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GM's Oshawa car plants resume operations

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CTV Toronto: John Musselman from Oshawa, Ont.
CTV Newsnet: Richard Cooper, auto industry analyst
CTV Newsnet: Buzz Hargrove, president of CAW
Canada AM: ABC's Barbara Pinto in Warren, Michigan

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CTV.ca News Staff

Date: Wed. Sep. 26 2007 6:23 PM ET

Normal operations resumed Wednesday afternoon at General Motors' two Oshawa, Ont. car assembly plants, which had been left idle by a GM employee strike in the U.S. that has now been resolved.

Workers went back to work in time for the evening shift, which starts at 2:30 p.m.

But some Oshawa GM employees still felt anxious, saying they will have to fight for their jobs when they negotiate a new contract with management next September.

"I think the company is going to want more money, which will mean cuts," one worker told CTV Toronto.

Another employee said anyone who has worked at either plant for less than five years should be nervous.

"I think it's going to affect them a lot," he said.

The two plants, which rely on parts from south of the border, were shut down Tuesday after 73,000 unionized employees went on strike at GM's 80 U.S. facilities.

However, United Auto Workers President Ron Gettelfinger announced that a tentative deal was reached Wednesday and that employees would return to work across the U.S.

GM Canada had shut down Oshawa car plant No. 1, which assembles the Chevrolet Impala and Monte Carlo, at 3 a.m. Tuesday. The No. 2 line, which produces the Pontiac Grand Prix and Buick Allure, was closed at 2:30 p.m. Tuesday.

The two Oshawa plants employ 5,600 people.

The Oshawa pickup-truck plant, which employs 3,900 people, remained open during the strike.

GM spokesman Stew Low said the company's transmission factory in Windsor, Ont., which shut down during the two-day strike, would resume operations by Thursday.

The company's power-train-component plant in St. Catharines, Ont., remained in operation during the strike.

Canadian Auto Workers President Buzz Hargrove said the resolution has a broader impact on Canadian auto workers.

"There's probably about 70,000 people on layoff this morning as a result of this shutdown," Hargrove told CTV Newsnet.

"A lot of business, especially the parts industry... have been on the edge in terms of being able to survive and this strike, had it lasted for a long while, could have pushed them over the edge."

The UAW deal, if ratified, will see the union take over retiree health-care benefits, removing an estimated $50 billion in long-term obligations from GM's books.

GM is currently responsible for nearly 339,000 retirees and surviving spouses.

Aside from the new UAW-run trust to administer health care, neither side gave any further details.

However, an insider told The Associated Press that the deal also includes bonuses and lump-sum payments for workers.

The tentative contract must be reviewed by local UAW presidents on the weekend and ratified by a general membership vote by employees.

"There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM/UAW relationship," Rick Wagoner, GM Chairman and CEO, said in a statement.

"The projected competitive improvements in this agreement will allow us to maintain a strong manufacturing presence in the United States along with significant future investments."

GM believes creating a union-managed trust will make the company more competitive with non-unionized automakers like Toyota and Honda, which have lower costs on employee benefits.

The nationwide strike was the first against the U.S. auto industry since 1976.

With a report from CTV's John Musselman

Please Add Comments( )

Nick J Boragina
said
0 0

While I’m happy that all workers are going to benefit from this news today, I do take solace in the fact that over the past few days we’ve all seen the true consequences of a strike. So often it becomes a story about the little worker VS faceless management, with total disregard to anyone else affected. When something like this happens it blows that myth to pieces.


RB
said
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Finally, a major North American auto maker may be able to compete with foreign auto makers. The crippling health benefit for retirees was a major problem for the comapany and therefore the future of the company and it's employees. Surely, retirees and the union can contribute to their own health benefits.


Marty
said
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This is really good news for the 10's of thousands of people who are directly and indirectly affected by this strike. I for one who work in the automotive industry am relieved that this is over. It is time however that the UAW and CAW sit up and take notice that if they want to compete on a global scale, they are going to have to step up and work with the Big Three Automakers if they are to survive.

Mario
said
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Thankfully, this strike did not last long because the consequences would have been devastating for both the US and Canada. At least the UAW is accepting the fact that fundamental changes need to happen in order to survive and is bellying up. Now if top brass of GM, Ford and Chrysler stop gorging themselves on salaries equivalent to the GDP of a small country, then the Big 3 should have a competitive future. Curious to see what the CAW is prepared to do?

JIF
said
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Unions have outlived their usefulness. Today unions are the parasites of society, demanding outragous compensation and benefits from industry resulting in consumer prices that can't compete in the global economy. Soon ALL manufaturing will be forced out of North America. Losing our jobs will result in catastrophic conditions not seen since the depression Caving in to these parasites will destroy our economy, our standard of living, our freedom and our way of life.


LH
said
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Well its good that they can compete here with the Foreign auto makers. But should the Foreign Auto makers be allowed to sell here since we can't send our vehicles to their countries (food for thought).


Buzz and the Unions need to go
said
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Maybe they would be able to compete better with foreign auto makers if they built something that lasted more than 5 years.

NA cars are not known for there quality and after owning every major NA brand I will never own one again....




