GM News: GM to Unifor: End CAMI Strike Or We Begin Winding Down Equinox Production

[William Maley]

The news isn't getting any better at General Motors' CAMI plant where workers have been on strike for a month after the automaker and Canadian union Unifor were unable to reach an agreement. Already, the strike has caused GM to make adjustments and idle some of their plants in North America, and there are concerns about the shrinking stock of Chevrolet Equinoxes. 

But now the stakes have been raised. According to Reuters and Automotive News, General Motors issued a warning to leaders at Unifor that it will start winding down production of the Equinox at CAMI unless the strike is called off. Unifor leader Jerry Dias was told by GM officials that the automaker would begin ramping up Equinox production at the San Luis Potosi and Ramos Arizpe, Mexico plants if the strike was not called off.

"GM just told us today that they are going to ramp up production in Mexico. They have declared war on Canada," Diaz told Reuters.

GM had no immediate comment on Dias' statement when reached by Reuters.

According to a source at GM, the discussions between them and Unifor have been going nowhere and there is "a high degree of frustration." Because of this, GM is planning to study how quickly key suppliers for the Equinox could move their operations down to Mexico. No final decision on CAMI's fate has been decided according to the source, but the time frame for getting a deal done is narrowing.

Mexico has been the dividing point between GM and Unifor. The union objected to GM's decision to lay off 600 workers at CAMI when it moved production of the GMC Terrain to Mexico. Unifor wants CAMI to be the lead plant for Equinox production by "giving it more production if Equinox sales rise and making it the last to scale back production if sales fall." But GM has invested $800 million into the plant for retooling to build the new Equinox. The automaker believes this should be enough commitment and putting it into writing isn't necessary. According to the source, there is no such language in any of the other union contracts.

The strike has gotten so bad that the Government of Ontario has stepped in, urging both groups to resolve this rift.

“I feel like we’re engaged in a poker game, but the interests of Ontario are sitting on the table right now,” said Brad Duguid, Ontario's Economic Development Minister.

“It’s an uncomfortable place to be, obviously, and we’d really like to urge the parties to find a resolution to this as quickly as possible before permanent damage is done.”

Source: Automotive News (Subscription Required), Reuters

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[David]

If they do settle this, I would avoid buying as I bet there will be some frustration issues and it could be taken out in quality on the auto's.

[Drew Dowdell]

I kinda expected this. GM has no reason to stay. 

[regfootball]

Moving to Mexico a bad idea but I suppose proposing to move to USA would be an even more charged issue. 

[Drew Dowdell]

Some historian correct me if I'm wrong.... didn't CAMI try this "preferential treatment on the production of a specific nameplate" stunt with the 5th Gen Camaro also?

[surreal1272]

It certainly bears a striking resemblance Drew. Act like a greedy little a-hole, get treated like a greedy little a-hole, seems to be lesson GM is trying to teach here. 

[ccap41]

3 minutes ago, surreal1272 said:

It certainly bears a striking resemblance Drew. Act like a greedy little a-hole, get treated like a greedy little a-hole, seems to be lesson GM is trying to teach here. 

All of these damn auto unions need a little slap on the wrist letting them know they're employees and lucky to have a job. Manufacturing can be moved anywhere they please and other states would gladly accept the manufacturing jobs(I understand logistically it isn't that simple, at all). 

[Drew Dowdell]

42 minutes ago, ccap41 said:

All of these damn auto unions need a little slap on the wrist letting them know they're employees and lucky to have a job. Manufacturing can be moved anywhere they please and other states would gladly accept the manufacturing jobs(I understand logistically it isn't that simple, at all). 

When there is already another line that is building the same product, it is a lot simpler to do.  Good on GM for not putting all their eggs in the CAMI basket like they did with 5th gen Camaro. 

The Union is trying to act powerful while negotiating from a position of weakness.  It's not going to work out in their favor. 

[ccap41]

1 hour ago, Drew Dowdell said:

When there is already another line that is building the same product, it is a lot simpler to do.  Good on GM for not putting all their eggs in the CAMI basket like they did with 5th gen Camaro. 

The Union is trying to act powerful while negotiating from a position of weakness.  It's not going to work out in their favor. 

Good. Good on GM for not taking their crap. 

[SS427]

6 hours ago, Drew Dowdell said:

Some historian correct me if I'm wrong.... didn't CAMI try this "preferential treatment on the production of a specific nameplate" stunt with the 5th Gen Camaro also?

It goes back to the 4th Gen Camaro and the St. Therese Quebec plant. GM figured they were free when they killed the nameplate after the F-Body died (they even tore down the plant), but I guess there were some rumblings so GM tossed them a bone with the 5th Gen. 

