The Windsor Star is reporting that the CAW “has all but given up” on trying to re-open the Oshawa Consolidated line that was closed earlier this year. The Star quotes CAW President Ken Lewenza as saying
“We’re going to keep raising it until the deal is done…But the reality is vehicle production is based on market and market is based on capacity and GM told us they don’t need the capacity.”
The Consolidated line, which built the Chevrolet Impala, and handled some Chevrolet Equinox production, was shuttered as GM sent production of the two vehicles to the United States, where labor costs are cheap (drastically so, in the case of the Tennessee plant which will now build the Equinox).
The CAW is hoping to secure “restructuring benefits”, such as buyouts, for the 2,000 workers on the line. GM apparently promised to abide by the terms of the 2009 bailout, which states that 16 percent of their North American production must remain in Canada – the closing of the Consolidated line means that GM would only be at 13 percent, leaving open the question of where the extra capacity will come from.