CANADIAN LABOUR:

AUTOWORKERS HOLD SOLIDARITY RALLY WHILE JUDGE MULLS OVER GM INJUNCTION REQUEST:

As Justice David Salmers heard a request from the General Motors corporation to end the blockade of their Oshawa Ontario headquarters (and award them $ 1.5 million in "compensation" for the action that was undertaken after GM broke their contract with the CAW-cough, cough, cough) autoworkers from southern Ontario held a solidarity rally near the Oshawa truck plant that is at the centre of the dispute. Molly reproduces a story below about the court case from the Reuters News agency. One correction to what appears below has to be noted. According to an article in the Toronto Star the number of people at the rally was 1,500 to 2,000 not "several hundred" as reported below. As an "incidental detail" an article from the Canadian Press yesterday reported that the Ontario government is in negotiations with GM to award the company's actions in breaking agreements with both the CAW and the province of Ontario by anteing up money for a third "car line" at another Oshawa plant. The judge's decision on GM's application is expected tomorrow.

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GM Canada and autoworkers in court over blockade
Thu Jun 12, 2008 2:04pm EDT



TORONTO, June 12 (Reuters)

- The fate of the blockade of General Motors of Canada's (GM.N: Quote, Profile, Research, Stock Buzz) headquarters in Oshawa, Ontario by the Canadian Auto Workers union, now in its ninth day, is in the hands of a judge on Thursday.

GM is arguing for an injunction to end the action and for C$1.5 million ($1.47 million) in compensation from the Oshawa local of the CAW and five of its members.

Shortly after the case began in a Whitby, Ontario, court room, several hundred Canadian autoworkers and their supporters kicked off a "solidarity" rally near the Oshawa truck plant that GM plans to close late next year.

The plant, which employs 2,600 union members, is one of four in North America GM plans to shutter as it shifts its focus to producing more fuel efficient vehicles in response to changing customer demand as gasoline prices soar.

GM announced the September 2009 closure about a week-and-a-half ago, just two weeks after it signed a three-year labor agreement with the CAW in which it said it would keep the plant open until 2011.

That set off cries of betrayal from the union and the blockade of GM Canada's headquarters, which has forced about 1,000 GM office staff to work from home.

A high-level meeting between CAW leadership and top GM officials in Detroit last Friday was fruitless, the union said.

The CAW ramped up its protests the following day, halting production at GM's Oshawa complex for about 45 minutes by way of a convoy of hundreds of cars that slowly circled the plants, preventing shipments from coming or going.

Aside from the truck plant, which produces the Chevrolet Silverado and the GMC Sierra, the complex includes a car plant where the Chevrolet Impala is currently built and the Camaro is set to begin production. The province of Ontario has said it is in discussions with GM about adding a third car to that line. ($1=$1.02 Canadian) (Reporting by John McCrank; Editing by Frank McGurty)

© Thomson Reuters 2008 All rights reserved

CANADIAN LABOUR:

GENERAL MOTORS MOVES TOWARDS COURT INJUNCTION TO END BLOCKADE OF OSHAWA HEADQUARTERS:

As the Canadian Auto Workers (CAW) blockade of the Oshawa Ontario headquarters of General Motors enters its second week the company has announced its intentions to seek a court injunction to end the blockade. So far the response of the union brass has been feeble at best. The present plans, if you can call them that, of the CAW involve lobbying for the federal government to insist that GM live up to the terms of of the Auto Pact. Can we say "snowball's chance in hell", particularly as the feds are getting geared up to award GM with yet another few hundreds of millions of dollars for technical development at other plants. One hopes that union head honcho Buzz Hargrove starts his lobbying efforts at his "commemoration dinner" where such horny handed proletarians as Frank Stronach and Brian Mulroney (quick- lock up the bar!!!) will be in attendance to fete him upon his past services. The lack of reality contained in the CAW "plan" is astounding, and it may be on a par with the Trotskyist "demand" to "nationalize the auto plants under 'workers' control' "(a more than slightly self contradictory statement as "government control is not "workers' control") In both cases such "demands" are made for press play rather than any realistic plan.

