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GM strike in U.S. to impact operations in Canada

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CTV News: Scott Laurie covers the Canadian impact
CTV Toronto: Austin Delaney on Canadian worries
CTV Newsnet: Joseph D'Cruz, auto industry analyst
CTV Newsnet: BNN's Michael Hainsworth explains
CTV Newsnet: Buzz Hargrove, president of the CAW
CTV Newsnet: Buzz Hargrove answers questions from reporters
CTV Newsnet: UAW members walk of the job in U.S.

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CTV.ca News Staff

Date: Mon. Sep. 24 2007 11:04 PM ET

A nationwide strike in the U.S. by General Motors employees could leave as many as 100,000 Canadian workers without jobs, Canadian Auto Workers president Buzz Hargrove said Monday.

About 73,000 members of United Auto Workers (UAW) went on strike at GM plants across the United States Monday. The members are employed by GM at 82 U.S. facilities -- which include assembly and parts plants and warehouses.

Because of the strike action, Hargrove said jobs in Canada will see an immediate impact.

Hargrove confirmed the following:

  • Oshawa, Ont. car plant no. 1, which builds the Chevrolet Impala and the Monte Carlo, will close down at 3 a.m. Tuesday
  • Oshawa, Ont. plant no 2, which builds the Pontiac Grand Prix and Buick Allure, will close at the end of the day shift Tuesday
  • The Oshawa, Ont. truck plant, which produces the Silverado and the Sierra, has enough parts for three more days of production
  • GM's engine plant in St. Catharines, Ont. will close within 72 hours
  • GM's Windsor, Ont. transmission plant has already been closed down

"In addition to that there will be literally thousands and thousands of auto parts workers in the independent auto parts sector that will be laid off if the dispute continues, some of them will already be laid off as of today," Hargrove told reporters.

Hargrove said that there are about 80,000 workers in Canada employed in the automotive parts sector and GM buys about 50 per cent of all parts creates in Canada.

He said that means roughly 40,000 auto parts workers could be laid off within the next few days.

In total, adding in suppliers and service workers at various plants, Hargrove said "anywhere between 80,000 and 100,000 people" could soon be unemployed in Ontario and Quebec.

U.S. negotiations

UAW President Ron Gettelfinger said Monday that job security was the major unresolved issue prompting the action.

It is the first nationwide strike against the U.S. auto industry since 1976. Gettelfinger said GM failed to meet the union halfway in contract negotiations.

"We were pushed into a strike and that's where we're at," he told reporters.

Gettelfinger said negotiations would resume Monday and that the UAW was willing to discuss a key GM demand that a UAW-managed trust fund be established to cover health care for retirees.

If accepted, the trust would alleviate GM of US$51 billion in unfunded health costs. GM is currently responsible for nearly 339,000 retirees and surviving spouses.

Still, Gettelfinger said the strike was not related to the trust fund but rather to job security.

In a statement Monday, GM spokesman Dan Flores said the company was disappointed about the strike situation.

"The bargaining involves complex, difficult issues that affect the job security of our U.S. work force and the long-term viability of the company," said Flores. "We are fully committed to working with the UAW to develop solutions together to address the competitive challenges facing General Motors.

"We will continue focusing our efforts on reaching an agreement as soon as possible."

With files from The Associated Press

Comments are now closed for this story

Jeremy
said

Good for GM. The workers have no one to blame but themselves.


Bob Beausoleil
said

Strikes are most unfortunate as no one wins, neither management nor the employees. That said it is time that the UAW and their workers started to realize that the automotive world is a global one and if they do not help make these companies competitive both in benefits, wages, vacations and health benefits, they will lose everything. We have seen the North American market for the big three drop to about one third of the entire market a far cry from not that many years ago when it was dominated by the North Americans. You cannot blame the unions, the people or even the automotive companies, they are all part of the problem and unless they all take a hard sober look at what is happening around them they will not exist in ten years.


Robert Brisebois
said

So here we are, with another strike by UAW members!! Is it because of low wages NO! Is it because of too much work? No!! I would suspect that the only winners will be the highly paid GM Management types, and lets not forget the self important highly paid Ron Gettelfingers of the Unionize world. Workers beware!!!


Enrique
said

Generally job security is a thing of the past. Demand something else UAW. This will certainly hurt GM getting back on track.


Gordie
said

I always laugh when union reps tell reporters that they were forced into a strike, or in this case, "pushed". Last I checked, these workers were not locked out.

