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Winnipeg Free Press - PRINT EDITION
Union seeks payback from U.S. automakers
TORONTO -- The Canadian Auto Workers union, which made concessions when the big U.S. automakers were struggling, says it wants to share in the profits now that the industry has "turned the corner."
As it geared up for contract talks slated to begin this week, the union said Monday the automakers need to invest in their Canadian facilities as a means of boosting job security.
CAW economist Jim Stanford said it's only natural the workers should reap some benefits now that the auto sector has improved.
"The industry has certainly turned the corner since 2009," Stanford said.
"The fact that the industry is doing so well and the companies' profit margins are so strong should make for an easier round of bargaining, but there will be some real tough challenges. In any round of bargaining, the companies always threaten the workers that they'll lose their jobs if they don't cut their wages."
Union president Ken Lewenza said investing in technology at the automakers' factories would increase productivity, improve profits and make workers' jobs more secure.
"We want the very best technology that's offered in the manufacturing of vehicles," Lewenza said. "Because when you invest in the facility, you increase productivity. When you increase productivity, then you increase profits and then wages become more sustainable."
The union is scheduled to hold meetings with General Motors Canada this morning in Toronto, followed by Chrysler Canada in the afternoon. Ford Canada and the CAW are to meet Wednesday.
Carlos Gomes, a senior economist at Scotiabank, said keeping costs under control will top the companies' agendas, particularly because changes to how workers' health care is covered have made production at Canadian plants more expensive than in the U.S.
"The reality is that Canada's auto sector has an overall cost structure that's higher than what we were seeing in the United States," said Gomes.
"So from (the automakers') perspective, it's important to not widen the gap at all, in terms of providing Canada with an additional disadvantage."
In the past several years, Gomes said, all of the capacity expansion in the auto sector announced in North America has gone to the southern U.S. or to Mexico.
"It just highlights the fact that companies are seeking to try to go wherever the cost structure is more favourable for them."
-- The Canadian Press
Republished from the Winnipeg Free Press print edition August 14, 2012 B4
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