transport shut down (the former CP Rail trucking division).
Dean Hamilton Vancouver
said
A Japanese company ( Toyota ) and an American Company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile.
The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action.
Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.
Feeling a deeper study was in order, American management hired a consulting company and paid them a large amount of money for a second opinion.
They advised, of course, that too many people were steering the boat, while not enough people were rowing.
Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager.
They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses.
The next year the Japanese won by two miles.
Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India .
The End.
Here's something else to think about:
Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.
TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results:
TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.
Ford folks are still scratching their heads.
Wayne in Beresford New Brunswick
said
1) It should only be a loan, totally repayable with interest
2) We appoint auditors to oversee the day to day operations of each of the big three.
3. Absolutely no bonuses be paid to the executives.
4. Cross the board wage cuts, both management and union.
5. Build cars that meet the customers needs, not the other way around.
6. If your vehicles can't get at leats 30 miles per gallon, don't build them.
I have worked in the mining industry for 34 four years and have seen many mines close without any help from tax payers. The same can be said for the Forestry, Fishing and Manufactoring Industries.
If the government insists on giving the big three our hard earned money without conditions, I would suggest a tax revolt as a temporary measure, unitl we are satisified with what the government is proposing. Don't file your 2007 taxes.
We currently own a 1996 Honda Accord and a 2008 Fusion. Quality is number one with us.
ann
said
Mo
said
Anyway, I definitely reflect the common opinion here that there's got to be a recognition especially of those working in the auto industry that they need to give more in order to not only sustain the viability of the industry, but also to safeguard their jobs.
Another option is to encourage auto manufacturers who seem much more capable of managing their company to set up more manufacturing plants here in North America to supplant some of those lost jobs. It won't save them all, but at least it would help, and given the declining demand for Big 3 vehicles, it only means an increasing share of the market for other companies. Of course with the economy faltering, it may be more difficult to do. We need to recognize that it's not the Big 3 that sustains the economy especially in the East, it's the auto industry that does. Losing the Big 3 would be devastating since they are a large chunk of the industry here, but as mentioned before, other companies play a role here in North America as well, and it doesn't close up some solutions for maintaining the auto industry.
Might I add the opinion in here that I feel our economy in Canada's too reliant on natural resources, and the auto industry.
Lawrence
said
Since they need money for tax players now, it's time to force them to do so.
Our tax should not ever invest to garbage projects.
chris
said
Edwin from Toronto
said
Just let the autoworkers to live on EI benefits for a year.
If making cars is profitable next year, they can get back their job in a new company.
Rocket
said
Alysha Ont
said
Liana - Frankford
said
SS
said
Not just the Auto makers themselves, there are the parts makers, suppliers or raw materials, local places where workers eat, shop and live. So, if youthink our tax dollars are streched now (and yes, they are) think about what happens when THOUSANDS UPON THOUSANDS of people of ALL wage categories lose their jobs... ALL AT ONCE!
"They can find other jobs..."- Of course they can, but not that many all at once! That's more than the job market can take! In the meantime, I hope you like the idea of all your tax money going to pay for unemployment, not to mention that there's less taxes being payed in, with all those jobs lost.
"When someone applies to work at our place of business and they've worked in the auto industry, we don't give them a second look..."- Hey guy from Whitby, good for you guys, that makes you part of the oncoming problem. When GM fails, you'll be seeing a lot of applications... then I hope you remember how you were rooting for this to happen.
I get it though- major retooling, redesign and restucting needs to happen, and I agree, less money is better than none for sure. I've worked quite a few hard jobs for little money before. Better than nothing!
This situation sucks, but this whole 'haters' attitude is really not helping. I don't like it either, but while you're cheering 'Burn baby burn!", watch out your house doesn't catch fire...
Hope to us all...
Martin for Canada
said
Someone needs to get these contracts opened and get a real life like the rest of us! Work for a living!
Sherry
said
S. Ray
said
If this is the way they wish to spend my minimum wage dollars they can stand in the welfare line as far as I'm concerned. Come join the real world and see what it is like to live on a normal wage...
Pity no way - suck it up. Your time has come.
Dave
said
Deepak
said
Dave in Midland
said
Johnny Dougs, Winnipeg
said
As for the suggestion by some that Canada's borders be shut to foreign-made cars, I ask, what would the impact be on our economy when average people that unions purport to care about can no longer afford those vehicles? If Canadians were forced to buy Canadian-made vehicles only, these companies would have a captive market and the unions would keep demanding more and more, driving up costs.
It may be time to take an honest look at our auto sector and whether it can really compete in a global marketplace. Lots of manufacturing jobs have gone to cheap labour markets because people don't like spending more than they have to. Why should cars be exempt?
Dave I
said
Hal St John
said
ANDYIMPORT-EDMONTON
said
In 2006 I got myself a spanking new HONDA...whew! What a difference in quality, reliability & not to mention resale value.
Again, why would I want my TAX Dollars going towards assisting companies that produce a vastly inferior quality product that only creates problems for the majority of owners? I think the gov't should NOT & I mean absolutely NOT bail any of these 3 companies out. Let them fall...it will only serve to allow HONDA, TOYOTA, NISSAN etc. to build more & better cars for everyone.
A Tax Payer
said
1. We need a 100% guarantee that the hard earned tax dollars that are LOANED to the Big 3 will remain in Canada.
2. LOAN – Not a bailout. We, the Canadian tax payers, expect our money to be repaid, with interest.
3. The Big 3 need to demonstrate that things won’t be “business as usual” before 1 cent is handed over. Live within your means like everyone else has to !
