One can forgive management and staff at General Motors Canada if they seem a little confused regarding the future of the auto maker’s pension plan.
Federal Industry Minister Tony Clement reiterated his position yesterday on whether government funds will be allowed to prop up GM’s floundering pension plan.
“It won’t,” he said.
Meanwhile, Ontario Premier Dalton McGuinty, who previously stated that Ontario was not interested in providing aid for GM’s pension plan, seems to be giving the issue another look.
“It’s fair to say that we can’t resolve this unless we address some of their legacy costs,” McGuinty said Tuesday.
Ontario Finance Minister Dwight Duncan also stepped in to remark that the issue remains “a work in progress.”
On Monday, the Canadian Autoworkers Union voted in favour of a cost-cutting deal with GM which cleared the way for the automaker to receive federal and provincial loans.
GM’s bid at a debt swap failed Wednesday after bondholders balked, making bankruptcy seem all the more likely.
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