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CAW reaches tentative deals with GM, Chrysler
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CTV.ca News Staff
Date: Thu. May. 15 2008 9:40 PM ET
The Canadian Auto Workers union has now reached contract agreements with North America's Big Three automakers. The CAW came to tentative agreements with Chrysler and GM Thursday -- similar to a deal cemented with Ford just weeks ago.
The union says the deals are good news for workers, who won't see their salaries slashed. But analysts say they may spell trouble for the Canadian auto industry in the long run, which could end up being less cost effective than its American counterpart because of higher wages.
Thursday's agreements will:
- Freeze wages at $34 per hour this year
- Cut annual vacations by one week for a one-time payment of $3,500
- Eliminate a $25,000 retirement allowance
- Include a prescription drug co-pay of 10 per cent
The new GM contract deal postpones the planned closure of a shift at GM's Oshawa plant until 2009.
"We were able to convince GM to not act in haste and take the shift off," CAW President Buzz Hargrove told reporters on Thursday. "Let's keep it alive, let's keep workers working which keeps their income and benefits alive.
"The city of Oshawa and Durham region are a lot better off today because of that," he said.
The CAW was also able to postpone the closure of a plant in Etobicoke which Chrysler had been trying to shut down for the past 15 years, Hargrove said.
"We weren't able to get it into the agreement but we did extend its life until mid-2011," he said at a news conference Thursday afternoon.
He noted that it was much cheaper for Chrysler to purchase the parts rather than have them manufactured.
However, he also said the automaker had committed itself to trying to find a long-term solution for the Etobicoke plant that could include either finding a new supplier or entering into a joint venture which would extend the plant's life.
But some experts fear that by not giving up more, the Canadian Auto Workers may be making it too expensive to build cars in Canada for the long term.
"At the end of the day, the Canadian operations are $20 an hour more costly than any other operation in the world for GM, Ford and Chrysler. Why would they put up with that longer term, when they have a choice," auto analyst Dennis Desrosiers told CTV News.
Teams of negotiators from the union had been in talks with GM and Chrysler all night, trying to hammer out early collective agreements between the automakers and the union's members.
The union had been pressing for commitments for new products, investments in Ontario factories and efforts to reduce job losses.
Late Wednesday night, Hargrove said the automakers were resisting an exact copy of the deal the union made with Ford. Usually, the CAW uses an agreement with one of the North American automakers as a basis for deals with the other two.
"We've done the very best to protect as many jobs as we could and protect and support people who won't have a job," Hargrove said on Thursday.
Ford's recently cemented contract with the CAW reduced vacation time and stopped cost-of-living wage adjustments for at least a year, but ensured workers' base wages remain constant.
The union began talks with GM last week and Chrysler this week, hoping to reach early deals for its 22,000 members working at the two companies. The existing contracts do not expire until September.
The Ford deal has been ratified by the affected CAW members and voting will begin Friday for GM workers and on Saturday for Chrysler workers.
The negotiations came as opposition parties attacked Ontario Premier Dalton McGuinty for his support of the automakers, accusing him of giving millions to a flagging industry without obtaining assurances of job security. Criticism increased following news GM plans to shut down a transmission plant in Windsor.
Hargrove had nothing but praise for McGuinty on Thursday, but accused the federal government of lacking interest in helping the flagging manufacturing sector.
"The only one who hasn't offered any help or doesn't give a damn is Ottawa, Harper," he told reporters on Thursday. "They're not engaging our union."
With files from The Canadian Press and a report from CTV Toronto's Matet Nebres
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I applaud the budget, even though Health Care and education may stay unscathed. Sadly this cannot last and I worry to later this year where cuts will become enviable. If anything, this provides the Wildrose Alliance plenty of ammo when an election is called.
Comments are now closed for this story
Steve Ermos
said
Buzz and the CAW have effectively destroyed the big 3.
Congratulations Buzz.
Jim McB
said
Socialism is dead because it does not work, unions should go the same way. An educated work force involved with the product and a profit share is the way to go.
Socialism is killing us...
said
The reason why GM is in trouble is because they produce an inferior quality of product by comparison to its competitors. GM could make it better but chose not to. It goes against everything in my to see McGuinty give away hundreds of millions to GM for what is THEIR mistakes. Let them go bankrupt.
