US Auto Economy virus spreading to Canada

The United States has been falling like a rock in terms of their auto sales as well as overall global performance. Not only are the big three being hit hard, but this infection of economic woe is now spreading into Canada, and while some of this was going to eventually ripple into all areas of the world, the Canadian auto workers are getting absolutely smacked in the face with this downfall.

GM Canada has already cut 1000 jobs, and there is more fear that jobs will be going in the short and long runs. With the sagging sales in North America, Canadians are even more concerned about this because almost 85 percent of the Canadian production goes directly to--you guessed it--the United States. However, there has been some rumbling that some of these woes could be avoided if it weren't for some of the deals that the big three have made for auto workers.

One is simply the wages that are paid amongst the masses of workers. Comparatively, the US Auto Workers make an average of over 50 dollars an hour, while Canadian workers make half of that. It's not that they have to simply match that, but there can be more value given to their retirement plans, etc., instead of giving straight cash. Of course there is also the thought that some of those jobs could be saved in Canada and instead some sweeping changes in the States, but of course that won't happen. But isn't it funny that major markets such as telecommunications and customer service are being outsourced out of the states due to their having cheaper labor available--and yes, it is skilled in many cases--but the auto industry holds tight to their expensive workers and suffer double digit losses? Hmmm...that's a mystery, isn't it???

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US Auto Economy virus spreading to Canada

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