Ottawa willing to let GM, Chrysler collapse

[CHIMO]

Source: Globe and Mail

TORONTO — Ottawa is prepared to let Canada's two financially troubled car makers collapse rather than provide long-term financing to companies without a viable future, Industry Minister Tony Clement said Thursday as he ratcheted up the pressure on the Canadian Auto Workers union to negotiate new deals to slash wages and benefits.

Mr. Clement told a news conference in Toronto he believes Fiat SpA is taking a “logical position” in demanding wage concessions in Canada before following through with a proposed strategic alliance with Chrysler LLC. He added Ottawa is also unwilling to make major investments in companies that do not have appropriate cost structures to survive in the long term.

When asked whether he would be willing to let Chrysler Canada Inc. or General Motors of Canada Ltd. go bankrupt if the unions do not agree to cut costs, Mr. Clement replied: “We have to examine every possibility.”

“I don't think it is in the interest of the Canadian public to have continued funding to a company if there is no deal with their union and if there is no outside investor, or no outside partner in the case of Fiat,” he said. “Those were our conditions.... So if you're asking me whether I'm willing to funnel Canadian government money, taxpayer money, when we do not have an acceptable plan on a go-forward basis, I cannot do that. I don't think it would be responsible.”



Read more: http://business.theglobeandmail.com/servlet/story/RTGAM.20090416.wclementstaff0416/BNStory/Business/home

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Anything to kill the unions.

So we will all have to buy imported cars from Japan and everywhere else. But at least the unions will be gone.

[msongs]

1. well go out and buy a GM car today if you really want to help ... eh? nt

[CHIMO]

2. Why

How is that going to change the cost differential?
The bankers and others control the cost. The wages contribute 7% to the cost of a car.

What study are you drawing on?

Get rid of the unions. Then the non-union shops lower their wages. Then the circle continues. Until we are competitive with who?

[HeresyLives]

3. Harper will do whatever the US does.

No matter what tough-guy talk they come out with now.

[CHIMO]

4. So

Are they doing the dirty work for Obama? Or are they not really in touch with the Obama money people?

[Spazito]

5. Yep, union busting and punishing Ontario....

Well, his poll numbers are dropping very quickly and he will have NO chance of forming the next government, even a minority one, if they follow through with this. CRAP may simply be cutting their losses, knowing they have already lost the next election and the are going to go out in a blaze of "glory", glory only to their shrinking base that is.

[Oregone]

9. I don't think you can Union Bust in Canada

Right? Even through a bankruptcy. Even through a liquidation.

[Tansy_Gold]

6. What would happen if all the union workers went on strike?

:shrug:

[CHIMO]

7. At

This point I would think that the companies would loose any chance of government support.

Why should they strike. Workers loose money when they have to strike.

Governments fear a unified group that can stand up to them.

Right now it is in the government's ballpark. Put the workers on the streets or get them to cave in.


They don't want an angry group of people who see them as ant-union.

To put it into the words of someone else, the governemnt is "rolling the dice".

[Tansy_Gold]

10. the government is loading the dice first.

the workers are gonna get screwed anyway. Might as well take some matters into their own hands.

Just a thought.



TG

[applegrove]

8. The Liberals are at 37% in the polls today. Conservatives (neocons) at 30%.

LOL.