CAW President Positive After Meeting with GM's CEO

10/18/96

Reuters reports that Canadian Auto Workers President Buzz Hargrove said he was optimistic about the possibility of resolving the CAW's two week old strike against GM Canada. Hargrove made the statement after a secret meeting on Wednesday with GM's Chief Executive Officer, Jack Smith. The CAW called its strike against GM Canada two weeks ago when talks with the carmaker failed to produce a new contract for the autoworkers that provided for job security.

After the meeting,Hargrove said, "I think we might have found a way to break the logjam." Smith flew into Toronto for a two hour meeting with officials from both sides of the Canadian conflict. No details of the meeting were released.

CAW has mounted what is called an escalating strike: the walk-out began on October 2 in select facilities, more strikers joined the picket on October 6, and all 2,800 Canadian Auto Workers at GM Canada plants had left their posts by October 9, effectively shutting down all of GM Canada's operations. GM's response to the strike has been to lay off 10,187 workers in the U.S. and Mexico, as GM hasn't had enough Canadian-made parts to supply all of its plants at full levels. On October 16, striking workers occupied one of GM's plants in Oshawa, Ontario.

A Canadian Auto Workers union spokesman said the workers occupied the plant after learning that GM Canada sought a court injunction to move key machinery from the plant to another facility in an attempt to maintain a supply of parts to some of its U.S. plants.

GM Canada spokesman Stew Low said GM sought the injunction after the union refused to keep the stamping machinery in Oshawa working despite the strike: "so really we're put in a box with no other choice but to ... seek an injunction and bring legal action to remove the dies so we can continue to supply to our customers."

Paul Dever -- The Auto Channel