GM Canada targets the 'status quo'

[doh]

http://ctv2.theglobeandmail.com/serv...N/ctv-business

TORONTO — — General Motors of Canada Ltd. is seeking a “transformational” change in its operations by reducing paid time off, allowing temporary workers and eliminating strict work rules, moves that almost certainly put it on a collision course with its unions.

The changes are essential to slash a $30-an-hour labour cost disadvantage against U.S. plants operated by Japan-based competitors, the auto maker says.

Wages, benefits, pensions and other costs for one hour of labour at the Canadian plants operated by the Detroit Three amount to $77.75, says a company background paper on the coming talks with the Canadian Auto Workers union. The same costs with the Canadian dollar at par against the U.S. currency total $47.50 an hour for U.S. plants operated by Honda Motor Co. Ltd., Nissan Motor Co. Ltd. and Toyota Motor Corp.

“When you look at how uncompetitive we are, you can't say we'll do some things and $1 an hour will do,” said GM Canada spokesman Stew Low. “The status quo just won't do.”

The background paper outlines what will be a difficult challenge for the CAW and the Canadian units of the Detroit Three in an automotive environment that has changed dramatically since the last round of negotiations in 2005. Since then, the Canadian dollar has hit par with the U.S. currency – contributing to annual losses at the Canadian unit of General Motors Corp. – and a landmark labour agreement in the United States appears to have slashed the three companies' costs in that country.

If GM sticks to the position hourly labour costs must be slashed by $30, they risk a monumental clash with the union, which has already drawn a line in the sand, saying the two-tiered wage structure adopted at U.S. sites won't be permitted at CAW plants.

“They can't get there,” said CAW president Buzz Hargrove. “I've told [GM chairman] Rick Wagoner, I've told the head people at Ford and Chrysler – all of them – that there's absolutely no way in hell.”

The union will not agree to wage cuts, reductions in health care benefits or lower pensions, Mr. Hargrove said, but he acknowledged that Canadian workers have more time off the job and “that would be one we would have to look at, given the circumstances we face.”

Making the case for investment in the company's Canadian operations is already difficult given the dollar and the flat North American market, compared with strong growth in other markets such as China and Europe, said David Paterson, GM Canada's vice-president of corporate and environmental affairs.

Investment “becomes a lot harder to justify,” Mr. Paterson said. “We're trying to invest right now. We've just laid out $3-billion worth of investments.”

More than three-quarters of the $30 cost gap is generated by the labour costs for active employees, says the GM Canada paper, which argues that “we need to find a creative ‘Made in Canada' solution to our cost challenges – and the solution must be transformational.”

The paper notes that base wages and paid time off make up a significant slice of the gap, pointing out that CAW employees get 155 hours more time off annually than workers at the Japanese plants in the U.S.

CAW workers at GM Canada assembly plants get 46 minutes in breaks during an eight-hour shift, while U.S. workers at Toyota Motor Corp. plants get 30 minutes in breaks, the paper adds.

The GM officials also pointed to work rules, such as a ban on temporary workers. Such employees make up 10 to 15 per cent of the work forces at the Japanese plants, which gives them flexibility to adjust production quickly when the market changes.

Another area of concern is job responsibility. In some plants, a regular assembly line worker can change the welding tips on a robotic assembly arm, Mr. Low said. At GM's two Canadian assembly plants, that requires a skilled trades worker.

[BlackSilverado]

As a worker at the Oshawa car assembly plant. I can say we are all ready to strike.

We do realize that we have to make sacrifices for work. But why should we be constantly giving what the company wants us to give "GMS, break times, lower wage and benefits and pensions" when THEY havent lived up to their part of the shelf agreement. They owe us products and job security and so far they have balked everytime. See you on the picket lines cawksuckers.

And as for GM removing all the Equipment and moving the plant south. Wont happen, if they try, there will be a "nothing moves" policy. It has been done before there and it can be done again.

[W.A.F.U.]

Originally Posted by BlackSilverado

As a worker at the Oshawa car assembly plant. I can say we are all ready to strike.

Congrats. Hopefully you will all be ready to file for EI when GM goes bankrupt because they cannot build competitive cars because of the wage handicap.

