Showing posts with label General Motors. Show all posts
Showing posts with label General Motors. Show all posts

Wednesday, June 09, 2010

Automakers Starting Society on the Take

Toyota’s major worldwide recalls of faulty vehicles with issues over a decade old raised awareness about the dangers of driving, previously unthinkable in our technologically advanced world.

Who would have thought that a major corporation wouldn’t care enough about it’s customers to ensure their products were safe?

Over the next few months, the other major automakers followed, with their recalls, realizing that they’d better fix the problem then face the wrath of an American Congressional Hearing like Toyota – though it really is the bad press more so than the wrath. Toyota was hit with fines, but no one went to jail, and never would.

Now the big automakers are continuing to show us just how out of touch with their own products and their customers they are – instead of fixing their products, they will now pay you off with a bribe.

Yesterday, General Motors recalled 1.5 million vehicles worldwide that will catch fire due to poorly designed heated windshield wipers. GM originally “discovered” the problem in 2008 – though it affects some makes and models from 2006 – and through an earlier 2008 recall replaced the motors.

However, the problem has continued, so now GM is recalling all the affected vehicles, but instead of trying to fix their own product, they will just disconnect the faulty heater, and pay registered owners a $100 for “the loss of the feature.”

Cute.

Instead of taking responsibility for rushing a product to market which is unsafe, and used as a selling feature to capture customers, they simply hold up their hands, claim they can’t fix it, but here’s a small token of our appreciation of your understanding, as they hand you a cheque for a mere $100.

Aside from the obvious questions about how they arrived at the dollar amount for the “loss of the feature” the real issue is the fact that a major global corporation is now bribing their customers, instead of doing the right thing.

General Motors made – or more likely contracted out to a third party who made – the mechanism, so they should take responsibility for ensuring it is safe and works as it is supposed to. They shouldn’t give up on it, and pay off their customers for the loss of its use.

Now we are talking about a feature that doesn’t affect the primary use of any vehicle – to get you from where you are, to where you want to go – yet.

However, if we consumers take the passenger seat now, we’ve opened up the door to corporate bribes in place of corporate responsibility. By accepting the $100 bribe from GM, you are telling GM and other executives who no doubt are watching at other companies in other industries and sectors that it’s okay to make faulty products with false promises, we’ll just pay off those affected with a small bribe later.

So next time when your fridge freezes solidly shut, and the manufacturer tells you you’ll have to just unplug it until it thaws, and live with the constant over-freezing because they can’t fix it, but oh – here’s a $50 cheque for your troubles – you’ll accept that?

We’ll become a society of corporate patsies, pushovers for products which don’t do what the manufactures told us they initially would, just so long as we are all on the take.



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Wednesday, April 21, 2010

Canada’s Biggest Environmental Challenge – Ourselves

Ironic – a day before Earth Day, our dependence on fossil fuels is evidently echoed across Canada’s largest city.

Today, the world’s largest automaker, General Motors (GM) announced it has repaid the $1.4CDN billion in loans it received from the Canadian federal and Ontario provincial governments – which the company’s president says is a sign the company is recovering from the recession. GM also repaid the $6.7CDN billion in loans it received from the American federal government’s bailout package.

Also happening today in Toronto, Canada, the city says it is expanding bike lanes in the downtown core along some of the major routes, despite a growing divide.

Much like the battle for and against bike lanes in Toronto, the street where they are going this summer -- University Avenue -- is split down the middle by beautiful gardens and statues – it is one of the widest streets in Canada’s largest city.

So why the division?

Some see the addition of bike lanes as an attack against drivers, as one of their lanes in either direction will disappear, causing more traffic headaches.

Others see the new bike lanes as a step forward for the environment and personal health and fitness.

Despite the greater good – for the environment – adding bike lanes in Canada’s largest city won’t amount to a hell of beans, to paraphrase a famous American general.

For some, it will encourage them to use peddle-power instead of gas-power. For those that already do ride their bike wherever they go it will make their life a lot easier.

But the real problem isn’t really being addressed – lifestyle.

In other urban centers, such as New York, Chicago and London, it isn’t uncommon for people to take public transit, walk, or bike wherever they go. Hailing a cab in Manhattan may make you feel like you’re in the middle of a Woody Allen movie, but with gridlock, you’d probably get to where you were going faster if you were on a bike, or even walked.

