500 more layoffs at car plant
Nov 07, 2008 - 02:54 PM
By Melissa Mancini and Stefanie Swinson
OSHAWA -- The local auto industry took another hit Friday with the announcement of 500 layoffs at the General Motors car plant.
Calling it a dark day for Oshawa, Chris Buckley, president of Local 222 of the Canadian Auto Workers, said this is the worst time in the history of the auto industry.
“I am absolutely scared on behalf of my members,” he said.
GM lost $2.5 billion in the third quarter, said a GM financial report released Friday morning. The report also warns that the automaker’s liquidity in 2008 “will approach the minimum amount necessary to operate its business.”
As a result, 10 plants in North America will slow production. One of those plants will be the Oshawa car plant and the other nine will be in the U.S.
The local car plant produces the Impala and the Buick Allure/LaCrosse. The plant will produce less Impalas per hour, which will result in 500 layoffs as of Jan. 1, 2009. These layoffs are temporary and based on market conditions, said GM Canada spokesman Stew Low.
Production of the LaCrosse/Allure was set to end Dec. 23. This was announced earlier in the year and will result in 400 fewer jobs in the plant. Those jobs have been accommodated through retirement incentives and buyouts, Mr. Lowe said.
In all, the plant, which produces 66 vehicles per hour, will soon produce 45 per hour, resulting in the need for fewer workers.
The job reductions are scary, Mr. Buckley said.
Liquidity is now GM’S top priority, GM CEO Rick Wagoner said Friday.
For weeks a rumour has been circulating that the automaker was in talks to acquire Chrysler.
Mr. Wagoner said a potential strategic acquisition by GM that had recently received a lot of attention was now being shelved.
“We’ve concluded at this particular time that it’s important that
we put 100 per cent of our efforts on the immediate liquidity
challenges and so, accordingly, we’ve set aside consideration of such a
transaction as a near term priority,” Mr. Wagoner said at a news
conference.
The union wants the federal government to react to the situation, to look at trade policies and consider helping the industry, Mr Buckley said.
“It makes me absolutely sick to my stomach,” he said. “It makes no sense that they’re funneling billions of dollars into financial institutions when the biggest part of our economy here in Canada is bleeding funds and bleeding good-paying jobs.”
In calling for help from the federal government, Mr. Buckley said it’s not just an issue for Ottawa, but the U.S. government as well.
“They have to pay attention to the decline in the auto industry or it’s going to evaporate from North America.”
-- with files from Parvaneh Pessian
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