Canadian Auto Workers union Calls on Canada to Stand Up for Canadian Jobs

04/12/96

United Press International reported that the head of the Canadian Auto Workers union called on the Canadian government to intervene in U.S. corporation PACCAR's plans to close a truck assembly plant in Quebec. The plant is located about 30 miles North of Montreal, assembles Peterbilt and Kenworth trucks, and employs about 900 people.

800 workers at the plant have been out on strike against the Washington state based company since last August. The company said the strike played a role in their decision to close the plant, but that the main reason behind the closure was the plant's economic viability. The company said that it would have closed the facility even if it had been able to reach an agreement with striking workers.

Canadian Auto Workers union President Buzz Hargrove blamed the plant closing on NAFTA. Under a 1965 auto pact, PACCAR would have had to pay a duty on all the trucks sold in Canada, if the plant closed. Under NAFTA companies are not liable for duty on any truck, provided that at least half of it is built in North America.

The CAW called for Canada to tell PACCAR and the U.S. that they will have no access to the Canadian market, if PACCAR pulls out of Quebec. The union also called for Canada to invite other manufacturers to produce trucks at the PACCAR facility in Quebec in exchange for guaranteed access to the Canadian market.

Paul Dever -- The Auto Channel