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CAW defiant in face of Chrysler's demands
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CTV.ca News Staff
Date: Thu. Mar. 12 2009 8:44 PM ET
The president of the Canadian Auto Workers says he won't agree to slash labour costs by 25 per cent, despite a threat from Chrysler that anything less will force the automaker to pull out of Canada.
CAW President Ken Lewenza said Chrysler's demands would give it an unfair advantage over its competitors and fly in the face of a new agreement between the union and General Motors.
"We're not about to break the pattern established at General Motors," Lewenza told CTV's Power Play on Thursday.
The comments come after Chrysler president Tom LaSorda said Wednesday that the company needs US$2.3 billion from Ottawa, along with major sacrifices from the CAW and a big break on $500 million in back taxes in order to stay in Canada.
LaSorda added that Chrysler would be willing to pull out of Canada, where it employs about 10,000 people, if it makes financial sense to do so.
But on Thursday, Lewenza said backing down to LaSorda's demands isn't a possibility.
"Under no conditions will we break the pattern with General Motors. The idea of patterned bargaining is to make sure that the automobile companies aren't at an advantage or a disadvantage," he said.
On Wednesday, General Motors reached an agreement with CAW that included major concessions by the union, in hopes of getting federal bailout funds.
CAW members voted 87 per cent in favour of the cost-cutting contract that includes a wage freeze to September 2012, the elimination of an annual bonus and a reduction in paid time off, among other concessions.
"We cannot disadvantage General Motors nor will we disadvantage our CAW members at Chrysler corporation," said Lewenza.
The CAW has generally used its first deal with a Big Three automaker to set a pattern for agreements with the other two.
LaSorda said his company's labour costs are $70 an hour in wages and benefits for both current workers and retirees. He says it needs to be cut by $20 per hour to be competitive.
But Lewenza downplayed those comments and said that it makes economic sense to build cars in Canada.
"Canada is by far the most successful and competitive environment to manufacture vehicles," he said.
"It certainly sounds like an ultimatum to us: either provide us the loans or we're not going to be here, give us a tax exemption or we're not going to be here," he said.
Political response
Later on Thursday, Federal Industry Minister Tony Clement said that Ottawa won't hand Chrysler a blank cheque, despite the threat of the company pulling out.
Clement added that Ottawa will relentlessly review the automakers' bailout proposals to ensure that Canadian taxpayers aren't left on the hook.
Still, Clement added that Canada must act to protect the auto sector, which employs about 10 per cent of the country's workforce either directly or indirectly.
Meanwhile, Ontario's economic development minister tried to pass off Chrysler's threat to leave Canada if its demands aren't met as simply a worst-case scenario being presented as part of a bargaining process.
"I know Tom LaSorda, he's a great Canadian and he's not somebody who wants to be known as they guy who shut down Chrysler," Michael Bryant told reporters in Toronto on Thursday.
"It was a ham-fisted way of expressing the reality that, in the absence of an agreement, Chrysler's going to face critical challenges."
With files from The Canadian Press
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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
Jon In London ON
said
Tom
said
Lynn in Hamilton, ON
said
John E
said
As for Chrysler. Let it go.
David From Windsor
said
Henry Wysmulek
said
Screw these pricks and let them leave! They will leave anyway and laugh in our faces as they get their big bonus checks from the stupid Taxpayers of Canada!
Ford pulled itself out of the same situation! So what is wrong with the management losers at Chrysler and g.m.?
Randy, Ontario
said
CAW should be forced to take a reduction before any taxpayer money is given.
Larry I Ontario
said
Seppo in Woodstock ON
said
- the Canadian dollar is 20% lower than the USD
- Chrysler wants a 25% drop in wages for the workers
This adds up to 45% cheaper labour costs in Canada. Add on the OHIP benefits that Chrysler doesn't pay for plus the 2.3 USD "loan" they want... si, si senor!
All I can say is bye, bye Chrysler!
Ian in Ottawa
said
Brad
said
Phil
said
Too bad for all the parts suppliers who probably work twice as hard for half as much.
catsrulz muskoka
said
Carol
said
the real CC
said
Joe
said
Dave Ontario East
said
Dayton
said
A Budd
said
KJ in Kingston Ontario
said
We are then basically expected to give up about twice as much (or 4 times as much per two income family) as the individual CAW members are giving up -- so they can keep their high paying jobs!!!!!
Like I have said before THIS IS TOTAL MADNESS!!!!!!
Kyle - Vaudreuil, Quebec
said
Tom in London
said
a) sales suck
b) they owe way too much in back taxes to Canada
If they don't pay their taxes how in the world will thye ever pay a "loan" back.
AMnswer, they wqon't. Let them go it will be cheaper in the long run for everyone.
stu
said
If the owner's see it as a bad investment, why is the government even considering it?
By the way "Cerberus" in Greek mythology was the giant dog that guarded the gates of hell....so no one could escape.
db
said
Nate
said
So all these auto workers have been posting here that they make no where near $70/$75/hr.
The $70/h includes wages, benefits, pension contributions, retiree benefits etc. That is a number thrown out there by someone making millions of dollars a year. Autoworkers make nowhere near that in hourly wages. When compared to the $50/hour that Toyota, Honda and Nissan make, you have to factor in that those companies have only been producing vehicles on North American soil for 25 years. Their number of retirees are nowhere nears as much as the Detroit 3. Take those numbers with a grain of salt. Remember, Mr LaSorda probably makes in excess of $1 million/ year. Where's his cuts?
HIT THE ROAD !
said
WHY SHOULD WE !
We all know for years you had the knowledge to build a car with exceptional milage , of course that wouldn't be in the best interest of the comsumer .
You always put your self first and the consumer last.
It's time to say GOOD BY .
He who builds the best sells the most.
Cambob
said
Seriously people, if they give more welfare to these billion dollar AMERICAN companies, we must reconsider paying tax to the federal and provinical governments.
Opimist
said
Dave
said
Grant Guelph
said
Dave Montreal
said
Mel from Calgary
said
Sherry
said
David From Windsor Ontario
said
Ronald in Toronto
said
I'm not suggesting that as a strategy, but it begs the question: What am I missing?
And yes, I do appreciate the "ripple effect".