The problem with GM is much of their product is inferior to that of the import manufacturers. Not only do import manufacturers make nicer looking vehicles, but they are far more reliable than GM, Ford or Chrysler/Dodge.

Furthermore, when much of the revenue brought into GM through their sales is being sucked up by benefits for their family members and their pets (even well into retirement), you have this situation where at some point, the bubble will burst.

A $30,000 import vehicle has much more appeal to the average consumer than a $30,000 vehicle from GM, Ford or Chrysler/Dodge. Why? Reliability, design and fuel efficiency in an import is far superior to that of a domestic.

Have you ever wondered why domestic manufacturers often have "employee pricing" promotions? Certainly not because the corporate heads are in a giving mood that's for sure!

If domestics had the same quality and appeal to the consumer as that of the import models, the idea of a strike probably wouldn't even occur!


Mike
said

I hate unions! Most unions are full of people with minimal education making salaries that are far above what their jobs are worth. Companies in North America cannot afford to keep paying pension, benefits and high wages and maintain their competiveness.

When will unions learn? Usually when the company goes under and the union members are out of work.


Ed
said

These union jokers just won't get it until they're standing in the breadline. The market CAN'T support 30/hr floor sweepers.

Robert
said

UAW President Ron Gettelfinger said Monday that job security was the major unresolved issue prompting the action. Wow job security. Who has this nowadays? Why should these employees be so special? Unions should realise that in this ultra competitive world they probably should ask their members to accept a pay cut of say one to two dollars to come more in line with the Japanese car makers. It is only a matter of time before the BIG THREE becomes the non existent three. I am not against unions but sometimes their expectations are out to lunch.



Frank
said

Big 3 workers have been giving back to the companies for years. It was only 2 years ago that the UAW gave healthcare concessions to GM to "save the company". Problem is GM keeps coming back for more. I am a Chrysler employee and can tell you that the problems in the big 3 are not wages and benefits but poor planning by management and the effects of free trade. They need to build cars people want and that apparently is not suv's and trucks. The government on the other hand needs to re-instate the Auto Pact. If you wanna sell here you must build here. This would create jobs for Canadians and Taxes for the Canadian Government.


Kat
said

Jeremy - Please elaborate... how does the blame fall on the worker's shoulders?


sk
said

Gee, this will really help our faltering economy in Ontario. As if the manufacturing sector wasn't hurting enough this could be the final nail in the coffin.


Bell
said

Here's a thought...I am sure GM would be in a much better position to negotiate with their workers/union if they would wake up in their ivory towers and design and build better and smarter vehicles...then they would sell more and be able to spend more...they just don't get it.

Josh
said

Maybe this will allow GM to sell off the inventory surplus that they accumulate year after year and they won't have 0% financing promotions to get rid of those extra cars. In the end it is always the customer that pays for disputes like this. Maybe Ford should do something like this, they would end up saving a lot of money on parking lot rental for the thousands of extra cars they over produce.


Glen
said

Although they make a good living now, they have good reason to be concerned. The GM/ACS computer services contract was recently outsourced to India, who don't have the same employment standards we have. Free trade is useful except when job security issues become a priority. Maybe it's time for import quotas?


johnn
said

Tell me if I am wrong, but don't the CAW members get some 80% or 85% of their wages, whether they work or not?
If so, why would they be worried?


Hyundai-Man
said

Take a look at the vehicle that a tow truck has behind it. Most often I see GM, Ford and Dodge products. Yes, they own a larger percentage of the entire market, but it's the Navigators and Escalades being towed that makes me wonder who would pay $50G for one of these things. They do get great fuel mileage while towed, though.


John P
said

What planet do these people at the UAW live on? GM is barely keeping its head above water and these guys want to strike. It costs $1000s more per car to build an American car than a Japanese one because of the healthcare costs. The UAW wants job security, who in this day and age has job security?

This strike will hit Ontario hard. For all those considering voting for McGuinty, do you trust McGuinty to guide Ontario through tough economic times?


Buddy Stark
said

GM has been on a downward spiral for a while. Where else is GM going to cut back? It certainly hasn't been their workforce, has it?

Very high labour costs are a major factor for why GM has been putting out an inferior product for years. I have had nothing but problems with GM. I refuse to buy domestic from any of the "Big Three" until they get their act together. That may not sound very patriotic, but neither is paying for a substandard product with my hard earned money.




Robert
said

Frank, That is a tired old argument from Buzz and his cronies. The last time I check all the Japanese cars we drive here are made in North America. They are not imports. So its time for the union to rewrite their speech.




