The Canadian automotive industry is currently being hit by strikes at two key suppliers. Canadian Auto Workers (CAW) union members at Lear’s Whitby plant in Ontario began striking on 28 October following a breakdown in new contract talks. The Whitby plant provides car seats for General Motors’ Oshawa plant. The CAW represents 400 workers at the Lear facility.
According to the CAW, Lear is demanding ”deep concessions” in the new contract, which would impact both current workers and retirees.
“During the previous sets of negotiations, our members accepted a number of sacrifices with the goal of keeping the facility open, and the view towards long-term prosperity and employment,” said CAW Assistant to the National President Jerry Dias. “Now that Lear has made an excellent recovery, this corporation continues to demand that our members accept less and work harder. We have to draw the line.”
Lear recently reported growth in revenue and earnings for the third quarter and lifted its net income guidance for the full year.
Negotiations between Lear and the union started back in early August, but were later postponed as the union focussed on deals with GM, Ford and Chrysler. Talks between the CAW and Lear Whitby resumed earlier in October.
Meanwhile, union workers also began strike action at the Ontario supplier Wescast, based in Strathroy, on 27 October. New contract talks between the union and Wescast started in July. The CAW has charged Wescast with providing an offer that secures neither work nor jobs.
“The contract offer from Wescast seriously compromised our members’ job security,” explained CAW National Representative Jim Woods. “In the last few days, we’ve learned that General Motors intends to move the current work performed at Wescast to a facility in China. There is absolutely no reason that our members should agree to a new contract that undercuts their own jobs.”
According to Reuters, citing an email from the CAW, 75 workers at Wescast are protesting and a meeting was scheduled for 28 October to discuss stepping up the action.
Wescast specialises in production of exhaust manifolds for cars and light trucks, and is a key supplier to the US Big Three. It operates six production facilities across North America, an integrated foundry and machining facility in Hungary, and an integrated foundry and machining facility in Wuhan, China. An announcement in June revealed that Chinese company Sichuan Bohong Industry agreed to buy the company, but the deal has not yet been finalised.
