GM Canada protest enters 2nd day; officials to meet

Automotive News | June 5, 2008 - 12:00 pm EST

TORONTO (Reuters) — Canadian Auto Workers members blocked the road leading to General Motors of Canada’s headquarters in Oshawa, Ontario, for a second day on Thursday, forcing all corporate employees to work from home until further notice.

Union workers are protesting plans to shut a truck plant as company officials and labor leaders prepare to meet on Friday.

“We play it as the day goes on, and employees are updated by voicemail and e-mail,” GM Canada spokeswoman Natalie Nankil said. “That’s what we’re logged-in to.”

Nankil said some of GM’s corporate employees entered the building early Wednesday. But management called those staff members and advised them to begin working from home.

With U.S. truck sales slumping, GM said on Tuesday it would shutter its Oshawa truck plant, which employs 2,600 workers, in September 2009. The Canadian Auto Workers union says that violates the contract agreement the two sides reached just last month.

CAW President Buzz Hargrove said the union is exploring all of its options, and did not rule out a strike.

"We believe General Motors is obligated by law and otherwise to live up to this (contract) agreement," he said earlier today.

Hargrove, along with the CAW’s GM bargaining committee from Oshawa, will meet with GM CEO Rick Wagoner and leaders from GM Canada, in Detroit on Friday morning to discuss the matter.

The CAW has three complaints. It said GM committed to keep the Oshawa truck plant open until the new labor agreement expires in 2011; that GM agreed to continue building hybrid versions of two pickup trucks in Oshawa; and that GM agreed to a new investment in 2011 that would launch the next generation of half-ton trucks.

"They’ve violated all three of them," Hargrove said. "They’re closing the plant now, they say in September of next year, they’re moving the hybrid production, which we’re currently building the pilot trucks right now, they’re moving that to Mexico, and they’re not going to invest, as they committed to do, in the next generation of half-ton trucks."

Canadian Finance Minster Jim Flaherty said on Wednesday the Canadian government may use money from a special fund to help GM start production of a new car at its auto assembly plant in Oshawa.

Hargrove said GM had already committed to the new car, which he said he announced during labor negotiations in May.

"Flaherty is now going to pay them for something they already agreed to do. Pretty dumb," he said.

Hargrove dismissed the government’s announcement that it may allow GM to access its $250 million ($245 million U.S.) Automotive Innovation Fund, to help start production of the new car.