Varity pulls out with taxpayers' moneyYear Published: 1991
Resource Type: Article
Cx Number: CX4247
Abstract: Varity Corporation, which owes its existence to a $200 million government bailout of its predecessor, Massey-Ferguson, is moving to the United States. Varity will pay a $25 million penalty for breaking its promise to keep its head office and a specified number of jobs in Canada, and a further $27 million in severance pay and benefits to its laid-off Canadian employees, including 1,400 workers laid off without severance pay in 1988, and 3,000 pensioners whose benefits it had cut off in 1988. However, it gets to keep the $200 million, for a net profit of approximately $150 million. Varity is not the only company to make such a move: for example, Tridon Ltd. announced in October that it is moving to the United States, wiping out 550 Canadian jobs, after picking up $9 million in government assistance.