[BlackSilverado]

GM wont go bankrupt, and they cant pull out of Oshawa any time soon. If they do then they reneg on their commitments to the ontario government which granted them hundreds of millions of dollers to stay and invest.

if they leave they owe all that money back plus compounded intrest. It's not %100 GM's fault that all they are goin to hell in a handbasket. %80 of it is to blame on our prime minister and mostly on our finance minister who refuse to stimulate the manufacturing sector and have flat out told us NO. So while these fat cats get their kickbacks, a huge chunk of manufacturers in canada are pulling out and heading south bypassing the states and into mehico for cheap labour. Alot of these places the workers are only making $10 to $15 an hour with limited to no benefits and healthcare. So you cant say that their wage is whats costing the company.

And filing for Ei, i wont have too, i have a Auto technican lisence, i have my own business on the side, i make money hand over fist on my off days.

[Tony_the_Tiger]

- To all you union bashers and whiners - Wages are about 9% of the cost of auto/truck manufacturing, but seem to be responsible for 90% of the problems in the industry - The problem is PRODUCT not wages, but it is easier to blame the workers than fix the problem! - Oshawa has made GM Billions and Billions and Billions and Billions of profits over the last half dozen decades and has had the highest quality for years - Now they want to pay the workers peanuts while the Big Shots get a performanace bonus - BULLSHlT - Anything worth keeping is worth fighting for, and if it means a strike then so be it.....
- TOUGH TIMES DON"T LAST, TOUGH PEOPLE DO -

[Tony_the_Tiger]

- More BS - If they are going to compare Canadian domestic wages to US import wages and not US domestic wages, then maybe they should pay the US Big Shots the same rate as the import Big Shots - Wow, that could save enough money to probably get the industry back on it's feet again........

[EldoFan]

This strikes me as a pure 'generational' type of struggle.......GM has to find a way to eliminate the cost disadvantage.....yet it cant be done overnight. (By 'generational', I mean it'll take a couple generations to play out IMO)

This back-and-forth type of BS with bloated windbags like Hargrove will continue and progress will be made, albeit incrementally, until either a) the cost disadvantage is erased or b) some kind of sweeping reform is pushed through from inside the union.

[canadianworker]

Originally Posted by BlackSilverado

As a worker at the Oshawa car assembly plant. I can say we are all ready to strike.

We do realize that we have to make sacrifices for work. But why should we be constantly giving what the company wants us to give "GMS, break times, lower wage and benefits and pensions" when THEY havent lived up to their part of the shelf agreement. They owe us products and job security and so far they have balked everytime. See you on the picket lines cawksuckers.

And as for GM removing all the Equipment and moving the plant south. Wont happen, if they try, there will be a "nothing moves" policy. It has been done before there and it can be done again.

Well said Brother, I'm a laid-off Truck worker and will glady stand beside you on the picket line in September.

[HoosierRon]

On the one hand, you insist you will not match the wages and working conditions of American employees working in Japanese factories in the U.S. (let alone workers in Mexican factories). On the other hand, you elect politicians like Harper that cannot stop praising the treaty that allows third-world countries to dump cheap goods on your market.

If you are not willing to compete with Mexicans (and now Americans) on wages, you better stop electing free trade, open border politicians. This blather about “we need to find a creative ‘Made in Canada' solution to our cost challenges" is nonsense. As long as Harper is defending NAFTA, there is no such thing as a "Made in Canada" solution.

[Clownzilla]

Well, I'm ready to see GM move ALL production out of the USA and Canada. I could care less about the fat cat line workers and their sense of entitlement. It's time for GM to get back on it's feet again. These blood sucking union slugs HAVE TO GO! I don't care where it is made, it's still an American car to many. GM will still have a huge foothold in the USA, they will just simply not make them here.

[JT87]

As both a student worker and an engineering student, the next few months will have a huge effect on my future.

On one hand, working my required shifts when needed, and getting paid what I do, will help me leave undergrad without debt (if pay and work stays level). I already have health insurance and other 'benefits' covered elsewhere (school-supplied or other job), so reducing coverage would not affect me much, but will affect many workers with families at the plants. The previous agreement (made prior to the announcement of production of the Camaro) included a $2.5B investment in a Flex line capable of producing the volume of both Plant 1 and 2 in one facility. Until now, only the Camaro was guaranteed (about 1 shifts worth of people)

On the other hand, it seems that General Motors (among others), are investing more and more into R&D, engineering, and facilities, rather than workers, as evidenced by numerous investments (ex: ACE@UOIT: http://www.engineering.uoit.ca/facilities/ace/), in the hope of replacing a portion of the lost jobs with similarly paid, yet highly trained automotive and mechanical engineers.

