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Canadian Auto Workers lobby government for national auto policy

Posted Jun 11th 2012 10:45AM

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Canadian Auto Workers

Shortly after General Motors announced it would eliminate an assembly line at Oshawa, thereby eliminating 2,000 jobs, the Canadian Auto Workers union got on the phone to set up meetings with ministers from the three major political parties in Canada. The CAW didn't just want to jawbone and complain, either – it entered the meetings with a slate of breathtakingly ambitious initiatives that would comprise a national auto policy.

We're not sure if the union asked for everything hoping they could at least get half, but most of the ideas have little chance of leaving the printed page: the government should maintain minority stakes in automakers, devalue the Canadian dollar, secure manufacturing commitments from automakers, examine the feasibility of a Canadian carmaker and halt free-trade negotiations with the EU and other carmaking nations like Japan and Thailand. And in a move reminiscent of the Saab trustees' request to the U.S. government, the CAW, citing a "moral obligation" on the part of GM because the Canadian government still owns ten-percent stake in The General, asked MPs to strongly encourage GM to "to ensure continued investment in Canadian facilities and jobs."

After those bombshells, the additional requests of formally laying out a national manufacturing footprint and building a green automaker are soggy firecrackers by comparison. The blunt response of a Tory (conservative) MP who's a member of the Tory auto caucus was, "they want a highly labour-intensive auto industry behind protectionist walls and subsidized by taxpayers." CAW chief Ken Lewenza did claim that all parties agreed on the need for a national auto policy, nevertheless, we have a feeling it won't have much in common with the CAW's proposals.

GM EN-V - Road Test

News Source: Windsor Star [1], [2]

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B1663R

Should have let GM die.

June 11 2012 at 3:34 PM Report abuse rate up rate down Reply
From The Back Seat

I have very little love for the CAW, but I will admit that both the provincial and federal governments should have gone "Hold on there a second buddy" when GM announced that it was shutting down another line in Oshawa. First of all, as has been noted both levels of government have an ownership stake in GM, which means that they both have a say at the table. Further, above and beyond that bail out money were tax breaks and investment that were linked to promises of future investment and product lines to be produced in Canada. I get that it is more expensive to produce products in Canada than the US, and I'm also very certain that part of the reason for this move is to also placate the UAW who (ironically) are feeding there Canadian counterparts to the wolves to up their own ranks. That said, were I an MP or MPP I would have zero problem with holding GM's feet to the fire on their agreement to hold the (original) line on the amount of manufacturing done here (that would be when there were 3 lines in Oshawa - the truck line, the now killed Impala line and the current Camaro/Regal line). If the company cannot find a way to keep that promise, then fine, Canada would like it's money back thank you very much. As successful as GM has been lately, they are FAR from out of the woods and from some of the product and business decisions I've read lately, it sounds to me like all the dead-wood wasn't cut out and is starting to drive the bus in the company again. This leads me to believe that in 5 or less years time, GM is going to be back where they were 2 years ago, and it is doubtful that anyone will bail them out a second time.

June 11 2012 at 12:27 PM Report abuse +1 rate up rate down Reply