Editing Canadian Auto Workers (section)

===2008–2010 automotive crisis===
{{Main|Effects of the 2008–2010 automotive industry crisis on Canada}}
Industry analyst Anthony Faria has criticized the labour contracts that Canadian Auto Workers then-president [[Buzz Hargrove]] negotiated with the [[Big Three automobile manufacturers|Big Three US automobile manufacturers]] in 2007, predicting that the [[subprime mortgage crisis]] and currency would hit Canadian auto production especially hard. Faria noted that UAW president [[Ron Gettelfinger]] agreed to have the UAW's "all-in" wage, benefit and pension costs drop from a high of $75.86 per hour in 2007 to an average of about $51 per hour starting in 2010. By comparison, the CAW's cost per hour was $77 in 2007 and will rise to over $80 per hour by the end of the new contract. Faria said that Gettelfinger went into negotiations "with the right intention...Save jobs. The CAW strategy was to squeeze every dime out of them."<ref>{{Cite web |last=Doelen |first=Chris Vander |date=2008-01-30 |title=Thousands of CAW auto job losses predicted |url=http://www.canada.com/windsorstar/news/story.html?id=63a938bc-58fa-4795-9ec4-10741d105193 |url-status=dead |archive-url=https://web.archive.org/web/20090215053440/http://www2.canada.com/windsorstar/news/story.html?id=63a938bc-58fa-4795-9ec4-10741d105193 |archive-date=2009-02-15 |access-date=2009-01-12 |website=The Windsor Star}}</ref> Hargrove was said to have "instilled backbone and an attitude that the union could always make the auto makers buckle at the bargaining table".<ref name="theglobeandmail1">{{Cite news |last=DeCloet |first=Derek |date=2009-03-10 |title=GM had a gun to the CAW's head – and missed |work=business.theglobeandmail.com |location=Toronto |url=http://business.theglobeandmail.com/servlet/story/RTGAM.20090309.wdecloet0310/BNStory/robColumnsBlogs/home |url-status=dead |access-date=2023-02-07 |archive-url=https://web.archive.org/web/20090313035141/http://business.theglobeandmail.com/servlet/story/RTGAM.20090309.wdecloet0310/BNStory/robColumnsBlogs/home |archive-date=March 13, 2009}}</ref>

Current union president [[Ken Lewenza Sr.|Ken Lewenza]] has argued that labour is not responsible for the bankruptcy crisis facing the Big Three automakers, saying that his members would not make concessions part of any taxpayer-funded bailout.<ref>{{Cite news |date=2008-11-24 |title=Other voices |url=https://www.thespec.com/opinion/2008/11/24/other-voices.html |access-date=2023-02-07 |website=The Hamilton Spectator |language=en |archive-date=2023-02-07 |archive-url=https://web.archive.org/web/20230207165307/https://www.thespec.com/opinion/2008/11/24/other-voices.html |url-status=live }}</ref> Lawenza argued that the CAW agreed in 2007 to make concessions that will save the Big Three $900 million over three years.<ref name="government-help">{{Cite web |date=2008-11-21 |title=Car dealers plead for government help |url=http://www.theglobeandmail.com/servlet/story/RTGAM.20081121.wcdeals1121/BNStory/National/home |url-status=dead |archive-url=https://web.archive.org/web/20081123013323/http://www.theglobeandmail.com/servlet/story/RTGAM.20081121.wcdeals1121/BNStory/National/home |archive-date=2008-11-23 |access-date=2023-02-07 |website=globeandmail.com}}</ref>

A spokesman for the [[Canadian Taxpayers Federation]] has criticized the CAW's "no-concession" stance, saying that it only serves to strengthen the opposition to a taxpayer-funded bailout for the struggling Detroit Three automakers. The CTF further pointed out that "It is especially difficult to understand anyone asking for government help that refuses to do anything to help itself to begin with", since they "fail to realize they've existed at the substantial largesse of taxpayers for decades".<ref>{{Cite web |last=Macaluso |first=Grace |date=2008-01-30 |title=Lewenza 'petulant' child |url=http://www.canada.com/windsorstar/news/story.html?id=c07f9882-2f99-4479-b067-831ac302129a |url-status=dead |archive-url=https://web.archive.org/web/20090215051012/http://www2.canada.com/windsorstar/news/story.html?id=c07f9882-2f99-4479-b067-831ac302129a |archive-date=2009-02-15 |access-date=2009-01-12 |website=The Windsor Star |publisher=Canada.com}}</ref> Kelly McParland, a columnist for the [[National Post]], has suggested that "if he won't give anything, he and his members are likely to lose everything." He also said that the problem facing the North American auto industry was borne equally by management and labour alike, criticizing labour for building up pay and benefits for themselves that was as unsustainable as it was enviable, while attacking management for its short-term strategy of selling gas-guzzling trucks and sales tactics (price cuts, rebates, free gas and cash-back schemes).<ref>{{Cite web |last=McParland |first=Kelly |date=November 19, 2008 |title=Kelly McParland: Stop the revolution, the CAW wants to get off |url=http://network.nationalpost.com/np/blogs/fullcomment/archive/2008/11/19/kelly-mcparland-stop-the-revolution-the-caw-wants-to-get-off.aspx |access-date=2009-01-12 |website=National Post}}{{dead link|date=September 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The CTF has opposed the proposed CAD $3.5 billion bailout for Canadian subsidiaries of the Big Three, saying that it was an unfair financial burden on the average Canadian, as well as another excuse for the Detroit automakers to postpone much needed change. The CTF noted that federal and provincial governments spent $782-million in the past five years on the Big Three, saying "These have been a bottomless pit of requests for cash". Lewenza disagreed, saying that the bailout should be seen by Canadians as a loan that will be paid back when the country's economy is prosperous again.<ref>{{Cite news |last=Nguyen |first=Linda |date=2008-12-13 |title=Canadian taxpayers and auto union butt heads over bailout |work=National Post |agency=Canwest News Service |url=https://nationalpost.com/news/canada/story.html?id=1073285 |url-status=dead |access-date=2009-01-12 |archive-url=https://archive.today/20081216160636/http://www.nationalpost.com/news/canada/story.html?id=1073285 |archive-date=2008-12-16}}</ref>

