An Answer for the North American auto industry

RON BULL

Workers leave a GM plant in Oshawa in April, 2008.

It's time for out-of-the-box thinking to save the auto industry. It's an integrated system so answers must involve the entire workforce from Canada and the United States and (eventually) Mexico.  When the congressional bailout for bridge financing for the Big 3 failed last week, Capitol Hill fingers pointed at the UAW for refusing to make any concessions. However, President George W. Bush later suggested the Administration will come up with close to $15 billion for the auto makers because the industry is simply too big to fail. Canada will likely follow with roughly $4 billion to save plants on this side of the border.

Considering the long-term expenses of these manufacturing auto giants, it's a giant money pit, especially with the tough contracts negotiated by the United Auto Workers over the years. Media reports last week examined the huge advantage Asian auto makers have over their North American counterparts. It's not so much in paying lower wages and the related expenses of paid holidays, weekend pay and overtime, but rather the legacy costs of health care and pensions paid to retirees. Plus, Asian car makers pay less in health care, training and other benefits for employees. The difference in hourly wages between unionized plants in the U.S. and Canada and a non-unionized Japanese plant in the U.S. is about $5. But when you start looking at what the North American auto makers have to pay out to long-gone workers in pension and health-care benefits, you see how much these companies really suffer. That's where unionized companies start paying $8 to $13 more an hour on pensions and more on health care, bringing total hourly charges to around $70 an hour for unionized U.S. and Canadian plants, compared to under $50 for the Japanese.

It's been suggested government could pick up pension costs. But throwing money at the problem is short-term thinking. Plus, other companies would be lined up around the block before the deal had been made. Rather, Canada should come up with replacement industry that could solve problems for the Big 3 on both sides of the border and give Canadian entrepreneurs a strong, independent alternative for jobs and R&D.  Canada could offer cutting-edge technology in a chain of assisted suicide centres that offer a humane way out for Big 3 pensioners who are suffering as their quality of life deteriorates. It would, simultaneously, whittle down pension lists. So far, the Netherlands has taken the lead in exploring assisted suicide, but there is no reason Canada could not become the world leader in an industry that offers hope to pensioners and, down the road, an option to include Big 3 employees and family members who face a lifetime of pain — both physical and mental — along with their medical procedures. It could be the humane choice.

There could be accompanying centres at Canadian universities and colleges studying the human rights law of euthanasia, again offering world-leader potential for Canada. As well, the option of spa and hospital accommodation — holiday package tours for the family — is enormous. If the program begins on a broad scale,  everyone on the Big 3 pension lists would be considered eligible. Hopefully, it would operate on a voluntary basis, however the larger needs of society would, at some point, overcome any vestige of public concern. The government would have to pass forward-thinking legislation to cover off legal necessities.

Or, it could be a more modest proposal at the beginning, with only a few lottery winners from the ranks of Big 3 pensioners getting slots at a new euthanasia centre. As publicity grew, need is sure to outstrip capacity, which would lead to more growth in Canada's new national enterprise.

Canada must not stay bogged down in life support for outdated industry. The future lies in a new science and health-based technology that offers concrete answers to a problem that otherwise won't be solved.

Comments

[Fred Duncan]

Yet Another "Modest Proposal"

Perhaps we should be pro-active and develope recipies for cooking and serving up the children of auto workers, thereby reducing future payrolls...

Also, I think your column reads better in the original German.

[Timothy]

The insurance industry should cut there rates so that people who cannot afford the insurance or deserve a break can help out by buying cars and or saving money and spending it else where....An auto bailout only works if all industries that make money off it come together to solve its own problems, not people blaming the government or complete self entitled managment styles emplyed on either side blaming others and each other....all for one and one for all, or, all for one and no one for the good of everyone...

[Thomaxi]

Finally, someone speaking some sense on the topic.

[Bill Long]

Welcome back. Your contributions have been missed.

I seem to recall a similar initiative involving Irish children.

How did that turn out ?

[Brian]

wow, are u a joke.

The economic threat that the collapse of the industry poses is real, and the individuals and families that will be hurt most are those living within our own communities. Joking about suicide is never funny. Perhaps Ms. Diebel's article could have been devoted to proposing useful solutions rather than downright offensive drivel.

[N Hrab]

Since no one else has said it, here goes -- this is a fine piece of satire, and efficiently skewers a certain mindset on display as the merits of an auto industry bailout is being debate. Jonathan Swift would be amused.