4. Everyone, from the top to the bottom, needs to take a substantial pay cut just like in every other company that is in financial crisis. No more expense accounts, private jets, golden handshakes, gold plated pensions…
5. The CAW always wants a piece of the pie when earnings are up ! Now things are falling apart. The choice is your…take a pay cut OR lose your jobs ? The answer seems obvious to the rest of us.
6. If the CAW can’t agree to substantial pay cuts, the Big 3 should file for bankruptcy and start over ! There are thousands of people in Ontario who would jump at the chance of a job earning $20/hr with BASIC benefits, not the excessive salaries that the CAW demands.
7. The Big 3 need to rethink the products that they are manufacturing, and design vehicles that the motoring public will buy.
8. Stop building cars with a million options and styles. Simplify things.
9. Stop whining about unfair trade practices, etc. If you build a quality product and offer it at reasonable price, the imports won’t sell…simple supply and demand !
10. Back-up that quality product with true customer service and real warranties.
Areostar
said
Michelle
said
Kim
said
Army sup tech
said
So why all the outrage from the West?
Hopefully Iggy can take over because obviously Harper and the Reform party will not act.
john -fredericton
said
Marcel Scouten - Brampton
said
Edmonton John
said
Nations around the globe have been spending billions to try and start industrial clusters. We have one now that is suffering under global economic forces, and grossly undervalue it.
We are lucky to have the opportunity to salvage the industry and redirect the output, but it seems too many people are gleefully watching the slow motion destruction of their own economy to look at how it will not only affect them in the short term, but in the long term.
The comments on this board, especially the criticism of the unions, are a sad indictment of the ignorance of too many Canadians.
Pete, formerly from Ontario
said
1. All bonuses and stock option plans are suspended indefinitely or cancelled with no retro-active payment.
2. All salaries above $200k are cut by at least half. All salaries below 200k are reduced to non-union standards.
3. All positions are reviewed and their need evaluated by a 3rd party. It was really bad going to visit plants and see people watching machines work or having to remove tv sets from the top of automation lines.
Sean
said
Auto workers are also taxpayers and consumers in case you did'nt realize this.
When this industry fails there will be a trickle down effect. You may want to think about that because your job may be affected when 300,000 workers incomes are taken out of the economy. It's real easy to bury your head in the sand when it doesn't affect you personally.
This misconception of the overpaid union worker is getting really old. The imports pay their hourly workers almost exactly the same wage. The large disparity in pay is at the salary/management level. It's real easy to say that a line worker is only worth 15 or 20 bucks and hour. But how much should a garbage collector get paid?(city worker..tax dollars!)I personally think 20 per hour is way too much. You could look at any occupation and decide that they are overpaid. When did it become a crime to earn a decent living? The auto industry is not in this position because of the hourly worker. We are currently in a recession, banks are asking for bailouts(no question asked) because they are failing. Yet they are still paying bonuses.
Does that not seem wrong to anyone, or is it just easier to blame everything on the union worker. Sorry for the rant, but this is one overpaid union worker that is tired of these ridiculous comments.
Hi Kids
said
He said there were a lot of deals in the stock market go out & gamble!
He thinks your doing so good he gave 130,400. of your money to each of his 18 friends for 7 years & he gave all the members of parliament 7 weeks holidays because there simply is no crisis your all doing great.
Ed W., Guelph, ON.
said
MuskyBuck
said
Exactly Vern. That is one aspect of my point. On a broader issue is that we are all ignoring the death throe's of a business model itself.
It can't be saved. When you consider the options, we can invision a capitalist society that evolves.
Having just a couple of companies taking all the business and making jobs and workers robots pumping out product is simply industrial era thinking that has caught up to itself.
Why not dozens if not more, small to medium sized companies all across our country producting unique product?
We would see all these workers employed. Unions wouldn't be a necessity any longer.
Distinct, home grown Canadian business would all compete, great for the economy.
The innovation that would occur with this model would be explosive.
It's just that there are some very rich and powerful people that would like to keep this playground of money for a few.
We will all survive and flourish if we let nature take it's course here.
SD from Otawa
said
The Unions want the federal government to throw money at auto companies that are failing (mainly because their products suck and no one wants to buy them), even if the US doesn't bail out the auto companies there?
Uhhh, with this kind of thinking, no wonder they are all in trouble. I say let them go bankrupt and restructure. This way they can emerge more competitive with the foreign automakers. And if they can't, then they shouldn't be building cars anyway.
I'd like to buy a car made by the Big 3, but none of them appeal to me whatsoever. I'm sure a lot of other people feel the same.
Damian (Toronto)
said
To the big three: no one wants to buy your product. What do you expect the government to do?
Jason I
said
Wake up and smell the Coffee
said
Theres a big supply already and no demand Why create a job for a product no one can buy?
Ed D - Winnipeg
said
Soozyann
said
Cyn (MB)
said
Crystal in BC
said
Terps
said
Michel S.
said
Now it's time to give up a little to let everyone else survive....if you're not grateful enough to do that, you don't deserve to keep your job.
Sometimes ya just got to give a little and cut loose the greediness.