Brian in Sarnia
said
TVic
said
Otherwise - blow 'em a kiss goodbye, Tony. I don't want my tax dollars being held to ransom!!
D.K.
said
We Canadians are smug enough to threaten to not buy Chrysler products. Remember we are probably less than 5% of their world market so this is not much of a threat since the Americans will buy more of their products to show their loyalty to a company that brought jobs back to them.
Huge wage cuts, moving all operations back to U.S. sounds like a Chapter 11 bankruptcy plan.
Car - Winnipeg
said
Nick in Gatineau
said
Businesses exist to make money.
The more Unions wrangle them for their 'fair share' as they put it, the less profit a business makes. After 15 or 16 bargaining agreements, what do you think the profit margin is going to be ?
Only options are to hike up the price of the product - which they did. What cost $ 10,000 in 1980, now costs $ 25,000 if not more. The quality of steel used has dwindled. The safety of the vehicles is restricted to the cabin only. Just take a look at bumpers on the new cars. The cars asre made to be write-offs if you are in an accident - justifying exhorbitant Insurance costs.
So the manufacturers have lowered the material costs while the salaries increased by how much ? 400 % ? 500 % ? 600 % more than what they were 30 years ago ?
Let Chrysler go and take the option of the lien. If people in windsor are scared, tell them to talk to all those mining communities that are ghost towns now, or the Oil communities that are fast becoming ghost towns. Tell them to talk to the those in the Pulp / Paper / Lumber industry. Or the Fisheries industry. Or the Hightech sector. The list goes on and on.
The only people I feel bad for are the retirees.
Unions do not care about non-unionized workers in Canada and don't realize that their actions is what is causing many canadians to end up in poverty.
Just wait until Government unions reach the same point of no return !!! The famous point where Uinions will be forced to cut their numbers (and thus service) in order to obtain what they wish for.
Roger T
said
NO BAILOUT FROM TAX PAYERS MONEY!
John -- Chatham
said
André in Ontario
said
CYL
said
Craig from NS
said
Mike F from Whitby
said
Auto workers do make a lot more money than most canadians with fewer skills and education.
But they also spend it. Keeping a lot of other canadians employed directly and indirectly.
Yes they make $35-40/hr with great benefits which can add up to 70/hr if the whole family uses the benefits.
I have experienced first hand what happens when we don't support our own. Our furniture plant was shut down because we couldn't compete with unfair competition in China. almost 500 people out of work.
I have been buying domestically made chrysler cars for the last 15 years and have never had any problems.I know there are superior brands, but I'm not perfect myself and dont expect it from others.
Rick in Clayton
said
DP
said
M.Hall - Ontario
said
reidjr
said
James
said
Steve T
said
Is it any wonder the Big 3 aren't competitive, with this type of goofy attitude by their employees?
Al
said
The D3 need to follow the Japanese model, from the penthouse to the lineworker. Why is a Canadian exec of a failing company worth 20 times what his Japanese counterpart is worth?Where is the personal responsibility of the people, like LaSorda, making these huge paycheques?
If Toyota can make money in Canada with similar pay schedules, the difference must be on the management side of the equation.
I do not think the Canadian operations of either GM or Chrysler have led to their current problems, but of course they don't have to open their books to disprove my theory.
pete
said
Do they think losing access to 35 million consumers (Canada WILL come out of this downturn first.. and strongest) is going to help their bottom line?
Brian in Toronto
said
Chris, Irishtown NL
said
Keith R. , Enfield,N.S.
said
That being said, ALL stake-holders have to discuss all options and reach a solution , fair to everyone.
Not the least of which is the Canadian taxpayer.
For all that, I am not entirely confident Chrysler will survive even will a massive loan or severe worker concessions.
Melissa
said
2. Quit paying the top guys millions a year...hard to feel sorry for multi-billionaires, when I struggle to buy groceries.
3. Suck it up and fix it yourselves. If you can't fend for yourselves you shouldn't be in todays world.
MCinNB
said
If you read the article you would see that in that number is also the cost of benefits and additionally, the cost of retirees. So no, they aren't making $70/hr according to him, but every hour worked, when you add wage, benefits and the retiree costs, costs them $70, that's not the same thing.
The fact is, the cost to carry anyone who works is far greater than their salary. It's salary, payrolll taxes, office space, electricity, the computer you may work on, phones, overhead (payroll, HR, etc) and so on and so on.
So before you say Haha gotcha! try reading a bit more and writing a bit less. As the timeless expression goes, it's best to stay quiet and though a fool than to speak up and remove all doubt.
OMG $70/hr
said
Jake in Oshawa
said
Jim in Edmonton
said
Rick from SK
said
Gary
said
Sid from Red Deer
said
"We need money, boo hoo hoo, so we can keep our jobs and make more stupid decisions."
Rob in Toronto
said
Even your kid who makes $8/h is on the books with his employer for signifcantly more as an expense. No auto worker is carrying home an actual hourly wage anywhere near $70 an hour.
I think if people were honest about their own situations they would see that the math these companies throw around is not as impressive as they try to make it.
For my part I will say that $70/h doesn't even impress me. My employer pays an average hourly wage of between $30 - 40/h ...but by the time he makes his share of pension, health benifits, training, vacation, etc...well over $70/h.
Walking Man
said
It would be typical of PM Harper/I wannabe a president, to give the bailout just to garner votes & stay in power, whether it be the right thing to do or not..... Let em go & good riddence... mho
John Tao from neudorf SK
said
Steven B
said
It is very unfortunate and uncomfortable to think, but they GM and Crysler may need to file for bankruptcy protection. This will result in a level of restructuring, wage/benefit concessions, pension obligation relief and creditor negotiations that could not be obtained otherwise. Non-unionized management will also need to commit to the sames concessions with wage/benefit reductions mirroring the AVG concession received from it's employees.
Only then will the gov't be in a position to offer asset guaranteed loans with immediate payment due should they move out of Canada.
I agree with most, that less pay is better then no pay. I am not knocking any auto sector employee, but many do not have college/university education and it would be tough to find a job in life after GM/Chrysler that pays more the $12-15/hr at best. I am in Kitchener and have seen it here with many at the now closed auto frame manufacturing plant (nee Budd Canada).
