Outcome of union vote shouldn't force government to sweeten subsidy pot to MCI

Winnipeg: The provincial government should resist the temptation to gamble more taxpayer subsidies on Motor Coach Industries now that a union vote on wages may jeopardize the government's agenda to keep the bus manufacturer in Winnipeg.

Employees recently batted the ball back into the court of the provincial government having voted to reject MCI's wage offer ultimatum.

"The province should not use the outcome of the union vote as an excuse to ramp up the existing $20 million corporate welfare package offered to MCI," cautioned Victor Vrsnik, CTF provincial director. "Instead, the Doer government should take a stand on behalf of Manitoba taxpayers and withdraw the misguided bail-out package.

"Agree or disagree with the union's vote, MCI employees have far more spine than the provincial government when negotiations are at stake," said Vrsnik. "What a contrast between the union's hard-nosed position and the way the Doer government caved into MCI's demands."

"Manitoba taxpayers are fed up with endless bailout packages for failing businesses that offer no guarantees of jobs or financial success," said Vrsnik. "Taxpayer dollars were also gambled on WinnPort, Schneiders, the Winnipeg Jets and Isobord, and they all went belly up."

Vrsnik noted that already MCI received $5 million in a non-repayable grant from Western Economic Diversification in 1988. Despite the large investment, the company is threatening to take the money and run.

"Politicians should stiffen the spine and say "no dice" to bailouts and work toward payroll and business tax cuts as a way to keep and encourage more investment and jobs in Manitoba," concluded Vrsnik.