GM considers production shift from striking plant
Represents ‘war on Canada,’ union chief says
• General Motors Co. is considering shifting production of the Chevrolet Equinox to other facilities, a move the head of the union leading the ongoing strike at an Ontario plant said Thursday represents a “war on Canada.”
On Wednesday, GM informed Unifor head Jerry Dias that it has started to explore other production alternatives as the strike at the CAMI facility in Ingersoll, Ont. continues into its fourth week. A company official said negotiations have reached an impasse, although a narrow window remains to reach a collective agreement before production is shifted.
Despite the possible production change, Unifor — which represents about 2,500 striking workers — is standing by its primary demand that the company make a long- term commitment to the plant that would prevent further production from shifting to Mexico. Dias called GM’s threat “a slap in the face” to Canada and the United States.
“The bottom line is that by doing this at this point in the negotiations, they are really thumbing their nose at both Canada and the United States,” Dias said in a phone interview Thursday. “They have declared war on Canada.”
A key sticking point in the discussions remains a long-term commitment that would designate the plant as the lead producer of the next- generation Chevrolet Equinox. Production of the new Equinox began at the plant in January, but the vehicle is also produced in two Mexican facilities. The union says it wants the lead producer designation to ensure the CAMI plant would maintain core production levels in the event of a downturn or manufacturing changes in the auto industry.
The designation is particularly significant for the union, as about 400 employees were laid off this summer after GM moved production of the GMC Terrain from the CAMI plant to Mexico.
The company official said the negotiations have nothing to do with NAFTA, but about reaching a collective agreement. Dias disagrees, and has repeatedly pointed to the loss of the Terrain at the CAMI plant as “NAFTA at its ugliest.”
“The decisions General Motors have made are as a result of NAFTA. They are exploiting Mexican employees, paying them $2 an hour to build the Terrain that used to be built in our plant,” he said. “They can talk about separating NAFTA from the dispute, but the dispute is a result of NAFTA.”
The tensions in the GM negotiations come at as NAFTA renegotiations appear to be in trouble. Prime Minister Justin Trudeau met with politicians and business leaders in Washington on Wednesday, where he acknowledged that the federal government is bracing for the worst. Trudeau departed for Mexico on Thursday.
The union representing 2,500 striking workers has been on strike since Sept. 17. GM recently completed an $ 800 million investment at the CAMI facility to produce the Equinox.
Hundreds of employees outside the CAMI plant have also been affected by the strike. GM said it made “related production adjustments” at three facilities because of the labour dispute at the CAMI plant, including GM’s propulsion plant in St. Catharines, Ont., Spring Hill manufacturing plant in Tennessee, and engine operation plant in Flint, Mich.