CAW big kahuna Buzz Hargrove is back in the news, but his target isn't the one you'd expect. Taking a break from shooting arrows across the Ambassador Bridge into Detroit, Buzz has rejected the $1b manufacturing subsidy announced by Canada's government. Globeinvestor.com reports the the feds are offering the aid to help a manufacturing sector reeling in the wake of the Canadian dollar's stratospheric ascent. BUT the aid package limits Ontario's portion to "only" $350m, as The Gov't also intends to help other ailing industries such as forestry and pulp & paper. And Buzz ain't happy with his slice of the potential pie. "They have to recognize these are extraordinary times and require extraordinary measures," declares Mr. Hargrove. "There are many states in the United States that are willing to do almost anything to get a new engine plant. If we don't get out ahead of the pack, we could very well lose an opportunity." The saddest part in all of this, though, is that Buzz is right. Split amongst The Big 3, which have combined debts in the hundreds of billions, a scant $350m subsidy ain't gonna cut it.
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Buzz would have a problem with anything the present federal government might do in terms of subsidies to the auto industry. It’s one thing to sweeten a deal to attract a new plant but there are inherent difficulties with helping out the existing industry. First of all as everyone knows, jobs in the auto sector are usually well paying with good benefits (for the OEMs anyway). There is a perception here in Ontario that autoworkers are under worked and overpaid and that means that workers outside the industry are not likely to have much sympathy for the issues facing autoworkers. This perception has lingered on from years ago when it might possibly have been true. I have a number of close friends who work in GM’s Oshawa facility and I can tell you they work very hard for their dime. Any significant attempt to bail out the industry may be perceived as using taxpayers money to keep overpaid morons in the comfort they have become accustomed to. Nonsense of course but there you have it. Another thing that the general public and the media will point out is the condition of the transplants (Honda & Toyota) verses the ‘domestics’ and the question that will be asked is “What’s wrong with you guys in Oakville (Ford) and Oshawa (GM), why can’t you succeed like the guys in Aliston (Honda) and Cambridge (Toyota)?” Over simplistic for sure but an issue that all levels of government need to bear in mind.
Indeed, Toyota is currently building a second plant in Ontario, and if my priority were to “help my neighbours”, I could do a lot worse than to grab a Corolla rolling off the line 10 miles from my door.
Nonetheless, while it’s amusing to hear a Ford worker blame the lack of Crown Vic sales in Japan on trade barriers, I don’t blame the Big e‘s workers for their predicament — these fish rotted from the head down.
That’s my money that buzz is turning up his nose at. As for extraordinary times, I’m inclined to remember my own spells of difficult times, funny, but i don’t remember the CAW helping me out. No, as a matter of fact, I don’t want my money going to keep overpaid morons in the comfort they’ve become accustomed to.
Hargrove has made it clear the CAW is unwilling to make the sacrifices necessary to save their own jobs.
The government should not make up the shortfall with money confiscated from taxpayers, many earning less than CAW members.
If the aid package’s purpose is to aid manufacturers located in Canada adversely affected by the high Canadian dollar, then
Toyota or any other car mnufacturer producing cars in Canada should be elligble for this subsidy. Toyota should lobby for this. Toyota is as Canadian as GM. They are both non Canadian companies employing Canadians in manufacturing.
Canada has spent too much on subsidies over the decades and the track record isn’t good. They are wasting every penny.