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CAW wants feds to force GM's hand

Hargrove calls on automakers to honour defunct Auto Pact

Jun 09, 2008 - 05:01 AM

Tony Van Alphen

OSHAWA -- The Canadian Auto Workers union has asked the federal opposition parties to press the minority Conservative government for a trade action that would force General Motors to keep a truck plant open in Oshawa next year.

Union president Buzz Hargrove told about 1,000 workers and supporters yesterday at a blockade of GM's Canadian headquarters in Oshawa that the government should make the company abide by the terms of the defunct Auto Pact.

The 1965 pact laid the foundation for Canada's modern auto industry by calling on manufacturers to produce one vehicle here for every one they sold in the country or face stiff duties.

"It's as simple as that," Hargrove said in a later interview. "We're asking the opposition parties to present a motion in the House of Commons that would force GM to meet the principles of the Auto Pact. They would have to build a truck in Canada for every one they sold here. That would keep the truck plant open."

The pact, which also contained minimum Canadian content levels for domestic auto production, disappeared in 2001 when the World Trade Organization ruled some provisions broke global regulations for the fair movement of goods between all countries.

GM announced last week that it would close the plant in the second half of next year. The company is also closing three other assembly operations on the continent.

But the union argues GM misled the CAW by agreeing in a recent contract to long-term production commitments in exchange for labour cost savings including a wage freeze.

The product commitments depend on demand but the CAW said GM knew it would close the plant in talks less than a month ago. Workers would have also never ratified the contract without the production commitments, the union says.

Hargrove said he will send letters to the opposition parties this week in the union's continuing fight to save the 43-year-old plant.

The closing of the Oshawa truck plant would eliminate more than 2,000 jobs as well as employment for thousands of others who provide parts and services.

Meanwhile, a blockade of GM's headquarters in east Oshawa by CAW Local 222 protesting the company's move enters its sixth day today. At a barbecue yesterday in front of the headquarters, Ken Georgetti, president of the Canadian Labour Congress, joined Hargrove in assuring the workers the union movement is behind them.
--

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