GM won't commit to Oshawa plant, Hargrove says

[neshapop]

General Motors is still saying it will close its pickup truck plant in Oshawa, Ont., in 2009, the head of Canadian Auto Workers union said after meeting with company officials on Tuesday.

The closing — expected to cost 2,600 CAW jobs — was announced on June 3 by GM, which cited a dramatic drop in truck sales. The CAW then blockaded the company's corporate headquarters in Oshawa, only moving Monday morning after GM won a court injunction.

Tuesday's talks did not produce any solid result, CAW president Buzz Hargrove said after the meeting.

Hargrove said he didn't have high expectations going in and would be "very surprised" if GM changed its mind about the plant's future. However, he added, "We've got to start somewhere."

Along with the blockade, the CAW has also said GM's action broke the contract with the union, and has talked about legal action. GM said it has the right to close the plant under the contract.

The plant assembles Chevrolet Silverado and GMC Sierra half-ton trucks.

http://www.cbc.ca/money/story/2008/06/17/gm-caw.html

[Ambalanche]

And why would GM commit to anything in Canada after the blockade stunt? That would be enough to scare away any company!

[zete]

Originally Posted by Ambalanche

And why would GM commit to anything in Canada after the blockade stunt? That would be enough to scare away any company!

Problem is, Oshawa is GM's best factory in terms of quality. It's a massive irony that they'd shutter the best one instead of a poorer one, as opposed to flipping some new vehicle into Oshawa to keep the quality. It was, after all, the lack of quality that did GM in for so many years. It's why I'm rather perplexed about GM's decision.

Sure, close the truck line but it's best to get some new product there as you're losing your best workers.

[CHEVYPAS]

Could it be bacause of the pairity of the canadian and us dollar, manifacturing in canada and selling in the states in not as good of a practice as it was 5 years ago?

[doh]

Well I am not a member of any Union, but I bet this stunt performed by GM will loose alot of the of Union member customers of thiers in Canada.

A turn of face after only 2 weeks is hard to swallow for even me, an Ontario tax payer.

[zete]

Originally Posted by CHEVYPAS

Could it be bacause of the pairity of the canadian and us dollar, manifacturing in canada and selling in the states in not as good of a practice as it was 5 years ago?

That probably has something to do with it, but healthcare is still cheaper in Canada for GM. Also, quality is a bottom line number. Higher quality means fewer warranty expenses.

I still think GM is shooting themselves in the foot on this one.

[GMfan1111]

Originally Posted by zete

That probably has something to do with it, but healthcare is still cheaper in Canada for GM. Also, quality is a bottom line number. Higher quality means fewer warranty expenses.

I still think GM is shooting themselves in the foot on this one.

agreed GM is creating a public relations disaster that didn't even need to happen in the first place. GM did have an agreement and they should of held up their end of the bargain. Granted, SUV and truck sales are not as good as they used to be but rather than shutter the plant GM could've gave Oshawa a new product and kept the plant open.

[fp115]

Originally Posted by GMfan1111

agreed GM is creating a public relations disaster that didn't even need to happen in the first place. GM did have an agreement and they should of held up their end of the bargain. Granted, SUV and truck sales are not as good as they used to be but rather than shutter the plant GM could've gave Oshawa a new product and kept the plant open.

What is this PR disaster you speak of? I don't see it. The agreement was still held up by GM Canada's end, the ones that dealt with the bargaining with the CAW.

Originally Posted by zete

That probably has something to do with it, but healthcare is still cheaper in Canada for GM. Also, quality is a bottom line number. Higher quality means fewer warranty expenses.

Wages are much more in Canada than they are in the US. GM loses on average $762 per truck that comes out of Canada, in the US they at least break even and in Mexico they make more than $1000.

[likearock00]

I don't know about you, but I don't think I'd want to buy a Canadian Silverado built right now!! I know I'd be pretty pissed and forget a few screws!

[Jimmy Jive]

Originally Posted by zete

Problem is, Oshawa is GM's best factory in terms of quality.

I thought that was the car plant? Or is it both?

Anyways, the irony to this whole situation, is I just heard on the news now, that Air Canada is laying off 2000 workers because of high fuel prices. And I bet it'll happen without a peep. Yet when GM needs to close a plant when no one's buying full-size trucks/suv's anymore because of gas prices, they get this head-ache...

[fp115]

Originally Posted by Jimmy Jive

I thought that was the car plant? Or is it both?

Anyways, the irony to this whole situation, is I just heard on the news now, that Air Canada is laying off 2000 workers because of high fuel prices. And I bet it'll happen without a peep. Yet when GM needs to close a plant when no one's buying full-size trucks/suv's anymore because of gas prices, they get this head-ache...

I bet most don't even know that GM also signed a 1b dollar deal with the US government to export vehicles out of the US to China and that Landsdown may potentially get 1400 new jobs. Those aren't hitting the media nearly as much as anything else. Why the media doesn't like to support our own economy baffles me, only the journalists that got spanked around by the domestics for posting biased reportings are now finally much less biased. Jim McKenzie of the Toronto Star is a prime example. Lawrence Yap in part was the same too. Journalists have got to wake up and take into consideration all perspectives of a case and not side with anyone, regardless of sponsorships or affiliations.

[NfamousZ24]

Originally Posted by Jimmy Jive

I thought that was the car plant? Or is it both?

Anyways, the irony to this whole situation, is I just heard on the news now, that Air Canada is laying off 2000 workers because of high fuel prices. And I bet it'll happen without a peep. Yet when GM needs to close a plant when no one's buying full-size trucks/suv's anymore because of gas prices, they get this head-ache...

Yes their quality awards I belive are from the car plants. I think Fort Wayne might beat them now. I am pretty sure Fort Wayne beats them in efficiency per latest Harbour report.

[dindak]

While I am not defending what GM has done in Oshawa, blocading head office is not going to help. The union needs to get the province, the city and GM together and come up with a plan to get a new product to Oshawa. Truck demand is not going to bounce back to 2005 levels. It's time to move on.

[Uzzy]

Originally Posted by GMfan1111

agreed GM is creating a public relations disaster that didn't even need to happen in the first place. GM did have an agreement and they should of held up their end of the bargain. Granted, SUV and truck sales are not as good as they used to be but rather than shutter the plant GM could've gave Oshawa a new product and kept the plant open.

Like what? GM doesn't just have "make work" products sitting around that they can throw into plants when the union starts bitching. GM doesn't have the same market share they had years ago and they don't need all of the production facilities that they had running several years ago. They make too much product as it is in some cases. I suppose they should just find something for Tolouca, Janesville and Moraine to put together too.

Oshawa truck was a good plant, and it might still get something, but it should be something GM needs to build and can sell, not just something for them to do.

[K-1]

Originally Posted by Uzzy

Oshawa truck was a good plant, and it might still get something, but it should be something GM needs to build and can sell, not just something for them to do.

Truer words were never spoken. Unfortunately, the CAW feels "entitled" to those jobs.