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GM say no thanks to $3B Canadian package

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Old Jan 26, 2009 | 09:46 AM
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Gripenfelter's Avatar
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GM say no thanks to $3B Canadian package

http://www.autoblog.com/2009/01/25/g...lout/#comments

Sign of a Canadian pull out once UAW concessions are made down south?
Old Jan 26, 2009 | 09:56 AM
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Maybe it just had to many strings attached?
Old Jan 26, 2009 | 11:03 AM
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Originally Posted by Gripenfelter
Sign of a Canadian pull out once UAW concessions are made down south?
It wouldn't surprise me. The CAW, especially under Buzz Hargrove, has always been more confrontation and less willing to compromise and be realistic about their situation than the UAW has. I don't think the new leader is a whole lot better. Also, Canadian manufacturing doesn't have near the cost advantage over the US that it used to, even with the loonie back to down in the 80 cent range.

On the other hand, Canadian car sales have so far held up fairly well and I don't think GM is seeing nearly as much red ink up here. So perhaps GM of Canada truly doesn't need it at this point.
Old Jan 26, 2009 | 11:36 AM
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The Canadian Auto Workers union make the US United Auto Workers union look like a bunch of corperate lackies.

Despite what many members think, the UAW actually has grown pragmatic over the past decade, and are more focused on keeping jobs and working with automakers. The CAW upper management is still stuck in the adversarial, me-first, all management-is-evil mentality.

My guess is that since in Canada, health care is covered by the government and so is a good portion of retirement, they tend to need to go off the deep end to justitify their existence while the upper management UAW here is more focused in making sure it's members at least have decent health care and are in a partnership with the big 3 management.

Although I have alot of sympathy for the UAW management since they abandoned their confrontational stance, the CAW upper management still doesn't sit right with me.

Note that I say UPPER CAW management. I think the middle management and the rank and file (I know a few) are being given a dis-service by the guys at the top.


The other shoe with Canada now is that it is still the most expensive place in the world to build a car.
Old Jan 27, 2009 | 12:05 PM
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From: OSHAWA
Originally Posted by guionM
The Canadian Auto Workers union make the US United Auto Workers union look like a bunch of corperate lackies.

Despite what many members think, the UAW actually has grown pragmatic over the past decade, and are more focused on keeping jobs and working with automakers. The CAW upper management is still stuck in the adversarial, me-first, all management-is-evil mentality.

My guess is that since in Canada, health care is covered by the government and so is a good portion of retirement, they tend to need to go off the deep end to justitify their existence while the upper management UAW here is more focused in making sure it's members at least have decent health care and are in a partnership with the big 3 management.

Although I have alot of sympathy for the UAW management since they abandoned their confrontational stance, the CAW upper management still doesn't sit right with me.

Note that I say UPPER CAW management. I think the middle management and the rank and file (I know a few) are being given a dis-service by the guys at the top.


The other shoe with Canada now is that it is still the most expensive place in the world to build a car.
The CAW having a confrontational stance? Big words mean nothing. When was the last time the CAW went on stike? GM announces the closure of the truck plant 2 weeks after they hammered out a new contract (which included new products for it) and there was NO STRIKE. Only a peaceful demonstration. The UAW has been on stike a few times in the past 3 years. American Axle??? Fairfax over local issues???

The CAW went into early bargaining and agreed to concessions worth $900 millions in savings over the life of the contract and in the "shelf agreement" to secure the flex plant, more concessions were agreed upon.

-The ONLY advantage the UAW has over Canada is VEBA.
-The savings from 2-tier workers aren't there since there are no new employees under that rate.
-The CAW wages are exactly the same based on a .80 Cdn dollar.
-Health care savings

So unless the corporate taxes are what is pricing the Canadian operations uncompetitively, I don't see where it is considered the most expensive place in the world to build a car. In other words, you're saying that Germany AND Japan are cheaper than Canada????? What have you been smoking??

Last edited by LT1 PWRD; Jan 27, 2009 at 12:11 PM.
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