No one doubts that the workers of the Oshawa truck plant have a hard row to hoe. The type of vehicle produced at the plant is and will continue to be economically unviable. Gas guzzlers will soon become more museum pieces than actual transportation options. The amount of government slush money that would be necessary to bribe GM to keep the plant open (when they are closing other such plants in the USA as well) far exceeds the $200 million give-away that the feds are presently offering to GM for "technical development" of other lines.

Does Molly have a solution up her sleeve ? The basic answer is "no", and while I may decry the craven attitude of the CAW in this (and previous) situations I know that simple "militancy" can hardly solve this problem. What I would propose is as follows. That the Oshawa plant be indeed closed, but that the physical assets of the facility be retained as "partial payment" for previous subsidies to GM because the company has not fulfilled the terms of such 'contracts". I further propose that the plant be retooled for other production, if this is at all possible. being unfamiliar with the physical layout and technology I am uncertain that this is possible. Electric cars maybe ???? I further propose that about 1/4 to 1/2 of the presently planned reward to GM for its bad behavior be directed towards this retooling and the support of the workforce while this is underway- with priority, of course, towards employing the present workforce during the transition period. i further propose that upon re-opening that the GM plant be incorporated as a producers' cooperative and given all the tax advantages of such status. I also propose that the federal and Ontario government treat the new entity in the same way that they have treated GM in the past (and how they propose to treat it in the future). No better. No worse. If government monies are grants, then let the same flow to the new coop. If they are "easy term loans" then let the new coop receive the same terms.

"Nationalization under workers' control" is, of course, an oxymoron. It's one or the other, and the historical record of statist so-called "socialism" says very plainly that it means the control and ownership of the Marxist or social democratic ruling class. As such it means an enterprise where the sort of creativity and enterprise that could be brought forward under real workers' control is a non-starter. It would end up as a bureaucratic boondoggle with little to recommend it to customers or the long suffering taxpayer. The government, of various levels, will obviously have to be involved in a project of this magnitude, but their involvement and control should never exceed that of any other creditor. Banks don't dictate the fine details of the business operations of those whom they make loans to. They are also not in the business of handing out free money as governments are by the way.

Is such a scenario possible ? In some ways it shares the same sort of air of unreality as the present CAW proposal. Can you see Harper biting at such a thing ? On the other hand it is important to make such proposals in the here and now. In a different situation, with different governments and, most importantly, a different labour movement that would be willing to consider such solutions proposals such as this would be far more realistic than anyone's plans today. A different labour movement ? Decades ago, when I first became an anarchist, the idea that anarchist ideas could have an influence on the labour movement was a ridiculous pipe dream. Today the situation is quite different, and there are numerous labour activists with anarchist ideas. They may still be far too sparse to push unions in a consistently libertarian direction, but they do at least exist. What Molly proposes is that they cease to hold their anarchist views separate from their daily activity, that they abandon the ideological dream of "revolution" that translates, at its worst, into dog-tailing the "left" while making appeals to "militancy" at its best. That they begin to formulate long-term plans of action that are at least as possible as social democratic solutions.

As such a labour movement develops it will be the result of long and hard organizing efforts on the part of ordinary people involved in the labour movement. It will have many temporary victories and defeats, but it is a goal to work towards. It would be a labour movement that takes "class struggle" and "socialism" (not the class rule of government bureaucrats but rather producers' coops) seriously. This is obviously not the situation today, but it is the long term goal that we should work towards.

But enough of the opinions. Here's the news from the Canadian Press about the latest plans of GM and the "non-plans' of the CAW to oppose them. For the official take of these events from the Canadian Auto Workers see their website.

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CAW says not surprised by GM's move to end blockade through courts
OSHAWA, Ont.

— The Canadian Auto Workers union says it's not surprised General Motors is preparing to go to court in a bid to end the blockade of its Canadian headquarters in Oshawa.

