TORONTO (Reuters) - Negotiations for a new labor contract
at General Motors of Canada
Hargrove said he expects contract talks with GM, as well as
with Chrysler Canada, to follow the pattern set by the CAW's
new three-year contract deal with Ford Canada
"We believe General Motors will meet this pattern, and they'll see it, as Ford did, once they understand it as a very very major step by our union to try to assist them with the problems the companies face," Hargrove told a news conference.
If GM rejects the pattern, Hargrove said the union would likely start talking to Chrysler Canada, which employs 8,000 CAW members. The CAW will meet Chrysler officials on Tuesday to try to set a date to start contract talks.
Hargrove said the CAW will not sign an agreement with GM, where 15,000 workers are represented by the union, unless it includes new investments in the company's plants in Windsor, Oshawa and St. Catharines, all of which are in Ontario.
"I hope that we can sit down, like the mature parties we are and get an agreement on everything, including on product allocation, which Canadian workers have earned with their quality, productivity and cost," he said, adding that GM agreed to new investments at its U.S. plants in bargaining with the United Auto Workers.
FORD PLANTS TO SEE NEW INVESTMENT
Under the CAW's contract deal with Ford Canada, production of a fourth vehicle will be added to Ford's Oakville, Ontario, plant, an industry source said. The vehicle, which has yet to be named, will go into production sometime over the course of the new three-year agreement, the source said.
Ford Canada spokeswoman Lauren More would not comment on new production for Oakville. She did say, however, that the company is hiring about 500 people to increase output of the Ford Edge and the Lincoln MKX at Oakville, as well as the Ford Flex, which goes into production there this summer.
Ford also agreed to extend the life of its St Thomas, Ontario, plant and said it is still committed to producing a new five-liter engine at its Windsor, Ontario, plant, conditional on getting financial support from the Canadian government and the Ontario provincial government.
The government of Ontario has said it would support the venture, but the federal government has not committed any funds.
(Reporting by John McCrank; Editing by Peter Galloway)
© Reuters Limited. All Rights Reserved.
Reproduction or redistribution of Reuters content, including framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
