Topic: Canadian Taxpayers fork out billions for GM pension aid

[articsteve]

http://www.theglobeandmail.com/globe-investor/taxpayers-fork-out-billions-for-gm-pension-aid/article1148545/

Highlights:

General Motors of Canada Ltd. will use billions of dollars in government loans to reduce its yawning pension deficit under a cost-cutting labour agreement that removes a major obstacle to the troubled auto maker obtaining $6-billion in federal and provincial aid.

But the deal represents an apparent about-face for the Harper government, which has long insisted federal taxpayers would not subsidize GM pensioners. Ottawa is expected to argue that only the provincial portion of the bailout can be used for the pension plan, but critics are already saying that distinction is meaningless.

 It also spares the pensions of existing retirees, but current workers face significant cuts to pensions and benefits, including giving up a promised $3,500 lump sum that was meant to compensate a loss of holiday time.

GM Canada will use savings generated by the union agreement and as much as $2-billion from the government loans to make a $4-billion contribution to its pension shortfall, sources said yesterday. The company will then have six years to eliminate the remaining deficit, now said to be $7-billion.

Ottawa indicated last December that Canadian governments would be a 20-per-cent partner with the American government in providing assistance to restructuring GM and Chrysler LLC. That proportion was meant to reflect Canada's share of North American production of the Detroit-based companies.

But after last week's closure of the truck assembly plant in Oshawa, GM Canada now represents only about 15 per cent of the company's North American production, and Canada's share of the bailout will be set accordingly, sources said yesterday.

[toolatecrew]

What a bunch of BS.

If I was an ontario voter I'd be PISSED. If I was someone who was living paycheck to paycheck who's self directed retirement plans had been wiped out by the finanical crisis I'd be outraged. That MY tax dollars were used to provide pension benifits to current and former CAW workers. Its unreal. Those pensions are an agreement between GM and CAW.

Harper is the master of backpeadling.

[articsteve]

If I was an ontario voter I'd be PISSED

In essence Ontario taxpayers are getting the better deal.  The Ontario portion of the GM bailout is going entirely to the pension shortfall, pensions that get recycled back into the Ontario economy primarily.  The Federal taxpayer is supporting the actual restructuring of an industry located 99.9% in Ontario.

[rrocket]

So the wealthiest people in manufacturing in Canada not only get their jobs bailed out, but their pensions too.

And they wonder why the rest of Canada has little sympathy for them...

[toolatecrew]

If I was an ontario voter I'd be PISSED

In essence Ontario taxpayers are getting the better deal.  The Ontario portion of the GM bailout is going entirely to the pension shortfall, pensions that get recycled back into the Ontario economy primarily.  The Federal taxpayer is supporting the actual restructuring of an industry located 99.9% in Ontario.

I don't know.

Ontario tax players pay for the pesnison bailout of a small minority of people who have defined pensions (over 60% on Ontario have no pension at all) from the provinical tax dollars. Ontario folks also pay towards the federal bailouts through federal tax dollars.

Supposedly those outside Ontario only pay once.

[ovr50]