Labour expert warns CAW that Detroit 3 'feel fragile'
Charlotte Yates says Detroit Three could move production or scale back investment
CBC News
Posted: Sep 10, 2012 7:39 AM ET
Last Updated: Sep 10, 2012 2:50 PM ET
The CAW's national president Ken Lewenza isn't hopeful a deal will be reached by the deadline. (CAW)
A labour specialist warns the CAW should be aware that the Detroit Three automakers "still feel fragile."
Charlotte Yates, a labour professor at McMaster University, said the companies have recovered from the brink of bankruptcy. Now companies will try and leverage the still-fragile economy as much as possible during ongoing contract negotiations, she said.
"Companies are opportunistic, they see this as an opportunity to push back further; wages, benefits and so on, because, in fact, unions have been weakened over the last few years," Yates said.
The CAW now says it's seeing progress in contract talks with the Big Three automakers but Yates says that doesn't guarantee long-term stability.
Yates says the union may reach a deal, but if it isn't in the automakers' best interests, the companies could taper off production in Canada.
"Whether they would actually shut down and rebuild another plant, that's a heck of a capital investment. But what they may not do, is make the investments that will make it long-term viable," Yates said. "That obviously weakens the likelihood that that plant would get new product."
Union warns of strike
The CAW maintains if it can't reach a deal, a strike with all three automakers remains a possibility.
In new leaflets being distributed throughout assembly plants, the bargaining committees working with GM, Chrysler and Ford say they have come up against a number of demands they have no intention of giving in to.
Demands include, according to the leaflets, eliminating the cost of living adjustment and the "30-and-out pension plan."
Representatives for the auto companies say they're trying to remain competitive. They're looking at reducing costs and at new investment.
The CAW says the corporations are refusing to commit to any new investments in Canadian plants, which it says puts jobs in jeopardy.
Dino Chiodo, president of CAW Local 444, is the chairman of the union's Chrysler master bargaining committee. He says all three bargaining committees are determined to reject the demands.
"We're looking for investment. We're looking for job security, product allocation, and that's something that the company is really not even focusing on at this point," Chiodo said.
The union's national president, Ken Lewenza, says there is still time to work out new agreements with each automaker. But he admits it doesn't look good right now.
"Hopefully, in the next few days, we'll start systematically clarifying one issue after another, but that's not the stage of bargaining at this particular time," he said.
The union said last week it will strike not one but all three automakers if a deal can't be reached.
Share Tools
Latest Toronto News Headlines
- Toronto Mayor Rob Ford denies using crack cocaine
- The mayor of Canada's largest city told a packed news conference that he doesn't use crack cocaine and isn't a crack addict — and new allegations surfaced Saturday involving Ford's brothers. more »
- Big-time lobbyists attended pricey Mammoliti bash
- Two of the most powerful lobbyists at city hall attended a $5,000-a-table fundraising soirée involving Coun. Giorgio Mammoliti, CBC News has learned, raising questions about whether all three people followed municipal rules governing their conduct. more »
- Blue Jays come up short against Orioles
- The Baltimore Orioles jumped out to another big early lead against the Toronto Blue Jays on Saturday at the Rogers Centre, and once again it held up as the O's won 6-5. more »
- Hockey Canada votes to ban bodychecking in peewee hockey
- Hockey Canada's board of directors voted to eliminate bodychecking from peewee-level hockey on Saturday in Charlottetown. more »
Must Watch
Top News Headlines
- Toronto mayor's brother says he never dealt drugs
- The brother of Toronto Mayor Rob Ford has vehemently denied allegations in Saturday's Globe and Mail that he was involved in the illicit drug trade in the 1980s. more »
- Hockey Canada votes to ban bodychecking in peewee hockey
- Hockey Canada's board of directors voted to eliminate bodychecking from peewee-level hockey on Saturday in Charlottetown. more »
- Neil Macdonald: How serious is Obama about curbing the drone surge?
- In a key speech this week, the U.S. president set out a host of supposed new safeguards for America's controversial practice of remote-controlled rough justice. But as Neil Macdonald writes, the underlying rationale for drone use has not fundamentally changed. more »
- Ontario man lost in Australian mountains has survival skills
- The sister of an Ontario man who disappeared in Australia's Snowy Mountains nearly two weeks ago says she remains hopeful he will be found, partly because of his training as a Canadian Forces reservist. more »
- Toronto mayor's brother says he never dealt drugs
- Toronto Mayor Rob Ford denies using crack cocaine
- Toronto councillors say Ford scandal not over
- Big-time lobbyists attended pricey Mammoliti bash
- Executive committee calls on Ford to address crack video allegations
- Rob Ford fired chief of staff for telling mayor to 'get help'
- Man charged 20 years later in sexual assault of 9-year-old girl
- Alleged Ford crack video seller not responding to calls
- Read Toronto Mayor Rob Ford's full statement


Toronto traffic with Joan Chang