We are not in a free market economy as evidenced by McGuintys actions.
Mark M
said
Gary
said
CAW 222 Member & Proud GM employee
said
You should research your facts before you speak. GM Oshawa has won several awards in the the last 5 years for quality and workmanship. Sure I agree 10 years ago GM quality sucked, but since then it has all changed. North American vehicles are some of the safest on the roads. As for fuel milage GM is a world leader in fuel efficient and alternative energy vehicles. For all who say we don't need GM in Ontario, if GM were to pull out of Oshawa, your taxes would double, house prices would fall, business's would close. For every direct GM job there is 7 others that do a job related to that one
Anne
said
Pierre C.
said
tank owner
said
As well, I own a GM vehicle and my car is a tank, not only with maintenance, but with safety innovations and winter driving innovations make the competition seem very inferior. I often compare my car to Japanese, Swedish and German cars and for the lower amount I get all the options I want as well as lower fuel economy.
By the way, Saab developed a system many years ago to reduce whiplash and other fatigue caused by rear ended accidents. GM has implemented this in a few of their cars and it really makes a huge difference!
I am glad this union is not getting any leaway. Its a bitter shame that those that actually have to sell the product receive little compensation in comparison to the money hungry trade unions that Buzz represents!
J.C.
said
DWB
said
Socialists invaded the Sahara and won. Nothing happened for three years and then there was a shortage of sand.
Roger T
said
My friends and I are not planning to buy a car anytime soon, regardless if it's hybre or other so called fuel effecient cars.
Hybre or not, if prices don't drop to reflect our dollar and soaring gas prices, it can wait.
Auto businesses are going no where with the slump of sales.
MM
said
Bob Loblaw
said
Sal Bakker
said
In Oshawa I believe we manage to assemble a car for less than $1000 all in, Harbour report highest effiency North America.
Ontarians are getting hosed !!
said
The real dummies are the Ontario voters who don't see through this garbage and keeping voting for socialism which doesn't work! It's not helping the average Joe...just the union members, the politicians (of course) and fat cat businesses.
It's morally and ethically wrong but where using our money is concerned this Liberal government doesn't have a conscience..
Brad
said
Shamaro
said
Mandosa
said
Raj
said
loveit2
said
1 Keep our tax money and refund to all Canadian (just liked US government just did for their people) - do not give it to GM because they will invest in other counties and import the car to Canada and to Canadian.
2 Lower the wages for all those workers to $12/hr. and keep jobs in Canada. I know 1400 Windsor GM workers would happy about it. I did ask one of them and he said why not.
3 The government should not allow import goods to sell in Canada! Make a law about it. This way no import goods. 95% goods in store now from other counties.
**no jobs, no money, no shopping**
Jack
said
So I guess the auto workers, at least for now, will be the ones who can afford to fill their gas tanks while the rest of us continue to struggle with no relief in sight.
Ken Deboo
said
Buzz negotiated responsibly in these tough times with the concern of 15000 autoworkers in mind. Not to mention another 100,000 off-shoot jobs in the GTA that may have been affected had he not done so. The government has a vested interest in saving those 115,000 jobs even if some of the "naysayers" don't.
Dean
said
YES..."Inferior Quality" !!
said
You guys pumping GM ought to be ashamed of yourselves. You don't know what quality is because you are so used to building poorly designed junk. Same for Ford and the worst by far is Chrysler products.
Stand beside a Honda or Toyota V6 and a GM V6 when running and you can barely hear the Japanese vehicles wheras the GM is "clunking" and "clanking" by comparison.
Definitely inferior quality! If it weren't true people would be buying GM, Ford & Chryco products...but they aren't.
Shamaro
said
RDL
said
2) This is a cyclical problem. Example: A carpenter (pick a occupation)needs a new truck/vehicle, and due to the high prices of these vehicles can't afford it unless they get more money, so they the carpenters union goes on strike for higher wages. Now that auto worker needs an addition to his house and because the carpenters wages are higher, he too can't afford it with out additional money, so what happens/ he goes on strike again to get more money, because any increase to the corporate cost is passed directly to the consumer.