In most cities around the world, if you arrive anyway other than by your own personal vehicle, there isn’t anything seen as odd or wrong with that – that’s life living in the big city.

But in Canada’s largest city, if you happen to mention you took public transit or rode your bike, people look down on you, as if there is something wrong with you.

“You can’t afford a car?”

Automatically, people in Canada’s largest city assume that if you didn’t drive, there is something wrong with you. You’re not normal, you are an outcast.

Statistics back this up – or at least the part about those who drive versus those who don’t in the city of Toronto. In Canada’s largest city, over 70 percent of the adult population drives.

Politicians buy into these stats too – over past two decades, federal, provincial and municipal politicians have made – and more importantly broken – their promises to expand public transit.

Back in the mid 1990’s, when I was a reporter, I watched as then-Ontario Transportation Minister Al Palladini, sporting a gold-colored hard hat and shovel, broke the ground at was to become the Downsview subway station, along with several other politicos.

Although the Downsview subway station was built, and stands today, I’ll never forget what Palladini said. He proudly declared that this was the start of a massive initiative to get Ontario moving.

His major transit initiatives, aside from the lone Downsview subway station, never materialized. He had plans to expand the subway to York University in the north-west corner of Toronto, and to create a single-fare system across the municipalities outside of Toronto, currently you have to pay two fares.

Thanks to budget cuts, changes in government, and lack of public and political interest, those green transportation plans got shelved.

More recently, just this past month, the province of Ontario took away funding from TransitCity, another massive government plan to expand public transit across Toronto. TransitCity was going to fund the expansion of transit for the next decade – they tossed everything into it but the kitchen sink. From funding for replacing old, outdated, and costly to maintain buses and streetcars with new ones, to increasing bus route services, to building new light rail lines – including one much needed connecting Toronto’s downtown to the airport – were all a part of this big plan.

That plan too sits on a shelf, collecting dust, as the politicians at the provincial level bailed out – transit costs too much, and they’d rather put their funding into what the voters want.

Ah yes, that’s what it always comes down too. It never really comes down to the greater good for the environment, or even to really seriously reduce gridlock – which costs Canadians a billion dollars due to lost productivity. What really matters is buying voters with policies and plans catered to them.

Never mind that part of public life is to do the right thing, if I were a politician, I’d probably do the same – worry about pleasing those who gave me m job, so I could get re-elected.

Or would I?

Actually, you don’t have to be a rocket scientist to figure out how to keep your job, please the voters and do the right thing. All you have to do is lead by example.

If our leaders at all levels of government took public transit, road bicycles, even drove around in environmentally-friendly electric prototype vehicles, then it wouldn’t seem so outrageous a thing to you and me.

Instead, our leaders travel like royalty, in luxury late model vehicles – the American Presidential car is even nicknamed “the Beast.”

That’s why GM is able to pay back it loans – cars versus taking the bus – cars win hands down. When was the last time you saw Canadian Prime Minister Stephen Harper riding a bike, or standing in a busy subway train during rush hour?

Love them or hate them, we do follow our leaders. That’s human nature, and until our leaders change their ways, it doesn’t matter how many bike lanes they put in Toronto, or any other Canadian city – they won’t get the use they could, had our leaders used them to show us the way.


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Wednesday, July 22, 2009

Changing Economic Realities Bring Out the Fight

Earlier this year, one of Canada’s largest universities – York University, in Toronto, had one of their longest and most painful labour disputes. Teaching Assistants and part-time faculty went on strike for over three months, displacing students and those who work on and near the university’s two campuses. The school year had to be extended over a month, delaying graduating students their degrees, and returning students the chance to find summer work.

Just over a month ago, the 24,000 inside and outside civic employees that keep Toronto clean and safe went on strike. They still are on strike, affecting garbage collection, parks and recreation programs, ambulance services, and

Northwest Gate Picket LineImage by Gavatron via Flickr

just about anything that makes a city run.

Late last night, Via Rail, Canada’s national passenger rail service announced that locomotive engineers would be in a legal strike position this Friday. Today, they reduced service on some routes, to avoid stranding people across the country in the event a strike were to take place.

The world of work is not what it once was. The economy has shrunk – not only are people losing their jobs in record numbers not seen since the Great Depression, but many of those jobs are gone forever. Companies aren’t planning on asking many of those people back, instead they are looking at combining roles, so one person may be doing the job of two, or more employees.

