Posted on Thursday 15 May 2008
Like all good compromises, it seems none of the parties is really happy with the outcome, but General Motors, Chrysler and the Canadian Auto Workers have reached a tentative labor agreement. Involving both continued production at some plants and job cuts all around, the deal will keep both sides on track to meet their longer-term goals.
Two of the primary casualties of the weakening North American auto market are GM’s Windsor transmission plant and a Chrysler casting facility, both of which will close in the by 2010. The union fought for and secured jobs at several other plants, and got severance packages for the employees whose jobs it could not save, reports The Detroit News.
The GM plant at Oshawa, Ontario will remain in operation under the deal, producing both full-size cars and light trucks. Chrysler’s Windsor and Brampton plants will also remain open, rolling out minivans and large cars, respectively.
All in all, though the CAW was forced to make considerable concessions on labor, the deal could be considered a victory of sorts under the circumstances. The relative weakness of the U.S. dollar and the steadily declining auto market have meant all of the Big Three American car makers have had to make adjustments to their present and future operations.
The UAW has also reached a tentative agreement with GM over plans for its Lansing Delta Township plant in Michigan where the company makes the Buick Enclave, GMC Acadia and Saturn Outlook crossovers. The plant has been out of action due to a strike since April 17th, and yesterday GM cut off benefits to union workers. If the deal reached today is approved, workers could be back at work by the beginning of next week. The Lansing plant workers remain on the picket lines until the deal is approved, however.
I’m really impressed with how quickly the CAW managed to do this. Seriously. typically, you have some discussions 3 months before the contract is up, people get pissed off, and storm out, and dont talk again until a week before its up. This is probably the most consessions that either side has had to produce in a long long time, and it was all done not only without a strike but VERY far ahead of schedule.
to give you an idea, when they announced an agreement with ford a week or so ago, it was only a day before the union went to go vote for it. There was nothing in the media about the talks happening. the just happened.
then you have the announcement from GM that they were going to close the windsor plant, instead of renovate and retool. everyone thought strike for sure. but here we are… no “we’re close to a deal”… just “heres the deal”.
very impressive. I hate buzz hargrove but I gotta give props where its due.