Andrew - Ottawa
said
Most of you probably have mutual funds/stock...notice how low they are? Did they go up or down after the bailout package was denied? In a couple months, if there is no help, and the North American auto industry goes under do you think the markets will go up or down? They will go down, so far it will make this recession seem like a joke. And do you think the little local businesses and restraunts will survive a depression...most probably won't.
So, before you look at this as YOUR tax dollars being wasted to help a private company survive, this is OUR tax dollars being used to keep the North American economy alive.
Thanks for supporting North America!
Fed up in Kingston, ON
said
Back in 1983, Lee Ioccacca, President and CEO of a recently bailed-out Chrysler stated that GM's health care and over-head costs including hourly wages were way out of line with what the companys revenue streams were bringing in. Ditto for Ford.
The executives as recently as the mid-1990's were boasting privately of their fat margins selling expensive SUV's at $50K to gullible Canadian & American buyers.
Members of the CAW working at Ford live in $700K Oakville mansions and pull in in excess of $100K in overtimne in a good year plus benefits!!
And these people expect the rest of us to bail them out! Only with a 50% pay cut all around! Otherwise, phone your MP and protest before these spin meisters empty Canadas treasury!
jerry burzynski
said
Not Alone ---
said
Bubba from Alberta
said
Linda in Vancouver
said
WHat I can hardly wait for is the litany of excuses that will eminate from people who have been making $30 per hour,as to why they can't survive until the unemployment cheques start rolling in.Or that the cheques are to small to "support me in the manner to which I am accustomed".
Welcome to the real world people.No one is going to escape this economic debacle unscathed.NO ONE.My best advice would be to start looking for a job doing something that needs to be done.Forget about putting wheels on cars no one wants.I think those days are gone.
And,by the way,if you don't have some skills,I wouldn't be holding out for the wages and benefits that seem to be available working for the "Big Three".
THose of us who still have jobs had better start looking over our shoulders.Any one of us could be next.At the very least,we can expect more unemployed people to be living off of our paycheques.
Frank in Oshawa
said
No wonder they are in finacial difficulty
Margaret
said
I understand not wanting to give back any wages that the GM works are currently making, but if this keeps up they will not have a job if GM goes bankrupt.
Many companies in the industry have put all their employees on wage freezes(some have been for a few years)and we have to get by with what we are making.
Why can't the people in the union play well with others and a least take a wage freeze or a small decrease in wages!
Rob T - Calgary
said
So the unions want us taxpayers to bail them out?
I run a business; where's my bailout?
Look, the management and unions all were greedy. Downsizing is necessary. If all of you had been less greedy for the past many years, this would not have occured.
I care that families are getting hurt - but it is up to each individual to accept that the job is gone and to re-train. Re-education is often a necessity. Digging your heels in and not admitting the job is gone does nothing.
I friend of mine just completed an education masters degree. In his research he told me that the new work force basically believed that they were entitled to things like bonuses, extra holidays, etc. Hopefully we all get a dose of reality and realize that an honest day's work leads to an honest day's pay....
Free Thinker in the West
said
So, Mr Lewenza, how exactly do you see that happening?
When are you union-bred people going to get it through your heads that the market dictates and if you're still building things that people don't want, then I guess it's time for you to pick up your toys and go home...no doubt you will have a home to go to and some form of income to live the rest of your life.
Uions have totally brainwashed so many people for so long that you can't accept what's truly happening in our world - you still have coloured clouds in yours.
Your industry as we know it today is done.
BC Ken
said
GMFC
said
mark
said
1. Automakers - Clearly, your product is not worth the investment for many people.
2. Unions - By artificially increasing the "value" of labour, the labour becomes not worth the money for automakers.
3. Government - For allowing the unions this power.
Note: This is not proof that "unfettered" economy doesn't work. It's quite the opposite. If the autodealers could pay their workers true market value, they could afford to carry on.
Dale - Edmonton
said
Why the fuss
said
Thomas
said
Trina from Saskatchewan
said
Lynn from Balm Beach Ontario
said
Wendy
said
Cara B, Halifax
said
That might work if these were actually Canadian companies but they're not. They're American companies with production plants in Canada; no different than a Japanese company with a production plant in Canada.
Fed up
said
Why should the canadian taxpayers bail them out?Where do you expect us to get the money in an alresdy strapped economy?And of course those 3 idiots will complain as usual if the Prime Minister doesn't do what they want.It's a no win situation for us taxpayerswe are going to get screwed in the end no matter what.We always do.
Alex
said
kman
said
America are doing so well? It just comes down to mismanagment by the supposed big three. These people with grade 12 education do not deserve the wages they make. Nurses, firemen, ambulance drivers, police officers, who all take yearly recertifications to stay employed have far more responsibility and make the same or less money. The auto industry is an inflated antiquated industry that needs a serious trimming which it is getting right now.
kris
said
Who Killed GM? - GM.
Karin
said
Darlene in Halifax
said
AylmerBob
said
Mark - Edmonton
said
NG ontario
said
Phil Concerned
said
Charlie F
said
Happy
said
Not interested in paying for this stupidity
said
Hey, if I deliberately mismanage my household finances, will the government give me a billion dollar bailout to avoid bankrupcy too?
Charley Rose
said
GM
said
Stevie
said
And, if GM is currently burning through cash like there's no tomorrow, what is different right now that a lifeline of 6 billion dollars will help them immediately turn a profit?
It doesn't make sense to give them money when nothing's changed and they'll just burn through tax payer money and probably request more in the short future.