CAW Local 222 president Chris Buckley said Monday the union anticipated the court fight and has no plans to back down from its roadblock, which was launched last week.

He said the union will wait to see just how aggressively GM pursues its legal battle before coming up with a plan.

Buckley wouldn't say whether the union would consider ignoring a court order to end the blockade.

But CAW president Buzz Hargrove said workers don't plan to stir up trouble.

"We have a rally on Thursday, and our local people have said they're going to follow the law," he said in Toronto after a CAW meeting. "They're not going to challenge the law, so if there's an injunction I assume that would mean they would live by the injunction."

Angry GM employees have spent the past week blocking the entrance to the company's Canadian offices to protest the pending closure of the city's truck plant.

GM has confirmed it will seek "collaborative or such necessary legal means" to end the blockade, which is hampering its Canadian operations.

The closure of the Oshawa plant, which will put 2,600 people out of work, is slated for 2009.
Buckley would not say what other measures the union might be planning to exert further pressure on GM.

"At this time I'll keep that to myself but we are not going to give up our fight to save the jobs of 2,600 of our members," he said.

"This is about our members, their families and all of our communities, and we're not going to stop."

Hargrove admitted prospects for the Oshawa workers appear bleak.

"Next week we're going to look at what are legal options are," he said. "Quite frankly, we're not overly enthused by that. In the history of courts or labour boards or arbitrators, we can't find anywhere they've forced a company to invest or keep a plant open once they've made the decision to get out."

Hargrove said taking the issue to Parliament may be the best chance to save the Oshawa facility.
"If we could get a resolution saying General Motors must live by the principles of the Canada-U.S. Auto Pact, then GM can't do that unless they keep the truck plant open," he said.

"One thing about General Motors and the companies is they don't like to violate the law. If the politicians are joining us on the issue here, I think it can make a difference. It may not - maybe GM will tell everybody to go to hell, who knows? There's an arrogance out there today that's unprecedented in my lifetime."

CANADIAN LABOUR:

HOW MUCH HAVE THE AUTO COMPANIES SUCKED FROM THE PUBLIC PURSE ?:

The recent announcement by General Motors that they intend to close their Oshawa Ontario truck plant has brought at least one issue into the public view. Exactly how much have the various auto manufacturers sucked from the public purse over the years ? And for what results ? There is little doubt that the present government of Ontario, despite the fact that it has the power to act against contract breakers-unlike the CAW union- will never act against General Motors for recovery of past handouts that were given with the understanding that a certain number of jobs were to be maintained in Ontario. THAT is a rock solid guarantee.As a matter of fact contract breaking on the part of corporations who have received government subsidies is a rather common occurrence, and to Molly's knowledge no government anywhere in North America has EVER acted to recover the money so wasted. I await disproof on the part of my readers. Does the phrase "punishment-free scam" come to mind ? I wish I could break contract law so freely. Welcome to the site of Molly the multi-millionaire.

But how much exactly have various governments shovelled into the maw of the auto manufacturers in past years ? Molly has been trying to search this down in the last few days, and I have to say it is difficult. Still, here is one number from a consumer website, 'The Truth About Cars', one that is hardly a raving leftist source. The total for various auto companies from the government of Ontario alone seems to be an astounding seven billion dollars. All this is very relevant as the federal Conservative government seems poised to throw yet another few hundreds of millions of dollars at GM. As a reward for its past behavior ???

Here's the article.