On December 20, the governments of Canada and Ontario offered $3.3 billion in loans to the auto industry. Under the plan GM was to receive $3 billion and [[Chrysler]] was to receive the rest. [[Ford Motor Company|Ford]] only asked for a line of credit but did not be participating in the bailout.<ref>{{Cite news |last=Austen |first=Ian |date=2008-12-20 |title=Canada Agrees to Its Own Auto Industry Bailout |work=The New York Times |location=Canada |url=https://www.nytimes.com/2008/12/21/business/worldbusiness/21canada.html?ref=business |access-date=2009-01-12 |archive-date=2015-10-19 |archive-url=https://web.archive.org/web/20151019104916/http://www.nytimes.com/2008/12/21/business/worldbusiness/21canada.html?ref=business |url-status=live }}</ref>

The CAW negotiated a cost-cutting deal with General Motors Canada on March 8, 2009. The deal would extend the current contract for an additional year to September 2012, and preserves the current average assembly-worker base pay of about $34 an hour. It would eliminate a $1,700 annual "special bonus," and reduce special paid absences or "SPA days" from two weeks to one week a year, while maintaining vacation entitlements which range up to six weeks a year for high-seniority workers. The deal also introduced payments by members toward their health benefits - $30 monthly per family for workers and $15 a month for pensioners. Lewenza said it also would trim by 35 per cent company contributions to union-provided programs such as child care and wellness programs. Lewenza called the package a "major sacrifice." However, observers noted that the deal did not go far enough; [[Dominion Bond Rating Service]] analyst Kam Hon described it as "not material." Automotive industry consultant [[Dennis DesRosiers]] said that General Motors had missed the chance to slash labour costs,<ref>[http://lfpress.ca/newsstand/CityandRegion/2009/03/09/8687446.html]{{dead link|date=March 2011}}</ref> pointing out that bankruptcy was a looming threat, Ottawa and Queen's Park demanded cuts to the labour bill as a condition of the bailout, and that the deficit to the pension fund would prevent the CAW from striking.<ref name="theglobeandmail1" /> He estimated the total hourly cost of a GM Canada worker, including benefits, is $75 to $78, and saying that "they [GM] got six or seven." when it should have been cut by $20. DesRosiers also said giving up cost-of-living increases is not significant when inflation is nearly non-existent and added that the 40-hour reduction in [[paid time off]] merely means "five fewer spa days." [[University of Toronto]] professor Joe D'Cruz calculated that it would save $148 million a year, though GM is seeking $6 billion in Canadian government support.<ref name="government-help" /><ref>{{Cite web |title=Business News |url=http://www.am770chqr.com/News/Business/Article.aspx?id=92681 |access-date=2011-03-03 |website=Am770chqr.com}}{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> CAW autoworkers with seniority were able to maintain 10 weeks of vacation with full pay, while not contributing to their pension fund, relying instead on taxpayers (including these without pensions) to help make up their unfunded liabilities.<ref name="financialpost1">{{Cite web |date=2009-03-05 |title=Only CAW can save Ottawa from bailout |url=http://www.financialpost.com/scripts/story.html?id=1357929 |url-status=dead |archive-url=https://web.archive.org/web/20090410073430/http://www.financialpost.com/scripts/story.html?id=1357929 |archive-date=2009-04-10 |access-date=2011-03-03 |website=Financialpost.com}}</ref>