Count your lucky stars for what you have enjoyed for many years, and then count them again for what you hopefully sill continue to have even at a 25% reduction in salary and benefits. Keep in mind the AVG Canadian income is well below $40K, so even with the concessions they are doing very well.
My honest opinion is that one of the "Big 3" must go! The North American auto manufacturers have too much capacity for too little demand. This maybe fine in the 70's when they commanded 80+% of the market share, but with less then 40% today there is no longer room for 3 in N.A.
rob rogers
said
Rick in NB
said
We don't negociate with terrorist. Why entertain Lasorda's delusions.
Why is it that Cerberus Capital Management owns a majority of both GM and Chrysler. But told the US congress that they were not in the business bailing out the companies. They stated that it wasn't in the interest of thier investors.
So what i gather is happening is we pay the bill for private enterprise to proffer during a recession. If Clement give these clowns money than we deserve what our future deals us. We are Canada's investors.
kelly
said
I say everyone at Chrysler needs to take a pay cut from the CEO all the way down to the lowest level before we should give them anymore money.
-or-
If they decide to move out of Canada, then no more Chrysler vehicles should be sold here.
Shawn
said
Don Smith
said
Who cares?
said
J. Pinsonneault Unity, SK.
said
Red
said
pinger
said
Mike B
said
Chrysler workers look at tHeir paycheque and say that ther dont make $70 - 75 an hour and in their minds that is true.
They dont make that amount directly.
BUT
They do indirectly.
What I mean is by the time you add in their hourly wages which average about $35 and hour and then add in their benefits and pensions and all the other little perks including the companies share of CPP etc it adds up to $70 - 75 an hour for the company to have them there. So yes indirectly they do maske that amount. The scarey part for me is that the CAW feels thats they have done well whith their so called concessions with GM. The only people that they are fooling is their member who will be out of a job because the CAW refuses to negotiate wage cuts. So again I say......
BYE BYE Chrysler
BYE BYE GM
Steve the Pundit
said
People seem to think that, with no bailout, they would wake up one morning and these companies would just disappear into thin air. Let's be realistic; an orderly shut down or bankruptcy would take months, if not years, to orchestrate. All the while jobs would continue, cars would be made, dealers would sell them, pensioners would stil get paid, etc. The only thing different is all involved would be signing up for retraining, updating their resumes, adjusting their expectations, etc.
Nothing that either of these companies have done or said indicates that they have a viable, LONG-TERM business model. Enough is enough, let's wrap this party up.
Edwin from Toronto
said
Why subsidizing US companies for mis-managed business while allowing a Canadian Nortel to go bankrupt?
Nortel should start hiring. Once they have the same amount of employees in Canada as Chrysler, say 9,000, it can ask for government bailout. So easy to do business in Canada.
Yes, letting it shut down will affect other sector as well. If everyone expects economy and vehicle sales to rebound next year, other company will starting building again. Our EI will be sufficient for them to survive during this period.
The Canadian government should not let foreign private companies to put a gun to its head.
Sm4rtrth3nU
said
Sheldon Doyle Halifax
said
So we'll do the same to all those who don't assemble in Canada.. Nissan, Volkswagen, Kia, Hyundai, Audi. BMW, Mercedes...and these guys never did!
James in New Brunswick
said
They do this by making sound business decisions about markets and favourable manufacturing conditions, like all those outlined by other posters above; Canada is a great place for a company to build stuff because of its proximity to the US market. If a company messes up and gets the market wrong, like Chrysler has, and no one is buying the product they should not be counting on the jurisdiction in which they are manufacturing the product to accommodate their crappy business decisions!
Let them go. Or better yet, tell them to get the heck out! It will hurt in the short term but we'll be better off in the long run without them.
roy
said
J. Armour
said
Davey boy
said
John Sam
said
Samual
said
Don in Dundas
said
Glenn P
said
Pay the money you owe and get the hell out of our country you yankee leech!!!!
Tommy - Toronto
said
Cassidy Kanata
said
Randy
said
Phil from Toronto
said
This would be hilarious
said
jon m
said
so, now we the public cannot afford to buy a vehicle. So hypatheically speaking if they are going to fall, then do so, they need to restructure on their own accord and finaces. And if that is that is not possible then they need to go, it is what restructuring is all about. At the company level not at the publics expense.
Jerry out west
said
Jack from Windsor
said
We need to maintain our cost of living and will not accept any reduction.
I need to maintain my salary to keep my 3,000 sq ft house, my cottage , 2 dogs and 2 kids.
Other sectors also rely on us to buy from them. If we stop spending, all restaurants in our town will close down.
All automakers are middle-class, although most of us only graduate from high school. We contributed a lot to our local communities as well.
The government loan will save our pay and job for the next few years.
We might get back to ask for more loan but the government better do it or else we might stop spending.
Maz
said
Ron in the West
said
GD
said
I wonder how they arrived at the 70 dollars an hour. Hey these are good paying jobs and we need them. Take away the good paying jobs and you have Mexico. No matter what anyone says this is blackmail. I would suggest that the government put out a statement that if they want to leave they should go but there products will not be allowed in Canada. If you take there products out of Canada the other auto com pays will simply sell more of their products thus need more workers to build them. this is not protectionism just good sense.
My two cents.
Rick in NB
said
Once we built a proto type jet. We built it so well the US cowed us into scrapping it. All the workers ended up at NASA and won JFK's space race.
We have the workers we have the factories. Why not go for it.
I Remember When....
said
Dave P.
said
James
said
I was smart enough NOT to get stuck with a crappy union job and I don't even have a university degree; so don't talk to me about opportunity or lack thereof. Oh and I'm responsible for my own pension and well being when I retire, not the rest of you (taxpayers). I say to throw the bums out.
Alanna , Saskatchewan
said
Mike in Ottawa
said
Nancy
said
The Hammer
said
If the CEo of Chrysler states that it's the same costs for workers and pensioners alike, then that can only mean that once a worker retires, then they get 100 % of the same benefits and take home salary they did when they were working.
If this is so, then I know of no other job that pays a person 100 % in pension returns based on what they were making as an employee.
Everyone knows from past experiences with companies like this. We the taxpayer provide funding, the company bank rolls it into some other non company account and them goes bankrupt after a few months, leaving us holding the bag.