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Ontario Premier: “No Regrets” Over $250m GM Handout
By Edward Niedermeyer

May 14, 2008

Canada (like most other developed countries) has a hard time attracting/keeping auto manufacturing jobs due to high labor and tax costs. To counteract these competitive disadvantages, provincial governments often offer car companies tax holidays and other incentives. The problem with these handouts is that they do not guarantee a long-term presence by the bought-off manufacturers. Exhibit A: GM got handouts worth nearly $250m in provincial tax money (and about $200m in federal funds) for its Beacon project aimed at revitalizing its Canadian production facilities. Now, a few short years later, they're cutting some 1400 jobs at their Windsor transmission factory, with another 900 lost due to production cuts at the Oshawa truck plant. Having spent some $7b on various automaker subsidies without receiving a single job guarantee, Ontario Premier Dalton McGuinty is coming under fire. "The more money this government invests in a company, it seems the more jobs are lost," says Progressive Conservative MPP Bob Runciman. But McGuinty says he "doesn't regret" giving the money to GM (at least until the next election). Report on Business tells us that GM is set to ask the Ontario government for another $140m to build transmissions at its St Catherine's plant. Oh, and don't expect GM to offer any job guarantees, either.

CANADIAN LABOUR:

BUZZ STRIKES OUT:

Today's meeting of CAW officials with executives of the General Motors corporation in Detroit came out snake-eyes for Canadian auto workers. The meeting listed 90 minutes, and was "tense" according to Hargrove. Management, however, refused to back down one inch, and the CAW's Hargrove said that he would consider his options- a strike, arbitration or labour board complaint. Significantly absent was the possibility of the sort of plant occupations that have won Canadian workers workers victories in the past few years. The president of the union local involved, however, has said that the blockade of the GM headquarters in Oshawa will continue in light of the decision. Here's the story of the meeting as recently published in the Montreal Gazette (from the Windsor Star).

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Union to continue fight to save Oshawa plant
DETROIT - Canadian Auto Workers president Buzz Hargrove said Friday he would continue fighting to save union jobs after General Motors Corp. refused to reverse a decision to close its Oshawa, Ont., truck plant in September 2009.

Emerging from a 90-minute meeting GM chief executive Rick Wagoner- which he described as "tense" - Hargrove said he was "incredibly disappointed" that GM won't honour a bargaining commitment made less than three weeks ago.

"We made a helluva case but they had their minds made up before the meeting and they weren't interested in changing," he said.

CAW president Buzz Hargrove: 'We made a helluva case but they had their minds made up before the meeting.'


GM spokesman Stew Low said the closure decision was prompted by a "fundamental shift away from large trucks and SUVs to cars which we believe is not cyclical and can't be reversed.

"There just isn't the market anymore and we see no reason to keep building vehicles that consumers don't want."

Ron Carlyle, a member of CAW Local 222 which represents workers at the plant, said: "It's a sickening feeling to realize that the company has ripped the heart and soul out of the collective bargaining process."

Carlyle also said a blockade by union members of GM's Canadian headquarters in Oshawa would continue.

Local 222 president Chris Buckley, speaking later to union members outside the GM building, said the vigil will go on until the company agrees to keep the truck plant open.

"They want their building back. They're not getting their building back," he said.

Before Friday's meeting, Hargrove said that nothing short of a reversal by General Motors of its decision to close the Oshawa truck plant would satisfy his members.

GM announced Tuesday that the plant would close in the third quarter of 2009 because of slumping truck sales, throwing 2,600 workers out of their jobs. Hargrove vowed the CAW would fight the closure, which he called a "betrayal" of the collective bargaining process.

During recently completed bargaining, Hargrove said, GM committed to keeping the plant open until the new labour agreement expired in 2011, to continue building hybrid versions of two pickup trucks in Oshawa and to making a new investment in 2011 that would launch the next generation of half-ton trucks.

While the agreement contained a clause addressing market conditions, Hargrove said that GM sold the same number of trucks in May that it sold in April, and added there had been no change in the market in two weeks.

"Someone (at GM) had to have known what was going on. You don't make a decision to close four plants in two weeks," he said.

On Wednesday, GM workers blocked access to GM's Canadian headquarters in Oshawa.

Following discussions between the company and the CAW, GM agreed to Friday's meeting.
Last month, GM announced it would close its Windsor transmission plant, resulting in the loss of 1,200 jobs.

The company and union recently reached a closure agreement for transmission plant workers calling for, among other things, retirement payouts of between $75,000 and $100,000.