Canadian Railroads > GM-Canada strike this Tuesday? Impact on railroads

Industry observers expect a strike to be called against GM this week, leading to a shut down of lsome arge engine production and vehicle assembly.  CAW is the lead union in bargaining with GM, which has been selected as the target. Whatever deal is made with GM will set the pattern for the other makers (Ford, Fiat/Chrysler, etc).  GM is a large rail shipper and receiver.

One major problem is the current reduction in output at Oshawa ON. One line has been told it will be idled, and the company could shift the work elsewhere in Canada, or to the US, or to Mexico. Reuters observes the Oshawa plant produces cars which are also manufactured elsewhere, so a strike won't be critical to GM.  A wild card is whether other Canadian workers would refuse to install US and Mexican made parts in their plants.  That could lead to a huge reduction in parts in, and new cars out, mostly by rail. Equinox and Terrain, both hot selling and in short supply, would be affected.  The US UAW has not said if it will refuse work shifted from Canada because of the strike. That could increase auto shipments from US plants.

An underlying issue is GM's decision to move some assembly and manufacturing to the US and Mexico from Canada. The proposed four year contract would limit that possibility. Oshawa has already been notified that one of its two lines will be shut down in 2017, so going on strike may mean both lines will be idled, maybe permanently.

Strike?

A couple of years ago, the Canadian Auto Workers union and CEP , the energy , chemical and paper workers union merged to become UNIFOR.

​The CAW (formerly the Canadian division of the United Auto Workers) had already become Canada's largest union by absorbing most of the railway and airline unions, however the sheer numbers of workers employed in the automobile industry meant that they still controlled the union.

​With the merger with CEP, Unifor now has more members outside the automobile industry and is more spread out geographically and demographically.





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Thanks. Reuters noted that UNIFOR represents one GM plant, and CAW represents the other under a different agreement.

Posted from Android

Lackawanna484 Wrote:
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> Thanks. Reuters noted that UNIFOR represents one
> GM plant, and CAW represents the other under a
> different agreement.
>
> Posted from Android

There were certain Canadian auto plants that stayed with the UAW after the 1970's split.
​Also, the original charter name of the CAW is used on legal documents, it is "National Union of Aerospace and-------------Workers"