Canadian Auto Workers (CAW) union officials are meeting with "top GM officials" about closing the Oshawa, Ontario truck plant. After CEO Rick Wagoner's announcement that The General's terminating Oshawa production– along with three other plants– workers blockaded GM headquarters. The Detroit News reports CAW president Buzz Hargrove supports the blockade. Hell, he won't "rule out" the possibility of a strike. Buzz says the Wagoner's announcement was "an insult" as it's been just two weeks since the company promised workers the plant would be open at least until 2011 (what happened to 2010?). GM spokesman Stew Low says the protest is "understandable." I'm sure that really made the workers who are losing their jobs feel better. Maybe next, GM will offer them a spot of tea to go with that sympathy. But don't count on GM changing their plans to ship work from that plant to cheaper ones in the U.S. and Mexico.
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GM is so screwed. It is really sad.
I also doubt that someday, when Buzz talks about this, and he will, that he will be kind.
Sorry, that should be “kind, eh?”
Sounds like the Canadian government is going to again throw money at it; there’s talk of sending GM a cheque for $250 million from the “automotive innovation fund” (sounds a bit ironic, doesn’t it?) in order to ramp up production for a new car based vehicle in Oshawa…
But then, may it’ll just be a “loan” like the last cheque… eh?
(yes, that’s how we spell “check”)
If the Canadian or Ontario provincial (like a state, if you’re American) can pony up the cash _and_ GM commits to building a sustainable product in Oshawa, then that’s fine.
Note to readers: “sustainable” means something that sells through think and thin. That is to say, not a sports coupe (Camaro), a two-ton crossover, a luxury sedan or a boutique hybrid. Yes, small cars aren’t sexy, and yes, as much as it makes for a great photo to have GM and CAW brass shaking hands in front of a Camaro, it doesn’t guarantee anything for workers at–and I need to hammer this home–GM’s highest-quality plant.
A small crossover or econocar would be a good start and, hey, both the Corolla, Civic and Matrix are already made in southern Ontario, so it’s not like it’s mission impossible.
“Most expensive auto manufacturing site in North American….”
Just keep saying that, over and over and over….
“GM is so screwed. It is really sad.”
“Most expensive auto manufacturing site in North American….”
“…GM commits to building a sustainable product in Oshawa, then that’s fine…..”
“Most expensive auto manufacturing site in North American….”
“….General’s terminating Oshawa production– along with three other plants…”
“Most expensive auto manufacturing site in North American….”
The Federal government said they would use part of the $250 million fund, not all of it, it there last Budget this was offered to any City or Community that could use it for employment like the problems in the Pulp and Paper communities! So Oshawa could benefit if it was for a new vehicle,not the Truck factory though.
@MikeInCanada
Yes, it is expensive. It’s also high-quality. As much as it probably pains GM to admit this, building quality does not come cheap. The flipside, though, is that warranty repairs aren’t cheap either.
Ford made this miraculous discovery several months back when they noticed that, shockingly, that their quality initiatives were paying off at the back end.
If GM were serious about the same thing, they’d transplant what they’ve learned at Oshawa to their other plants. I don’t think they’ve done this uniformly and, with the cost pressure they’re now facing, I don’t think they’re going to try.
Mark my words: Between the Province of Ontario and the Federal Gov’t, many millions will be found to somehow keep that plant open. Even if it never produces another single unit, the lights will stay on. Let’s not forget how the Sainte Therese plant kept pumping out F-bodies, long after GM had decided it wasn’t economically viable.
St. Therese is where my parents’ POS 1987 Celebrity was built. I understand GM closing that plant. However, since Oshawa workers build quality products, it makes sense to try to keep it open even though it costs them more to initially build the vehicles. But as we all know, GM executives don’t typically use logic when they make decisions. It’s all about money, every step of the way (or the lack of it).
Re: psarhjinian :
I appreciate your perspective “Yes, it is expensive. It’s also high-quality.” however the Japanese (and now Korean) automakers have shown that the traditionally held Quality/Cost link is a tenuous one – at best.
A Yaris or Honda Fit would be prime examples.
Regarding Oshawa’s quality rating -it’s always good to be the best and I don’t want to marginalize this. Quality, however is embedded in the basic designed, as well as the quality levels of the suppliers; as much as the final assembly point.