To Dave From Windsor, it's not hard to read between the lines. Your either a CAW member or are related to people who are. Chrysler makes junk I know I had an Intrepid that blew 3 transmissions in a year and one with only 1500 kms. on it. Never ever will I buy another Chrysler piece of crap. And I am not alone who harbour those feelings to their products.
Let them go. We'll survive as a country without them.
Sam from Victoria, bc
said
People let that bad bad bad company go. They have been scamming people for too long now with their cheap vehicles.
Don't get me wrong though, I do actually feel bad for people from Winsor because they are humans like me, have their families to feed, houses to pay cars to drive etc... However, this is reality, this is life which tends to throw everything at you at the same time. IF it is such a difficult time, then UNITE and WORK TOGETHER to find a solution instead of relying on the government. They have already a lot on their plate without having to deal with people that just point at the problem without trying to find a solution.
I say, people of Winsor, you have the engineers at that plant, you have the main workforce, Unite your strength and build something else with your expertise. Ask the government to expel chrysler from canada and use their factory to build something better. Something Canadians will be proud of driving!
That's my 2 cents
Nicole in Saskatoon
said
Mary Clarke
said
They also think public assistance in shoring up the company's pension shortfall is inappropriate, DesRosiers said in a note to clients.
"These groups are wrong on all these perceptions. All of these items and the many others negotiated are `transformational' and will save hundreds of millions.
"But they don't accept this and don't understand this and they have been `spun' so many times in the past they have a hard time believing GM when told the opposite."
DesRosiers, who appeared before a parliamentary subcommittee last night, said he senses the extent of concessions will create trouble for GM in its bid for aid.
"I hope I'm wrong, but I'm very worried that GM misread public sentiment and that this whole thing might blow up in their face," DesRosiers said.
"In the meantime, we should support what GM did with their labour agreement and hopefully Ford and Chrysler will address these very visible irritants in their negotiations."
DesRosiers said the public can't understand why GM workers didn't lose all their special holidays plus company funding for legal bills, child care and tuition, since many employees in the country don't have such benefits.
Furthermore, he said GM workers don't contribute to their own pension plan, but now the company wants the Ontario government to help cover a huge shortfall.
"How does a politician explain to a taxpayer who has lost a third to half of their RRSP contributions that they have to cover part of the liability of the CAW pension fund when these workers don't contribute to their own pensions," he said
Deb, Orangeville Ont.
said
I will guarantee you that if the big 3 go under it won't be long til your employers are coming to you asking for concessions and wage cuts because of slumped sales.
Justine
said
Maple Leaf Forever, Calgary
said
Would you invest your own money in a company that is losing billions? No, you would invest in the company making money, and offering a high quality product, as that is the one that will pay the most dividends down the road.
Ottawa and Ontario need to think long term growth and prosperity, and I'm afraid that doesn't seem to include Chrysler.
Pip
said
Problem is, Cerberus and Chrysler LLC want to keep paying a dividend, even though they can't sell their vehicles. Time to cut the divident to nothing and invest IN the company, instead of just taking out. R&D into new engineering, not just better mousetraps, would work wonders. The Japanese and European manufacturers did that, and are in nowhere near the same state as the big three.
Alysha Ont
said
GM and Chrysler on the other hand knew their situation and yet paid out millions to their executives with salaries and bonuses who were there to manage the company! A High price to pay. The working men and women always get screwed in the end ! Sad !
Peter 1951
said
Marc in Ottawa
said
Dean in YYZ
said
It was never the intentions of this conservative government to bail these over paid over benefited auto workers out in the 1st place.
All you socialist loving idiots and Liberal lovers are the 1's who where screaming for the government to do somthing.
So what now, the truth hurts doesn't it.Reality people, what you thought it was all a joke and that it wouldn't cost much?
Time to pay the PIPER.
Can't have it both ways ONTARIANS.
You LOVE your usless liberal party so much.
Well it's all come home now to bite you all right in the ASS.
What you expect miracles now from Mr.Harper?
Well it's not going to happen.
Scaming and weaseling can only work for so long.(LIBERAL PARTY..1993 to 2004)now you know what has hit the fan.
But fear not,the brave and the strong will once again take over and fix this F'n mess.
Chris in Ontariariari-Oh!
said
Chrysler received government loan's in the early eighty's when they were facing bancruptcy to help them re-tool Windsor assembly for the launch of the highly successful mini van this resulted in a huge success story for Chrysler.Maybe that is kind of development's
the government want's to see now from them.They have a good opportunity as they have the European connection's with Fiat and in the past with Diamler.They have electric vehicle's coming on line in 2010 and the probability of increasing their product line with some fuel efficient euro diesel's.I would say that they could do quite well should they get over the hump so to speak.Let's hope they can work out an arrangement that satisfy's the need's of the Canadian government and the consumer.That way everyone win's.
Mike in Ontario
said
But oh no, they continue to demand taxpayers' money with a gun to our heads, at a time when even Chrysler's corporate owners won't invest further.... what more do we need to say as taxpayers to call this for what it is? Politically it's a no-win situation, so make the long-term decision that's best for all Canadians - not just those in Windsor & Brampton. We all pay taxes & we all get a vote - remember that.
Come on folks - it's time to realize that Chrysler's gonna bail on Canada either way, but they would prefer to leave with pockets of our cash if possible. Either that or they will blame the government for not bailing them out. Yes, Windsor & Brampton will suffer unfortunately - but the inevitable is upon us.
And then there were two.
sam
said
bunny
said
Pat Guelph
said
Al
said
Chysler will go, someone else will fill the void.
GM & chrysler has had it to good for to long and its time for the companys to Shit or get off the pot and let more innovative companies fill the void.
For the goverment, there should be provision for tax payers to refuse paying taxes, if the goverment chooses to speding our money foolishly.
The party that puts this to a bill in the house will get my vote.
Support small bussiness, by far they are the one who employee most of the work force.
Pierreh
said
Davey boy
said
Sm4rtrth3nU
said
Don
said
Stephen
said
Chris in Kingston
said
Vince M
said
Joel in Kamloops
said
Irma
said
Dodge lover
said
kate
said
Ben
said
Don
said
Tony
said
It's all about money and power. Corporations down south can take over own companies and gamble away our manufacturing plants.
