Another GM plant closing
#1
05-14-2008, 06:32 PM
Another GM plant closing
The news was announced monday that another North American GM plant is "moving" overseas.
[quote]
Windsor GM plant to close in 2010[/align]'There just isn't a product available to go in there'[/align]
Chris Vander Doelen
The Windsor Star
Monday, May 12, 2008[/align]
CREDIT: Tyler Brownbridge, The Windsor Star
Employees exit General Motors Windsor Transmission Plant on Monday, May 12, 2008. GM has announced it will not introduce a new product at the plant after production of the current model runs out in 2010.
[b][size=4]WINDSOR -- Saying it has no new product to offer now or in the foreseeable future, General Motors pulled the plug on its Windsor Transmission plant with "finality" on Monday, putting 1,400 employees out of work.
Arturo Elias, president of GM Canada Ltd., came to Windsor personally to break the news to the plant's staff, ending years of speculation and politicking regarding the factory's future.
In separate shift meetings with all 1,200 members of CAW Local 1973 and the plant's 200 salaried employees, Elias said the closure had nothing to do with the City of Windsor or the quality of the workforce.
GM simply has no replacement [size=2]product for Windsor to build, Elias said, now that market has shifted from four-speed automatic transmissions to five and six-speed gearboxes. The Windsor plant, built in 1920, will close in the second quarter of 2010, he told employees.
"This extremely difficult decision in no way reflects on our excellent Windsor workforce or their outstanding track record in producing great transmissions," Elias said in a statement.
The CAW first learned of the decision during contract talks in Toronto on Friday. The union and company spent the weekend negotiating for a plant closure agreement and buyouts for the workforce.
GM Canada told its Windsor employees last month that the company would no longer produce the automatic four-speed transmission they assemble after mid 2010. But there was no word then about the plant's future.
Most of the area's politicians have spent the last 18 months urging GM to find a new product for the Windsor plant and pledging assistance. But the decision to close the factory came down suddenly and without any recourse, MPP Sandra Pupatello (L -- Windsor West) said.
"The finality of it is the only thing I'm taken aback by," said the minister for economic developmet and trade. "They've told me all along they don't have a product."
With GM downsizing all of its North American operations, from assembly plants to component plants producing engines and transmissions, many of the company's workforces on the bubble of closure had been fighting for a share of a diminishing pie.
Industry sources have been warning for years that Windsor Transmission was doomed to close no matter what. Originally built as an engine plant in 1920 and converted to transmission production in 1963, the building was considered too antiquated for modern manufacturing.
The plant's inner-city site was also considered too expensive compared to sites elsewhere in Ontario and the United States. Windsor's property taxes, education taxes, power, water and sewage charges are all considerably higher than similar charges in the United States.
Hargrove confirmed Monday that he had been told in the past that the best-case scenario for Windsor Transmission was being given a new product that would be assembled in a new plant to be built in one of Windsor's neighbouring municipalities, probably Lakeshore. Had a new product been found, Hargrove said, the new plant would have employed only 600 people.
Stew Low, spokesman for GM Canada, said the high value of the Canadian dollar is now a major factor that impedes attracting investment to Canada. But in the end, the lack of an available produc
[quote]
Windsor GM plant to close in 2010[/align]'There just isn't a product available to go in there'[/align]
Chris Vander Doelen
The Windsor Star
Monday, May 12, 2008[/align]
CREDIT: Tyler Brownbridge, The Windsor Star
Employees exit General Motors Windsor Transmission Plant on Monday, May 12, 2008. GM has announced it will not introduce a new product at the plant after production of the current model runs out in 2010.
[b][size=4]WINDSOR -- Saying it has no new product to offer now or in the foreseeable future, General Motors pulled the plug on its Windsor Transmission plant with "finality" on Monday, putting 1,400 employees out of work.
Arturo Elias, president of GM Canada Ltd., came to Windsor personally to break the news to the plant's staff, ending years of speculation and politicking regarding the factory's future.
In separate shift meetings with all 1,200 members of CAW Local 1973 and the plant's 200 salaried employees, Elias said the closure had nothing to do with the City of Windsor or the quality of the workforce.
GM simply has no replacement [size=2]product for Windsor to build, Elias said, now that market has shifted from four-speed automatic transmissions to five and six-speed gearboxes. The Windsor plant, built in 1920, will close in the second quarter of 2010, he told employees.
"This extremely difficult decision in no way reflects on our excellent Windsor workforce or their outstanding track record in producing great transmissions," Elias said in a statement.
The CAW first learned of the decision during contract talks in Toronto on Friday. The union and company spent the weekend negotiating for a plant closure agreement and buyouts for the workforce.
GM Canada told its Windsor employees last month that the company would no longer produce the automatic four-speed transmission they assemble after mid 2010. But there was no word then about the plant's future.
Most of the area's politicians have spent the last 18 months urging GM to find a new product for the Windsor plant and pledging assistance. But the decision to close the factory came down suddenly and without any recourse, MPP Sandra Pupatello (L -- Windsor West) said.
"The finality of it is the only thing I'm taken aback by," said the minister for economic developmet and trade. "They've told me all along they don't have a product."
