GM Canada HQ blocked by protesters for Oshawa decision to close the plant

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The writing has been on the wall for that plant and others for a long time. This should not be a surprise to anyone.

The "GovMo bailout" benefited the UAW more than anyone. Yet, despite all the signs that consumers were going to crossovers, GM stuck to its old mindset of sedans.

Businesses either adapt to change or whither away.
 
Originally Posted by Patman
I felt bad for these people until I heard the sweet deal that about half of them get. Half of those workers can retire and get $3500 a month, a $50,000 lump sum payment and $20,000 towards a brand new car. Even if they don't want to retire, they could get a minimum wage job to supplement that income and still live a very comfortable life.

And I believe the other half of the people that aren't quite at retirement time yet, will still get a good severance package, plus they've been offered jobs as service advisors or mechanics at GM dealers.

So it's not like these people are being tossed out on the street with no safety net, it doesn't seem like too many of them would be in a position to lose their homes for instance (especially if their spouses have a good job)

The people that will be in much worse condition will be all the people working for companies that supply GM with parts for the vehicles built here. Those companies will probably have to scale back, and those employees won't get the kind of severance package offered here.

It's also worth noting that the workers at this plant have been making huge money for many years, and they should hopefully have stashed away a good bunch of money. I have two cousins that work for GM in St Catharines and one of them purchased his home in St Catharines about 30 years ago (for really cheap) and paid it off within 3 or 4 years. He's been making $75,000 to $100,000 (with overtime) per year for all this time and socked away a ton of money for retirement, as he has always felt that the plant would eventually close down (it's probably not far off) My cousin easily could have retired very comfortably 10 years ago, but I think he's just biding his time until his plant does close, and he gets a sweet severance package.


And that's fine and dandy for your relatives and those in a similar situation Pat, but that's not all folks there and some folks made the decision to work there based on what the company was telling them and based on the agreement they signed with the UAW that said no closures until 2020. What if someone took on a financial obligation based on this information and wasn't in the boat of your relatives? That's what I'm getting at. They shouldn't have made such promises. Now if the agreement was up in 2020 and they decided to restructure then it's fair game. But GM has a history of these shenanigans and it has no valid reason to can the workers early of what they agreed to. Certainly the ship isn't sinking given their latest profits and that is after the handsome bonuses upper management received. That's why these workers are [censored] off.

Also because they took concessions to get this 2020 agreement in place and then GM doesn't hold up their end of the bargain and takes tax payers money as well and sails to the bank with profits? Yeah, no, I'd be upset too.

And just so everyone is clear, I'm not saying they didn't need to restructure because of slumping car segment sales, I'm saying that they had obligations until 2020 as agreed to by them and they had the financial means to keep them. There was no dire "the ship is sinking everyone start bailing water" type scenario here. Sure the car segment wasn't doing well as they had hoped so yes they need to steer the ship in another direction but you do it in 2020 because that is when your obligations are up.
 
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2020 is next year. Anyone who took on large financial obligations even in that past few years should have had more vision. This plant has been hanging on a thread for quite some time.
 
Originally Posted by PimTac
2020 is next year. Anyone who took on large financial obligations even in that past few years should have had more vision. This plant has been hanging on a thread for quite some time.

Irrelevant. They broke the UAW contractual agreement they signed with no reason to do so other than greed and they made the workers take concessions in exchange for the 2020 agreement years ago when it was signed along with tax payer subsidies. Plain and simple. Sorry.
 
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Originally Posted by jeepman3071
Government Motors should've been allowed to fail. That's how capitalism works.

But then again, we're giving Toyota/Honda/Hyundai tax breaks to build new plants and expand, also another handout.
 
Any poorly run business should be allowed to fail. The propping-up of only certain specific businesses with taxpayer dollars is unfair to the other businesses and their employees that don't benefit from such special treatment. Closing plants that make products that don't sell, is a good decision for a company that wants to remain viable.

It's unfortunate for the workers, which is why it's always a good idea to have a plan in place if you lose your job, or miss a few paychecks.
 
Originally Posted by nthach
Originally Posted by jeepman3071
Government Motors should've been allowed to fail. That's how capitalism works.

But then again, we're giving Toyota/Honda/Hyundai tax breaks to build new plants and expand, also another handout.

But they don't have a history of shenanigans like GM does and that goes for any other company that has pulled the same crap as them over the decades.
wink.gif
 
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There have been several recent "deals" with GM. There was the 2008 one, before the bankruptcy, The 2012 one, which extended the life of the plant until 2016:
https://www.theglobeandmail.com/globe-investor/caw-reaches-deal-with-general-motors/article4556275/

And of course the 2016 one which was supposed to extend the life of the facility to 2020, which is the topic of this thread:
https://www.freep.com/story/money/c...-get-raises-6000-signing-bonus/91083052/

Noted is this quote:
Quote
While GM has confirmed the investment plans outlined by Unifor, it also has said those plans depend on some level of financial support from the Canadian and Ontario governments.


Also, the meat and potatoes surrounding the deal:
https://www.unifor.org/sites/default/files/attachments/gm_highlights_brochure_final_sept_23_2016.pdf

And the actual deal itself:
http://local222.ca/wp-content/uploads/2016-Unifor-Master-CameraReady.pdf

Pertinent text:
Quote
The Company and the Union shall exchange, in writing, between July 20, 2020 and August 24, 2020 the proposals and demands with respect to the modification of this Agreement, and the proposals and demands with respect to any proposed new agreement to be entered into after termination of this Agreement on September 21, 2020. It is mutually agreed that any exchange of proposals and demands does not preclude changing or adding to such demands or proposals at a later date and that any such exchange shall not in any way affect the September 21, 2020 termination date of this Agreement.

