GM Canada, union ‘miles apart’ on key issues as talks begin
General Motors of Canada Ltd. and its workers are “miles apart” on the key issues, says the union’s president, as labour negotiations formally kicked off Wednesday, with the two sides already voicing disagreement over what needs to be accomplished before an agreement can be reached.
The key issue in these talks is the future of GM’s operations in Oshawa, Ont., which include two assembly lines. The consolidated line is set to close next year after a contract to produce the Chevrolet Equinox expires, while the flex line has no product slated for beyond 2019.
It appeared Wednesday that the two sides were already at an impasse over how and when Oshawa’s future will be decided. GM Canada said no decision on future investment will be made until after a labour agreement is reached, while Unifor, the union that represents 23,000 Canadian workers at the Detroit Three, said no agreement will be reached without an investment commitment from GM.
“We are not — we are not — going to leave negotiations until we have a firm commitment from General Motors on product,” Unifor president Jerry Dias said at a news conference following the official launch of talks at a hotel in downtown Toronto.
But David Paterson, GM Canada’s vice-president of corporate affairs, said any investment decision will have to take into account several factors beyond the labour agreement, including government policy, the macroeconomic situation and the company’s supply base.
“We won’t be in a position to make an investment decision until after we’re through with the negotiations,” Paterson said in a separate news conference. “We very much view these negotiations as a very important first hurdle that we need to be able to put a competitive case together.”
Dias has made it clear that he’s prepared to call for a strike if GM hasn’t made a commitment to Oshawa by the time the current contract expires on Sept. 19. However, he said he’s optimistic that won’t be necessary.
“We are miles apart, but I expect we will have an agreement by Sept. 19 at midnight because I expect that General Motors understands our determination and I expect that General Motors, more importantly, understands what a great place this is to do business,” he said.
Using a hockey analogy, GM’s Paterson urged Unifor to stay at the table until an agreement is reached, even if “extra periods” are required to do so.
“We need everybody on the ice to win, and we can’t have people leaving the ice if we’re going to win,” he said. “Even if we go into extra periods, we’re going to fight to make sure we get a good solution here.”
Unifor has characterized this as the most important round of negotiations in a generation, with the future of Canada’s auto industry at stake. The union will begin talks with Ford Motor Co. of Canada and Fiat Chrysler Automobiles (FCA) Canada on Thursday.
Besides GM’s operations in Oshawa, Dias said, he’s also determined to secure a new engine program for Ford’s factory in Windsor, Ont., and to get a long-term commitment from FCA for its plant in Brampton, Ont.
“If, in fact, we walk out of 2016 negotiations without commitments for Oshawa, Brampton and Windsor, we are looking at the death of the auto industry in Canada, and you need to understand we are absolutely committed that that’s not going to happen,” Dias said.