Edited October 13, 2017 by SS427
added a comma

[Drew Dowdell]

2 minutes ago, SS427 said:

It goes back to the 4th Gen Camaro and the St. Therese Quebec plant. GM figured they were free when they killed the nameplate after the F-Body died (they even tore down the plant) but I guess there were some rumblings so GM tossed them a bone with the 5th Gen. 

Thanks for clarifying for me... my memory was hazy.

And welcome back!

[riviera74]

My money is on GM ditching that CAMI plant.  This is not the 1980s anymore.  Mexico is more than able to produce enough Equinoxes the market will bear.

[daves87rs]

10 hours ago, Drew Dowdell said:

I kinda expected this. GM has no reason to stay. 

Little does CAMI know this just sealed their fate that much faster.

That plant was going to get shuttered anyways....kinda knew that years ago. GM simply wants out of Canada all together.

Nox will be built in Mexico for a while, though the plan was to move small car production down there, not so much the Nox-as they could trade a small car plant (like lordstown or Lansing) for the Nox, maybe Terrain as well.

Will be interesting to see what GM does now thanks to this strike, as they wanted to take their time moving stuff around first.

Wouldn't be surprised now to see GM ax a model or too sooner......

[oldshurst442]

In other words...

damned if you do....damned if you dont.

using another cliche, lose-lose situation.

Leave things alone and dont say a word...GM closes you down and you go quietly in the night.

Manifest and strike...GM gets mad...and closes you down.

Hey...GM has got to do what they got to do to ensure the health of the company...I aint disputing that.

What I am saying is that...due to circumstances...the fate of that plant was sealed a while ago...

 

[lengnert]

Seems to be a lot of antipathy for the UAW on here...  And it isn't as if I have any particular 'love' for them either.  

However, maybe I have mellowed in my elder years.  I do think this is the move of a 'dying' enterprise.  The union is possibly using this as a tactic to garner the attention of the public of the plight of North American (in this case Canada) manufacturing.  

It won't work, but they will try nonetheless.

[David]

6 minutes ago, lengnert said:

Seems to be a lot of antipathy for the UAW on here...  And it isn't as if I have any particular 'love' for them either.  

However, maybe I have mellowed in my elder years.  I do think this is the move of a 'dying' enterprise.  The union is possibly using this as a tactic to garner the attention of the public of the plight of North American (in this case Canada) manufacturing.  

It won't work, but they will try nonetheless.

Unions did allot of good in the early days of the 1900's, now they are just a political ass kissing machine of special interests that have hurt more than helped the average worker.

Screwed once by the union, shame on them, screwed a second time by the union, shame on me, screwed a third time, time to die.

Unions have screwed many of us over more than they realize and in todays modern society with more and more people getting an education or at least tradeshow certified, many have come to wonder why do I need to pay a union to represent me when I can represent myself and keep my money to myself?

Especially in a socialist medicine country like Canada? I do not see the benefits of union representation.

[A Horse With No Name]

I have no idea how to be civil, I have absolutely no love for the UAW or its Canadian equivalent.

Unreal.

[frogger]

With NAFTA seemingly being killed by the US protectionist administration, the auto industry is in for a big headache...

[Drew Dowdell]

2 hours ago, oldshurst442 said:

In other words...

damned if you do....damned if you dont.

using another cliche, lose-lose situation.

Leave things alone and dont say a word...GM closes you down and you go quietly in the night.

Manifest and strike...GM gets mad...and closes you down.

Hey...GM has got to do what they got to do to ensure the health of the company...I aint disputing that.

What I am saying is that...due to circumstances...the fate of that plant was sealed a while ago...

 

But it wasn't that way.... GM already put $800 million into re-tooling the plant for Equinox. The Union decided they wanted more than an $800m commitment for what is one of GM's best selling models. It wasn't lose - lose... it was win - lose... and the union picked lose.

43 minutes ago, dfelt said:

Unions did allot of good in the early days of the 1900's, now they are just a political ass kissing machine of special interests that have hurt more than helped the average worker.

Screwed once by the union, shame on them, screwed a second time by the union, shame on me, screwed a third time, time to die.

Unions have screwed many of us over more than they realize and in todays modern society with more and more people getting an education or at least tradeshow certified, many have come to wonder why do I need to pay a union to represent me when I can represent myself and keep my money to myself?

Especially in a socialist medicine country like Canada? I do not see the benefits of union representation.

I don't have a problem with unions that are reasonable... but insisting that a specific plant gets preferential treatment... that's not reasonable.

 

[oldshurst442]

7 hours ago, Drew Dowdell said:

But it wasn't that way.... GM already put $800 million into re-tooling the plant for Equinox. The Union decided they wanted more than an $800m commitment for what is one of GM's best selling models. It wasn't lose - lose... it was win - lose... and the union picked lose.

 

Yeah...and I was also going with the fact that cost to build cars in Ontario also rose.

