General Motors (GM) is requesting a significant financial bailout from the federal government of Canada in order to protect its operations from insolvency. The company claims that it requires an immediate influx of $6-7 billion from Canada to counter the economic downturn and fiscal loses associated with the global credit crisis, and the reduced demand for its automotive products [CBC News, 2009]. If they do not receive the necessary funding, they are threatening to close production plants in Ontario which would have an adverse impact on the Ontario labor market and would lead to a dramatic increase in joblessness and unemployment in Canada. The consequences of these layoffs and manufacturing plant closures would significantly impact the economy in Ontario, and incur a runoff effect throughout Canada. As such, the provincial government of Ontario is reviewing the request in order to consider whether we support and recommend a federal bailout for the automotive sector. In my capacity with the Ontario Ministry of Education, I am presenting this brief to comment upon and recommend the conditions from which we, as members of the provincial government, support this bailout and will discuss the specific recommendations and concerns related to post-secondary education, technical training, and skills transition which are necessary to counter layoffs this economic shift will generate.
[...] The auto sector bailout must not become a ‘quick fix' which will salvage today's workforce at the expense of tomorrow's workers Conclusion The Ministry of Training Colleges and Universities, and the Province of Ontario, support the financial bailout of the Big Three automotive manufacturers as a necessary act to rescue the Ontario job market and to prevent massive unemployment within the Province. We encourage measures which will re-invigorate the auto and manufacturing sectors, and will continue to provide gainful employment for the people of Ontario. [...]
[...] Our final recommendation to facilitate our support for an automotive bailout package is the inclusion of a production quota on the Three' Detroit manufacturers. This will ensure that future production remains within Canada—and, specifically, the province of Ontario—to prevent outsourcing, or the fabrication of parts and other components overseas. Our support of the financial bailout is entirely contingent upon the notion that this is essential to maintain Canadian jobs and to protect the financial well being of Ontario families, and this means that we must ensure that work remains within the province now and in the future. [...]
[...] In our opinion, such collective unemployment would immediately worsen the recession produced by the credit crisis and would negate the advantages attempted by the Economic Action Plan Recommendation: Province of Ontario The government of the Province of Ontario is in agreement with a bailout to the automotive industry and, in particular, GM as long as it meets the following requirements. These include: 1. Implementation of discounts on automotive insurance to be included in package; 2. Funding provisions to be directed toward automotive maintenance; 3. [...]
[...] This means that if GM, Ford or Chrysler are to layoff their existing workers, as an effect of reduced production or plant closures (which we oppose through production quotas above), the notices are not delivered collectively thereby turning thousands of workers onto the job market at once Focus: Skills and Education Training The Ministry of Training Colleges and Universities' office is directly concerned with the effect of massive layoffs and plant closures as representing the end of a considerable technology branch within the Ontario economy. [...]
[...] Discounts to automotive insurance will ensure that the people of Ontario have more money to spend in this economic downturn, and will increase driving safety within the province as well as reducing hospital and health costs as a result of accidents. Since reduced insurance premiums will allow more people to access automotive coverage, subsequent accidents will be funded by a third party to the government which will save its expense in hospital and medical costs. Most importantly, however, the reduced cost of insurance premiums will facilitate the access of more people to cars and will encourage driving in the province in the face of the economic downturn. [...]
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