It is no wonder that places like Mexico are getting the lions share of jobs. Their wages are a fraction of the costs.
And this is why NAFTA is a good thing. As the Mexican Auto workers do not get $70.00/hour so simple math should equate to a cheaper product.
GET RID OF UNIONS
Chris
said
Trent
said
Its funny how McGuinty is placing the blame on the evil corporations and expecting them to pay, it seems to be his strategy to point the blame at everyone else.
For those that are saying the big 3s product is as good or better then the imports it doesn't seem like indepedant reviews agree with you. Heck they have even had to start new categories like 'North American Car of the Year' just so the big 3 have a chance of winning one!
Doug Lyon
said
Rob J
said
As for McSquinty,
STOP GIVING MY MONEY AWAY!!!
As an employee of a small company about to close its doors I don't see any money being offered to small business.
Chris Barnes
said
GM has come a long way since the early 80's.
And please don't bash the CAW locals, they do a hell of a lot of good work within the community you live in even if you don't see or hear about it.
Plus that $100,000 we EARN, we put a lot of hours in for that money and pay a lot of taxes too which should be pumped back into country you live in.
Just remember that our children will need jobs too, please get them into the Trades before its to late.
Rob in Northern Ontario
said
GlennW
said
GM has issues with bringing product to market in a expedient manner but their quality is as good or better than any other. They just need to work on changing engineering and product to meet market demands in quick order.
This is a good investment in technology and jobs.
JJ
said
Ray
said
Marlin
said
Vanessa C
said
JDP
said
You thought the "common sense revolution" was bad for Ontario? Looks like McGuinty's "politically-correct communist revolution" is driving that province hopelessly into the ground.
Sadly enough, Ontario's troubles (which are troubles of its own doing) will drive Canadians to vote in a Liberal federal government, who will in turn tax the life out of Alberta so they can prop up their Ontario voter base. You heard it here first, Canada.
Gord
said
Bottom line, the Big 3 leadership together with the UAW/CAW leadership kept loading up while the Japanese were quietly building an image and quality. I'm opposed to Mr. McGinty giving my tax money to these fat cat Big 3 manufacturere's and their fat cat employees.
Eric
said
CAW 222 Member & Proud GM employee
Inferior Quality????
You should research your facts before you speak. GM Oshawa has won several awards in the the last 5 years for quality and workmanship. Sure I agree 10 years ago GM quality sucked, but since then it has all changed.
Before you go and chastise some one else, you should carefully check your facts. GM's quality awards have been for INITIAL quality. Meaning for the first little bit of ownership. I worked for a GM dealership. I saw those cars coming in off lease and trade....They were falling apart!!! GM's engineering stinks! They build with cheap parts. Thats not your fault though. Thats poor standards on the engineering dept's. People this is not jsut the workers fault...The '3' didn't listen to their customers and respect the competition. Yes the union's drive up the cost. But that was only a part of it all.
JDP
said
Mr. Hargrove and his minions have established the exact opposite - bleed the company for all its worth, make it less viable, and spread the destruction onto the taxpayer. Unions are only beneficial for emergency service providers (who cannot strike) in this day and age. An auto worker is NOT in that category.
frank
said
Take a minute and think about it.Was Buzz sitting at that table alone? Did he come up with this agreement all on his own? They call it an agreement because more than one party agreed to it. If your going to spread blame like manure, spread it evenly please.
Disgusted!
said
As for the unions. It is time for the members of the CAW (and all unions) to realize that it is the likes of Mr. Hargrove et al., who are causing the problems. It is a sad day when a union dictates whether a company can shut down a plant or a line to save money that is being squandered on factory work.
Unions have no place in society today. In the 30's yes but not today. It is time for a shake up and to say Hasta La Vista Baby. Of course, then what would Mr. Hargrove do for work.
As for the government, it is too bad that they don't invest in smaller company's who are in dire need to stay afloat instead of union-rich industries like the automotive industry.
Jayson
said
Cheers
Meggy
said
Lart from Above
said
Japanese manufacturers make good cars; North American manufacturers do too. A pro-business free trader would have to be concerned about the non-tariff barriers Asian countries impose on North American exports to Asian countries. That's much more significant than subjective comments about quality. Though another reality is that North Americans purchase many more cars per capita than Asians; we have a lot more suburban sprawl and a lot less public transit than they do, so we are a disproportionate amount of the world's car market.
