Buzz Hargrove is heading to Detroit for what is expected to be a heated meeting with General Motors Friday.

The head of the Canadian Auto Workers said he will not be in a compromising mood when he meets with the carmaker's top brass -- and that workers are prepared for a full blown strike.

The potential strike would be in protest of GM's decision to close its truck plant in Oshawa, Ont. The CAW head also said he fully supports the current blockade by workers at the entrance to GM's Canadian headquarters in Oshawa.

Hargrove also dismissed a proposal floated by the federal government that would use Ottawa's $250-million Automotive Innovation Fund to help the situation. The fund is meant to help the development of greener and more fuel-efficient vehicles.

Finance Minister Jim Flaherty said on CTV's Mike Duffy Live that he recommends that Hargrove be flexible when he goes to Detroit.

Flaherty said Hargrove should "work with General Motors for the new technologies.

"(They're) going to be the sustaining force in the GM plant in Oshawa and the rest of the auto sector in Ontario ... the reality is --with the recession in housing in the U.S. and with the cost of fuel -- pickup trucks are not selling."

Earlier Flaherty had told reporters that he had already spoken with GM about the Automotive Innovation Fund.

"We're going to stay on that as a federal government and if we can participate in funding that innovation then we're certainly going to be there,'' Flaherty had said.

"The key is to work with the union, work with the company to see what's necessary in terms of technological innovation.''

However, Hargrove called Flaherty's offer "smoke and mirrors."

"Even if Mr. Flaherty gave them the whole $50 million a year, it takes $1 billion a year to put a new product in a plant, and it takes it in one year, you don't spread it out over five years," Hargrove said.

"So this is Mr. Flaherty making a political statement that's meaningless in terms of this industry."

Angry workers

Hargrove said workers are frustrated and angry after being told by the union just two weeks ago that their plant was going to remain open past 2011. Hargrove said GM's announcement is in violation of the collective agreement.

Hargrove said he has warned GM the union will fight the company's decision to close the plant -- which could include the implementation of a strike.

Hargrove said it's very simple what they will be demanding at Friday's meeting.

"For General Motors to live up to the collective bargaining agreement that we signed with them just two-and-a-half weeks ago and ratified with our members," he told CTV Newsnet on Thursday afternoon.

If the union leaders aren't happy with the outcome of the meeting, they will explore their legal options and put pressure on the company through the productions systems, Hargrove said.

"We've bargained in good faith. We went through our members and we froze our wages, the first time in our history, we gave up a week's vacation pay, we've frozen our cost of living for five quarters," he said.

"We've done so many things here and the big issue for all of us was to get a product in our plants."

Local union president Chris Buckley says the blockade will remain in place for now. More than 200 workers attended a pep rally later in the afternoon, where Buckley said the union will fight for their livelihoods.

GM shutdowns

GM said Tuesday production at the Oshawa plant and three other North American factories will be shut down next year. All of the plants slated for closure assemble pickup trucks or sport utility vehicles.

GM's shift in direction will see the company add more small fuel-efficient vehicles to its roster.

The closure will eliminate 1,000 jobs in Oshawa, but union leaders said there are 2,600 people who will be out of work at the plant.

Workers say they are both anxious and frustrated by the situation.

"We keep wondering how long it's going to take the Canadian public to wake up and realize that we have to have manufacturing in North America, that we cannot everything to be built in India and China and Mexico," Ron Svajlenko told CTV Toronto.

"Take a look at 2,600 jobs. These people make probably $60,000 a year. Their impact in the community -- their homes, their real estate, the person who serves them their coffee -- everybody's going to get impacted."

Kelly Westfall has worked at GM for 23 years. She is a single mother who had to tell her 18-year old-daughter that she couldn't have the dress she wanted for her prom.

"Her prom's on Friday and she wanted a $300 dress, and I said, 'Sorry, mom doesn't have a job,'" Westfall said.

Labour relations expert Wayne Lewchuk said criticisms that autoworkers are overpaid are inaccurate.

"I don't think autoworkers are overpaid, those are tough jobs and if you've ever done it you know how tough they are," Lewchuk told CTV's Canada AM on Thursday.

"Other places that have high wages -- like Japan and Germany -- they still make cars so it's not the wages that are the issue here."

Instead, Lewchuk said the problem comes down to product.

"You've got to design cars that people want and I think the problem with the 'Big Three' right now is they don't have the cars that people want."