> Articles > Supplier That Fought Back
in industry dealings
From the Toronto Star Feb. 21,
2005. Letters to the Editor
that fought back on Feb. 15.
exposé by Tony Van Alphen about auto-parts giant Intier Automotive
enriching itself at the expense of a tried and tested but smaller
supplier — Axiom — signals the murky dealings within Canada's
How can a company
that has doubled its earnings year on year force a 31.8 per cent
price cut on its small suppliers?
Such an action
reflects the symptom that corporate greed in the auto-parts sector
is not very different from the infamous Enron and Nortel which used
different routes in quest of the same goal.
cannot expect to improve its competitive edge when supplier-customer
relationships, built up over a number of years, are threatened by a
"take it or leave it" price cut order.
If the courts, the
government and the community do not discourage Intier from its
bullying tactics, then other tier-two suppliers could meet the same
fate that has befallen Axiom.
including banks, customers and industry associations must join hands
in ensuring the development of fairness in industry dealings.
Everyone wins when Canadian industry gets better.
Failure to do so
could lead to dashing budding entrepreneurs' ventures, large-scale
loss of jobs as well as erosion of decency and fairness in the