Jonathan
said
It's the free market system. You stay competitive as a company or you loose market share and face bankruptcy. You stay competitive as a labour force or companies move jobs to other countries where workers are more committed, skilled or cost effective. You stay competitive as a nation to attract business from other countries or build business from within your country by offering assistance, low taxes and no tarrifs.
Protectionist measures, greedy shareholders and unreasonable unions all contribute and have contributed to the failing of the North American Auto Industry. North America needs to reinvent, reinvest and move forward.
The market system has spoken.
RJ - Logical Thinker
said
Vern AAFU spokesman
said
mrs o
said
Supporter of NA cars
said
Candace
said
Jim-Surrey
said
Prices of vehicles are expensive enough if they can't survive off that then maybe they need to take some management courses.
Also they should have been making greener cars before now BUT greed will always be the downfall of big business as the consumer looks elsewhere for a better more cost effective vehicle.
It is unfortunate though that the workers are probably going to suffer and lose their jobs because of this mismanagement!!!!
Don Mb.
said
Brian from NL
said
Chris Ont
said
kid
said
Time for a fair deal. The union needs to do a big huge adjustment to their package if they want to have a job and go to work everyday.
Stan hillier
said
Dave in Courtenay
said
Mark
said
Ed from BC
said
Ed in Alberta
said
Mark from Brampton
said
Central Banks have been giving money to the banks too cheaply, and in turn the banks made loans they should not have made. We need to kill the source of the problem (Central Banks) if we are to make any progress.
GC
said
Todd, Alberta
said
M M B Ont
said
Quit blaming the gov't for this one and you are sounding a lot like Layton.. full of Hate toward the Conservatives. Get a life !
Sick of the BS
said
Judy - Montreal
said
Tom Hawley
said
What if it did ? People that work for GM would be no different than the rest who have worked and now find themselves with out employment.I do not mean any disrespect to those that are worried for their jobs.
To start ,the not so Big Three should shut down.Restructure and go forward.Stop paying the over inflated salaries and bonuses .
The plant workers need to sit down with a pen and paper and do some math of their own.Union heads are paid quite well.Workers settle for less guess what the heads need to do.If a worker makes thirty dollars an hour and asked to take a cut of three-four dollars an hour would this not put them in a lower tax bracket?Pay less taxes? Perhaps it would all amount to the same or very close at years end.This including your tax return.
Maybe some will come ahead .
Brendan Burke
said
Bob (Ont)
said
Would you rather take $5/hr less or have no job at all? Don't you think that employees of a company should be paid a wage which allows the company to be profitable and continue into the future? Is it fair that taxpayers money should be flushed down the toilet simply to ensure that auto workers don't take a pay cut? I'll tell you right now that if you're worried about auto workers not being able to afford cars and mortgages then maybe a pay cut is in order so jobs can be maintained. Maybe auto workers should learn to earn a good wage the way all non-union employees earn their wage..........through good job performance, not how many years you have worked!!!
Dave Niagara
said
REFORMED CAR SALESMAN
said
And I'll tell you something that might shock you.
When someone buys a car, and they get a "great Deal", in all actuality, they dont. See most people buy MSRP, or a couple thousand under. but what they dont tell you is that there is a huge manufacturer rebate on almost every model, and that rebate gets sent to what ever dealership sells the car...the rebate is in a lot of cases between 5-10 thousand dollars. so in reality, the dealership selling the vehuile, makes a ton of maney YOU could have had if you knew about it.
I have no sympathy for the auto makers, they got themselves into this mess, they were warned countless times that they were over spending and they didnt listen.
There was an Meeting 2 years ago at Chrysler regarding the possibility of an economic slow down, and they just laughed, and kept on spending money.
I think the economy needs one or two automakers to go under to balance everything out. and Quite frankly, I hope it happens.
Mike
said
Chris
said
vince in trenton
said
Canada Goose Whistler
said
We have a stable economy there is no way Mr Harper would spend 2.4 million X 7 yrs on his 18 friends if there was a problem. I bet you hes out there right now investing your tax dollar in skate boards & horses.
Al
said
If we allow the companies to go under, we'll just be spending it on unemployment claims anyways....win win?
Too Far Gone, Needs Restructuring
said
Tom
said
mike
said
Halifax taxpayer
said
DJKoop, Manitoba
said
Dave
said
MMK
said
Paul B in Ottawa
said
Furthermore, I agree with what most of you are saying. Taxpayer money should not be sent to industries that are failing unless they have a plan to become competitive again. Or better yet, have the gov't provide an incentive for buying hybrid vehicles, which would send a signal to the auto-makers to start building more hybrids.
Paul
Scene
said
Chris Hodgson in Ontariariari-OH!
said
NS-NICK
said
I am aware the GM makes hybrid vehicles, but the fact that GM has been making (im my opinion) sub standard vehicles for years has hurt their position in the Automotive Industry. I buy imports because I know they are going to work well for a long time. I have owned 3 GM vehilces .. bought new. The resale value sucks, I have paid $$$ hundreds to repair my vehicles and quite frankly, I cannot afford a car payment and repairs monthly. Unfortunatley GM, Ford and Chrysler will need a makeover and I say charity begins at home. Credut takes a long time to go bad, therefore it will take a long time to repair.
Richard Murray
said
If union wages are cut, union dues will decrease, limiting the millions of dollars flowing into the union coffers, so union fat-cats will not get as much swill from the trough.
