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GM closing transmission plant, 1,400 jobs at risk
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ctvtoronto.ca
Date: Mon. May. 12 2008 9:05 PM ET
General Motors has announced it will close a transmission plant in Windsor, Ont., by mid-2010, in a blow to Canada's automotive sector that could mean the loss of 1,400 jobs.
"I have spoken with the CEO of General Motors Canada about their plans to try and protect the workers at that facility," Industry Minister Jim Prentice told CTV's Mike Duffy Live on Monday.
"It's a little to say just what the impact will be. Many of the workers there are fairly senior and pretty close to retirement because this is an older facility from 1963. We'll see what the actual number of workers is that have to transition into new employment. That's our first priority."
GM said the plant will close once the production schedule runs out on the four-speed automatic transmissions the plant produces.
"We were really trying to find the next generation product to go into the plant. Unfortunately with the dynamic of our changing portfolio, there just wasn't a new transmission to put into there," said Stew Low, spokesman for GM Canada.
"In conjunction with the ongoing bargaining happening with the CAW right now, the decision was made to close the plant and to tell employees just as soon as possible," he said in an interview with CTV Newsnet.
The news comes just weeks after GM said it would eliminate a shift at its Oshawa pickup truck plant. The move will eliminate about 1,000 jobs.
In Windsor, the closure will affect 1,400 people who receive a salary or are paid hourly.
Ontario's job strategy
NDP Leader Howard Hampton said Ontario does not have enough high-paying jobs to ease the burden on the laid-off workers.
At the legislature Monday, he called on the Liberal government to develop a strategy to help bring lucrative jobs into the province.
"How many good jobs have to be lost in Ontario before the (Dalton) McGuinty government takes this issue seriously and responds with something other than photo ops?"
Ontario Premier Dalton McGuinty said the Liberals have developed a strategy to help workers receive training in selected industries.
"He doesn't recognize the more than half a billion dollars we're putting into training for our workers," he said. "We think one of the most important things we can do in the global economy is to enhance the employability of our workers."
An official with Campaign 2000, an organization that lobbies Canadian governments to develop good job strategies, said poverty is a serious issue in Canada.
"Forty-one per cent of children in low-income families in this province have at least one parent working full time all year and it's not enough to raise their families out of poverty," said Ann Dector, the national director of Campaign 2000.
"All but the wealthiest parents are working more than they were 30 years ago," she said.
The campaign is suggesting the province try to lure high-paying green jobs to make up for losses in the car and truck industry.
With a report from CTV Toronto's Paul Bliss
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I certainly don't blame him. He wants to at least have a fair shot at a World Series ring -- and it is highky unlikely that would be in Toronto, in his lifetime.
Even the "Beast and Pat team" won't be able to pull off that miracle!
Thanks Doc, for the memories. It was great to have you here this long.
Best wishes for that Ring wherever you land.

Comments are now closed for this story
dave
said
Sean
said
Chrysler just yesterday announced the return of the Dodge Challenger. A muscle car with 450 HP and a gas guzzler. Please give your head a shake. What all North Americans would ideally like is a large vehicle that gets amazing gas mileage. Stop trying to build and sell products that are way out of line with reality. Sports cars and cars with high horse power are a thing of the past. The only reason that SUV's are popular is they're great comfortable people movers that don't break every time you hit a pothole. Add great (not mediocre) gas mileage and you've got yourself a winner. Gas sippers people! That's what we want.
Trent
said
No one can point their fingers at GM for pulling out and moving production elsewhere as they have to cut their bottom line in order to survive themselves. The 'NA' car manufacturers have to streamline their operations to try and catch-up with the imports
Dean
said
IAN
said
Ry
said
Steve
said
Dan
said
Dave Kan
said
go with my other cars.
Dave Kan
John
said
As long as Canada prodces oil, gas and minerals, we'll be okay........ Won't we?
JP in Victoria
said
There day has COME AND GONE.
I drive a Nissan.
The Big Three had there change years ago when the foregin auto makers started in North America, they sat back and laughed at them , no they are paying the price
Krista N
said
Paulb
said
"So then why doesn't the federal or provincial governments introduce legislation mandating that only vehicles manufactured in Canada may be sold in Canada "
This is not a new idea. It was called the Canada US Auto Pact. It was a fair trade agreement that worked very well for years until being dismantled during the implementation of the free trade agreement.
Such is the legacy of the Mulroney years...
AM / Edmonton
said
Roger T
said
It's not the end of the world people unless our Gov't sits around and use our tax $$$ on funding wars instead of saving and creating jobs to keep the economy going. Only time can tell how many our Gov't will do before it gets deeper and worst.
Chris
said
Peter
said
Rob
said
Garnet
said
Seen it in meat processing..Maple Leaf shuts down in Edmonton and relocates to Brandon because of union demands.