Edwin from Toronto
said
It should manufacture products in a jurisdiction that is most competitive.
Move all production to China or India, where you can find workers willing to accept $1 per hour.
guppies
said
If they build better car. They don't have to ask for help today.
I watch a show yesterday call saving GM...The CEO got pay 16 millions on 2007 and GM is losing millions that year. And look at the new yesterday how Citigroup spend the Americian taxplayer money.
Harper - watch out !!!
if you make a boo boo.
You are the first one to leave not Chryler
Sick of these Car makers...
said
Let's face it. They need us more than we need them right now.
This tactic shows how low Chrysler can go.
Chrysler should not only have to prove it's intent to remain operational but prove how it plans on remaining operational before it gets one red cent.
Time for the boys in the playground to grow up.
I for one am sick of the BS coming out of the mouths of the automakers in Canada.
Get with the program, re-org, cut your top brass, lower wages, build more economical cars and trucks, get moving on the hybrids and electric cars.
You guys know what to do, you just don't want to spend the stake holders cash to do it, you want another hand out since they are so easy to get.
Recession, bull shit it is all big company greed that is causing these problems.
My view ~ Kiss Chrysler Goodbye!
said
They think the CAW will drop $20/hr on a new contract? (are they nuts?!)
LaSorda is dreaming in Technicolor....
Last and certainly not least they make arguably the worst quality products of the Big 3 and deserve to go under.
Jack from Windsor
said
Although we have full medical coverage and full pension on retirement, our body is exhausted putting in screws repetitively everyday.
The loan we asked for will be able to save thousand of jobs in our plants. Making us able to pay property taxes, go to restaurants, raise our dogs and kids for the next few years.
We don't care if our company can repay the loan or not.
We knew our company cannot be profitable and will come back to taxpayers for more money. We don't care what other taxpayers think but the government has to save our industry, no matter what.
Those jealous people, no use to cry out loud for our good salary & benefit. We will get what we ask for anyway.
Deborah
said
The Auto sector has gotten themselves into this on their own. The workers got the benefits and pay the COMPANY give them.
Steve in Ottawa
said
To Chrysler (i.e. foreign, non-Canadian entity):
1. Be thankful for any Federal assistance you could/would get, because there are many Canadian companies that deserve Canadian bailouts before any foreign entity should get one. That's how "protectionist" USA see's it now, too, right?
2. So you leave Canada. Marketing suicide? Take a guess as to how fast another auto company will rush to fill the market share you leave behind...a market share you'll probably not get back.
JD
said
Stunned In Alberta
said
My goodness I can't even believe this hostage negotiation is even being considered. Is our government really that blind?
Edwin from Toronto
said
The big 3 are US companies. Our government don't even bailout forestry and other local businesses. Our logic seems that any company hiring more people will get government money.
All US automakers are losing market shares to Japanese automakers. That indicates they are not competitive in terms of pricing and quality. Why don't we subsidiing Japanese automakers to buy all facilities in Canada and build all vehicles here? I am sure they will stay much longer in Canada than US automakers. China and India carmakers are aggressively seeking opportunities to sell cars in North America. It is a good chance for them if we can provide incentives for them to build cars in Canada.
Demand for vehicles in Canada is not sufficient to drive up production of vehicles. Any tax incentive or rebates for buying new vehicles is useless to save the auto industries.
I can say the 90% of other taxpayers will not agree giving their hard earned tax money to maintain salary of autoworkers making more than $70 per hour, while a similar educated person earning less than $10 per hour in a restaurant.
The amount of bailout loan requested is more than enough to extend the EI eligible period by another 52 weeks. This benefit all canadians and more than sufficient time for the economy to recover.
The problem with GM is not demand. They sold the most cars in the world before 2008 but still making loss before the crisis. Their business model or management is not viable. MP supporting bailout will face the political consequence if they come back next year for more loan.
Edwin from Toronto
said
Check out the points in my previous comment
LAL
said
If people insist on making ridiculous comments on this issue, at least have the decency to educate yourselves on the facts. The ignorance regarding this issue is phenomenal and an insult to the intelligence of those that actually know the facts.....
Remarkable
said
Sure, those companies then were making good profit, but profit must be reinvested to keep companies competetive, but the unions demanded huge pay increases, huge wages, huge benefits and on and on it went.
Well, now that the tables are turned, the big 3 auto makers have the knife at the unions throat and now, if there aren't major concessions on wages and benefits, they'll just simply close the doors and walk.
If Chrysler wishes to keep their business going and if the union and it's members wish to keep their jobs, then they had better get back to the bargaining tables asap, otherewise, they'll have nothing to talk about, accept how long the line ups have become at the EI offices.
guppies
said
We are in Recession. Even the feb. dumping tons and tons of money to the GM and Chrysler. Is just like a sucker bet. And what about the other industries ?
This wouldn't help us to get out the recession any faster.
If the auto working making $ 25+ or more before. They should wake up. Those days are gone. The union just sucking out money from you.
Take a paid cut and hope it rebound later. At least you still have a job.
We are not buying any auto now. Even so, I wouldn't get a GM or Chrysler anyway.
I own both GM and Chryler before. I have 6 yrs of nightmare with them.
The problem with Harper govt. today is. He will throw money to all sector that he will get votes if there is another election.
If any company out there still want to open for business tomorrow. They will cut pricing to get the customer back.
Example : Look at an LCD tv list price is $ 2999.00 and they can sell to you under $ 1999.00. There is a lot of margin to move.
Mike formerly from Windsor
said
MUN grad
said
Simnple math here , if you work 37.5 hours a weeks a even 40.00 an hour before taxes thats 75000 a year at 50 weeks ?? come on for working shift work on a line ?
Brian
said
Don Calgary
said
kg1
said
Paul B
said
JP
said
Agreeing with stu 100%. This is total, utter madness and insanity. Those words have not enough meaning to describe it. Why are the taxpayers on the line for a companies shortfall? Since when are private companies' losses a social welfare problem, but their profits are private? This is madness.
If Cerberus wanted it to survive in Canada, they would make it happen. But hey don't.