Other industries are consolidating, to reduce inefficiencies and deliver more value to consumers and shareholders. We should expect to see more integration between North American and international car makers in years to come.
Teri
said
Maybe the Government and the unions should give their heads a shake.
1. With the gas pricesthe way they are we should all stop driving as much and walk, bike etc that includes these fat cat union members.
2. less wear on our vehicles means less parts would be needed.
3. Also less health problems by walking and biking. Which means less stress on our health care system.
4.Better air for us all and our future grandchildren.
5. Come on GM amd union people come up with new ways to power our cars , bus, trucks, etc,
6. live near where you work so you can walk or bike . I am tired of hearing about unions and their so called problems. if you would stop being greedy you would not be in this mess. Follow us seniors example walk bike or go by public transit. Beacause you can drive doesn't mean you need to drive to cornor store etc to buy unhealthy junk food and cigs etc . Get with it we should know better.
Mike from Ontario
said
I hate to spoil your
party, but Canadians will still be buying cars, and supporting the associated spin-off jobs & economy. The only major difference is that the unions are getting cut out of the action. Let's see if Honda & Toyota find themselves in the same position 40 yrs from now - somehow I doubt it.
Michelle
said
The simple answer is, the Big 3 got too big, too complacent and neglected putting money into research and development. The foreign automakers brought innovatively designed vehicles to North America with features that consumers wanted. 10 to 15 years ago, foreign cars overtook the market by offering a wide range of vehicles that performed better, were more reliable and got better gas mileage, all for a much lower price than any of the Big 3.
Let's just face it: GM, Ford and Chrysler took their customers for granted and are now paying for it after playing catch up all these years.
I feel for those who will lose their jobs all because the companies they worked for decided that improving their product wasn't important. Many companies go out of business every day because what they make, or what they do doesn't stand out anymore, or they just assume their customers will be loyal to them. Business simply doesn't work that way. To make money you have to do it better and cheaper with a product that exceeds your customers needs. The foreign automakers did that. The Big 3 are lucky to have survived.
Read this for balance
said
For all the workers posting here, you can see how consumers have been frustrated over the years with bad cars which have created a bad reputation and a cynical attitude about improving quality. (side note, my dad had a 77 caprice that lasted 22 years and was purchased at the end, it was a good car).
When comparing, be sure to compare the right things - For example, Ford just reported a 100 million profit and has been cited as one of the highest quality cars, so they are moving in the right direction. Kia on the other hand, is a really bad low end product, so when someone says an import is better, depends on what you compare it to.
I wouldn't buy domestic myself, too many union fees in there, but you can see why any union who wants more in a sideways economy is hated.
loveit2
said
I don't think anything will change for better. Mr. McGuinty has our tax money so he can do whatever he like with it.
Those greedy union workers will have to suck up as much as our tax money go until the jobs gone to other countries.
After GM close in Ontario, we will be in debt then and Ontarian will have to pay for it.
Tank owner
said
I'll put my Honda V6 against ANYTHING GM has to offer for Quality, fit and finish and gap tolerances ANY DAY OF THE WEEK!!
You guys pumping GM ought to be ashamed of yourselves. You don't know what quality is because you are so used to building poorly designed junk. Same for Ford and the worst by far is Chrysler products.
Stand beside a Honda or Toyota V6 and a GM V6 when running and you can barely hear the Japanese vehicles wheras the GM is "clunking" and "clanking" by comparison.
Definitely inferior quality! If it weren't true people would be buying GM, Ford & Chryco products...but they aren't.
What a joke! As I clearly found out during my pregnancy when a Toyota and a Honda rear ended my malibu. You be glad to hear what I say about Saab is true!!
You know when the CEO of Toyota outright admits that they have quality problems that they are willing to sacrifice to output more units, you should probably realize that they are not that concerned about the motorists that drive them, but only how many units they can sell. And its because people with Hondas and their need for recless speeding and disregard for traffic laws that I drive a large car to protect me and my child from. Why do you think there are so many large SUV's on the road? You will find that there are those that purchase the largest vehicle they can to maintain a whip lash free life.
