GM in Oshawa laying off 1,000

Strike at American parts plant takes further toll

Apr 17, 2008 04:30 AM

Tony Van Alphen
Business Reporter

The impact of the continuing strike at American Axle and Manufacturing Holdings Inc. in the United States will soon hit another General Motors plant in Oshawa.

General Motors of Canada Ltd. confirmed yesterday that temporary layoff notices have been sent to about 1,000 workers on the third shift at the Oshawa car complex, effective Monday.

Stew Low, GM's director of communications, said the company is reducing car output because of a shortage of parts from American Axle, where a strike by 3,600 workers has closed five U.S. operations since late February.

Low said it is unclear whether GM could cancel the layoff at the car plant if American Axle and the United Auto Workers reach a settlement during the next few days.

Yesterday the UAW said it postponed a labour rally set for Friday because progress was being made in the contract talks in Detroit. The UAW has rejected company demands for major wage cuts.

The shift cut at the Oshawa car plant will reduce output of Chevrolet Impalas, Buick Allures and LaCrosses by about 500 a day. The plant currently assembles about 1,550 vehicles daily.

The American Axle strike and subsequent shortage of parts has triggered the shutdown of numerous GM assembly operations across North America, including the Oshawa truck plant.

However, output at the truck plant will resume Monday for three weeks because GM is directing parts from an American Axle factory in Mexico to three GM truck operations instead of plants that assemble sport utility vehicles.

The Oshawa truck plant, which employs more than 2,000 workers on two shifts, has been idle for seven weeks.

While on layoff, GM employees, who are members of the Canadian Auto Workers, receive about 65 per cent of gross pay through a combination of federal employment insurance and company supplementary unemployment benefits.