The don't because our monetary system favours cheap (or preferably free) labour, and some one or few people at the top will get a multi-million dollar bonus for saving Cerberus the money of operation in Canada. They will move to Mexico or China.
For the love of all that is good and fair, our government needs to LET THEM FAIL!
Hannah
said
JP
said
IS IT TOO MUCH!! Dimwits!! ALL OF OUR salaries are given to us that way, with the excess costs of benefits and pensions and retirement contribution included!
And the answer is that most of us DO NOT MAKE 70/hr with all our excess benefits and union expenses included!!!
So stop trying to justify it!
John Royle, Ontario
said
Gayle
said
the old lady
said
I also think every elected person and every one working for the Government and all Teachers should take at least a 20% cut in wadges and benefits. We are all in this together and every one should help.
Craig.
said
To those that actually think that someone makes $70.00 per hour, as an hourly wage...your head is stuck somewhere. My God, the cheapest car a company like that could produce to even break even would be over $100K!! Are you all really that stupid??? You're starting to make comments that sound like under-educated Americans...it's embarassing.
Paul
said
As one of this country's taxpayer, I feel that the CEO of Chrysler made a treat and that is unacceptable behaviour coming from someone who holds such a position. It is much easier to capture a bear with honey, so I recommend that the gentleman should offer an appology to Canada as a whole and present his case again without pointing fingers and for someone looking for help use a bit of humility. C'mon lets face it why the industry in such a shambles to start with..?
Rick in NB
said
My point here is that Lewenza is handling Lasorda the way he should. When a bully threatens you. don't walk away, you stand up to the Lasordas of the world. Not like Micael Bryant's comment on how great a Canading Lasorda is. makes me puke!
Rick in NB
said
My point here is that Lewenza is handling Lasorda the way he should. When a bully threatens you. don't walk away, you stand up to the Lasordas of the world. Not like Micael Bryant's comment on how great a Canading Lasorda is. makes me puke!
Alice
said
LH
said
To the CAW: many people in many industries have been forced to take a pay cut or to take a reduction in their work hours so they again take home less money, why shouldn't you? This is a crisis, isn't it better to have a job at less pay than no job at all? Ask all the people who just lost their jobs, I'm sure many would rather have taken a pay cut then lost their job entirely. And as many have noted, most of us don't receive a pension or minimal if any benefits, many of you are already overpaid, maybe when you join the unemployment line you will realize how good you have it, even if you did take a pay cut.
s. timms
said
rick in Calgary
said
Mike
said
Mar
said
Jack from Windsor
said
We should fight for keeping $70 per hour
Chryler will keep the plant in Canada. If they want the make cars in US, they will not close the US plant a few years ago. They are using tactics to persuade us to back off.
The government's request for a business plan is just a stepping stone or excuse for them to grant us the loan.
No politician can bear the consequence of letting us go bankrupt, especially the Liberals & NDP. For PC, they will not give the bullet to the opposition by not granting the loan.
The government will give us the loan under any circumstances.
We should ask for salary increase instead.
Hannah
said
Glenn
said
Shawn
said
Get out of Canada and don`t come back, there are lots of other manufactures of car we can buy from. Hershey just did the same thing and look how they sales and shares dropped.
If worker are to take a $20 pay cut to keep their jobs FINE but make sure managment takes the same cuts.
And lets get rid of that stinkin CAW as well before we are all broke, their 1940s thinking is killing industry in this country.
Serge in Hamilton
said
Rick from Winnipeg
said
James T.
said
I'll have a large order of Curly Fries and a Coke with no ice. Hop to it, Skippy. There ain't no "Job Bank" for the paper hat crowd!
Edwin from Toronto
said
Working only 7 hours per day, 5 days a week.
Anyone university graduate will accept this salary as self-employed contractor, without any benefit.
Are union members living in our world?
Mike
said
Kelly
said
SlackJack - Victoria, BC
said
Most pension plans that I have heard of pay 2% to a maximum 70% of your best 5 years
Sean Calder - Chatham ON
said
Chrysler is a different organization. In "good times", as Ken Lewenza put it, patterned bargaining is tolerable because they can absorb the differences. In hard times when it's "do or die" what's good for one, may not be good for the other.
Ken Lewenza and the CAW do not have the authority to tell Chrysler that they have to accept the deal that GM did.
This is the arrogance and stupid stubbornness on the part of Union Executives that is killing the automotive industry.
Neil, Eastern township, qc
said
Doug BC
said
However,militant unions cannot expect me to support wages and benfits that were obtained mainly though extortion and threats,than through real bargaining and real competition.If these people are really making $30 per hour,and have all those benefits too,I really think that is excessive for most assembley line workers.They have,in effect,managed to price themselves right out of the market.
I'm not totally against helping this industry to survive.I am,however,very much opposed to tax dollars being spent to save the jobs of the greedy,or those who use union membership as an excuse to be overpaid.
My thoughts go to the city of Winsor,it's citizens,and the impact this could have there.BUT,there is no way we can allow government to be "bullied" by any union,or it's workers.
If the union does step up and tries to be a reasonable part of the solution,we should try our best too.If not,I'd rather spend those finite tax dollars on people losing $12 per hour jobs.I doubt they have any money to put in savings,and I expect they work equally hard.
$30+ per hour,and all those benefits make auto workers a part of the fat cat crowd.Certainly no where close to "average" income families.It's just to bad they seem unable to realize that.
Rob
said
14 out of 100, But please give us billions of your tax dollars!!!!!!
Thanks but no thanks!
Roger T
said
Chrysler pls leave and we hope you the best in selling cars in a free fall US market.
Curtis from Kelowna
said
The auto industry was headed in the right direction with smaller vehicles and then the SUV race started. If they were building electric cars, charged with solar energy they wouldn't be in this position.
Everyone made money and GM invested their money, unions did well and now the party is over.
I don't want to pay for an overpriced vehicle to accommodate their bad business. Smaller companies are folding and this is no different. It is time to say good bye. It is nice for the auto workers to freeze their wages, it is time to drop them and get a grip on the reality of today.
WestJet is flourishing, is that smart business or what.