The overwelming opinion on all the boards, including this one, shows that labour should be part of the fix, or they should expect only the back of the hand from taxpayers.
Nancy St. John's, NL
said
Andrea
said
You hit the jackpot on this one.
I agree with you, I think when Obama starts on Jan.27th, the 1st thing he should do is sit down with our PM, and try to discuss ways to change the NAFTA agreement.
When the agreement was signed by Mulroney, the USA economy was good, and now it is not so good.That is why the trade agreement has to change.Make it more fair!
Karl from GTA
said
The price of labor on a $25,000 vehicle is $900. If the ENITRE UNION worked for free for the next year, it would only result in $11B in savings. Not much considering how much in debt these companies are.
The real cost savings for the Big 3 should be found in reducing the number of lines of vehicles they produce, reduce the top-heavy management paradigm, and work to deliver a quality product by focusing on the few good vehicle types they can produce.
Government loans (fully payable like the Chrysler Loan Guarantees in the '80s) should be made available, only once a new management structure is implemented and a new business plan is proposed. Once completed, a watchdog committee should be implemented to ensure our tax dollars are being managed properly.
Just my two cents.
C in the West
said
Very sad for all of you autoworkers, but you have no right to the canadian taxpayers money. This is only reinforced by your unions inability to negotiate.
Wish you well. money , in 6 months or a year they willwhen you cannot make profit selling cars you start again.
sean
said
ik in Ontario
said
Ian Millard
said
They are refusing a pay cut to preserve their jobs, in effect saying, they want 100% of nothing, rather than a job with at least some future.
What's worse, the 'big three' continue to produce big trucks & SUVs, in the face of gas prices that will rise again.
If they can't learn to bail, let them sink.
Brent Woodstock Ontario
said
Myth#1 Caw members make $75 an hour with benifits.
Not true. That figure was an estimate if the CAW had gotten all it was asking for in the last roiund of negotiations. The figure is actually closer to $50-$55. (of which not many, if any, of us complain about)
Myth#2 Wage concessions would make a huge difference. Not so. It takes, on average 20 hours to build a vehicle in Canada, therefore, even at the high end of our wages, a cut of 50% would result in a savings of $550
Myth #3 They don't build what the public wants. If this was so, they'd have been out of business long ago.
Myth #4 The "Detroit Three" brought this on themselves. No. As much as I would love to lay the blame on mismanagement, I can't. The economy south of the border has tanked drastically in the past 12 months, banks have gone under, people are loosing their houses and jobs at a record pace. If you have to hand over the keys to your house, you're not about to go out and buy a new vehicle.
Before thios turns into a rant, just let me say "Careful what you wish for...you just may get it"
Craig in Calgary
said
westguy
said
soup kitchen employee
said
John (Montreal)
said
Eastern Bob
said
A TRUE STORY WHY WE DON'T BUY NA CARS!!!
said
Back in 1995, I had broken the tiny little plastic end on the linkage cable that is attached to the gear shifter. I didn't need the cable itself replaced, just the piece that was easily replaceable as it was fastened on by a simple screw. My research into the part priced it at only 7 dollars. Instead of selling me the part, the auto industry told me that I had to replace the WHOLE cable at a cost of $350 dollars!!! That's why I don't buy North American pieces of crap anymore!!!
Ontario Tina
said
Bill from Oshawa
said
Don - Fiscal ignorance abounds!
said
When the financial costs of still likely auto bailouts, the recession & environmental demands from the EU, native leaders & the global-warming neurotics it will surpass even Coalition Party spending plans. Evidently few people realise that a billion dollar is over $300,000 for every Canadian!
Jim Allan
said
Do they get paid something from the auto company and something from the government?
Paul
said
If their own unions are not willing to help them why should I?
Neither them or their unions would lift a finger if my business were to experience financial difficulties.
Besides some of my friends, neighbours and relatives are car-makers....at Toyota
These peole earn their money and produce quality vehicles.
Business is simple. Compete or go out of business.
No sympathy here.
Alysha Ont
said
Marc
said
tony
said
Cambob
said
So, if you want to spend my tax dollars on a car company, where is my new car?
Jay from E-Town
said
Support of NA industry
said
It is the responsibility of the taxpayers to help ailing industries which provide millions of jobs - because it will be your job next!!
Paul in Halifax
said
Randall
said
VW driver
said
Mel from Calgary
said
The cargo ships that bring the imports over here could be used to take our cars back the other way.
The unionised plant workers here spend their money in the local economy, they do not put it in offshore accounts. Lets not beat up on people who actually are producing goods in this country.
Paul Brantford
said
I had 2 GM products BOTH WERE RECALLED !!!
NO THANK YOU
BYE BYE GM
Joe Schmitt
said
Murray@Cobourg
said
Cindy
said
If they want to stay in business and the government is committed helping them then the first thing that should be done is a roll back on the wages starting with the top players!
Instead of giving them billions of dollars to waste once again...the government should give every Canadian of legal driving age a $10,000.00 incentive to be used toward the purchase of a new vehicle. This vehicle MUST be purchased from one of the big 3. Thereby creating a demand for their product which will ultimatley stimulate the market and my neighbor will keep his job.
Mike
said
Not too much symapthy in Ontario
said
I make alot lower that 20/hr and I seem to be able to afford my house. I also drive a american car which I can afford. What ppl are saying is that most autoworkers have been living high on the hog and have had their heads in the clouds for so long that their preception of what is affordable has become fuzzy. Of course no one wants to lose their jobs but wouldn't taking a wage cut seem like a more sensable thing to do than no job at all. And don't blame the lower paid Canadian without union safety nets because you can't afford your home and "cars" without making 30/hr.
