Despite rising tensions (and a lawsuit) between General Motors and the Canadian Auto Workers union, the automaker may be interested in adding a new car line at its soon-to-closed truck plant in Oshawa, Ontario. Though that plant was originally scheduled to stay open a few more years, slumping sales of full-size trucks built there have forced GM to announce its early closure along with three other pickup and SUV plants. Since that announcement, union workers have barricaded GM Canada's headquarters for the last eight days in protest, which we'd imagine might make it difficult for GM management to negotiate with union officials... but what do we know?
According to The Detroit News, however, GM has been talking with Ontario's Economic Development and Trade Minister, Sandra Pupatello, who says that the government is very interested in securing the new vehicle line as quickly as possible. Even if a decision is made in short order, it is likely the plant's 2,600 workers would be out of work for up to two years after the closes and before its ready again with new tooling for a passenger car line.
We've been hearing for some time now that Buzz Hargrove and the CAW didn't want to have anything to do with the two-tier wage structure or health car plans that the UAW agreed to. Before the landmark labor contracts were ratified in the States, American auto manufacturers enjoyed the cheaper cost of building cars in Canada, and because that difference in manufacturing cost was no longer a factor, it appeared that the CAW and Detroit could be in for a long and messy fight. That may not be the case, though, as word comes from our unionized-friends up north that the CAW and Ford have already agreed in principle to the major points of their upcoming contract, a whopping five months ahead of schedule.
According to Automotive News, the union is expecting a deal to be done by the end of the week. We can surmise that the deal does not include a multi-tiered wage structure, though. "We were not going to do a tier-two and if Ford had insisted it would have resulted in a fight," says Hargrove. The CAW did, however, agree to give up 40 hours of vacation time per year, a supplemental health care fund and a reduced entry-wage for new-hires. Ford will compensate CAW workers with a single payment of $3,500 for the lost vacation time and a $2,200 bonus if the contract is ratified at the plant-level. Ford also promises to keep the St. Thomas plant open until at least 2011 as opposed to the current plan of 2010. See the press release after the break for all the juicy details.