Here’s the view from the rank and file.
In late April we were shocked to hear we lost our 2nd shft at Oshawa truck.On the same day the CAW informed us that they had opened the contract early and made a deal with Ford.Plain and simple concessions for product alocation.
So fast forward a couple of weeks and the CAW is now sitting down with GM.First day the CAW is informed Windsor Transmision is history.OK so GM has made the decision and we move, on fair enough eh?Right so we agree to a wage freeze,40 hr cut in vacation,reduced our drug plan,and a pension freeze.In return we were told that GM agreed to give us a new product to run with the Camaros with the truck plant running for the life of the contract.
So we held our colective noses and ratified it
Believe me folks,nobody was happy eating concessions.The rank and file accepted the fact that,we had to give to keep the company alive.Wich is more than can be said for the top executives eh?
Now not 2 weeks later were told Truck plant is gone in Sept 09.
So now were pissed off and everybody wonders why?
Somewhere somebody lied to somebody.Us low lifes don’t know who to believe.All we know is we got f—ed.
Mikey – It seems that you were only presented different versions of the same lousy choice – and not different choices in the contract negotiations.
What would have been the reaction if GM would have been completely upfront and said “We’re only looking for a 24 month contract as there is a 90% chance the pickup truck line is going to close…”
Mike in Canada:Exatly Mike we should have been informed upfront.Thats why we are so pissed.The reaction?We might of aproached it from a different angle.Maybe it would of ratified anyway we will never know.
Buzz just got a reality check…
now what is he going to tell his membership?
strike!
Go ahead!
Your jobs will be toast(if they aren’t already)
And now we have a two tier payroll in Mexico…
If G.M could transplant the Renascence’s Center there,they would have done it yesterday!
The arrogant unions in the U.S. and canada have done a great job of boosting the middle class,but at what cost?
My next door neighbor bragged abput being laid off and making his full check while I was bustin my ass to make ends meet!!!!!!
Time to pay the piper you union ass……!
serves you right!
You damn well knew what you were getting away with and now you want to bitch about it!!!!
I hope you like working at McDonald’s or cleaning up my S…T in th old folks home!
“You damn well knew what you were getting away with and now you want to bitch about it!!!!”
Yup, pretty much sums it up for me. As for help from my tax dollars, couldn’t we just build these people a forest preserve? They could study the collected works of buzz hargrove and hike on trails. Judging by the bellies I see at that GM protest, they could use the exercise and fresh air.
“I’m sure that really made the workers who are losing their jobs feel better. Maybe next, GM will offer them a spot of tea to go with that sympathy. But don’t count on GM changing their plans to ship work from that plant to cheaper ones in the U.S. and Mexico.”
And WTF do you want GM to do? Continue to be hamstrung by the unions? Are they the Red Cross?
“The arrogant unions in the U.S. and canada have done a great job of boosting the middle class,but at what cost?
My next door neighbor bragged abput being laid off and making his full check while I was bustin my ass to make ends meet!!!!!!
Time to pay the piper you union ass……!
serves you right!”
+++ 1
Hmmmm… you’ve just been screwed by GM who is now closing a Canadian plant because they cant sell cars and now you want to go on strike? If I was GM I would say “Please do” … maybe it might slow the hemorrhaging down – a little bit.
This is nothing yet. Wait till cars start coming from China or India.
It was about time this was going to happen
These jobs that get paid $80000 – $90000/year are no different than what people out there work for $19000 – $25000/year. (or $2000 – $2500 in other countries)
They always want more money in the contracts
Well, You can want, but you are out of luck.
These workers deserve to be out of work and go back to work for 9 bucks an hour.
Moral: Don’t be greedy.
Whoa!I guess some folks are having a bad day.Isn’t envy one of the seven deadly sins?
Well envy this 75000 a year without O.T.Eight weeks paid vacation,full dental,glasses,and drug plan.Seniority and bumping rights.Not too shabby eh?Life insurance, berevment,hell I spent a week on jury duty,full pay.
So after 30 yrs or so you can retire on 3500 a month for life.Oh yeah you get a 75000$ retirement
incentive oh and I forgot to mention a 35000 new car voucher.
So the flamers here will have to forgive me for not jumping on the union bashing wagon.
Jeesh, no wonder they are closing the plant. All of that for screwing a bolt in?