I agree that the management needs to take one for the team as well maybe cancel the trip to europe or sell one of their luxery items. But we are all feeling the pinch.
Don't blame the government because you live out of normal sensable means and probably don't have a nest egg to help you out.
My tax dollars are stretched to the hilt already, I don't feel like paying for your cottage up north.
brian
said
BC Busa
said
Cody
said
Merry Christmas.
CJ in Alberta
said
The unions must take a pay cut to be taken seriously.
mlb66
said
Matt C in Calgary
said
For the government to provide assistance in the way of a bailout or a loan but not address the underlying problems (i.e. excessive wages, militant unions, poor vehicle design,...etc.) is completely unethical. As a taxpayer I am only in favour of government assistance if the automakers and the unions provide a detailed plan which includes serious cost-cutting on all sides.
A union whose objective is to get as much as possible for its members is not concerned with the common good. Likewise, an automaker whose objective is to make as much profit as possible, is not necessarily concerned with the common good either. Everyone involved should be concerned with the common good.
Cambob
said
Oh yeah, their food sucked and thier staff was rude.
spencer
said
Perhaps the best thing that could happen if for the big three to have a taste of ''creditor protection'' and see just how they will cut costs. After all, if they were competitive price wise there would not be a problem.
The cash for life mentality does not extend only to UAW members, but has been a problem from top to bottom.
Laura
said
I own a Honda Civic.
It was built in Ontario, with parts built in Ontario.
GM's Pontiac Sunfire? Assembled in Mexico.
Which is the more home-grown car?
Len in Winnipeg
said
In Canada they are asking for 6.9 billion which works out to about 185$ per capita.
we only have auto jobs if the companies are stabe in the US.
Miss Auga - Ottawa
said
You were greedy and now, you may not have any job.
What's wrong with a 20% pay cut? I could absorb a 20% pay cut. It wouldn't be nice, but I'd still be able to pay all my bills. If you can't absorb a pay cut, then maybe you are living beyond your means.
Sandy
said
Paul in Mississauga
said
The union employees may be overpaid, but who the heck signed these stupid contracts? (Oh ya, see above)
Let the three go into bankruptcy and then have the government jump in and provide credit for the re-launch of viable plants and products.
Attention should be paid to the assistance of parts plants to weather the storm and retool to the 'new' domestic industry's needs.
It will be sad and nasty at times, but please do not give us 3 walking corpses like British Leyland.
Richie in Hamilton, ON
said
Conrad
said
Paul, GTA
said
mike
said
Git R'done
john from nova scotia
said
Bill from Whitby
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David H
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Peter from Toronto
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MuskyBuck
said
Everyone here has an arguement for the little details.
A car is only that. A product. Something saleable.
If mankind as of 2008 is being measured for what we produce, you'd think we'd all be a species that lives off and produces...cars.
It's crazy. What's the difference between a car, or a waterbed?
Outside of the obvious that not everyone needs a waterbed, or depends on a waterbed daily etc etc but my point is to illustrate that it's just a consumable product, not something that defines us or all life on this earth depends on.
Other businesses will make cars.
Other companies will start and give these workers jobs.
We don't need to protect a company, that is monopolizing.
Let smaller, more effeciently run companies buy out the left overs of a bankruptcy and let's carry on.
Angus
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Saverio Prato
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Art Samuels
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Neil. Calgary
said
Some food for thought, some worry about the economy in the east if the autoworkers lose their jobs and houses. Please also consider a situation where a Liberal "green shift" type program kills the economy out west. Will you bail us out?
Sue, Verner
said
Gail (Hamilton)
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R in Ontario
said
They too are hurting with this economic turmoil and are doing some cutbacks. But they are not and will not ask or need BILLION dollar bailouts.
M.H.
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Pete
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John Goldsmith
said
Have they presented a solid plan for 2009? Are the unions willing to take short term rollbacks for long term security? Question? Comments
KMC (Markham. ON)
said
Had he given in to the demands by the NDP/Liberal "coalition", to pour billions of the taxpayers' dollars into the Canadian auto manufacturers
it seems, at this point, that would have been money down the drain.
Thankfully,, it was Harper in the Prime Minister's chair and not Jack Layton, Bob Rae and the Liberals.
The Federal Government can do nothing, until the U.S. makes a final decision on whether to bail out the "big three" or to let them go bankrupt and restructure.To do otherwise could, simply, turn out to be a huge loss of billions of the taxpayer's dollars.
As for sending the U.S. a "strong message that we understand...", they already know that. Canada's Industry Minister is in the U.S. attempting to help come up with a solution to preserve Canadian jobs.
Pierre-Guy
said
That'S unfortunately how free trade works. Competition decides who survives and who dies. the big 3 have failed their costumers; therefore, they fail themselves
PG from regina
William Henry
said
Meanwhile, in Woodstock, Ontario, the town is booming and Toyota just opened a new non-union manufacturing plant to build vehicles.
Marc Coquitlam B.C.
said
Gord in Hamilton
said
This proves once again that socialism and government intervention is okay only when times are bad.
These companies need to sink or swim based on their own business acumen not on the backs of the taxpayers. Why should our money go toward producing a product that is inferior in every way to one's that are produced by foreign owned automakers.
