Premier McGuinty's office has just announced the obvious, that the Pension Benefits Guarantee Fund cannot make good on pension liabilities for GM and Chrysler.
I commented on this in March, asking whether tax payers would be on the hook for GM pensions. The question remains.
McGuinty acknowledges that there will be a role for government though he is not forthcoming on which government or what the role might be. Given the premier's track record, this could be the opening move in a game of chicken with the feds.
However this plays out, the provincial government is likely to be caught between public outcry over what are often perceived as exceedingly generous pensions and driving the final economic nail into the coffins of communities such as St. Catharines, Windsor, Oshawa and St. Thomas among others.
Stay tuned.
No comments:
Post a Comment