Canadian bailout $$ for the Big three

[DukeN]

Just wanted to see how many posters here were aware that the big three have also been looking for bailout cash north of the border here in Canada? Another $6.8B is what they are hoping for. At this point I say let these dinosaurs rest in peace and move the #@$! on. They deserve getting raped as they have been of the biggest roadblocks to alternative energy being adopted on a bigger scale.

http://www.msnbc.msn.com/id/27753718/

http://www.leftlanenews.com/bi...ore-bailout-loans.html

 

[StageLeft]

Canada won't give them $70B. I say that because it's a population equivalent of a $70B request from the US. If those are US funds it's more like $85B Canadian. Are the public really going to go along with that?

 

[DukeN]

The public here is pretty much against it, just like the US but unfortunately looks like there will be some aid given. Quite a bit of manufacturing is here in Ontario - GM, Ford, Chryster, Toyota and Honda all have plants somewhere in Ontario as well as parts and other facilities. I personally say let Chrysler tank, give Ford a small lending hand and take over GM or let GM sink.

 

[yllus]

I am aware. This is largely to help out my province (Ontario). I prefer tax breaks and encouragement to overhaul their factories to letting them die off and destroy the economy of much of southern Ontario.

 

[DukeN]

yllus I'm from the GTA as well - having worked with GM, Ford and Honda at various levels I can honestly say a cash infusion is not going to help these pathetic organisations. In any industry the market leaders have to innovate to stay alive - only in this UAW sponsored ridiculously do workers have salaries guaranteed for years after a plant closes, and the laziest work ethic of any industry. A cash infusion will just prolong their suffering by a few months and they'll be back before next fall asking for more.

 

[StageLeft]

Originally posted by: DukeN
yllus I'm from the GTA as well - having worked with GM, Ford and Honda at various levels I can honestly say a cash infusion is not going to help these pathetic organisations. In any industry the market leaders have to innovate to stay alive - only in this UAW sponsored ridiculously do workers have salaries guaranteed for years after a plant closes, and the laziest work ethic of any industry. A cash infusion will just prolong their suffering by a few months and they'll be back before next fall asking for more.

That is my feeling as well. I think it's no better than giving an apartment to a crack head without forcing him to drop his habit. He'll turn the apartment into a squalid pit and get kicked out and still have the crack addiction after.

I also think no amount of "we won't give you the money unless you do this" is going to help; I'm very pessimistic now about the chances of these bailouts having any long lasting and positive effect. The companies have tried whatever they can/want to try. It's in their psychology to lose now. Chrysler is just finished, put that damn horse down, GM is not far behind. Gov should forcibly give any parts they have left that are not rotten over to Ford and hopefully we can see it get back on its feet.

 

[ZzZGuy]

IIRC Harper had stated that he will not be giving any bailouts but he's lied a lot in the past. If the coalition takes power on Jan 26th then there will be bail outs left right and center as they have stated with glee many times.

I so hate my government some times.

 

[Davan]

If the Canadian government is dumb enough to give America free cash then more power to em.

 

[Firebot]

Originally posted by: DukeN
The public here is pretty much against it, just like the US but unfortunately looks like there will be some aid given. Quite a bit of manufacturing is here in Ontario - GM, Ford, Chryster, Toyota and Honda all have plants somewhere in Ontario as well as parts and other facilities. I personally say let Chrysler tank, give Ford a small lending hand and take over GM or let GM sink.

Harper isn't going to bite, however with the NDP-Liberal coalition salivating at overthrowing the government, you can bet that Layton will open up Canadian wallets on the promise that the big 3 gives a big fat pay raise to CAW union workers.

And how quickly people forget

http://www.wheels.ca/reviews/article/242802

More money for GM despite layoffs, McGuinty says

May 14, 2008

Premier Dalton McGuinty says Ontario will give General Motors more money for new projects, despite thousands of layoffs announced by the automaker.

GM wants the Ontario and federal governments to contribute about $140 million towards a new engine plant in St. Catharines, Ont., and a new research centre in Oshawa.

GM has received about $250 million in provincial money, and recently announced layoffs of 1,400 workers in Windsor and about 900 in Oshawa.

But McGuinty says Ontario is still competing with U.S. states to land new automotive projects and must be prepared to pony up some cash.

The opposition parties say Ontario's been doling out big bucks to car companies without getting any firm job guarantees, and complain the contracts to give away taxpayers' money are private.

McGuinty says the government is trying to secure better job guarantees for any future investments of public money with the auto companies.

He also says the federal government should abandon its single-minded obsession with corporate tax cuts and agree to invest with the province in the new General Motors projects.

The Big 3 are a stupid moneysink, and socialists want to keep throwing money at them at taxpayer's expense, despite no change in their business structure.

Let's not forget where the money is going btw.

http://ctv2.theglobeandmail.co...usinessBN/ctv-business

QGM workers offered rich buyouts
GREG KEENAN, Globe and Mail Update


General Motors of Canada Ltd. workers in Oshawa, Ont., will be offered retirement incentives of as much as $120,000 and the company's new flexible manufacturing plant will begin producing front-wheel-drive vehicles alongside the rear-wheel-drive Camaro under a deal the Canadian Auto Workers union has struck with the auto maker.

Production of one front-wheel-drive vehicle will begin in 2010 and output of another in 2013 in addition to the Camaro and another rear-wheel-drive model, union officials said after concluding a deal that ends weeks of negotiations with GM and a bitter dispute over the company's plan to close its truck plant in Oshawa next year.

Skilled trades workers with 30 years experience will receive a $120,000 retirement incentive and a $35,000 voucher for a new GM vehicle. Production workers with 30 years seniority will be eligible for a $100,000 retirement incentive and the car voucher.

Workers at the low end of the seniority scale will also be eligible for retirement incentives. Production workers with less than three years on the job will receive a $37,500 payment ? skilled trades employees will get $45,000 ? and will be eligible for all benefits except for the company's dental program for six months after they leave.

In addition, workers with between 26 and 30 years experience will be paid 65 per cent of their wages until they reach the 30-year level, as well as receive retirement incentives and the car voucher.

GM has signed letters promising to add new products to the new flexible assembly plant in Oshawa as well as extend production of the Chevrolet Impala at its existing Oshawa car plant for an addition year, to 2013.

The money for the buyouts will come from a special GM fund and not the company's supplementary unemployment benefits (SUB) fund, which also receives contributions from the union.

They will be made available to all 8,700 CAW members working at the three GM assembly plants in the city.

The union will drop the grievance it has filed over the closing of the truck plant scheduled for next year and agree to end a two-shift rotation at the truck plant as of Dec. 31, instead of insisting such an arrangement continue until the plant closes.

Production at the truck plant is scheduled to be reduced to one shift in September. The union insisted during contract negotiations in May that GM rotate the time off between two shifts rather than eliminating an entire shift.

The dispute arose out of the contract the two sides reached in May. GM agreed in that deal not to shut the truck plant or at least to discuss any further production cuts with the union before announcing them publicly.

Two weeks after that agreement was signed, the auto maker announced the permanent shutdown of the Oshawa truck plant as well as two sport utility vehicle plants in the United States and a medium-duty truck plant in Mexico.

Enough of the charity case. All the money is going to overpaid unskilled union workers anyways.