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GM Canada workers vote to accept job cuts: union

"Labor"

03/11/2006


Friday March 10, 11:33 PM EST

TORONTO (Reuters) - Workers at General Motors (GM) of Canada Ltd. assembly plants in Oshawa, Ontario voted in favor of job cuts on Friday, in a moved aimed at securing new investment, including a contract to build GM’s new Chevrolet Camaro, the union said.

The Canadian Auto Workers union said production members of Local 222 voted 74 percent in favor of a cost-saving agreement while skilled trade workers voted 70 percent in favor.

The vote means employees at three Oshawa assembly plants will accept some job losses—which could number as many as 2,500—to avoid the possibility that GM will shut down two car assembly plants, and to give the plants a shot at landing new investments.

“Some very difficult decisions have been made, not only by the union leadership, but by our members as well,” Chris Buckley, president of CAW Local 222, said in a statement.

General Motors has said Oshawa’s No. 2 plant will close in 2008 when assembly of the Pontiac Grand Prix and Buick LaCrosse/Allure comes to a halt. The No. 1 plant is set to lose assembly of its Chevrolet Monte Carlo and Impala models in 2009.

But the CAW says turning Oshawa’s two car factories into one flexible assembly plant that can produce different vehicles would better position GM Canada to secure as much as C$800 million ($701 million) in new investment from General Motors.

($1=$1.16 Canadian dollars)