CAW threatens to strike GM in Oshawa, Ontario

[Oracle of Delphi]

Rick Kranz

Automotive News

January 25, 2008 - 3:29 pm ET

DETROIT -- The Canadian Auto Workers union local representing employees at General Motors' Oshawa, Ontario, assembly plant is threatening to strike this fall unless the automaker confirms additional products and jobs.

CAW Local 222 warned GM on Thursday that the automaker is not living up to promises made in 2006 to build other models there besides the Chevrolet Camaro, the Toronto Star reported earlier today. The CAW's contract with GM expires Sept. 17.

Camaro production begins in February 2009. Besides that car, the plant had been expected to assemble other new rear-wheel-drive models. The plant currently assembles the front-drive Chevrolet Impala and Buick LaCrosse on three shifts.

In 2006, union members ratified concessions to reduce costs, create a flexible assembly plant and secure future vehicles. But the CAW said GM now wants additional concessions to ensure future models, the newspaper reported.

A GM spokesman said future products for Oshawa are in flux.

" Between the time we made the decision to make the investment in the flex plant and move forward with the new competitive offering agreement and Camaro, a huge amount has changed," said Stew Low, director of communications for GM of Canada.

" The loonie has soared to parity and beyond, and nobody anticipated a 35 mpg (CAFE) standard," Low told Automotive News. " The union is focused on new product programs and jobs -- and guess what, so are we."

No timetable was given for an announcement. In its recently negotiated contract with the UAW, GM agreed to an array of product commitments to U.S. plants over the next several years.

[Chazman]

Anyone get the feeling that if the CAW strikes, GM may just say, "screw it"?

[BigPontiac]

Alternate article heading:

CAW volunteers to idle plant to assist GM in reducing fleet sales.

[Camino LS6]

Anyone get the feeling that if the CAW strikes, GM may just say, "screw it"?

That would be one bitter pill for all involved, but yeah, it occurred to me.

I think they have something else up their sleeves though.

[Chazman]

That would be one bitter pill for all involved, but yeah, it occurred to me.

I think they have something else up their sleeves though.

Like what?

[Camino LS6]

Like more than one plan for which cars might be built at Oshawa. I'm betting that a number of options are on the table right now.

Some of them being zeta products.

[Oracle of Delphi]

Some of them being zeta products.

That will not happen, just sit back and keep watching the show.

[Camino LS6]

That will not happen, just sit back and keep watching the show.

Ummm...

You yourself suggested that possibility.

[Oracle of Delphi]

Ummm...

You yourself suggested that possibility.

Since the Loonie has risen as high as it has, and the health care breaks the UAW has given GM, GM needs to move production south ASAP. This will be a long drawn out battle I'm afraid with Oshawa being the loser.

[Camino LS6]

Since the Loonie has risen as high as it has, and the health care breaks the UAW has given GM, GM needs to move production south ASAP. This will be a long drawn out battle I'm afraid with Oshawa being the loser.

I can see how that could happen, but some interesting things could yet go on there while Camaro is in production.

The only constant is change.

[Oracle of Delphi]

I can see how that could happen, but some interesting things could yet go on there while Camaro is in production.

The only constant is change.

I think the workers there will say GM has thrown all this money into our plant and they wont close us, but I have seen GM throw 300 million into a plant and close it down 10 months later.

[Camino LS6]

I think the workers there will say GM has thrown all this money into our plant and they wont close us, but I have seen GM throw 300 million into a plant and close it down 10 months later.

Well, that comes down to a numbers game.

For Canadian plants, the goalposts have certainly moved. But, I'd expect that if something can be "worked out" GM would rather use that facility than abandon it.

[91z4me]

It would be kinda sad to see a plant w/ as much history behind it as Oshawa go under. I hope that something can find a home there. The plant does have the latest updates to its manufacturing line so I am sure something will.

Perhaps this will be a giant E-flex plant pumping out 400k E-flex vehicles and 100k Camaros!

[Chazman]

Since the Loonie has risen as high as it has, and the health care breaks the UAW has given GM, GM needs to move production south ASAP. This will be a long drawn out battle I'm afraid with Oshawa being the loser.

And the Camaro?

[PurdueGuy]

I would think there is some sort of product that GM could offer as a "reward" to consessions in negotiations. It's gonna be a tough negotiation for the CAW, though... which, honestly, means the UAW ought to be that much more pleased with their position to hold and gain production.

[Cremazie]

I like

" The loonie has soared to parity and beyond, and nobody anticipated a 35 mpg (CAFE) standard,"

Ok, GM admits that the loonie has gained ground on the manufacturing side but not on the sales side? We still pay a 30% premium on cars here. How does 35 MPG change gm building cars... they will just have to build more efficient ones.

[Duncan]

And the Camaro?

Or maybe a Firebird?

If we got a new Firebird, that would instantly seal any Camaro-vs-Challenger doubts I've been having. The Firebird wins that one, hands down.

[VenSeattle]

I would think there is some sort of product that GM could offer as a "reward" to consessions in negotiations. It's gonna be a tough negotiation for the CAW, though... which, honestly, means the UAW ought to be that much more pleased with their position to hold and gain production.

Maybe GM will promise product at Oshawa in exchange for the building rights to Camaro, Grand Prix, Impala, etc so they could be built elsewhere... I can dream can't I?

[Camino LS6]

Don't forget the export market when thinking about this.

[IfICouldWouldYou?]

I like

Ok, GM admits that the loonie has gained ground on the manufacturing side but not on the sales side? We still pay a 30% premium on cars here. How does 35 MPG change gm building cars... they will just have to build more efficient ones.

Even slightly below par, Canada is still a cheaper place to build cars. Both sides are sabre-rattling. GM has pumped more than $300 million into Oshawa recently.

Then again, if Obama wins and NAFTA is renegotiated, maybe Canada can go back to the AutoPact: you build it here or you don't sell it here.

[daves87rs]

Anyone get the feeling that if the CAW strikes, GM may just say, "screw it"?

Yep.

This plant is done....

And they can build the Camaro cheaper somwhere else...and also have an excuse for the "delay"...

It's a quick way to finish the W.....

They would be pretty darn stupid to strike now....

[daves87rs]

Even slightly below par, Canada is still a cheaper place to build cars. Both sides are sabre-rattling. GM has pumped more than $300 million into Oshawa recently.

Then again, if Obama wins and NAFTA is renegotiated, maybe Canada can go back to the AutoPact: you build it here or you don't sell it here.

I wouldn't count on it...

Not even to Nox' is safe....