With GM downsizing all of its North American operations, from assembly plants to component plants producing engines and transmissions, many of the company's workforces on the bubble of closure had been fighting for a share of a diminishing pie.
Industry sources have been warning for years that Windsor Transmission was doomed to close no matter what. Originally built as an engine plant in 1920 and converted to transmission production in 1963, the building was considered too antiquated for modern manufacturing.
The plant's inner-city site was also considered too expensive compared to sites elsewhere in Ontario and the United States. Windsor's property taxes, education taxes, power, water and sewage charges are all considerably higher than similar charges in the United States.
Hargrove confirmed Monday that he had been told in the past that the best-case scenario for Windsor Transmission was being given a new product that would be assembled in a new plant to be built in one of Windsor's neighbouring municipalities, probably Lakeshore. Had a new product been found, Hargrove said, the new plant would have employed only 600 people.
Stew Low, spokesman for GM Canada, said the high value of the Canadian dollar is now a major factor that impedes attracting investment to Canada. But in the end, the lack of an available produc
#5
05-16-2008, 05:12 PM
RE: Another GM plant closing
It's all politics RJ.
Local radio newscasts said GM was eliminating the 4 speed automatic tranny from it's line-up. Instead they are going with 5 and 6 speed tranny's built overseas.
Other factors that GM told employees was, the high value of the Canadian dollar, and the fact that Canadian autoworkers wouldn't accept a two-tier wage like some US plants have accepted. But personally, I believe the cheaper labor overseas was the real reason.
Local radio newscasts said GM was eliminating the 4 speed automatic tranny from it's line-up. Instead they are going with 5 and 6 speed tranny's built overseas.
Other factors that GM told employees was, the high value of the Canadian dollar, and the fact that Canadian autoworkers wouldn't accept a two-tier wage like some US plants have accepted. But personally, I believe the cheaper labor overseas was the real reason.
#7
05-31-2008, 06:40 PM
RE: Another GM plant closing
All you have to do is stop buying the product and it will make its way back in time.... That and the fact most of those guys were getting overpaid anyway for their job. I still have to find an assembly job where the person "should" be making more than $15 an hour and I know at Mercury Marine they are making $25 - different industry (marine engines) same idea.
I got my 2 vehicles and looking for a used moped to soup up (55 mph) and I will be done for awhile... hell I haven't upgraded my pc in 7 years now and it still works great....
I got my 2 vehicles and looking for a used moped to soup up (55 mph) and I will be done for awhile... hell I haven't upgraded my pc in 7 years now and it still works great....
#8
06-01-2008, 05:19 AM
RE: Another GM plant closing
Look at what just happened at American Axle. They went on strike for 3 months. The company wanted to cut their wages from $28 to $14 an hour, plus benifit cuts. So they went on strike. They FINALLY resolved their differences. How? They took the original offer. THEN they were told that 3rd shift didn't have to report. So they lost 3 months wages, got pay cut in half, THEN lost jobs on top of everything!
IMHO......... $14/hour for unskilled labor still isn't bad. UAW sure pulled thru on that one!
I'm just surprised they didn't move the jobs to Mexico. I met the American Axle Mexico CEO, Tom something, down in Ixtapa back in 2000. He's from Michigan, and he LOVES it there! Not quite the same lifestyle as here, but cheaper living, also.
IMHO......... $14/hour for unskilled labor still isn't bad. UAW sure pulled thru on that one!
I'm just surprised they didn't move the jobs to Mexico. I met the American Axle Mexico CEO, Tom something, down in Ixtapa back in 2000. He's from Michigan, and he LOVES it there! Not quite the same lifestyle as here, but cheaper living, also.
#9
06-01-2008, 07:14 AM
RE: Another GM plant closing
Lead, Follow, or get out %#@^of the Way.
America "We Snooze, we Lose", we must wake `up & get back to
hard/honest work. We can not rest on our laurel's, and what we have
accomplished in our past, and must be prepared for the every changing World.
American Auto Companies, have been building what we wanted, and not
what we needed. We are now paying the price for not preparing for the
changes in our Economic World. Do we need to build vehicles that get below
15 mpg per gallon ? Has our heads been in the sand ? or are we all
just gett'in `high : ) WoW....a grow house : )
It's sad to see so many companies closing, and all the people that it affects : (
Have we learned our lessons ? I hope so, and hope that we can find new
leadership to bring us back from going the wrong direction.
What are you doing to make it better ?
I'll wait to read your reply.
Thanks, from
`Space
#10
06-01-2008, 12:11 PM
RE: Another GM plant closing
has to be the cost of overseas vs cost in windsor...
there is obviously something to build they even said it -- the 5 and 6 speed gearboxes will be built. Im it was less expensive in canada then GM would do it there, but its less expensive overseas so they build the newer trannys there.
the goal of a corporation is to increase share value, decreasing costs helps increase share value. Period. They have other plants in ontario hopefully they stay
there is obviously something to build they even said it -- the 5 and 6 speed gearboxes will be built. Im it was less expensive in canada then GM would do it there, but its less expensive overseas so they build the newer trannys there.
the goal of a corporation is to increase share value, decreasing costs helps increase share value. Period. They have other plants in ontario hopefully they stay