(But I must admit that Ms Diebel could have thrown in a few more cues to indicate that this is intended as satire...)

With that said -- if you read the above entry and didn't realize it is satire, then you need to take a break, breathe deeply and read it over again. If you're taking this literally, then you're missing the point.

[Lee McGough]

What were you thinking with this blog entry? It isn't funny, if that is what you were going for.

[What?]

Did I read this correctly or are you suggesting we guide our seniors towards killing themselves? Are you serious? This has to be the dumbest, most ridiculous, nazi, idea I have ever heard.

You cannot think of a better way than to have "the burden" kill themselves? Just wow. Perhaps cutting off pensions entirely and having people save their own money never occured to you. Educate the new generations on how to do so. Money management is not taught in schools, but auto-mechanics is. Perhaps if the education system didn't breed morons like yourself we wouldn't be in this mess.

I think Eichmann would be bursting with pride if he read your article. We could kill drug addicts, mental health patients, street kids and criminals too. Then we can move on to Jews, Gypsies, Blacks, Polaks, Indians, Orientals. That will leave us with a beautiful pure Aryan race of 7th generation Canadians who couldn't find the pacific ocean on a map. Then we can all have 27 TV's each and drive 18 SUV's. Please get fired as soon as possible.

[Robert J Gordon]

A clear thinking columnist finally breaches the real topic. Everyone in the media, industry, academia, lobbyists, self-styled experts, and politicians have opinions on the auto loans (?). Few express a real solution to the situation except possibly Linda Diebel and the assisted suicide idea. The only glaring omission is the involvement of Canadians. Prior, during and after every election, pollsters ask readers, for an opinion on everything there is to know about majority feelings with regard to the leaders, parties, topical issues candidate strengths and weakness. Should not the pollsters be asking Canadian voters for an opinion on bailing out the auto industry so our elected leaders can consider a decision based on the wishes of the majority? When everyone is involved in the assisted suicide scenario the blame becomes the reponsibilty of those supporting the bailout.

[Rash Gordon]

I have often wondered how I can best serve my country, now that I am retired and no longer a productive member of society. My father and grandfathers served our country well, by going to war - protecting our principles, and the property of those well-to-do. But, no wars since have appealed to me! From the age of sixteen, I have instead served my country by paying taxes, staying out of jail, and remaining healthy enough to avoid becoming a burden on society - until now. At my age, declining health is assured, accompanied by mounting hospital bills; unless (as a member of the lower classes) I die quickly under the care of our understaffed and unsympathetic medical system. An early death may, in fact, be the best way (for those of us who have enjoyed a good life) to server our country in hard times, by freeing up money and homes for the next generations. An assisted suicide industry may not be required after all, although it would bring us to the desired outcome more quickly and more humanely. A two tiered medical system should do the job quite adequately.

[Rod Croskery]

The basic misconception of your suggestion is that pensioned workers can be encouraged to leave this world of woe: in fact those on defined-benefits pensions live longer than any other group. The only way to break that will would involve selling the pension plans out from under the pensioners, then marginalizing the members, blaming them for all that is wrong with the economy. Privatization of health care would help, as well. If the prospect of ruining their families for generations with a serious illness became likely, then they'd line up.

The problem of the satirist is that she is doomed to rail away at an uncaring or unknowing society without any real hope of change. I fear that the measures I identified above look all too attractive to the Neo-cons, and they might not notice the distortion and the message. Harper might see this as a useful set of suggestions.

I haven't forgotten the shock of the Mike Harris propaganda campaign against Ontario teachers. He effectively marginalized us, starting with the $450 bribe to every parent in Ontario who was not a teacher. Then came the infamous clock ad, where a lie worthy of Albert Speer won public opinion to the Tory side.

Harris and company poisoned the well in Ontario, and then Giorno and the rest have moved on to Ottawa.

The basic principle of satire is that if you use distortion to show a reasonable man the difference between principle and practice and a way to improve, he will change. Harper and company are not reasonable men, and I fear your modest proposal may just fan the flames.

[Arby]

There ought to be a drive to sign up petitions to have the auto industry completely nationalized. The capitalists who run things would welcome our input and state that that's an interesting proposal and promise to study it. Then, soon after that, one of them would be in a reporters front page story, with his wildly gesticulating mug shot, proclaiming, "Wait a minute!!! That's SOCIALISM!!!" Then one of us will say "Darn. They noticed. Oh well. We tried."