Fiat to Chrysler: Cut costs or we walk

gerryh

Time Out
Nov 21, 2004
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When the Liberals win the majority they will continue with what Stephen Harper is doing which is seeking out new free trade partners.



If all they are going to do is continue with what Harper is doing....then why should they get a majority...... make more sense to give the party that originated the idea the majority.
 

Liberalman

Senate Member
Mar 18, 2007
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Gerryh

If all they are going to do is continue with what Harper is doing....then why should they get a majority...... make more sense to give the party that originated the idea the majority.

I was talking about the Stephen Harper’s drive to get more Trade Agreements with other countries

He has failed on his domestic policies and the polls are showing it.

Some Conservative party members are already is talking about replacing him as a leader.
 

Liberalman

Senate Member
Mar 18, 2007
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L Gilbert

How are you going to protect those jobs if they slide south of the border? You gonna sto,p your feet and tell the US it can't have Chrysler?


American manufacturing companies who decide to close up to move back to America and lay off Canadian workers will have to realize that they will not have the same access to the Canadian market as the auto makers in this country.

Those companies will have to have tariffs put on their products to make them uncompetitive for Canadian consumers to buy.

When the companies are faced with limited access to Canada then they will usually keep their operations in this country and save Canadian jobs.
 

L Gilbert

Winterized
Nov 30, 2006
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lol
"they will not have the same access to the Canadian market as the auto makers in this country."? Cerberus, who owns Chrysler Canada, is an American company. GM, who owns GM of Canada, is American. Ford Motor Company of the USA owns Ford Canada. Does Canada have any of its its own automakers?

Besides, the last time Canada and the US had a scuffle about trade tariffs, it took decades to be resolved. People out of work don't have that luxury of time.
 

Trex

Electoral Member
Apr 4, 2007
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L Gilbert



Protecting jobs is the name of the game beside it is cheaper than welfare payents to the laid off auto workers by the tax payers besides Stephen Harper is nogotiating more free trade agreements with Central and South America.

When the Liberals win the majority they will continue with what Stephen Harper is doing which is seeking out new free trade partners.

It is simple to see that Obama is ready to pull the plug on the Free Trade Agreement.

America is ready to go protectionist and everybody knows it.

It certainly does seem likely that the Obama administration is moving towards a protectionist agenda. Time will tell whether Obama will follow the most politically expedient course or the most fiscally astute one.
If the Obama administration does embrace a protectionist agenda the general population had better prepare themselves for a long protracted recession.

History has shown us time and time again that protectionism is the worst possible course of action during a recession.
That the great depression was both lengthend and deepend by various countries protectionist actions is indisputable.

Money and jobs are not finite they are created. This is not a monoply game with a fixed amount of assets and money. Every job created in the world is just that, a newly created job that gainfully employs and rewards another new worker. Some more than others.

Nobody wants to see meanial jobs outsourced from one country to another, except of course all the lucky folks in the usually poor country who get the jobs. Outsourcing admittedly does not create new jobs it just transfers old jobs to a new place.

Free trade agreements however tend to benefit all the countries that engage in them as they are the exact opposite of protectionist actions.

Canada rightly or wrongly tends to be an exporter of raw materials.
Probably because Canada contains vast natural reserves of raw materials.
NAFTA has worked out verry nicely for Canada in the long run as she is a net exporter.

The argument has been made several times that Canada should produce more finished goods out of her own raw materials.
I would tend to agree with that but the question becomes how do we do that?
The various companies and factories in question are not really offering to open up many new fabrication plants in Canada.
How do we attract them to Canada?
Lower taxes? Reduced environmental regulations? Cut worker's pay and offer cheap labour?
Beats me but I hope not.

But one thing that is understood and well known is that protectionist trade policies certainly will not encourage new investment in manufactoring and production in Canada.

I think Harper is actually doing a pretty decent job on the fiscal and international front myself.
He seems to be improving as time goes on.
Hopefully he will get Canada into free trade deals that benefit Canadians and create a few new jobs in Canada.

Trex
 

L Gilbert

Winterized
Nov 30, 2006
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Might help if Canadians didn't have the tendency to dish over companies to the Americans and expect Americans to keep companies going in Canada. I would much prefer to see Canadian companies use our own raw materials to make finished products/ Apparently, boards of directors and major shareholders just can't say no to more and more and more and more and more ....
 

dumpthemonarchy

House Member
Jan 18, 2005
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I support free trade but a little protectionism can do a country a lot of good in bad times. Free trade with the US was signed in 1989 when times were great. The days of pure economics running things are fading.