Mike
said
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The North American vehicle industry cannot afford ANY strikes if they want to stay in business. I'm glad both sides were able to come to terms. We need management and labour to cooperate together if we are to remain competitive otherwise we can kiss the industry goodbye to Honda, Toyota and Huyundai etc.


Andrew
said
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Well that's good that both sides of the table are levelheaded to understand the importance of coming together on these issues. Both the union and the company should realize how important it is to cooperate in today's global economy.


John Tamas
said
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I for one am sick and tired of all the union bashing that has taken place in the many blogs relating to the UAW contract. The true fact of the matter is many people have benefited greatly from the fact that unions have fought for an improved life for the workers who have made multi-millionaires and billionaires of company heads. My old family dentist once told me that the best thing that ever happened to him was the fact that the union representing workers at I.N.C.O. in the 1950s won dental benefits for its workers. People's health improved as well as the fact he no longer had to worry when he would see any money for the work he did. For those who think unions are no more than parasites on society take a look around. Many peoples lives both union and non-union had been greatly improved because corporations were held responsible to their workers. Where would you be if it were not for the likes of Tommy Douglas. Probably no better off than a third world country and by advocating the elimination of a working middle class which is basically what many would like to see, you may see that in this country in your lifetime. Shame on you.


Andrew
said
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These bloody unions are ruining our labour sectors. When are they going to understand that the days of big wages and bigger benefits and retirement packages are over? They've squeezed everything out of the large companies that were once profitable. I'm self employed and have nothing - no benefits, no pension, no scheduled pay raises ... do you see me on strike? I just consider myself fortunate to have a job.

Keep it up guys ... It's only a matter of time before Honda, Toyota and Hyundai put all the American automakers out of business, for good.


RICHIE
said
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Yea I think it's a great thing that workers organize and exert power over a corporation if they are being abused... But I don't know if lump sum bonuses really defines equal treatment... I know myself and many others do not receive this kind of money, in most cases not even dental or retirement... And then they're surprised that people are outsourcing and don't want to buy their cars? This industry is dying quickly guys, what's better: A good share of cash now or secure employment in the longrun? That was close, we almost had 100,000 mono-skilled and overpaid CAW employees on the street.


Eric
said
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GM now has its costs in decent order. Now they are out of excuses. It's time for them to starting building reputable products. Send the accountants back to their desks and let the real business people take the reigns. The designers and marketers!


Marty
said
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Just to comment on LH and foreign automakers. If you look at many of these foreign automakers, they are now building many of their vehicles that they sell here in North America right here in Canada, the U.S. and Mexico. Toyoda in Cambridge and in Woodstock, Honda up in Alliston etc. I believe the European automakers should belly up and start building more plants here if they want to sell vehicles here, IE Mercedes, BMW, VW etc.


JAFO
said
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John,

You've mistaken UAW bashing for union bashing. The two are mutually exclusive.

Unions have done great work in giving workers safer work environments, decent wages, and job security.

The UAW has crippled the North American auto industry with tactics that would make a mob family envious. Only in the American auto industry can a forklift operator earn a 6 figure income knowing that if his job is eliminated, he can join the 10,000+ UAW members who are still getting full salaries while unemployed, thanks to the job banks that the industry has been trying to get rid of for years.

The UAW is a morally bankrupt abomination that has been sucking the life out of our auto industry for decades so that their members could earn salaries that are 3-4 times what their skill/education levels dictate.


jc
said
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Toyota had 2 million recalls in 2006, Nissan had 400,000. GM had 2000 recalls in Canada last year on the corvette convertible roof re design.

For those that drive imports I suggest you actually learn the facts before you dismiss domestic producers. There are thousands in Ontario that reap the reward for this company keeping domestic producers running. I certainly do not see any support from Toyota or Honda.

Last year GM sold a third of all vehicles in Canada. I know for a fact that the unions have been asked by GM to scale back, instead they are more aggressive. It is the only industry where factory workers are in better financial place than those that sell the product.

For your information import lovers. GM is a leader for fuel efficiency in their larger vehicles.



Rick
said
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JAFO - amen to that. Excellent post. North American unions, particularly CAW/UAW are totally out of whack with the global economy. Living in a 'bubble'of protectionism like the Auto Pact may have been possible in the 1960's but in today's world economy we must compete with the world. Hargrove's constant whining for more is a cry for the past. Any value unions may have once brought to workers has been negated by their now ridiculous compensation. The ride is over - welcome to the new millenium where if you can't compete with Asian products and production costs your off to a new job.


Bill
said
0 0

I asked yesterday and I will ask again today. What is an entry level union members wage and what can he expect to earn in a couple of years. And, what are the benefits. Someone out there must know this.
I do agree with John. The unions did help us get better wages, better pensions etc BUT, unions are no longer needed John.
Get with the times.


Chris Howell
said
0 0

For everyone who is union bashing and believes unions are not still needed: Have you stopped to consider without unions who would stand up for your worker rights? Who would fight to get your job back when you lost it because your "boss didn't like you" Who would form the health and safety commitees to keep you safe? Your boss? NO it's too expensive, wait how about the unions? Who would call the the MOL when something was unsafe? Your boss? I doubt it, and if you did, who would protect you from your boss? Unions are still very much needed, there are a lot of bosses out there that treat their employees like a commodity. Give your heads a shake people.

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