The clock is ticking on the General Motors Oshawa, Ontario assembly plant. Many Canadian locals are fearing the worst as GM continues to keep quiet on future plans for the manufacturing facility.
GM Canada announced up to 1,000 new engineering positions heading to the region, but executives repeatedly made it clear it would not affect local manufacturing. Following this disappointment, and ahead of labor talks, Oshawa workers have launched a support initiative to get the community involved, according to The Toronto Sun.
“It’s really important that people understand that General Motors has already made plans for investment in Mexico in 2018,” said Colin James, president of Unifor, Local 222.
“Yet it’s ironic that they cannot tell us what are their plans for 2016 for the facility in Oshawa.”
Oshawa employees are using the #GMOshawaMatters hashtag, emphasizing the manufacturing jobs mean more than merely engineering positions.
“We want to continue to have cars developed here and designed here,” Oshawa NDP MPP Jennifer French said. “That’s great, but who’s going to build them?”
Labor talks will begin later this summer, and we should know more about the future of GM’s Canadian manufacturing then.
Comments
The President of GM Canada, Steve Carlisle, issued a statement a long time ago that future product in Oshawa depends on the finalization of the contract — not the reverse. The logo on the union T-shirts — No Product, No Contract — is backwards.
Mark Reuss has also stated that GM will build vehicles in proportion to the quantity sold in a country — so this commitment in Canada is satisfied by the Ingersoll CAMI plant and Oshawa is not needed.
Government involvement bought the union 8 years of work — from now on, being competitive with their US counterparts is up to them.
Let’s hope that they can find common ground.
That is what I have tried to express here and some folks don’t want to hear reality.
The CAW has not been on equal ground with their contracts with other GM plants. GM has many plants around North America that can build cars just as well and for a more competitive price. They have learned if you play ball with GM you get better models and more work. Lordstown and Wentzville have proven this.
The CAW needs to learn they need GM more than GM needs them.
It is not just the auto industry as we have seen this in many other markets. including tires and steel.
Guys I am not trying to be difficult, but there is more at play here then labor cost etc. The Oshawa plant has been very cost effective, there are a lot of good examples I could give but I am not sure what I can say. Let me just say I have family in the plant on the labor side, but also in the upper end. Besides the fact that Oshawa often has to fix other plants quality issues they are apparently very cost effective. I am going to ask to write what I am told. I don’t want to get anyone in trouble, but if they are right, and its from both end of the spectrum, there is more at play here.
You are correct that they can be cost effective but they may not be as cost effective as other plants. You only get the inside news there but not the entire plant picture of each plant and union situation.
Like many models like the the little Buick that was just killed it may have made money but not enough vs other models including the one they may replace it with.
Times have changed just making money is no longer enough. Maximizing profits is a matter of survival anymore with the high cost of development and labor.
Also the CAW like GM PDT has stated has saber rattled and that is no way to create a good atmosphere of cooperation between the Union and GM.
Lordstown used to do that pre bail out and were on the verge of being shut down. They learned to work with GM and today they have had steady work with one of the most popular models and everyone is winning today.
It used to be GM had to keep plants running because it was cheaper than shutting them down. With lower market shares they have many places they can build cars and now use that to make the UAW competitive and to make GM more profitable.
The bottom line is GM and the Unions need to make money to keep share holders happy or they both will suffer.
As for quality most plants are pretty much on the same scale. or if they do have problems they are few. With the new money GM has invested they have upgraded plants and paint shops so they all do a damn good job anymore no matter where they are.
To be honest my last Oshawa car was one of my worst. Paint issues, Engine issues, rust, bouncing lights, radio wire issues, steering shaft issues wheel issues etc. Some was design and some was just assembly issues.
My Wentzville Malibu no issues, Mexico HHR no issues. My CAW Terrain. A few issues strut hatch failure and electric issues. My 85 Fiero no issues other than a lock up converter switch that is common to all GM cars of that year. I even at 31 years old still uses the original Freon.
My point is at this point every one and every plant is a player and you have to compete to get the work today. GM holds the numbers and they will go to who does the entire job right and at a fair price.
It is up to the CAW as to how this plays out. If they want the work and compete for it they can win it if not well.
GM does feasibility studies at every manufacturing facility before committing to the production of any new vehicle . And if the numbers don’t add up then they look elsewhere . In the current climate of any Labor negotiations with GM the last thing you want to do is threaten them with a strike or any type of campaign if labor doesn’t get what they want .
The CAW has the unfortunate reputation of playing hardball with GM at almost every labor negotiation . You would think the union rep’s would have figured out that this isn’t the way to do business anymore . Oshawa can launch a campaign if they want but if GM doesn’t need that plant anymore GM really owes them nothing .
Now I don’t want anyone to loose their job but the industry isn’t what it used to be , all you have to do is look at Flint , Detroit or Pontiac . GM pulling out of any community can be devastating , but I fear this campaign is just to make the labor leaders look good . And it won’t do a thing for the folks that just might loose their jobs .
No one has mentioned that the Ontario government’s green energy and other policies has made Ontario a very unfavourable place to do business, especially for manufacturing (generally requires significant energy usage). Because of this the CAW has to offer a more competitive contract than their UAW bothers. They have the Ontario Liberal gov’t to thank for this.