Edit to add:
To all the union bashers (specifically those who call union workers 'lazy, fat, uneducated, etc....' while posting on their work computers), quit generalizing. Sure, some people I work with aren't in the best shape possible, nor highly educated, but many are VERY hard workers, and are passionate about doing their job well. It's not mentally challenging work, but many jobs do require physical wear and tear on your body. Also, it isn't as if the Oshawa Car Assembly plants are lowly plants either (highest productivity, highest quality, safe). There's always 2 sides to a battle, and if you're going to make snide remarks, be educated about the situation from different viewpoints.

To the union workers (here and abroad): Calling people (especially those you don't know) 'cawksuckers' and ****ers isn't very mature, nor will it get you anywhere. You have fought for your wages, and for your job security, and have done fairly well at that. BUT (a big BUT), we must face the fact that, if GM posted a big 'hiring' sign at the front gates, stating 40 hours a week at $25/hour plus limited benefits, I'd bet they could and would replace every single non-skilled job in the plant. The very fact that GM hasn't had a higher rate of contract replacements surprises me. Plus, I have a feeling that, within ten years, General Motors would ideally want to move to an even more automated facility, maintaining production levels and quality, while replacing many line workers with engineers and technicians. Come September, we have to show our worth. We have to hit our quality targets. We have to show the company that we are worth what we are paid. Name-calling and whining won't get us wage and job security, but it will give us a comfortable seat on the picket line.

[Tony_the_Tiger]

- Why is it that most engineers on these posts including student and rental, always have a very low opinion of union workers and are always trying to lower the union members wages? I work with engineers every day and most of them are terrifed about losing their jobs to some glorified teleworker from overseas who will work for peanuts! You baglickers should be careful what you wish for....

[paul8488]

Hey, can you idiots quit using schoolyard language? It's such a pain in the butt cleaning up threads like this. It's not that hard to use proper words instead of insults. I'm much more inclined to close a thread like this then go through a dozen posts deleting childish words.

And you'll all happily see that this is aimed at everyone, not just the union OR non-union people. Smarten up everyone! Thanks

[JT87]

Originally Posted by Tony_the_Tiger

- Why is it that most engineers on these posts including student and rental, awalys have a very low opinion of union workers and are always trying to lower the union members wages? I work with engineers every day and most of them are terrifed about loosing their jobs to some glorified teleworker from overseas who will work for peanuts! You baglickers should be careful what you wish for....

I'm not sure if this was pointed at me or not, but I don't have a very low opinion of union workers at all. There are countless people that I work with that come in to work and sweat their butts off, help others, and create a great work environment. The few that are regularly grumpy, cusses at everything that goes wrong, acts that regardless of how well they do their job, they deserve one until they retire, or wonder why they can't get high at work anymore. As well, they tend to be the most vocal and end up being the 'face' of the union, and, for many, cast a poor shadow on what the union supposed to be.

I agree with EldoFan. A change to the 'status quo' wont happen in 5 months. It would be ridiculous for GM to expect the workers to just roll over and accept it. It is also ridiculous to hear some of the people I work with clamour for more money and benefits, when they should be worrying about securing new product contracts.

[tholland]

Originally Posted by BlackSilverado

GM wont go bankrupt, and they cant pull out of Oshawa any time soon. If they do then they reneg on their commitments to the ontario government which granted them hundreds of millions of dollers to stay and invest.

if they leave they owe all that money back plus compounded intrest. It's not %100 GM's fault that all they are goin to hell in a handbasket. %80 of it is to blame on our prime minister and mostly on our finance minister who refuse to stimulate the manufacturing sector and have flat out told us NO. So while these fat cats get their kickbacks, a huge chunk of manufacturers in canada are pulling out and heading south bypassing the states and into mehico for cheap labour. Alot of these places the workers are only making $10 to $15 an hour with limited to no benefits and healthcare. So you cant say that their wage is whats costing the company.

And filing for Ei, i wont have too, i have a Auto technican lisence, i have my own business on the side, i make money hand over fist on my off days.

Harper's government prefer's lowering corporate taxes instead of handouts... they keep harping < sounds like 12 days of Christmas... 12 Harpers harping > on McGuinty to lower corporate taxes in Ontario, which are some of the highest in Canada, but to no avail... so businesses are leaving Ontario in droves. McGuinty loves his political handouts... who else can make a 5 billion dollar surplus vanish like a fart in the wind before anyone has a clue where it went... but even handouts aren't enough to offset the corporate taxes in the long run.