Big Burt
said
The big problem here is that this pension plan is basically unfunded... and GM is paying as it goes. Toyota, Honda who haven't been making cars in North America for this long do not have this problem yet - and likely never will due to the fact that their employees don't have gold plated defined benefit pension plans. The big three clearly need to do something serious about this and it clearly can't happen solely on the back of the current workers (who take home something just north of $35/hr). I think they CAN reduce much more than the CAW just got from GM but to expect it can all come from the existing workers is not realistic.
The retiree's are going to have to give to the pot - which will hurt and will probably break some existing agreements. The big three also have to make some huge structural changes... otherwise we are just delaying the inevitable.
Ron in the West
said
Please insist on much more major concessions from the CAW before you pump any taxpayer dollars into GM or Chrysler. The GM "deal" is still far too generous to the union (why do you think they voted almost 90% in favor when they never vote that high in favor of anything) and will do nothing to save the company. The Chrysler concessions by the CAW had better be much more steep than the GM concessions. Can't believe that GM proposed such an agreement, but when you think of it it is just this type of lousy "giving in" to unions that has got them into this mess in the first place. Wake up Tony and really hold their feet to the fire before any bailout is given. And please don't continue to call it a "loan". Loans demand repayment. Not likely to see any repayments from the auto sector. By the way, what concessions and/or sacrifices are the executive of the CAW making in all of this.
Sue M
said
John , Oshawa
said
ben
said
JP in BC
said
and Chrysler- as you leave- take the Auto workers with you .
The tax payers of Canada are tired of hearing the Whining of these auto workers.
Maybe now they will have to find a real job and work for there money.
Unions have destroyed the working relationship between owner and worker.
To Unions - you have pushed and pushed - and what did you achive- nothing - its come back to Haunt you
Good diddens to Teh auto makers - let em all go back to USA
BUY FORGIEN - a Better product
Mag-toronto
said
Randy
said
Kim
said
How important is the Auto Industry in Canada?
The Auto Industry is Canada's largest exporter, accounting for $70 billion, or 16% of the nation's total exports in 2007. Auto Industry exports are higher than those of the oil & gas industry, and more than double the level from each of the forestry, mining, metals and agriculture industries.
Auto workers pumped $8.8 billion into the Canadian economy in 2007 (24 million a day). Including spin-off jobs, the auto industry is responsible for more than 440,000 jobs across the country.
While I don't agree with Chrysler's stance in threatening to leave the country and blaming workers for their woes; I do think we need to see the big picture here. I hope all the naysayers towards the North American auto industry and auto workers don't live to eat their words!!!
Greg
said
As a toyota employee in woodstock I can tell everyone we make the same wages as the big three. Same benefits and same vacation. We do not make 70/hr just as the workers at the big three dont. The big difference is the big three have tens of thousands of retired workers while we have... ten maybe.
Bill
said
Sally Canuck
said
This stems to a deeper issue with American auto manufacturers and their leadership. They are practicing business the same way that they did decades ago, and that is just not viable anymore.
I'm also tired of people saying "support American auto companies", and criticizing my choice to buy a Honda. Many people are misinformed about where things are made. I'm proud to say that mine was made right here in Ontario. People need to realize that these "foreign" automakers, such as Toyota and Honda actually have large manufacturing facilities here in Canada. They employ a contingent of thousands in SW Ontario alone. They also have a better way of running their business, and more award-winning vehicles.
So if you ask me, I'm more justified in supporting Honda and their business practices and Canadian sites than the antiquated practices of GM or Chrysler.
Alberta Les
said
BentPedals.
said
Retired Taxpayer in Burlington
said
Damian (GTA)
said
If no one wants to buy your product, you shut down. If/when the demand goes up again, you re-open. What's the point of making cars no one will buy, either now, or in 2-3 years (when people will want to buy NEW cars, made then)???
BentPedals
said
Bill
said
80 PAA hours= 10 sick days
2 SPA weeks paid
4 - 4 day weekends
Christmas-New years off.
$1700 Christmas Bonus
and here is the kicker to all you poor saps out there. When you collect EI thats all you get, when an Auto workers collect EI he also gets another check from the Auto company for about $300.
kate
said
Ya, it's all the unions fault!
said
Former Chrysler CEO Tom LaSorda, now co-president and vice chairman, received a $15.7-million bonus from Daimler for helping with the sale of Chrysler to Cerberus. Reported earlier, LaSorda received a total of $20.7 million in total 2007 compensation.
Bob in Harley
said
M. Cameron
said
Tax Payer
said
erin, edmonton
said
Mar
said
While your Honda may be made in Ontario, the profits all go back to Japan, they do not stay in Canada. And yes, there are many workers of foreign automakers in Canada, but do you think that would continue if they weren't competing in price with the North American manufacturers? I doubt they would stay here if the Big 3 all went under when they can instead take all work and profits back home and charge us whatever they want in shipping since we have no other option. And by the way, GM and Ford win many many awards for things ranging from fuel efficiency to overall worth of the vehicle, it is a myth that only the foreign cars win awards. The Big 3 obviously make cars people want to buy, otherwise, why would they sell millions of cars every year? And if SUVs etc were so awful and everyone seems to blame the Big 3 for them, why do so many people buy them, and why did Honda, Volkswagen, Suzuki and Toyota all start making their own versions??? Because there is demand for them, and they are also no longer the gas guzzlers everyone imagines them to be. Oh, and GM, Ford win awards for them, and their small cars etc. Please stop spreading the myth about Asian cars being better, they are all the same nowadays, depends on preference. So pick your preference, but supporting the auto industry staying in North America is something we all should do, whatever car you drive, or we will all regret the mass increase in the price of foreign cars and massive influx of unemployed people relying on EI.
The cost of labor is seven percent
said
The workers are not the problem.
Bad management is the problem.
Less financial finagling is what is needed.
Retired Soldier in Kingston, ON
said
(1)Ken & the CAW: its better to have 45% deducted off your current wages then 100% of no job;
(2)Members of the CAW are living in a fantasy world. Chinese auto workers can knock off an exact replica of a Jeep "Cherokee" for about $11000 US+/- and the high-quality cars are assembled by hand by bona-fide engineers. That's right...by hand!!
(3)Tom: don't assume that the Canadian taxpayer is a chump or that the Ggovernment of Canada and the Minister responsible for this file are pushovers ! Your demands smack of incredible arrogance, stupidity, desperation or all of the above!!
