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12/05/2008

CAW President Frustrated and Angered by News of Windsor Transmission Plant Closure

After General Motors announced today that it will close its Windsor Transmission plant in 2010, eliminating 1,400 jobs, CAW President Buzz Hargrove said he is both frustrated and angered by the news.

“This decision came as an incredible shock,” said Hargrove. “It will be devastating to our members, their families and the community of Windsor.”

The Windsor Transmission plant, which manufactures front-wheel-drive, automatic transmissions and transmission components, is the last of General Motors’ operations in Windsor. The closure will mark the first time in decades that the company has not had a presence in the community.

Hargrove said provincial politicians have expressed their concern, but he also blasted the federal government for having written off the auto industry, particularly Prime Minister Stephen Harper, Industry Minister Jim Prentice and Finance Minister Jim Flaherty.

“Until the federal Conservative government addresses the issues of unfair trade, the ongoing loss of Big Three market share, the high dollar and provides new investment supports, there will be more layoffs and more plant closures,” said Hargrove.

The CAW is currently in negotiations with General Motors, with a final settlement depending largely on the company’s commitment to new products as well as improved pensions and severance packages for the Windsor workforce.

“Our members have done everything they possibly can to ensure the survival of the facility,” said plant chairperson Ken Bruner. “It’s up to our federal government to step in and support this industry and stop unfair trade before it’s too late.”

Hargrove says that GM has an obligation to its Windsor Transmission plant workers, citing consistently high levels of quality and productivity.

“You simply can’t negotiate your way out of scarcity,” Hargrove added.

This news comes just weeks after GM announced it will drop the second production shift from the truck plant in Oshawa, eliminating close to 1,000 jobs.

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This shows clearly that GM is implementing a new global strategy for Powertrain which means relocation from "high cost countries" to "low cost countries" with the exception of the US where the UAW concluded a safeguarding contract for its Powertrain plants as well. Engines from China, transmissions from India or Korea for North America, engines from Russia and so on. The closure of the Windsor plant is a clear signal for the European Powertrain plants how the future looks like. You can read in the German section of the blog that the first European plant got officially the announcement that no future product will be allocated there (Kaiserslautern)beyond 2012. 4 more plants are still in danger.

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