Tony Van Alphen
BUSINESS REPORTER
Union leaders fear up to 2,000 jobs will be lost at General Motors of Canada after the automaker’s parent confirmed it will move production of the popular Chevrolet Impala sedan from Oshawa to the U.S.
GM said it will start building the next-generation Malibu sedan and Impala at its Detroit-Hamtramck plant in late 2012 or early 2013, adding another 2,500 jobs to that plant while phasing out the Impala model and a production line in Oshawa.
Canadian Auto Workers officials said GM’s decision to partially shift Impala production south suggests the company is now intent on proceeding with a previous plan to close one of two assembly lines in Oshawa.
That could slash the current workforce of 4,200 workers on two lines to about 2,200 in one flexible manufacturing operation within the next few years, they said, adding the move could also adversely affect parts suppliers.
GM employed almost 10,000 workers at three plants in Oshawa five years ago, before a major restructuring saved the company from collapse.
GM’s announcement sparked anxiety among Oshawa workers, who have already faced considerable uncertainty because of the company’s financial troubles in recent years.
But Tony LaRocca, communications director at GM of Canada, said it is too early to speculate on the impact of the Impala decision on Oshawa operations.
GM noted in a “confidential” memo to managers earlier in the day that there may be a need for some Impala output in Oshawa, but on the flex line rather than the older consolidated operation where production now occurs. That would boost employment on the flex line by a few hundred but not make up for losses on the consolidated line.
GM made a commitment to the union in 2008 for future products in Oshawa, including the Impala 2013, but the company’s announcement appears to suggest an emphasis on primary production in the U.S.
GM informed the union more than a year ago about plans to close the consolidated line at the end of its “current product lifecycles” because it is no longer efficient enough. But the union has continued to press GM for new models to boost productivity and save jobs.
Buckley said he thinks volume projections for the Chevrolet Volt electric car, future Malibu and Impala at the Detroit-Hamtramck plant should force the company to keep the consolidated line open for some output of the Impala, which remains one of the most popular family sedans in the U.S.
He rejected GM’s position that the consolidated line is no longer efficient, pointing to its overhaul last year to accommodate increased production of the hot-selling Chevrolet Equinox crossover vehicle early and below budget.
In the memo to managers, GM revealed it has not disclosed more products in Oshawa because of the failure to complete a new health care trust with retirees. The formation of a trust to reduce costs was a critical component of the deal between GM, the union and government so the company could qualify for billions of dollars in taxpayers’ aid in 2009.
“ … The finalization of the Health Care Trust which is a key element of our restructuring has not yet been fulfilled,” said the memo to managers, obtained by The Star. “Therefore, we are not making any announcements regarding our Canadian operations today … GM Canada is working with retirees and their legal counsel to finalize the Health Care Trust as soon as possible.”
Buckley said the memo is “aggressive and threatening” to workers in an attempt by GM to put pressure on the union to resolve the trust issue before the automaker confirms new products. Only retirees and their steering committee can reach an agreement with the company, he added.