To suggest that this is in anyway related to unfair trade is utterly absurd. The US automakers have had at least 30 years to become competetive and they have failed to do so. I say good bye and good riddance.
Stephen in Toronto
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Bill
said
the auto sector is only ONE industry. It is NOT the be-all, end-all for the economy. Loss of the big three won't devestate North America as they are certainly NOT the only game in town-even in auto production. If Toyota can open a $1.1 BILLION$$$$ plant in Oshawa while the big 3 are rattling their tin cups, then exactly where is the problem? ... not in government or the market, it's their own problem.
sink or swim, leave taxpayers money out of it.
Lance
said
Joel in Kamloops
said
I also think that if Ford, GM and Chrylser get money, Honda and Toyota should get some if they want it. They should use it for R&D as their bottom lines seem to be better.
If this doesn't work, then the government keeps the facilities and sells them off or retrofits them for something else. It would be nice to get a Hyundai factory in Canada. They make popular cars that are quality products. I love my Hyundai.
sdgreen, North Saanich BC
said
Either adapt or start looking for a new job!
It is likely that all NA auto manufacturers will close ALL Canadian plants and retreat to US base plants.
Unions live in a dream world
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john from the West
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Adapt or Fade Away
said
"Buckley called on Stephen Harper and the Tories to give a strong signal to North American automakers that they understand just how serious the crisis in the auto sector is."
Wow, that's hillarious. I have a better idea. How about Buckley call his union cronies and let them know how serious this is by saying something like, "hey guys, maybe we need to take a major pay cut, like NOW, because the Big Three can't afford to give us close to 100k a year to put a panel on a door."
Until the CAW starts telling their employees then need to get paid the same amount as Honda and Toyota workers, they get zero sympathy from me.
If the CAW doesn't adapt to reality fast, it may find itself vanishing as quickly at GM, Ford, and Chrysler. Better to have their members getting paid mediocre salaries (like the rest of us) than NO SALARIES.
Chris from Kingston
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Tim from Calgary
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Brian in Edmonton
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They have to implement immediate significant wage reductions.
Either work for a little less or lose your job....this shouldn't be a tough choice.
The union has to realize its hard to draw up public support for their members when they have all better off than most other Canadians who are working for a lot less money.
They always had their hand out to 'take' when there were big profits being made but won't 'give' now that times are hard.....go figure.
Unions had their place years ago, but enough is enough.
Brian in Edmonton
said
They have to implement immediate significant wage reductions.
Either work for a little less or lose your job....this shouldn't be a tough choice.
The union has to realize its hard to draw up public support for their members when they have all better off than most other Canadians who are working for a lot less money.
They always had their hand out to 'take' when there were big profits being made but won't 'give' now that times are hard.....go figure.
Unions had their place years ago, but enough is enough.
helen in toronto
said
Worrying won't solve the problem. Pointing fingers at each other won't help either.
It's a long, big problem that had been build up for years and years.
The bad things is between two Union - Detriot and Souther Ontario - are having a different disagreement on wages cut or decrease benefit. This is a big issue that requires both side to sit down and work it out!
As for your C.E.O. we all agree he has to be replaced!
But the good thing is - Bush and Obama are still on your side - especially Bush - he doesn't care - not his money - he will be out of his job in less than 30 days! He wants to sign ANYTHING AND BE A HERO!
We are sure it will work out SOMETHING, SOMEHOW!
Just sit back and enjoy the holiday and take a whole month off on January.
We are ALL WAITING FOR PRESIDENT OBAMA - our hero to come and rescure all of us!
Merry Christmas - please stay home and enjoy spending the extra time with your family!PUT AWAY YOUR DEBT AND CREDIT CARD AND DON'T HELP OUT WALMART OR FUTURE SHOP! DON'T BE STUPID!
W.Brown
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Andrew
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King of Kensington
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Lee in Calgary
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I can't speak with knowledge about the fully loaded rates in Canada but the US numbers are clear and devestating. The fully loaded labour cost per hour for GM was roughly $72 USD while Toyota's number was roughly $42 USD.
I'm no Bill Gates but it's pretty clear that in this case the product isn't the issue, if your labour cost is $30 USD per hour higher per employee you're not going to be able to compete period. I'm sure smarter people will talk about other industry issues such as government tax breaks, dealership issues and such but until the so called big 3 can get their labour costs closer to those of Honda and Toyota we are throwing good money after bad.
Last night the Senate republicans demanded that the UAW agree to wage and benefit cuts as a condition of receiving taxpayers money as well as putting restriction on the companies. The union rejected any cuts out of hand and the bill was promptly defeated.
Two weeks ago I watched as a CAW rep during a TV interview did the same thing, rejecting any efforts to renegotate labour costs as a condition of receiving taxpayer funds.
Is this the Edmonton meatpackers deal all over again whereby the union refused to negotiate and lost all their jobs as the plant was moved to Brandon MB.
This take it or leave it approach by the unions must be rejected if taxpayer funds are involved. If we are to support an industry it must be a viable industry otherwise our dollars are better spent in other areas.
Herb
said
You can make pissy, self-satisfied statements all you want, but this will cascade and devastate the entire country.
allan moss
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Mark
said
No tax $$$$ bailouts until all of these greedy unions and wayyyyy overpaid union members accept substantial pay-cuts/benefit restructuring to share the pain. If they refuse then no more jobs.