The electricity costs rose...the taxes that GM had to pay in Ontario also rose in the last few years.

[A Horse With No Name]

7 hours ago, frogger said:

With NAFTA seemingly being killed by the US protectionist administration, the auto industry is in for a big headache...

Good thing everything I want to own is either built in Mexico or Germany by German corporations or built in japan by Japanese corporations.  I am going to thoroughly enjoy watching this one unravel.

7 hours ago, Drew Dowdell said:

 

I don't have a problem with unions that are reasonable... but insisting that a specific plant gets preferential treatment... that's not reasonable.

 

Hence my intense hatred for the UAW.  They have never been about reasonable.

[regfootball]

would be nice if GM's volume models were factoried in the USA.  if considering Mexico or CHINA instead.

 

[Drew Dowdell]

1 hour ago, regfootball said:

would be nice if GM's volume models were factoried in the USA.  if considering Mexico or CHINA instead.

 

Sonic, Cruze, Malibu, Impala, Camaro, Traverse, Tahoe, Suburban, Colorado, Canyon, Acadia, Yukon, Yukon XL, Lacrosse, Enclave

 

[A Horse With No Name]

7 minutes ago, Drew Dowdell said:

Sonic, Cruze, Malibu, Impala, Camaro, Traverse, Tahoe, Suburban, Colorado, Canyon, Acadia, Yukon, Yukon XL, Lacrosse, Enclave

 

Isn't the CTS built here also?

[frogger]

Tentative deal reached.

https://www.thestar.com/business/2017/10/13/general-motors-reaches-tentative-agreement-at-its-ontario-cami-plant.html

[riviera74]

29 minutes ago, frogger said:

Tentative deal reached.

https://www.thestar.com/business/2017/10/13/general-motors-reaches-tentative-agreement-at-its-ontario-cami-plant.html

Will CAMI vote yes? Should GM accept a YES vote from CAMI?

Given the current administration's beef over NAFTA, a YES vote from CAMI may not save their bacon for long.

[regfootball]

2 hours ago, Drew Dowdell said:

Sonic, Cruze, Malibu, Impala, Camaro, Traverse, Tahoe, Suburban, Colorado, Canyon, Acadia, Yukon, Yukon XL, Lacrosse, Enclave

 

only saying for the Equinox and platform mates like Envision.  Moving production of these class of vehicles to Mexico etc. is a slippery slope to moving more and more of it over borders.

[frogger]

7 hours ago, riviera74 said:

Will CAMI vote yes? Should GM accept a YES vote from CAMI?

Given the current administration's beef over NAFTA, a YES vote from CAMI may not save their bacon for long.

Making major changes costing billions of dollars and distracting from other efforts isn't worth it for mfg's just to account for the current administration.  They should probably just accept the 2.5% duty and move on for 3 years until things get better (if we are not nuked before then).

 

 

 

[Drew Dowdell]

9 hours ago, riviera74 said:

Will CAMI vote yes? Should GM accept a YES vote from CAMI?

Given the current administration's beef over NAFTA, a YES vote from CAMI may not save their bacon for long.

I think CAMI's bacon is already cooked. By going this far, they've pushed GM to start looking at a much more orderly exit a few years down the road when this agreement expires.

Not sure that NAFTA has as much play here as production would go to Mexico anyway.

[ccap41]

On 10/13/2017 at 7:41 PM, Drew Dowdell said:

Sonic, Cruze, Malibu, Impala, Camaro, Traverse, Tahoe, Suburban, Colorado, Canyon, Acadia, Yukon, Yukon XL, Lacrosse, Enclave

 

All of those and the Silverado isn't built here? THE volume model. 

 

Edited October 16, 2017 by ccap41

[Drew Dowdell]

12 hours ago, ccap41 said:

All of those and the Silverado isn't built here? THE volume model. 

 

Yeah, they moved that to Mexico when the SUVs moved to Arlington

[A Horse With No Name]

On 10/14/2017 at 6:27 AM, frogger said:

Making major changes costing billions of dollars and distracting from other efforts isn't worth it for mfg's just to account for the current administration.  They should probably just accept the 2.5% duty and move on for 3 years until things get better (if we are not nuked before then).

 

 

 

Things may not get better.

[Intrepidation]

The agreement was probably quickly reached after they realized, "oh crap, GM is serious and has other options if we keep being entitled little shits".

I could definitely see GM winding the plant down after this mess though, and the union has itself to blame. Biting the hand that feeds you.

[A Horse With No Name]

On 10/12/2017 at 1:21 PM, regfootball said:

Moving to Mexico a bad idea but I suppose proposing to move to USA would be an even more charged issue. 

I will never buy another UAW built vehicle again given the choice.

[regfootball]

I could understand that. However GM is held hostage by have no to have them in the fold. If you wanted A GM and made in US they have no other option