GM, CAW reach deal in dispute over truck plant closure
Last Updated: Monday, July 28, 2008 | 7:20 AM ET
CBC News
The Canadian Auto Workers union and General Motors have reportedly reached a settlement in a bitter dispute over the closure of a truck plant in Oshawa, Ont., that involves building two extra models at another plant in the city.
Under the deal, a new flexible car plant being built in the city east of Toronto will produce two other types of vehicles in addition to another two planned, including the Camaro muscle car.
Another key element involves paying senior GM employees a portion of their wages for up to four years until they reach the 30 years of seniority necessary to qualify for a special retirement incentive. The agreement also includes buyouts for employees leaving the company permanently.
The union said alternating two-shift operations at the truck plant will end on Dec. 21, 2008, with the plant going down to one shift as of January 2009. The CAW said GM has agreed not to demolish the plan during the lifetime of the agreement, which runs to September 2011.
CAW filed a grievance against the company in early June after the auto giant announced it was shuttering the truck facility in 2009, eliminating 2,600 jobs.
The news came two weeks after GM and CAW signed a three-year contract in which the union made major concessions in exchange for product commitments at the Oshawa facility.
The closure of the Oshawa trucking plant triggered angry protests, including a 12-day blockade at GM's Canadian headquarters in the city.
The automaker has blamed the truck plant's closure on soaring gas prices that have led to a fall in pickup truck sales across North America.
With files from the Canadian Press