WILMINGTON, DE - JUNE 3:  Rick Wagoner, Genera...Image by Getty Images via Daylife


That is if the company is lucky enough to still be. Many companies have gone out of business completely, others have had to go into bankruptcy protection to dodge their creditors long enough to regroup – not to name names – General Motors (GM).

We do live in challenging times, which might explain why labour unions are fighting harder for what they believe are the best interests of their members.
Can’t blame them for trying, but part of the collective bargaining is negotiating.

Negotiating involves compromise, a give and take on both sides to ensure a fair work arrangement for all parties.

Problem is, unions these days seem to have forgotten this, because they stand firm, holding out for the impossible, even when the companies they deal with try to come up with a balanced and fair compromise.

The City of Toronto has proposed several such compromises, giving the union some of what they want for their members. The union on the other hand, continues to hold the city and its resident’s hostage, saying they want it all, or no deal.

That was the problem for the union representing the Teaching Assistants and part-time faculty at York University as well. Though as the strike continued, public support shifted away from the hard working employees out on strike, turning instead towards the poor students unable to get their education.

The longer a strike lasts, the less support the union and its members have, and that prejudiced attitude can continue long after the strike.

Our human picket lineImage by Gavatron via Flickr



Many years ago, when Major League Baseball Players went on strike, causing the season the end early, the jokes circulating about grown men – most younger than you and me – playing a kids game for millions of dollars, going on strike weren’t just jokes. It took several years for fans to warm up to spending money on tickets, ball caps, team jerseys and other such items again. Some baseball teams went out of business or were bought out and relocated because people simply weren’t going to the games – remember when Montreal had the Expos?

Most people are lucky in this economy to have a job of any kind, many don’t get benefits, and job security is pretty much unheard of in today’s working world. So it is hard for most of us to sympathize with a group of people out on strike, until they get something most of us don’t have.

Yet unions continue to fight for job security, and better benefits for their members, holding out until provincial or federal governments step in. Provincial or federal governments will intervene with their mediators, to bring both sides together through negotiations. But, when the union continues to hold out, failing to negotiate, the government has no choice but to order the employees back to work.

And when unionized employees are ordered back to work, the whole collective bargaining process has failed.


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Monday, July 13, 2009

What Politicians and General Motors Have In Common

Aside from Canada, the States and other countries owning a large portion of ailing automaker General Motors (GM), there are other similarities which make you wonder if the auto giant really will dig itself out of this global depression.

GM announced last week that it is ready to leave bankruptcy protection and enter the world of selling cars once again. Fritz Henderson, the company’s Chief Executive Officer (CEO) says the company is sleeker and more customer-friendly.

Having borrowed $50 billion in government loans, it better be something more than it once was.

Henderson also said the company would be more receptive to its customer’s needs and wants when it comes to designing and building new models, and that these new vehicles would be launched faster.

GM on EImage by Mike Licht, NotionsCapital.com via Flickr


Sounds a lot like the never-changing world of politics. During election campaigns, politicians always make promises which may – or more often than not – may not actually happen. Politicians always talk about listening more to their constituents, and acting faster on those requests.

Guess when government money bails you out, you become more politician-ish?

Though, if GM was really paying attention to their customers, they probably wouldn’t have ended up filing for Chapter 11 Bankruptcy in the States in the first place. One of the golden rules to running any successful business is to ensure you are meeting the needs of those who will pay for your products and services.
Failing that, you might as well close up shop, because you are ignoring the people that will put bread on your table.

Henderson says that going forward, the company’s top priorities will be customers, cars and culture. Sounds like an election promise, and we all know how far those go in the real world.

As gas prices continued to soar uncontrollably due largely in part to oil industry greed, GM continued to build and sell gas hoarding machines, which their customers weren’t buying, because they couldn’t afford all that gas.

But, in the 1990’s GM came out with the world’s first fully electric car – the EV1. It was capable of traveling on average about 160KM on a single charge – more than enough for most day-to-day use. It took a full eight-hours to c

General Motors EV1 electric carImage via Wikipedia

harge the batteries, but then again, unless you are driving non-stop 24/7, you just charge it up while you are sleeping.

GM not only canceled the EV1 project, they destroyed it – actually hunting down their own loyal customers and repossessing the cars at the end of their leases, without giving their customers the option to buy or extend their lease. The reclaimed cars were crushed like tin cans, except for a handful which were allowed to be put on display in vehicle museums – sans any functioning engines. GM didn’t want the legacy of their success to show, claiming the vehicles were dismal failures and no one was willing to buy them.