Steel (Stelco vs defasco) one bankrupt and the other record profits... difference?? one union .. one not.
When will they learn not to bite the hand that feeds them.
MRC
said
To really solve a lot of problems, it's about time we stop globalization and the handover of technology. But, sadly, that seems far too late.
Heather
said
It isn't the union deciding to continue using these parts...it isn't the union doing a poor job that causes these vehicles to implode on the highway.
Robin da Hood
said
Mike
said
Unbelievable how stupid some of you are..Go ahead and support another country and give the finger to the Canadian worker...Thanks for supporting YOUR CANADA.
Jimbo
said
Steve
said
As any compact car driver knows, there is no comparison in performance, reliability, gas mileage and just pure fun between a Civic or Mazda 3 and a Sunbird. Sure you pay a little more - but well worth the difference.
I am sorry for the affected workers - maybe the plant could be put to use in some other NON-AUTO manufacturing field....solar/wind power maybe??
Steve
Marshsparrow
said
When NA starts making superior products the consumers will come - until then, I'll keep driving my Honda.
Ian
said
David
said
chris
said
Richard
said
I'm not sure why this is a big suprise. Too bad for the employees though - that is terrible stuff.
I'm no expert, but what I can tell you is a vehicle is expensive and in this day and age everything is more expensive - food, clothing, house, etc, gas is out of the roof and going to space in a year! So, we have to pick the best for our dollars.
Hell, maybe N.American cities will be building roads for bicycles soon.
Al
said
Prior to the autopact, all vehicles sold in Canada had to be made here (or you had to pay a very hight tariff), at that time tandem diesel heavy duty Ford transport trucks were produced on the same line as Ford LTD's at the Oakville plant. Very inefficient and costly!
The autopact allowed the manufacturers to optimize their production by allow single vehicle production with some job protection guarantees.
LOJD
said
That's why everything is going to Mex. cheap labour and thanks to the Conservative Gov. of Malronny for this...
When Irish eyes are smilling, there probably doing more than smilling now.
Every time we have a Conservative Gov. we need a Liberial Gov. after to fix everything...
Mark my words if Harpper ever gets a majority Gov. we'll be bankrupted again just, like in the 80's...
Vince M
said
The Big Three accommodated union greed over the past 20 years in return for labour peace. Now they are stuck with an average US$3,800 burden on each domestic vehicle to pay for the benefits of retired union workers. They don't stand a chance with the union boot on their neck.
Doug BC
said
One hypocrisy I often see in Canada, is a thirst for decent wages,but a desire for the cheapest products available. In other words. "I deserve good wages,but those who supply the tings I use, do not".
There probably are to many jobs that offer wages way beyond the skill set required to perform them. But I can say this,as a commercial transport mechanic,and in spite of the fact that I am earning the much hated $30 per hour,I can tell you honestly,that my standard of living,and my disposable income has been declining for years. I don't belong to a union,but I support their efforts to reverse this trend.I do not think we should be racing to lower our standards to those of Mexico or China.To those who thnk I am overpaid,I ivite them to serve their time as an apprentice,at slave wages,go get the schooling and the upgrades every year,and to invest $30,000 dollars in tools, and join me on the job. We are desperate for more good people in this field. But we won't get them if their wages won't support a family.
And oh, I don't believe the uion line that the people who wash the trucks should be paid the same $30 per hour.
Canada needs a good manufacturing sector. It should be supported with reasonable tax levels,and lower costs for energy and raw materials. Not by 3rd world wage packages.
Mandosa
said
billy
said
Mr Chillz
said
Time to wake up sheeple, your job could be next,...
Here we go again
said
Omid
said
I drive foreign cars only because I know they're better quality and I can count on them to still run very well ten years down the road; with domestic, because we're a continent of corporate greed & moral bankruptcy, they make their vehicles to break down at the three year mark, right around the time you finish making payments on the hunk of junk.
Rod
said
Anne
said
Sask Resident
said
Vince M
said
Plant closing = provincial responsibility. Going to war = federal responsibility.
Sooner we figure this kind of thing out the better.
Robert
said
Brian
said
Wages and benefits at big 3 = 77.00 hr, at toyota/honda/nissan = 47.00 hr.
Quality is built to what people will pay for and cheap child/slave labor will always produce a cheaper product.
Go on, keep sending the jobs away, and when you have none you need only look into the mirror to blame!!!
Reject unions but support local manufacturing.
Anne
said
Granted, that is easier said than done these days, because its gone too far down the road. It's almost impossible to find anything that isn't maunfactured in China these days. But... I do the best I can. I read labels and CHOOSE not to buy products that are not Canadian or North American made unless I can't find any alternative.