The agreement is contingent on Canada being allocated 20% of GM's North American, and getting billions of dollars in federal and provincial taxpayer support, which Lewenza stressed will be loans. However, some suggested that this would not be the final time that automakers would request a bailout.<ref>{{Cite web |title=John Ivison: Automotive bailout must not be free ride |url=http://www.financialpost.com/scripts/story.html?id=1343240 |url-status=dead |archive-url=https://web.archive.org/web/20090402161023/http://www.financialpost.com/scripts/story.html?id=1343240 |archive-date=2009-04-02 |access-date=2011-03-03 |website=Financialpost.com}}</ref>
Dennis DesRosiers estimated that GM will go through its government loans in a couple of quarters, long before any recovery in the market. Furthermore, GM Canada president Arturo Elias had admitted to MP [[Frank Valeriote]] that GM had pledged all its assets worldwide to the US government in order to secure the first tranche of a US$30 billion loan, leaving no assets to collateralize the $6 billion loan from the [[Government of Canada|Canadian government]]. The Canadian Taxpayers' Federation noted that between 1982 and 2005, Ottawa handed out over $18.2 billion to corporations, of which only $7.1 billion was repayable, and only $1.3 billion was ever repaid.
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Chrysler vice-chairman and president [[Thomas W. LaSorda]] (himself the son of a CAW official) and Ford's chief of manufacturing Joe Hinrichs said that the GM-CAW deal was insufficient, suggesting that they would break the CAW's negotiating pattern set by GM. LaSorda told the [[House of Commons of Canada]] finance committee that he would demand an hourly wage cut of $20, suggested that Chrysler may withdraw from Canada if it fails to achieve more substantial cost savings from the CAW.
<ref>{{Cite web |title=Article |url=http://www.canada.com/CAWkeen+extend+GMdeal+Ford+Chrysler/1394268/story.html |url-status=dead |archive-url=https://web.archive.org/web/20160128214155/http://www.canada.com/CAWkeen+extend+GMdeal+Ford+Chrysler/1394268/story.html |archive-date=2016-01-28 |access-date=2011-03-03 |website=canada.com}}</ref>
<ref>{{Cite news |last=Green |first=Jeff |date=2009-03-14 |title=GM Says CAW Union Pact Wins Parity With U.S. Foreign Automakers |publisher=Bloomberg |url=https://www.bloomberg.com/apps/news?pid=20601087&sid=atjPPT9kXqAY&refer=home |access-date=2011-03-03 |archive-date=2010-03-21 |archive-url=https://web.archive.org/web/20100321154128/http://www.bloomberg.com/apps/news?pid=20601087 |url-status=live }}</ref>
<ref>{{Cite news |last=McCrank |first=John |date=2009-03-16 |title=RPT-Chrysler Canada cannot afford GM-CAW deal -source |work=Reuters |url=https://www.reuters.com/article/privateEquity/idUSN1650804820090316 |access-date=2017-06-30 |archive-date=2021-03-08 |archive-url=https://web.archive.org/web/20210308210104/https://www.reuters.com/article/privateEquity/idUSN1650804820090316 |url-status=live }}</ref>

On March 31, 2009, the Canadian federal and Ontario governments jointly rejected the restructuring plans submitted by GM and Chrysler. This came a day after US President [[Barack Obama]] had rejected the plans of their parent companies. Both federal Industry Minister [[Tony Clement]] and Ontario Premier [[Dalton McGuinty]] suggested the CAW's initial deal was insufficient in cutting costs and the union had to return to the bargaining table to make further concessions. Both governments maintained that these were needed to make the business viable in order justify the use of taxpayers' money.
<ref>{{Cite news |date=2009-03-31 |title=Find more cuts, Premier tells GM and CAW |work=Business.theglobeandmail.com |location=Toronto |url=http://business.theglobeandmail.com/servlet/story/RTGAM.20090331.wgm0331/BNStory/Business/home |url-status=dead |access-date=2011-03-03 |archive-url=https://web.archive.org/web/20090403150353/http://business.theglobeandmail.com/servlet/story/RTGAM.20090331.wgm0331/BNStory/Business/home |archive-date=2009-04-03}}</ref> [[Fiat]] CEO [[Sergio Marchionne]] has asked that CAW wages be reduced to the levels of non-unionized workers from Honda and Toyota operating in Canada, or else they would walk away from the [[Fiat#Partnership with Chrysler|proposed alliance with Chrysler]]{{Broken anchor|date=2024-07-17|bot=User:Cewbot/log/20201008/configuration|target_link=Fiat#Partnership with Chrysler|reason= }}, resulting in the latter being forced into bankruptcy.
<ref>{{Cite news |last1=Reguly |first1=Eric |last2=Keenan |first2=Greg |title=Fiat to Chrysler: Cut costs or we walk |work=Business.theglobeandmail.com |location=Toronto |url=http://business.theglobeandmail.com/servlet/story/RTGAM.20090414.wrfiat15/BNStory/Business/home |url-status=dead |access-date=2011-03-03 |archive-url=https://web.archive.org/web/20090418172951/http://business.theglobeandmail.com/servlet/story/RTGAM.20090414.wrfiat15/BNStory/Business/home |archive-date=2009-04-18}}</ref>
Following its emergence from Chapter 11, Chrysler returned to profitability, repaying some of its government loans.