This Agreement shall become effective at the beginning of the first pay period following receipt of notice of ratification by the Company from the Union and shall continue in full force and effect until 11:59 p.m., September 21, 2020 when it shall automatically terminate.


So per this quote:

Quote
Unifor, the union representing more than 2,500 workers at the plant, says it has been told that there is no product allocated to the Oshawa plant past December 2019.


Really, going into 2020, the plant is effectively done. So technically, they are killing the plant in 2020, which is when its contract is up. But it's a solid 9 months earlier than agreed on and the assumption of the union was of course that, given the track record, they'd be able to negotiate another deal with GM. It's pretty dirty for GM to do it this way, but perhaps they didn't want to be bothered with going through that process again, which, as per above, would have started as early as July 20th, 2020, when they had no intentions of continuing to operate the facility
21.gif
 
A smart employee will keep up to date on his or her or its job security future or the future of the profession. That doesn't get taught much anymore. One cannot just go go work and assume all will be there next year or five years down the road. This happens in all labor sectors and not just automotive.

Nothing is guaranteed.
 
Originally Posted by PimTac
A smart employee will keep up to date on his or her or its job security future or the future of the profession. That doesn't get taught much anymore. One cannot just go go work and assume all will be there next year or five years down the road. This happens in all labor sectors and not just automotive.

Nothing is guaranteed.

Why have contracts then? Would you say the same thing if you warranty was denied?
https://dictionary.cambridge.org/dictionary/english/contract
 
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Originally Posted by Patman
I felt bad for these people until I heard the sweet deal that about half of them get. Half of those workers can retire and get $3500 a month, a $50,000 lump sum payment and $20,000 towards a brand new car. Even if they don't want to retire, they could get a minimum wage job to supplement that income and still live a very comfortable life.

And I believe the other half of the people that aren't quite at retirement time yet, will still get a good severance package, plus they've been offered jobs as service advisors or mechanics at GM dealers.

So it's not like these people are being tossed out on the street with no safety net, it doesn't seem like too many of them would be in a position to lose their homes for instance (especially if their spouses have a good job)

The people that will be in much worse condition will be all the people working for companies that supply GM with parts for the vehicles built here. Those companies will probably have to scale back, and those employees won't get the kind of severance package offered here.

It's also worth noting that the workers at this plant have been making huge money for many years, and they should hopefully have stashed away a good bunch of money. I have two cousins that work for GM in St Catharines and one of them purchased his home in St Catharines about 30 years ago (for really cheap) and paid it off within 3 or 4 years. He's been making $75,000 to $100,000 (with overtime) per year for all this time and socked away a ton of money for retirement, as he has always felt that the plant would eventually close down (it's probably not far off) My cousin easily could have retired very comfortably 10 years ago, but I think he's just biding his time until his plant does close, and he gets a sweet severance package.



If the payout is true then they do not have to work again. I know because I have lived and supported a family of 5 for close to $3500 a month. It's not fun but it's possible.
 
Originally Posted by StevieC
Originally Posted by PimTac
A smart employee will keep up to date on his or her or its job security future or the future of the profession. That doesn't get taught much anymore. One cannot just go go work and assume all will be there next year or five years down the road. This happens in all labor sectors and not just automotive.

Nothing is guaranteed.

Why have contracts then? Would you say the same thing if you warranty was denied?
https://dictionary.cambridge.org/dictionary/english/contract





I read your post a few minutes ago and decided to not respond. Now I see it has been changed.

Considering your current situation, it is not my intent to add any more stress to your life.

I'm out.
 
Originally Posted by StevieC
Originally Posted by nthach
Originally Posted by jeepman3071
Government Motors should've been allowed to fail. That's how capitalism works.

But then again, we're giving Toyota/Honda/Hyundai tax breaks to build new plants and expand, also another handout.

But they don't have a history of shenanigans like GM does and that goes for any other company that has pulled the same crap as them over the decades.
wink.gif


That's very true - GM was about to kill their Fremont plant in the 1970s-1980s. Toyota needed a manufacturing presence in the US besides their planned Kentucky plant and some light fabrication in Long Beach to stave off the Chicken Tax on their trucks. The Fremont Plant was one of GM's unruly plants and GM wanted to see how Toyota operated.

Toyota hired back many of those union guys and flew them to Japan to see how things worked at one of their plants. NUMMI was one of the best-ran plants in the US and it was the 2nd source of the Corolla and Hilux(before the US-only Tacoma). When the bailout of GM happened, Toyota had no choice but to shut it down - it was one of two unionized Japanese auto plants in the US and Toyota's logistics chain was Southern/Midwest-centric.
 
Another proof that global economy is a one way street and should be limited to trade with countries that have similar values placed for worker safety/well being, benefits, retirement etc. as well as environmental protection and many other things we take for granted in developed nations.
 
Originally Posted by 02SE
Originally Posted by StevieC

Why have contracts then? Would you say the same thing if you warranty was denied?
https://dictionary.cambridge.org/dictionary/english/contract


If the company goes out of business due to keeping a white elephant in operation too long, the warranty will become worthless.

And it's going to do that with the profits it just pulled in lately with the contract only going to 2020? Open your eyes.
 
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