Robert, rural Ontario
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Joseph from Ottawa
said
Uncontrolled capitalism has failed, and to fix it politicians have been shifting towards a socialist-semi-communist system. How in the world do you fix a failing systems with a socialist-communist system that failed as well????
Blue-neck Albertan
said
After being a die-hard GM fan for over 20 years, I became tired of paying for crappy product, and switched to Toyota products in 1992 and have never looked back.
These guys remind me of the poor millionaire NHL hockey players that held the country hostage for a year when they went on strike.
Let me summarize this up in 3 words: Boo friggen hoo...
Scott Beckingsale
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KJ in Kingston Ontario
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Scott in Victoria
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Jey from Mississauga
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Jason
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Ed . Dunchurch
said
It is not just the Big 3, Honda and Toyota are cutting back on production as their sales last month were down 30+%. It would be absolute folly to continue building more vehicles.
Tough as it is we had better get used to this for a while.
Patrick
said
Why is that unions think that the big 3 owe them the sun, moon, & stars? Get a grip on reality you greedy morons.
Wallygator
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Kevin in Oshawa
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Not to worry
said
Merry Christmas canada!!!
Terry out West
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Nancy
said
By the way 14 billion dollars will do nothing, GM's debt alone is 65 billion in the US. Do not give these unions our money. If they hadn't been holding these companies hostage for so many years, perhaps bankruptcy wouldn't be inevitable.
BONNIE
said
Ari
said
Start from yourself first before you ask the government to bail you out with the hard earned Canadian taxpayer's money. Show that you are ready, willing and have a plan to make sacrifices in your salaries and benefits, show that the company has a plan to restructure everything and make it profitable, and then you are in line to be assessed if you deserve such help or not.
Why should Canadians and for that matter the Americans pay for your extremely high salaries and benefits? Why isn't Toyota, Honda and Mazda seeking any help?
Aswer these questions first, look in the mirror to find the anwer and than perheps if you satisfy the taxpayers that indeed you have learned from your mistakes you will get the help.
Sorry, Mr. Union but that's the reality of real world and not that of the iceland you are isolated in.
Jammers5
said
Having said thay what are other automakers doing - we haven't heard anything about Toyota, Honda, Hyundai etc - are they in trouble too?
GK in NB
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DWR
said
You want to make the companies to do better financially? Why not start at the top get rid of the private jets, Chauffer Driven Limo, hot and cold running personal assistance and the obscenely high wages, for both management and the workers etc etc...
Then try really hard to make a quality vehicle that is good on gas and is affordable to the average person out there. Then perhaps you would not be in this bad position now.
Just think about it.
JP in Ontario
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gord
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Sharon
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Amy in Winnipeg
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Lucy AB
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Tammy
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All these fat cat business men that call themselves specialists are bringing in 6 figure incomes and they have the nerve to say that the CAW makes too much money!!!!! How dare they! They can make as much as they want but a lowly factory worker is not important enough to make a living wage and support his or her family... to live in a house that they bought working on the line...
You peoples sense of justice and fairness sickens me... You would rather see everyone brought down then to fight to lift everyone up...
WE NEED GOOD PAYING JOBS TO MAKE OUR ECONOMY WORK!!!!!!! HOW CAN YOU NOT SEE THAT!!!!!
Todd in ON
said
The blame for this is squarely on the shoulders of GM and the union.
Bill
said
You created this situation by not paying attention to market trends and the overall economy.
If you can't compete why should we bail you out? Darwinism in action - survival of the fitest.
Larry Wallace
said
If the government does bail them out, one of the conditions is the entire Board of Directors should be replaced along with the CEO's and CFO's of these companies with out benefit of ANY severance package, as this should be put back into the company to pay off creditors. This is what happens to the workers wages and serverance when a company goes bankrupt!
Larry Kitchener
Jackie Barrett
said
Food for though, I learned that an average employee at at GM, Chrysler, or Ford plant costs at least $72 an hour in benefits and wages. Its no wonder why American big three automakers are in bad shape.
In the end, if GM does file for bankruptcy protection or bankruptcy, the first steps include renewing contracts and pay wages comparable to Japanese big three, build vehicles with high fuel economy to rival the Toyota Prius, and keep benefits to a minimum. Simple as that.
John From Ottawa
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Lindsay
said
Thanks everyone who bought imports re: price, mileage, etc. etc.
What were you thinking???
Now your neighbours, family members, etc. are out of work and maybe you are next.
Matt
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chris
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Ki-Some Victoria BC
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Mad Mary
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Darlene in Halifax
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Steve Searle Bowmanville Ont
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Gary Findlay
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J.C.
said
If the CDN government puts money into the auto sector whose to say they won't use it for the US and therefore would not do anything for Canada.
The two unions need to get together and offer concessions if they want to keep their jobs.
I do hope the government uses its head in this matter and does not just throw money to the Big 3. I hope the "coalition" took strong note of the US rejection since they just wanted to throw out the money!!!!
Dave T
said
Quit wasting my money. If there really is that much kicking around Ottawa then lower our taxes more and leave my money in my pocket so I can save my own finances rather that worrying about some Multi-billion dollar company. They made their beds. Let them sleep in them.
CJ in Edmonton
said
The auto industry should not be bailed out. They said it themselves...they built lacklustre cars, overly priced, and they are being trumped by the foreign markets.
Rob, Kitchener
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Mark
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JohnBoy
said
Brittany
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Sheila
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Alberta Jim
said