Why are you people always giving away your choices wanting the government to do your thinking and buying for you. YOU have the power. If more people CHOSE made in Canada products even if they are a bit more $, then we'd have more made in Canada products to buy from.
Simple economics, people.
Vanessa C
said
I'm all for unions, don't get me wrong, but they have too much power, and have totally warped what a union should be.
Unions are killing us
said
-Unions demand insane salaries, benefits, and pensions that are way out of line with reality.
-The Big 3 companies put all their profits into meeting union demands, salaries, etc. (they have no choice).
-Whatever little profit they have left (if any) goes into vehicle design and research... leading to sub-par cars
-Big 3 cars get a bad rap in the marketplace, more people buy foreign cars for better quality with subsequent purchases.
North Americans will never keep pace with the Japanese automakers because the union demands are killing them.
Either the unions go, back down on their demands, or the Big 3 will be gone in the next decade.
This is only the tip of the iceberg.
Nik
said
These new transmissions allow for better fuel-economy, and performance, which are exactly what customers are demanding.
And sure Dodge is making a 400hp+ muscle car, but they are also introducing a V6 version as well for the mainstream market. Toyota has brought out the IS-F, a 416HP sedan with a V8 engine, but why aren't people going after them? People like to point the finger at Detroit for gas guzzling SUV's, yet seem to conveniently overlook the fact Toyota and Nissan have massive, lumbering SUV's of their own. The European brands produce V8's, V10's and even V12's, and yet I don't see them getting hounded by 'environmentally conscious' people, do you?
Give the Detroit three a break, people. They have caught up in quality, and have even surpassed their competitors with their new product offerings. Plus, remember that the money they earn stays on this continent.
Rob
said
raj
said
Ivan
said
Why don't we have a Canadian car company that competes against the others and stop relying on others to employ us?
Don
said
Shamaro
said
Mike London
said
Jim
said
I saw a survey of CEO's (after loonie reached at par with USD without any apparent reason) feeling pride for rising loonie, shows lacks of market understanding. I feel sorry for those executives for their brain power.
Embrace yourself for further shutdowns from US companies.
Powertrain
said
Also, in the autoparts sector, Magna International (A Canadian company) manufactures parts for not just North American Vehicles, but also vehicles in Europe and Asia. So regardless of what vehicle you're driving, there are North American parts on those very Audi's, Beamers, Mercedes, Toyota's etc. driving those very vehicles.
JoeC
said
IAN
said
Brian
said
This is all on the unions, they have nickled and dimed the big 3 to the breaking point.
robert in alberta
said
Jim O'Brien
said
Evan
said
Vanessa C
said
I've worked for a short while at a plant that makes pvc and plastic tubing for cars (the stuff around the wiring) among other things and I can tell you - more than 10% of the cost in that is labour. The plastic going into it is almost all recycled so the materials are real cheap.
Mark M
said
"Mike
To all you people who say GM can't build a decent car please take your head out of your ass and look at the Chev Impala. Oshawa built and with great gas mileage and excellent quility.
Unbelievable how stupid some of you are..Go ahead and support another country and give the finger to the Canadian worker...Thanks for supporting YOUR CANADA."
BWAHAHAHAHAAHA, you better start checking your stats. My outfit uses a whole fleet of cars which included the new Impala. Don't know where to start, the one where the tranny failed at 60 km (yes SIXTY KM TOTAL), the one that had all exposed steel fuel lines RUST within a year and was NOT covered under waranty!!!! The one that had electrical problems so bad it almost caught fire. And these are just the ones I remember! Yeah that's quality control!
joeyann
said
Shamaro
said
FINN BLENHIEM ONT.
said
Retrain to what minumum wage jobs.THANKS CAW
Jennifer
said
Sad how people dictate what inferior products domestic producers manufacture without any of the details.
Here's also a news flash for those that think a multi-company such as GM, profits are hard to maintain when you have several different companies in the same financial statements. I think it might surprise you if you did a comparison say Chevrolet to Toyota, or Pontiac to Nissan.
Art
said
HDOG
said
Brent - New Brunswick
said
IAN
said
joeyann
said
Get your head out of the sand because there is a long list of complaints due to the poor performance of the GM vehicle. They are not going down for a poor American economy or the price of fuel.
DOUGB
said
Doug
said
Dale
said
Gord
said
joeyann
said
Our Toyota Camry has never let us down. What is it you are so anxious to say to me Ian? I'm in no hurry to waste any more money on a new car that being a Pontiac Vibe or Toyota Matrix no matter where they are manufactured
Shelley
said
Andrew
said
Bob in Harley
said
dave
said
If you have any doubts just look at the tags on anything and everything you buy
We will end up been the poor soon.
Steve
said