The "new normal" in one way means we need fewer cars. So it could be time to have a national economic policy and manufacturer of a new Canadian car if Chrysler and GM crater. Yet in these slowing times, who has the vision for that?

People will pay a premium for green products and they may pay a premium for a green Canadian car.
 

Ron in Regina

"Voice of the West" Party
Apr 9, 2008
31,439
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If CAW doesn't bent, then Chrysler doesn't get Gov't $$$ in Canada 'cuz
Fiat walks away from a merger with Chrysler. Chrysler then goes under in
Canada. :-?

Canada demands repayment of funds already passed out. Revenue Canada
seizes all assets on Canadian soil due to the back-taxes owed in the
neighborhood of a Billion dollars.... 8O

....and Fiat purchases these assets for pennies on the dollar from the
Canadian Government, and sets up shop here with the CAW on the outside
of the fence looking in. Fiat hires people (outside of the CAW) to build Fiat's
in Canada. Life goes on. Fiat then pays taxes to the Canadian Government,
as do their employees. :-|
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CAW hopes to have deal with Chrysler Friday morning
CAW hopes to have deal with Chrysler Friday morning

TORONTO — Declaring the end to pattern bargaining, Canadian Auto Workers
leader Ken Lewenza said Thursday evening he hopes to announce a deal Friday with
Chrysler LLC.


When asked how far off the union had gone beyond the agreement reached with
General Motors, Lewenza replied, "there is no pattern anymore; that's the reality.


The CAW has always insisted on pattern bargaining as a way to offer roughly the
same labour deal to all three Detroit automakers and prevent one from having an
advantage over the other.


Thus on Thursday night CAW-Chrysler talks continued, said Lewenza.


"We are wrestling a number of issues, not issues that are show stoppers, but you
have to confirm in writing by dotting the Is and crossing the Ts. Until we get
everything we're comfortable with, we don't have an agreement."


He said the stumbling block dealt with language and "clarification issues that are
sensitive to the union."


Lewenza said talks with the company would continue and hoped to be able to
announce a deal Friday.


"We want to avoid a bankruptcy filing," he said.


"The Government of Canada has told us clearly there will be no loans without
an agreement in place that meets not only the government's standards but
(Italian automaker) Fiat's standards. We're going to work like crazy to get that
done."


The negotiations are taking place amid reports that governments on both sides of
the border are preparing for a bankruptcy filing by the Detroit automaker.


Lewenza insisted he was not bargaining an agreement within the framework of a
bankruptcy.


"We are bargaining an agreement obviously to protect our members if in fact it's
requited to go in bankruptcy, but more importantly trying to convince the
Government of Canada of the quality and productivity of our workforce and trying
to convince Fiat SpA."


The Italian automaker is in merger talks with the U.S. parent and has, along
with the company, insisted that hourly labour costs be reduced by $19 to narrow
the gap with labour costs of Japanese transplants.


A spokeswoman for Chrysler said company officials would not be available for
comment.


Earlier in the day, a source close the negotiations said the two sides were no more
than $2 away from the $19 figure.


A bankruptcy filing would force a new set of negotiations to take place "under very
different circumstances relative to the future of Chrysler," said Lewenza. "We're
convinced that if we can come up with an agreement that minimizes the pain of
our members and satisfy the government and Fiat, we can avoid that."


Talks had already continued past a Wednesday midnight "deadline" for a deal on
labour cost cuts that parent Chrysler LLC says it needs to forge a merger with
Italian Fiat and qualify for about $2.9 billion in public loans.


Ottawa told Chrysler and the union a few days ago that it wanted a deal with
significant cuts by midnight last night because a merger between Chrysler and Fiat
hinges on it.


The federal and Ontario governments and the U.S. Obama administration say they
won't provide any more aid to Chrysler unless it clinches a merger before April 30.


Governments in both countries also want more concessions from other stakeholders
including the United Auto Workers in the U.S., dealers, suppliers and bondholders.


Meanwhile, the New York Times reported the U.S. Treasury Department is
preparing a Chapter 11 bankruptcy filing for Chrysler that could come as soon as
next week. The Treasury has an agreement in principle with the UAW, whose
members' pensions and retiree health care benefits would be protected as a
condition of the bankruptcy filing, the newspaper reported.


Lewenza also said he expects to return to the bargaining table with General Motors
once the union concludes negotiations with Chrysler.


"We have to assume the government will put in place the same process for GM."
______________________

If Chrysler goes down, I still predict that Fiat will walk in and purchase the
pieces for penny's on the dollar from the Canadian & U.S. governments and
set up shop wihout the CAW & UAW.
_____________________