Jill
said

My brother used to work for GM.He said about 10 years ago,that if the unions keep asking for as much as they are, it will put GM out of business.I hate unions.


Jan
said

Perhaps the Unions in Canada and in the USA will finally wake up that society is no longer prepared to support their excessive demands on wages and benefits which are not available to any one else.


Bob Smith
said

Makes you wonder if all these union-bashers would be happier if we all made minimum wage and worked 80 hours a week with no vacation. It's almost like they would prefer there be about 3 multi-trillionaires, and the rest of us dirt poor. This would somehow be an ideal and perfect world for these union-bashers.

God forbid there are unions out there looking out for workers interests and allowing them and their families to have middle-class existences.


sd
said

Buzz just told us a couple weeks ago to only buy cars manufactured in Canada. I guess GM vehicles have as much Canadian content as Toyotas and Hondas built in Canada, eh?!?


Andy
said

How can anyone be selfish and say good for GM? Is it good that upper management is taking jobs away from people here in North America and building in 3rd world countries, for no benefits to employees,there families, and paying them for just over $2.00 an hour?

Is it good that the price of a car, does not reflect to the price of what it costs to make, in these under developed nations?

The union gave up wage cuts (meanwhile the CEO's increased there wages by millions. The union is bailing GM out of paying $51 million in owed health care, and your saying good for GM?
I say shame on them, and shame on anyone who takes pleasure in watching people suffer! Families being scared not knowing where there going to get money to pay there mortgage, and feed there chidren!

Shame on all of you CEO's and union haters. The unions have evolved to appease corporations. What have the corporations and government's done to save jobs in North America? Why is it that we cant sell cars in Japan, and Korea but they can sell cars here freely? The union is asking for SOME job security, is that so wrong? For GM to go on strike to not guarentee that they will keep any jobs in North America means the UAW is only giving them Hundreds of millions of dollars in concessions only to have them leave? That is insulting and disgusting.

All you norrow minded people leaving these negative comments on here about the union is without merit Look at the facts and trends and you tell me whose greedy?


Ronald
said

Auto unions have become arrogant, mouthy, petulant, and completely self destructive. How stupid is it to demand anything when your employer is operating at a loss? The North American auto industry's days are numbered. No business can survive when it is locked into riduculously inflexible union contracts that require union buy-in anytime a new business practice or strategy is needed. And don't feel sorry for the workers in Canada who are temporarily sidelined during this strike. They get EI immediately and GM has to top it up to almost full salary while they enjoy this nice little vacation. What a fantasy world these people live in. Surely they realize that it cannot be sustained forever.


Adam
said

Usually the wages at any union shop are much higher then what the going market rate is. Simply put collective bargaining does have it's advantages.

However, when a high school drop out sweeping a floor making $50k/yr with full benefits and a generous pension goes on strike because he wants more... It is rather sickening.

Job security in manufacturing no longer exists. Period. To derail the company because they won't promise something they can't give is ludicrous.

On a smaller scale, I have seen plants close individually over crap like this... I wonder if the layoffs will start now, or in a weeks time?

Back a firm that doesn't have the money into a corner, and watch what happens.

There are many ways to solve over production.


SUBARU Chick
said

The GM pension fund is $6 Billion in debt. They can not afford to pay health care for the entire employee's family forever and compete with foreign autos. Hey a strike might save them some $$!


Nancy
said

Do the Canadian and US workers get paid while on strike??? My best friend's husband works at Megna in Newmarket. Will this affect the Megna Auto parts in Newmarket??? Does anyone know??? This is really going to affect everyone!! So sad.


Anne
said

What is the union's job if it is not to protect jobs? Workers pay union fees every year just so that the union will look out for the workers.

It is easy for people to say that workers should take a cut in pay but I think they should think a little harder about how they would feel if they were asked to take a cut in pay.

People like Jeremy need to get their heads out of the sand.


Scott
said

All you domestic vehicle-haters are simply un-educated. If you ever needed a good truck for work, and knew what work truly was like pulling heavy loads like horses and cargo etc., you'd know GM trucks are the best. The new ones are simply fantastic, and with good gas mileage. Only a sissy would drive an import, and not support their own US/Canadian economy. So, the issue of quality as far as I'm concerned is moot!
As far as UAW is concerned, they are digging their own grave here, and are the main reason costs of American vehicles are not competitive.


