Issue is Closed

After long months of silence, the Ontario government has now stated that it will not cover any shortfall in the pension plans for GM and Chrysler when they go bankrupt.

Both companies and especially GM have committed a form of fraud over the past generation, underfunding their pension plan while, at the same time claiming they were too big to fail and did not need to pay money in the trust fund maintained by the Ontario government to protect employees in the event a company goes bankrupt.

Many stakeholders, including U.N.C.L.E., made it clear that the Ontario taxpayer is not responsible for covering a private pension plan for which the taxpayer could not benefit from if it was over funded, and was never invited to the bargaining table.

The UAW and GM employees, especially, are livid with the decision. After decades of fleecing the car buyer and the taxpayer, the people in this industry formed a culture of entitlement which was not sustainable. When organizations like U.N.C.L.E. called for restructuring and change, we were told where to go.

We sympathize with the employees, many of them who put their trust in an incompetent union negotiators and equally dumb GM management. However, this is not a new issue. For at least 20 years, all industry stakeholders except for the union and management warned of the way the pension deficit was ballooning.

While the taxpayer is not required to foot the bill for the unfunded pension, the government should still act. Senior GM management as well as UAW management should be held under criminal arrest until it is determined whether a crime has been committed. All vehicle inventory plus factories need to be seized by the government and auctioned off to compensate the pension plan.