Canada’s auto-parts industry at risk if GM closes in Oshawa: union
OTTAWA — The head of the union representing workers at the General Motors plant in Oshawa, Ont., argued Tuesday that the company’s decision could lead to the collapse of the auto-parts industry in Canada and demanded a sharp response from the federal government.
Unifor national president Jerry Dias said General Motors “just showed the president of the United States and the prime minister of Canada their middle finger” by moving production out of Canada and the U.S. and threatening the jobs of about 2,500 workers he represents at the Oshawa plant.
“We’re playing with a corporation that plays by their own rules. So we have to have governments that are going to play by very strict rules as well,” Dias said after meeting Prime Minister Justin Trudeau.
“I mean, if you’re going to have a company that’s going to show us their middle finger, then I think our government should show them their middle finger as well.”
Dias said GM has moved production of five vehicle models to Mexico and the U.S. in the past few years, and if the Oshawa plant closes, GM will have only one left in Canada.
He blamed low labour standards in Mexico, and called on Trudeau to work with U.S. President Donald Trump to keep manufacturing jobs from shifting south.
The revamped North American free-trade pact — which is set to be signed by the end of the week — should help eventually, but the sections that apply to the auto sector won’t kick in for years, and by then it could be too late, Dias said.
In the meantime, he said, the Liberals should place tariffs on GM exports coming out of Mexico to dissuade the company from following through on its plans.
A General Motors of Canada executive said the company isn’t planning to divest itself of its other Canadian enterprises, as Dias claimed. David Paterson said the company is hiring 500 people for its technical centre in Markham, north of Toronto, to help write software for self-driving cars.
“We sell in Canada, we manufacture in Canada, and we’re actually the biggest and fastest-growing new technology automotive company in Canada,” said Paterson, the company’s vice-president of corporate and environmental affairs.
“We’re growing faster than anybody in the industry in new technology, at the same time as we’re unfortunately going through, next year, this really difficult change with regard to our manufacturing base in Canada.”
The tough talk minutes after Dias left a meeting with Trudeau, two of his cabinet ministers and officials from the Prime Minister’s Office underscored the union’s fury at GM’s decision to close plants in Oshawa and the U.S., and slash salaried and executive staff as part of a global restructuring meant to save the company US$6 billion annually.
Chantal Gagnon, a spokesperson for Trudeau, said the two men talked about their own discussions with GM, Trudeau’s call with Trump earlier Tuesday about the auto industry “and how best we can stand up for people affected on both sides of the border.”
Trudeau faced questions going into a cabinet meeting Tuesday morning about whether there was anything his Liberal government could do to keep the Oshawa plant open.
“Obviously our focus is on the families right now, making sure we are supporting the folks who are facing difficult times,” he said.
Time and again during his news conference, Dias rejected any notion the plant will actually close when asked about possible employment insurance assistance for affected workers, or whether other automakers could fill the void in Oshawa.
“We are talking about keeping the plant open, period. Our members in Oshawa want their jobs. They’re not looking to be retrained,” he said. And he suggested that despite his talk of helping workers facing layoffs, Trudeau doesn’t believe the closing of the plant is a fait accompli, either.
Dias will meet his American counterpart this week in the U.S. to decide what, if any, action the union will take, such as having workers walk out at other GM plants alongside the ones slated to close.
The Unifor leader also warned he was ready to have his members take job action unless the plant stays open.
Asked if anyone from Trudeau’s office tried to dissuade him from doing that, Dias bluntly said the Liberals were smarter than that.
‘‘ We are talking about keeping the plant open, period. Our members in Oshawa want their jobs. JERRY DIAS Unifor national president