Tony Clement Talks Tough With CAW

I love hearing this: Ottawa willing to let GM, Chrysler collapse

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.”

CAW president Ken Lewenza has called Fiat's proposal to cut labour costs at Chrysler Canada by $19 an hour an “unreasonable” demand and has said it is “not going to happen,” arguing the CAW is competitive with unionized environments in the United States.

CAW are so shameless. They refuse to negotiate down. Having a cut wage, is better than having no wage. It makes me hope these fat cats go bust and collapse. Ye shall reap, what ye sow. I think the Tories are reading public opinion on this one properly.

GM, Union Deal a Sick Joke

The overpaid, over pensioned GM workers were supposed to make some serious concessions demanded by Ottawa to clear the way for more bailout funds. As Greg Weston summarizes in the Ottawa Sun, they are hardly what you would call serious.

Add it all up, and the "major sacrifices" being made by the autoworkers for billions of taxpayers' dollars are as follows:

Their pay and pensions stay the same. They lose a spa week, and give their Christmas bonus to the oldtimers. They have to pay a bit more for daycare and a divorce, and $30 a month for a benefits package to strike for.

Hold the hankies.

No doubt they will get the bailout, despite this slap in the face to the sensibility of the Canadian public. It's disgusting.

UPDATE: via Strack Attack in the comments: Clement has harsh words

Industry Minister Tony Clement said Monday the deal on its own falls short of what the federal government needs to proceed with a bailout.

"Is it enough in and of itself? No, it’s not," Clement said in Halifax after making an announcement on infrastructure spending for colleges and universities.

"We still have to arrive at the conclusion that GM is viable, (and) that on a go forward basis, that our money will be put to good use."

Clement said auto makers need to prove Canada can be part of the sector in the future and that they will continue to provide jobs.

Harsh words, but if the Americans do a second bailout, in my opinion, so will Canada. It's as simple as that.

Big Three Bailout Share Turns to Canada

It's looks like CAW are talking tough. I don't understand where their bargaining position is coming from. They don't want to hear about workers making concessions:

Canadian Auto Workers president Ken Lewenza said he is concerned auto workers may be unfairly targeted by the conditions attached to the U.S. aid package. He said it is “ridiculous” to suggest the Detroit Three need to bring their labour costs in line with those at U.S. plants run by Japanese auto makers.

“This isn't about wages and benefits of workers,” Mr. Lewenza said in an interview. “We could work for nothing and we wouldn't sell another vehicle.”

The Detroit Three's Canadian auto plants have improved productivity enormously over the past decade and the CAW would like to focus on making further gains, he said. And he has an answer ready for Mr. Harper and Mr. McGuinty in the event they ask his members to make concessions: “We will maintain our competitive advantage in Canada without being dictated [to] by government,” he said.

Let's repeat that. CAW, while begging for money from the government for their unskilled labourers during a recession says: “We will maintain our competitive advantage in Canada without being dictated [to] by government.”

This is getting personal. Go to hell CAW!