Most of the EV1 owners were willing to buy them, they held massive protests, begging and pleading with GM to allow them to either lease of buy their cars at the end of their lease.

But due to pressure from the former Texas oil tycoon turned president, George W. Bush, and the strong oil lobby groups, GM killed the electric car because these groups saw this successful electric car as a death sentence to their monopoly over the world’s transportation systems.

Though if GM were smart and really had intentions of listening to their customers, they should have fought back. Sure, they would have been going after the American government and the mighty power of the oil industry, but they aren’t exactly a small player either – they were the world’s largest company.

Had GM kept the EV1, today, they probably would have a whole product line of electric cars, even better than their first attempts. They may even be the only car company in the world producing completely electric vehicles, at a time when oil prices continue to stay high, and consumers look towards other ways to travel, to save fuel costs.

So, when the CEO of GM says he’s planning on listening to his customers, and design vehicles which cater to those very same customers, he’s chirping from uneven ground.



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Monday, June 22, 2009

Megacity A Megamess – Toronto is on Strike

Canada’s largest city is facing its second city-wide strike in under a decade, as both inside and outside staffers walked off the job as of 12:01 this morning.

Local 416 of the Canadian Union of Public Employees (CUPE), which represents 6,200 of the City of Toronto’s outside workers went on strike, as labour negotiations with the city failed.

The union representing the city’s additional 18,000 inside workers – CUPE Local 79 – also went on strike, in part to support their outside colleagues, and also – as it so happens – their union talks also hit a brick wall.

Both unions have been in negotiations for over six-months to renegotiate their collective bargaining contracts, which expired December 31, 2008.

The last time city employees went on strike was back in 2002 – also in the midst of a summer heat wave. A day after the first day of summer, Toronto is experiencing its first taste of real summer-like weather, with temperatures about 27C, but with the humidex it makes it feel more 31C.

The hot and humid weather will only add to the misery of the strike, as trash piles bake. Garbage collectors, parks and recreation employees, paramedics, city run pool staff, and the ferry service between Toronto’s mainland and it’s neighbouring communities on the islands all ground to a halt.

Inside workers on strike mean the city’s daycare centres are closed as are municipal offices – though local politicians should still be on the job.

Toronto police and fire services are not affected by the strike, nor is the city’s public transit system, the Toronto Transit Commission (TTC). Ambulance services are reduced due to the strike, and so are low priority calls to 9-1-1.

What an irresponsible and completely avoidable mess for one of the world’s most cosmopolitan cities.

In an economy worse than the Great Depression, people with good paying jobs which not only provide them with a solid and steady income, but benefits most private-sector employees could only dream of, should be humbled by the very fact that they have jobs, let alone going half-cocked over a measly 18-unpaid sick days (which is one of the big burning issues for the outside workers).

The world’s largest company, General Motors, has slashed its workforce by thousands, and continues to announce layoffs on an almost regular basis. Other major companies around the world have had to let go of valuable, long-term employees because of the failing economy.

Unions do good things for their members. They fight the good fight; ensuring workers are compensated fairly, treated equally, and have safe and secure places of employment. However, sometimes, unions make unreasonable demands which fail to take into account the whole picture. They see bigger and better things for their members, without really considering the consequences to their member’s employers, the company’s customers, and the public’s safety.

Where has CUPE been these past few months – a Turkish prison? They should be thankful that employment slashing hasn’t hit their members the way it has hit the auto sector (which is also highly unionized).

And although they are in a legal strike position, isn’t it just as equally irresponsible to put people in harm’s way by stopping the collection of garbage during a heat wave? Garbage collection at any time of the year is a vital service, but becomes all the more of an issue as the humid conditions create a more hospitable environment for cockroaches, rats, seagulls, pigeons, racoons, and infestations not as common in the winter months. And all of these become a real health risk as they can spread disease.

Labour leaders aren’t solely to blame – part of the problem lies with the city as well. History has a tendency to repeat itself – just as in 2002 we had a summer of heat, humidity and garbage piling up on city streets. The city saw this coming. They know when their contracts end. The city knew from the strike of 2002 what negotiations are like what some of the key issues would most likely be, and what tactics the union would deploy.

Both the union and the city failed to act responsibly, and now Canada’s largest city is a city without the basics most modern civilizations enjoy.
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