Hold on to your britches folks. General Motors dealings with the Canadian Auto Workers union just took another turn for the worse. GM, like every other full-line automaker selling vehicles in the United States, has been unable to move as many pickup trucks as it had hoped since the price of gas has spiked. In response to the shifting tide of vehicle sales and to slow the huge financial hemorrhaging, GM announced about eight days ago that it would be closing four plants that build trucks and SUVs, including one in Oshawa, Ontario. Unfortunately, the General had recently promised to keep that particular plant open for a few more years, so the announcement more than irked the Union officials from up north. Here's where things get real ugly. In retaliation, the CAW has blockaded the entrance to the GM headquarters in Canada for the last eight days. As you might imagine, GM has a slight problem with this and has taken the matter to court, where documents reveal that the automaker wants C$250,000 from the local union and five of its members for a total of $1.5 million in damages. We're not sure if this impending lawsuit will impact the Union's plans for a rally this Thursday in the parking lot of the Oshawa headquarters, but it's probably safe to say that this situation won't have a happy ending.
[Source: Automotive News - sub. req'd]
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Reader Comments (Page 1 of 2)
Geeky1 @ Jun 11th 2008 5:37PM
"it's probably safe to say that this situation won't have a happy ending."
I wouldn't necessarily say that; if GM wins the lawsuit and is awarded the $1.5m, I'd call that a very happy ending indeed.
MikeofLA @ Jun 11th 2008 5:38PM
Yeah, good idea unions. Force the company to continue to hemorage money out of every orifice to keep you employeed, ultimatly hurting the company in the long run and possibly setting everyone else in the union up for job loss. Auto Unions are outdated in their current form and just another form of organized crime that hurts the US and Canadian economy... but that's just my opinion.
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MikeofLA @ Jun 11th 2008 5:40PM
Sorry, excuse my spelling errors.
Yeah, good idea unions. Force the company to continue to hemorrhage money out of every orifice to keep you employed, ultimately hurting the company in the long run and possibly setting everyone else in the union up for job loss. Auto Unions are outdated in their current form and just another form of organized crime that hurts the US and Canadian economy... but that's just my opinion.
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Work Harder
Geeky1 @ Jun 11th 2008 5:41PM
Not just auto unions, unions period.
Jeff Banks @ Jun 11th 2008 5:46PM
I think its unfair to characterize all Unions in this way. For example, I think you are all spot on when considering teachers Unions, DMV & State workers, etc. Seriously, an air conditioned office isn't exactly a "dangerous workplace" However, I do believe that people who work in the agricultural industry, mining workers and workers in places like slaughterhouses definately deserve any Union help. Strangely enough, these are the people who don't get any help to improve their working conditions.
TJ @ Jun 11th 2008 5:43PM
about time the general fought back.
ChrisL @ Jun 11th 2008 5:47PM
If GM won't live up to it's contractual obligations with either the CAW or the Ontario Government, then don't expect the typical Canadian to support GM.
Why would I believe GM would honour (canadian spelling) warantees, or financing contracts? They're clearly showing that they can't be trusted as a company with anything they put in writing anymore.
Simple really.
Yaroukh @ Jun 11th 2008 6:01PM
What makes you think avg Canadian customer adores unions?
Marshall @ Jun 11th 2008 6:08PM
@ChrisL
The "simple" truth is that GM announced it wasn't closing this plant until 2010, when the former written commitment had the plant extended into 2009. CAW is in better shape now then they were, but they are just acting like babies with their mouths wide open.
I've been on the receiving side of a layoff and I can tell you if I had 1.5+ years notice, things would've been _much_ smoother for me.
desmo @ Jun 11th 2008 6:24PM
Is "warantees" the Canadian spelling as well?
johneboy @ Jun 11th 2008 6:25PM
I couldn't agree more with you. GM is the one signing contracts one day and breaking them the next day, literally. They take corporate welfare from the provincial government, then proceed to send their workers to the EI line. It is an infuriating situation, and definitely not one to bash the CAW. They are defending their workers who pay their union dues. That is what they are supposed to do.
Judy Zik @ Jun 11th 2008 10:47PM
I totally agree. GM lied not just to a Union but to the Ontario government. Those are our tax dollars that they took. We have a GM vehicle parked outside and it will be our last.
Mark @ Jun 12th 2008 12:47AM
So you would rather have GM pump out SUV's that are plummeting in value, that no one will purchase, losing tons of money in the process, JUST so that those auto workers can keep their jobs?
Put yourself in GM's shoes. SUV sales are tanking and you can't even *give* them away. Do you continue to push out more of this over-expensive paperweight?
kballs @ Jun 12th 2008 12:13PM
GM had a contract to keep the plant open for a couple more years. If they can't build trucks their anymore, how about building cars instead? (yes there would be retooling costs but the auto market is going that way anyway)
Johnny @ Jun 11th 2008 5:53PM
I hope all the trucks made are safe and no monkey business with the products.
The CAW are professional people and I dont think this will happen. But who knows maybe a young punk building an engine drops a bolt or a nut into the crankcase out of anger.
Illis Billis @ Jun 11th 2008 8:41PM
Ya but they know it would just make things worse. With a awards of top quality at the Oshawa plant, it just looks good to keep it up.
Steve @ Jun 11th 2008 5:57PM
GM should shut another CAW plant or two. The CAW pact is more expensive to GM than that with the UAW. Also the Canadian dollar no longer offers an advantage. Where does CAW get the sense of entitlement. Buzz Hargrove is living in the 1960's, and he is killing the CAW.
psarhjinian @ Jun 11th 2008 6:00PM
Oshawa is GM's highest-quality plant.
Oshawa has been awareded North America's highest-quality plant for any automaker more than once.
Oshawa has been awarded the #3 spot for plant quality in the world.
That's why this is particularly galling.
elprogramer @ Jun 11th 2008 8:13PM
Flint North (Buick City) was GM's highest quality plant, but that didn't stop them from gutting the city ten years ago.
jgp @ Jun 11th 2008 6:12PM
Thank the gods GM is taking legal action against the CAW for their illegal blockade.