Danny
said
mararmeisto
said
My first car was a Datsun 200SX and I haven't looked back: Honda Civic, Nissan Altima, Honda Civic, VW Rabbit, VW Golf, Mitsubishi Delica and I have no intention of EVER buying a North American vehicle. We on this continent have been languishing on laurels of automotive industry for the last hundred years because we came up with the first assembly line, first successful car, first blah, blah, blah.
Those awards the one poster commented on? They're given out by the North American vehicle industry - of course the plants in Ontario won them! You don't think the committee was going to fly to Bayern or Tokyo and present the award to VW or Mitsubishi did you?!? "Hey guys, great cars you're building over here. Little small, but I guess some people like 'em. Good job, just the same."
It's taken nearly 10 years for the Smart car to be approved for the American market - and it gets the highest rating for crash safety. This after EVERYONE pooh-poohed its size as "probably not a safe car"!
I also agree with many of the other posters: GET RID OF THE UNIONS! The companies are in trouble primarily because the unions have been dragging them down for the past 50 years. Organised workers - yes, but how about an employer that has little or no say in how their company should be run? which employees it can hire? how much to pay those employees? Dump the unions and MAYBE the Big 3 can recover enough to sell cars on this continent again.
I'm eagerly awaiting the numbers this year to see if Toyota or Honda finally outsell the North American companies.
And finally, for those of you who say "don't buy those foreign cars, buy something built in North America" - like a Honda (got a plant in Ontario) or a Toyota (got a plant in Ontario) or a Volkswagen (got a plant in America) or ... well, you get the idea.
DOMESTIC CAR OWNER AND SUPPORTER
said
Look at the BIG picture. Without those industries in Ontario, your job would probably not exist. The government is INVESTING in these companies, not giving them your tax dollar. These large industries pour millions of dollars back into communities by way of paying their employees a good wage, thereby allowing those 150,000 employed and indirectly employed by the auto industries in GTA to spend their hard earned money buying your product and allowing you to have a good living as well.
How many of you foreign car owners have clients/customers in Japan or Germany or Korea??? How many are Canadian or American?? Something to think about next time you are shopping for a car. Where are my wages coming from?!?!?!
Quality is the difference
said
SALES CONTINUE TO DECREASE BECAUSE:
US car design is inferior to imports making the sum total product offering inferior. Just because parts are made here doesn't mean squat really. The DESIGN is problem for NA vehicles and why the Japanese have the slice they do of the market. For decades GM, Ford and Chrysler designed cars to start falling apart after 1, 2 and 3 years. It was called "planned obsolescence" or "built to crap out on you". That has cost them dearly due to their own GREED and for us to subsidze them now is WRONG on the part of our Liberal govt.
IF GM, FORD AND CHRYCO made a better product they would sell. They are not and they are losing market share. They make big overpriced gas guzzlers (which is where the big bucks are made). Its not that GM et al dont have the expertise - it's that they don't really want to produce a really good vehicle like a Honda.
After 4 years I haven't had 1 light bulb go out on my Honda. Never had that good quality on a GM car.
Zircon
said
Government...helping the flagging manufacturing sector.
Translation: Hey taxpayers, give us your money.
Buzz, when did it become the taxpayers obligation to bail the private companies you work for out, when it's you and your union driving them to pay so much in wages to your members in the first place, that they can't stay competitive and afloat?
When will Canadians wake up from the socialism that is infecting us on so many economic and social levels?
Randy.
said
Windsor Opinion
said
I currently drive a Toyota, because it was the highest ranked for quality and safety in the class I was interested in, along with Honda. Prior to this I drove four Big 3 products, all of which cost me thousands in repairs over only a few short years for each, and all of which managed to demonstrate every problem identified in "lemon" books that described them. I've never had a problem with my Toyota, but I'll gladly drive a Big 3 built vehicle when they consistently rank as high in the quality, safety and satisfaction surveys as the likes of Toyota or Honda. Because GM had a few better ranked vehicles lately does not demonstrate a consistent pattern.
