Reference no: EM132888694
At its peak in the 1980s, Oshawa's General Motors production plant employed about 23,000 people. However, as part of a global reorganization, General Motors announced that it will close its Oshawa plant in December 2019, putting more than 2,500 unionized and 340 nonunionized employees out of work. The unionized workers are represented by Unifor, Canada's largest private sector union. Unifor sees the plant closure as a possible violation of its collective agreement and is determined to convince GM to keep the plant open at least until the existing collective agreement expires in September 2020. Ontario and federal politicians' meetings with General Motors about the Oshawa closing have not changed the company's position about shuttering the plant as GM's production continues to ramp up in Mexico. GM Canada's vice president of corporate affairs says the company will pay for worker retraining and is willing to negotiate worker compensation above and beyond contract requirements, and is encouraging the union to work with management on these provisions.
Complicating the conversation is the role the federal and Ontario governments played in providing an $11-billion bailout package to GM when it faced bankruptcy in 2008-2009. However in a statement, GM says it has "invested more than $100 billion into Canada through
manufacturing, purchased goods and services since 2009, and over $8 billion in worker pensions."
In the effort to pressure General Motors, and citing "widespread public support for a boycott," Unifor's national president, has called on all Canadians to boycott GM vehicles produced in Mexico which can be identified by a Vehicle Identification Number starting with a "3." "We
need to remind [GM management] that we are not going to forgive them for walking away from us."
QUESTIONS:
1. How would you characterize the labour relations strategies of General Motors? Unifor?
2. From the information provided, what are your conclusions about the goals of General Motors? Unifor? The labour and business goals of society?