Late last week, Ontario and Ottawa agreed to extend a lifeline to the country’s struggling auto industry. The provincial and federal governments pegged their bailout package at “about 20 per cent” of the amount the U.S. will commit to the beleaguered trio of Chrysler, GM, and Ford. The Bush administration announced on Friday that it would sign over US$17.4-billion to the Detroit Three, meaning Canada’s contribution figures to be in the $4.3-billion range. But rescuing car makers with taxpayer money hasn’t proven to be a universally popular idea on either side of the border, with auto workers’ wages attracting much of the scorn. On average, Canadian auto-sector workers make about $35 an hour—$72,000 a year—plus benefits. The average wage of a Canadian manufacturing-sector employee, by comparison, is $20.75 an hour, or $41,500 a year. Could the auto workers comparatively high wages be to blame for the Detroit Three’s collapse?

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