All of this said, I grow more and more unsupportive of the local big 3 industry when I am verbally chastised by their workers for driving a Toyota; it was built in Ontario, it's my money, and my choice. Living elsewhere in the Province, you don't face this kind of discrimination and anonymous berating for your choice of vehicle. If the Big 3 want my vocal support, they need to stop attacking people for driving their vehicle preference. If they want my financial support, they need to CONSISTENTLY build quality vehicles.
Regarding that whole arguement of ONE auto job equals X others, I'd like to see something official, as opposed to one person's assumption. I hear such stats all the time (always with different numbers, ranging from three to as many as ten). I say prove it.
Paulleewoggers
said
gig
said
DWB
said
The same question applies to government monopolies.
Why should the same taxpayer subsidize transit, liquor store, public service, and other employees that don't have to compete in the marketplace?
We got a Marxist state without the revolution.
Doug BC
said
I'd agree that SOME unions have pushed their monopoly status to far.Killing your employer like shooting yourself in the foot.
However,Canadians should not be to quick to join the stampede to lower wages and working conditions to those of 2nd or 3rd world countries.That,in time,will be like shooting yourself in the head.
There is a bit of hypocracy in consumers who want good wages and working conditions,but only want to pay 3rd world prices.In the real world,good quality and cheap are rarely found in one product.
Canada does need to get off the subsidy train.But to do that,we have to find more creative ways to make sure our economy can compete,AND provide good livings for Canadians.
We have the educated work force,and we have all the resources to make or grow anything.I think what's missing,is creative thinking,and leadership.All the provincial infighting and federal parties that are unable to develope policy because they spend all their time trying to gain an advantage in the next election.
Higher productivity and lower costs are the only way to compete in world markets.We should be able to do this as our debt load is reduced.
Of course,no amount of productivity will give unskilled workers top wages.But successful companies will be able to afford good wages for those with the skills to justify them.
Direct subsidies like Mr.McGuinty suggests,are not a long term solution.Nor are indirect subsidies,such as a $.65 dollar.
Stephanie
said
Captialism is killing us...
said
Raymond
said
That is all.
DW
said
Just get rid of the union and no problem. Why should the tax payer pay to support private companies.
Kevin D
said
RRor
said
When they are allowed to sell there products in Japan etc. then they will be able to compete.
Right now the trade agreement allows Honda et al to sell over here while we can't sell our product over there.
It's not fair or free trade, and once againn you've got a gov't to blame for this policy.
GM,Ford and Chrysler products are every bit as good as any thing else thats made on this planet. They made by the same human beings.
I'm from Sask where we have no auto plants but I sympathize with the workers that are held responsible by the greater part of the posters. IT'S NOT THEIR FAULT.
Jack
said
union & free market player
said
I'm sick and tired of hearing let the free market do what it wants.
Free market is an illusion. The free market is full of regulations imposed on them by investors and governments and society.
We all want guarantees in life. The investors who play the free market all want some form of guarantee.
Unions are not perfect, but big corporations are not saintly either.
Chris
said
"We had contracts all over the world!!! Cheap spare parts and manufacturing plants employed all over the world for the next 20 years... who gives a damn if it works or not!!!"
That's the mentality of North American Auto industries. And the unions could give two s**t's about that as well, as long as they get their raises and pensions.
GM
said
If CAW wanted to do something smart, they would agree to substantially drop the wages of GM workers AND union, let these people keep their jobs, and sell their vehicles for way less money.
CAW workers partner
said
FACT : Tax money hasn't been paid to ALL of the companies.
FACT : to earn $100,000 they have worked long hours 7 days a week inc many so called public holidays.
FACT : many of them are highly skilled workers with degrees.
FACT : you CAN NOT buy a North American made car anywhere in ASIA they refused to let them be sold there - fair trade ?
STOP MOANING ABOUT UNIONS BEING THE PROBLEM, THEY'VE REACHED THIS AGREEMENT EARLY TO SAVE ANY UN- REST NOT TO CAUSE PROBLEMS.
Unless everyone is going to have the same wage at the end of the day and all prices are low etc etc, you will always have some one on a lower wage moaning....if you want stupid wages look to the banks etc and their bonus/wage situation, now that's stupid millions in bonus.....like that doesn't come from your pocket in one way or another
Andy/Edm
said
Chris
said
"If your going to spread blame like manure, spread it evenly please."
