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What is the point of bailing out failing companies?

Over the last few days we have seen a great example of why governments shouldn’t bail out struggling companies. GM is the latest example; Bombardier which repeatedly comes cap in hand looking for money is another.

Bailing out a failing company whether it has made foolish business decisions or produces products that people don’t want should not be the responsibility of any level of government. The same point could be argued for both the CBC and Canada Post.

This morning on CTV, Ian Lee of the Sprott School of Business made an excellent point. It is better to invest in the workers and in retraining them than to give money to companies. We have a shortage of high paying trades jobs in Canada- retrain workers and help those near retirement age to transition to their pension. It makes sense and would probably cost a lot less money than offering corporate welfare to failing businesses.

What is the point of pulling workers off the job right before Christmas because you don’t like a decision that has gone against you. CUPW is a prime example. They have been legislated back to work. The brilliant CUPW leadership then pulls an extra one-day strike. Bright move as that cut will come on the worker’s pay cheque roughly two weeks from now, just before Christmas. Will this extra day off help the workers?

We saw the same thing at GM where the workers walked out for the day as well.

Outside of union leaders believing their own rhetoric and trying to divert their members attention away from the failed efforts of the union leadership- what was accomplished? Besides a few seconds of TV coverage of angry union leaders grandstanding for the membership, all that was achieved in both cases was the loss of another days pay for zero impact or benefit for the workers.








Reader Comments (2)

we have seen the Canadian way and it is destructive.

November 29, 2018 | Unregistered Commenterold white guy

Canadian government bailouts of Bombardier and other Quebec companies that are more discrete about it, are indicative of the deeply embedded corruption in the political sphere of this country.

Canada loves to hold itself out to the world as the most moral nation on the planet, but like everything our politicians say, it's all an illusion. Favored people and their industries will always be bailed out by our corrupt politicians, the only way to end it would be to elect a government that isn't beholden to the industrial elite, and I don't mean the NDP, who'd sell out in a minute if they ever had the government.

November 29, 2018 | Unregistered Commenterdon morris

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