(4) Minister of Industry: taxpayers, as you know are already ridiculously over-taxed and I'll be damned if my wife, who makes $11.14 per Hr will subsidize the CAW's extravagant lifestyles
and $100000 per year wages with overtime! Oh, the readers did'nt know about that small detail eh!!
Welcome to the real world Ken & Tom. Suck a lemon!!!
Pro Patria
steve
said
Marla,Eastern Townships, Qc
said
Dave in Vancouver
said
Wake up Mr. Lewenza. If you want to do what's best for your union membership, you better swallow some pride and negotiate in an effort to save those jobs. Not only the CAW jobs, but also all of the jobs that will be lost with Chrysler suppliers.
The day of negotiating the best agreement with one company and forcing it on the other companies is over!
T-D Banks says economy in bad shape for next 5 yrs
said
Dunny from Manotick
said
Db Niagara Falls
said
Keith in Brampton
said
Analysts have already said the deal struck with GM is too little; that 20% was really needed.
Now Chrysler asks for 20%, and the union just sputters about pattern bargaining.
Here's the thing: If you REALLY want to save Chrysler and GM - AND YOUR JOBS - take the full 20% ding to your paycheques.
Better 80% pay than 0%...
jeff from london
said
Ruth
said
It is time the union gave some concessions, and a wage cut is needed. The deal they made with GM was a joke! If they really want to keep their jobs, take a wage cut.
Tony_Halifax
said
Keith in Brampton
said
"While your Honda may be made in Ontario, the profits all go back to Japan, they do not stay in Canada." -- And Detroit three profits go...?? As far as Canada is concerned, we have no "Domestic" industry.
Re "Please stop spreading the myth about Asian cars being better": please pick up a copy of the Consumer Reports annual car issue (just out). Ford quality is improving and catching up to the Asians, but GM isn't - and Chrysler is actually getting worse. So who is spreading myths?
Don in NB
said
Avi Ickovich
said
A little known fact is that General Motors early in the 20th century bought lock, stock and barrel a functioning street car and tram service in Los Angeles only to let this infrastructure sit and be sold for scrap metal.
Their intent, of course, was to create demand for their product. Their chairman during the subsequent 20 years coined the phrase, “what is good for GM is good for the U.S. economy.” This statement was true to a certain extent in the early 1950s but certainly is not true today.
Both our current dependence on oil from unstable foreign governments and unsustainable urban sprawl are based on the creation of the automobile culture.
We need to return to urban planning that entails more compact communities and reverse the situation where the automobile is required for performing even basic errands or commercial activities.
Moreover, by decreasing personal automobile usage the trucking sector can utilize existing road infrastructure more efficiently.
So if we are trying to promote environmental protection, urban densification and increase transit usage, why would any government bailout the source of inefficient transportation choices?
The answer is simple, votes in Detroit, Dayton, Windsor, Oshawa, Ajax and so on.
President-elect Barack Obama has promised more environmental friendly transportation investments, but may relent to the employment impacts of letting the Big Three collapse. Fortunately, our government is a little more cautious and will only provide a limited bailout with a detailed business plan.
We should hope our respective governments let the inefficient segments of the auto industry collapse.
Bob in Woodstock
said
Barney In Trenton
said
Dylan in BC
said
Ted
said
Leo
said
"A blow like this would cripple Windsor for longer than I would even like to imagine. Many people will comment and say that it's just a bunch of overpaid union workers that have it too good. It is that narrow minded thinking that is hurting everyone involved and even the people that are indirectly involved. The ripple effect would go further than anyone really understands or wants to even imagine. I would never wish for so many families to lose their jobs (I think the individuals that do want Chrysler to fall are very sick for wanting that) and I hope that Mr. Clement & Mr. Harper know that they should choose their words wisely over the next few days. It could make the difference of how Ontario votes next time around."
Karla
said
Cambob
said
$17,000 Materials & Operations
$2,000 Marketing
$6,000 Labour
$7,000 Profit
Is labour the problem?
Is profit margin the problem?
NEITHER!
Tax:
$1,600 GST
$2,560 PST (Ontario)
$1,200 Destination & freight
$75.00 Licence fee (Province)
$60.00 Licence fee (Toronto)
Insurance: (Mandatory Law)
$3,000 Yearly
So after you buy the vehicle, you pay the government $8495.00.
Not including gas tax, tire tax, tax tax, etc...
Face it folks, the union, the management are not the real monsters. The people you elected all these years have been squandering your money every day. Liberal, Conservative, doesn't matter.
They take 30% of your earnings. Then 30% more of anything you buy.
D'oh Canada!
andrew
said
L Greg C
said
Jay in Onatrio
said
I don't care if they're the best or the worst run company, everyone just keeps running to the government (and us poor taxpayers) for a handout. I quit smoking, but the tobacco farmers still wanted my money because it hurt their bottom line. Where is the justice?
I do feel bad for anyone losing their job. But the writing has been on the wall for the unions, and the big-wig union goons are too stubborn and out of touch to realize that it's 25%, or 100%. The company owes you nothing beyond your paycheque, just the same as you owe them nothing but your 100% effort when you walk in the door. But you must work together, or they'll be out of business, and you'll be out of work.
I wish the workers well, but stubbornness is very rarely overcome with common sense.
Brian from Barrie
said
Murad
said
Rick Greensides
said
All big businesses want their workforce to work for peanuts," or they threaten to move the plant to Mexico or some other third world country.How can you compete with a dollar or two an hour in these other countries? This drop in the Canadian standard of living has to stop somewhere.Bring back ALL of of our manufacturing jobs to the USA and Canada!!!
Rick Greensides
Thorold,Ontario
barry
said
Des From the Peg
said
robert ashton nanaimo b.c.
said
Bob in Woodstock
said
So, let's see..at 70.00 an hour..
Oh come on, people. Surely you can't all be this dense as to think auto workers actually earn $70/hour. Read the story again....and again if you need to.
The $70/hr includes the hourly wages, benefits, government deductions, retiree costs, managment & so on, all divided by the number of current active workers on the line. It's a screwed up skewed number that was created to make the workers look bad.
Learn the facts before you start spewing this crap.
bill from edmonton
said
Will
said