Ok... I blame you too.
JAA
said
I also find it really funny, ironic that those that have never owned domestic have the BALLS to criticize a car company that manufactures hundreds of vehicles made for industry and personal use. What are doing? Who are you to judge? GM sells a third of all vehicles in Canada. One third!!
But hey, I never get sick of hearing the rattly muffler going by my house 5 am, which is a civic.
JW
said
Paul Borg
said
If it takes government subsidies to keep these plants going, I say, "Go for it!"
You naysayers don't seem to understand the spinoff benefits from having these high quality operations here.
Sal Bakker
said
I was just trying to bait a capitalist into defending a $120/barrel oil price, seeing as the auto industry employees have to defend their wages all the time. I'm can't quote real figures, but it costs roughly $1000 to assemble a car, $5000 for parts, $15,000 for advertising, $1000 for shipping and $8000 for everything else...warranties, profit, capital expenses, etc. So, as you can see, we can't sell a car for $6000. So now let the greedy capitalists break down the cost of $120 a barrel oil.
Dave
said
Just remember without the automakers in Ontario most manufacturing jobs will be gone.
Carolyn Hewitt
said
I am currently a laid off worker of Chrsyler due to the loss of the third shift. I am so tired of hearing people talk about over paid autoworkers and our union. PEOPLE lets look at the real problem OUR GOVERNMENT Thanks to our government we are taking in the foreign cars and they will not buy our cars. First our Government makes deals with our lumber, oil, and manufacturing. Wake up Canadians it is not about us being over paid The BIG PICTURE is our GOVERNMENT KISSING UP TO AMERICANS we are CANADIANS we should be proud of what we build and work for. Stop letting our Government give away our jobs! By the way I paid over 25,000 in taxes on my income last year and know over 3000,00 autoworkers have lost their job in the last year DO THE MATH what is the short fall on not collecting all that money. SO Stop Whining when the Govenment gives the auto industry money because I and others have been giving you the Canadian ALOT of money over the years!
Vic
said
The Big 3 Execs are equally as guilty as the UAW/CAW leadership in signing fat cat agreements together with agreeing to restrictive collective agreement language over the years restricting th ability of the Big 3 to manage their businesses.
Why? Well to get their production bonuses too, fatten up their pensions and to keep the gravy train moving along. With little to choose from, we car buyers were held hostage.They were all in on the scam, until the Japanese showed up. Arrogance was exemplified by the likes of cigar chomping ego driven windbags like Lee Iococca who challenged Japanese manufacturers to build cars in America. He seemed to think the Japanese success was a fluke and they were only successful because their cars were shipped to the US from Japan where low paid subservient workers made them when they were not off worshiping a sun god, sipping tea or dining on seaweed.
They did and are now eating the BIG 3's lunch. Why, especially when the Big 3 had a 100 year head start on the Japanese manufacturing cars in America? There were times Iococca could have been nominated for Sainthood back then. Just tack the added costs onto the product and let the next CEO deal with the problems it created. Well the present CEO's can't do that. Meanwhile the old Big 3 and UAW/CAW chiefs are all retired now in the sunny south and Buzz will soon be joining them, leaving behind a mess and a lot laid off CAW members seeking alternative $30.00 per hour plus benefits jobs and all with CAW entitlement 'tude. Fat chance.
Overall the auto industry is healthy in Canada. It's the CAW shops that are suffering. Are car buyers who prefer buying non Big 3 products doing so at gunpoint? Is dropping demand for Big 3 products part of an evil conspiracy ? Should Indiana Jones investigate this?
The Big 3 is no different than Simpsons Eatons and Stedmans and in the US J C Penny, Montgomery Ward and so on who were sleeping at the switch while WalMart crept up on them. And Oshawa, after a period of adjustment will re invent itself and move on to other things.Its not the end of civilization as we know it.
Meanwhile my reliable 5 cylinder Volvo takes me where ever I want to go safely, economically, warm in winter, cool in summer.
Bye bye Buzz.
Bozz
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john
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Bonnie M
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MACDOG
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