Mike R
said

Man, I would love to buy Toyota or Nissan. But they haven't started to import 3/4 tons and 1 tons with payload capacities to handle the oil patch yet. But when they do, I will not be buying big 3. Their warranties suck! You need a lawyer to figure out where warranty begins and ends. At least with my wife's Nissan Quest it's no questions asked, just the problem fixed.




David H.
said

Job Security? Nobody, I mean nobody has it. Sure they may get it, but who's going to secure their jobs when the company is bankrupt? Health benefits... that will go down with the bankruptcy when they divide what is left over (nothing).

I've seen unions sink companies and shoot themselves AND most of them are now working for LESS than if they did not complain.


Roberto E.
said

I work for a company that supplies TOYOTA with seats. This is very sad; GM already has been struggling with money for the last few years and now this. I believe this strike will even hit harder their revenue. I understand how worry all these employees are feeling about keeping their jobs until they retire but when you do something like this to a company that is already bleeding This make everything worse no just for GM but for all the people that for GM and its supplier around North America.


Dan
said

And the union will drive another car company into bankruptcy.


Jim McB
said

This will cause tough times for GM workers.

Maybe Buzz will now have to become a Conservative, give PM Harper a leather jacket and denounce his last two political parties. It is a tough act, but another bail out would be quite a prize.


HONDA Guy!
said

Time for the "Big Three" domestic manufacturers to step up to the plate & follow in the footsteps of their foreign competitors. The bottom reason they are all in so much crap is due to the quality of their products!

Alain
said

I can't believe that almost everyone here solely blames the UAW. Management is as much to blame for the GM demise as the Union (probably even more). It's non-unionized employees that designs & markets vehicules not union employees. UAW can't be blamed for the poor sales, if a car is unreliable or doesn't have good gas mileage.

Albert
said

I came to Canada in 1997, with a Machinist Trade certificate in hand, hoping for a bright future here. Fast forward to 2007, I have worked for 5 companies (2 of them went bankrupt), laid off 3 times, took pay cuts 3 times and I still live in a basement and have 3 kids (9, 3 and 2).
The biggest mistake of my life is not coming to Canada as I still believe this country is the best for raising my kids, but I curse myself everyday for choosing this trade.

OLEH
said

Not our fault GM builds quality cars not everyone wants. I've been here 28 yrs, we told GM to wisen up, no one listens to the employees. We negotiated the best deal for ourselves, but have no say in what comes off the line. GM got in trouble on its own, we did not help it get there. And we are not about to help them get out of this mess. The government, both local and federal have assisted GM, and they still messed up. Some one near the top is responsible for this, not the employees at the bottom.

Kevin
said

Frank, unfortunately, for the domestic car industry(the big 3 part) The imports got tired of hearing that they should build in North America or pay big taxes to sell here. Not only are they now building here, they are expanding plants here in a big way, faster than the big 3 are shrinking. I would be very afraid if I was still working for any of the big 3 - I left Ford 4 years ago now, thank god. There seems to be little vision as to what the consumer really wants. They just don't get it. My next new vehicle will be my 1st import. I hate to admit this, but the domestic makers no longer deserve my money.

Kevin
said

I worked for a Ford dealership for 17 Years. If you think that the big 3 are in trouble now? Just wait! With Japanese companies opening and expanding new North American plants continuously now, the Korean makers producing higher quality vehicles, things are just starting to heat up. What happens in 18 months when the Chinese cars start selling at $8-10,000 ? They won't be the quality we are used to, but at 1/2 the price, many will buy them. Radical changes are needed soon, or the big 3 will be the forgotten 3.

Errol
said

Mr Hargrove will get little support from the majority of Canadians. It's the unions that have pushed prices to the point where their products are no longer competitive.

v.m. smith
said

The poorly educated workers are to blame for this strike, so some of you say. Not even close, we have no idea whats going on in negotiations. We are not asking for the moon, just a little bit of reassurance that all jobs are not going to other countries. I don't know what your retirement benefits are but I'm sure you have either a retirement or a 401k and some kind of health insurance when you retire. That's why most people choose a business to work for, the security it can offer. At G.M. when I got hired a 401k wasn't an option they had a pension, so yes that is partially what I'm counting on for my retirement. Unlike a 401k I can't take that to another company should I need to. As far as retirement health care when you retire your benefits are reduced. To those of you who think that auto workers are uneducated, you need to check your facts, most of us have at least a associates degree in something, but G.M. is a great place to work, even though the work is extremely physical and literally wears a body out. I'm not complaining just stating facts, when ever you do anything repetivitely it takes its toll.

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