Cash buyout for workers cushions blow of terrible situation

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Colin Perkel, THE CANADIAN PRESS

OSHAWA, Ont. - Cash incentives of up to $120,000 for workers toleave a slumping General Motors in this auto-manufacturingheartland should help cushion the blow of the company's plan toshutter a key truck plant, union leaders announced Monday.
The deal between the Canadian Auto Workers union and GM Canadasettles a grievance over the closure next year that will cutemployment by 2,600 people - the latest body blow to an industryalready buckling badly.
"Things continue to get extremely worse," Chris Buckley,the president of CAW Local 222, told members at a special meetingin a downtown arena.
"We have made the very best out of a very terriblesituation."
More than 3,500 workers are eligible to avail themselves of theincentives to leave, which also include a car voucher worth$35,000. Skilled trades workers with 30 years of experience areeligible for $120,000, and production workers $100,000.
Production workers with less than three years seniority will get$37,500, and skilled trades workers $45,000, plus six months worthof benefits, not including the company's dental plan.
The planned truck closure - announced June 3, just two weeks afterthe CAW and GM agreed on a collective bargaining agreement until2011 - sparked bitterness among workers and a sense of betrayalamong union leaders.
The anger led to 12 days of protest action that included a blockadeof the company's headquarters and its production facilities in thecity east of Toronto.
"We can't force General Motors to produce vehicles they can'tsell," Buckley told the crowd. "(But) GM owes us work orwages."
About 1,000 members, many sporting red T-shirts with the slogan"Made in Canada Matters," rallied at the arena to hearCAW executives outline the agreement.
Workers said the deal was the best option given the circumstances,with many saying they expected now to leave the company.
"I'm a junior employee here - I have the opportunity to moveon to something else," said Rodney Lewis, who has worked withGM for six years.
But others said they hoped to remain with the company.
"I've got five kids," said Ken Farrow, 43, who has beenwith GM for more than 23 years. "We're hoping that a lot ofpeople will take this buyout - for myself, it will keep me intrades."
General Motors has lost billions of dollars since 2004 and has beenscrambling to slash its truck-heavy production amid dramaticallyshrinking demand for the fuel-thirsty vehicles.
Details of the deal with the CAW came as General Motors Corp. inthe United States announced Monday it would scrap shifts at truckplants in Moraine, Ohio, and Shreveport, La.
Under the new deal, GM also made promises to preserve employment,including maintaining a third shift on its Impala production fornext year and allocating a new front-wheel drive vehicle to startproduction in 2013.
Auto industry analyst Dennis DesRosiers said the "verypositive" agreement shows Canada remains a good place to buildvehicles despite the gloom pervading the industry.
"GM is an incredibly capable company," DesRosiers said.
"The job losses are the job losses (but) GM and the union havefound a way to make it as painless as possible. If it doesn't dothis, then it's in trouble."
While CAW president Buzz Hargrove said the agreement will mean alot of people will "breathe a sigh of relief," unionexecutives railed at the federal government.
They blamed the strong dollar, high gasoline prices and tradepractices they argue allow foreign vehicles to be sold in NorthAmerica but restricts domestic vehicle sales abroad.
Bob Ambrose, 46, a production worker who has spent 27 years withGM, said he had always expected to be with the company until atleast age 55 but will now "have a hard time saying no" tothe incentive to leave.
"There is a future (with GM)," Ambrose said."(However), it's a lot smaller future than a lot of people hadenvisioned."

© The Canadian Press, 2008
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