TORONTO, July 16 — The union representing 46,000 Canadian auto workers began talks today with the big three North American automakers on a new labor contract that might set precedents for similar talks next year in the United States. There were signs that the local unit of General Motors would be the union's primary, and most accommodating, target.þþG.M., Ford Motor and DaimlerChrysler all have closely integrated their American and Canadian operations, with assembly lines in each country producing vehicles for the entire North American market. But for the first time in many years, bargaining on labor contracts is not taking place simultaneously in the two countries. þþBuzz Hargrove, president of the Canadian Auto Workers union, told reporters at a downtown hotel here today that ÿwe have the full attention of corporate executives on both sides of the Detroit River.ÿ Mr. Hargrove's union signed three-year contracts with the companies in 1999, while the agreements concluded by the United Auto Workers at the same time run for four years. The Canadian contracts expire Sept. 17.þþScott R. Hill, an analyst at Bernstein Investment Research and Management in New York, said that the talks in Canada would probably be dominated by demands for greater job security, while bargaining in the United States next year was likely to center on pensions and health benefits.þþCanadian union officials presented their contract proposals to G.M. today. They are to meet with Ford on Wednesday and DaimlerChrysler on Thursday.þþAl Green, vice president for personnel at General Motors of Canada, said that whatever deal was reached in Canada would not necessarily influence the parent company's talks next year with the U.A.W.þþThe union in each country usually selects as a target the company that it thinks will yield the most favorable deal. It negotiates, and if necessary takes job actions, against that company first. Whatever contract is reached with the target then becomes the basis for negotiations with the other two.þþThe union expects to announce its choice shortly after Labor Day. Echoing other industry watchers, Mr. Hill said that General Motors was ÿthe likely initial target.ÿþþG.M. ÿcould agree to a lot of things on plant closures that Ford and DaimlerChrysler would have difficulty agreeing to,ÿ Mr. Hill said. G.M. has been posting overall sales and profit gains in recent quarters, including a strong second-quarter report released today, while both Ford and DaimlerChrysler results are off from a year ago. The sales pattern in Canada is much the same.þþMr. Hargrove would not say directly which company the union intended to choose as its target, but he hinted that it would be G.M., saying, ÿIf they're making money, as you head down to the deadline, they're much easier to deal with.ÿþþMr. Green said his company would welcome being the initial target. ÿIt gives us an opportunity to fashion an agreement that's most appropriate to us,ÿ he said. The Canadian union last chose G.M. as its bargaining target in 1984.þþFlanked by a chart showing rising motor vehicle sales and falling jobs in Canada, Mr. Hargrove said that the union would be seeking to lower the present 10-year seniority threshold for workers to qualify for guarantees of work or income under the contract. The union was also asking for ÿsubstantialÿ wage increases and compensation for the reduction of benefits under Canada's public health system, Mr. Hargrove said.þþAll three automakers have recently announced plant closings in Canada. A G.M. plant at Ste. Thérèse, Quebec, that produces Camaro and Firebird sports cars is scheduled to close next month, eliminating 1,400 jobs. Ford plans to close a pickup truck assembly line at Oakville, west of Toronto, next year.þþBut G.M. recently added a shift at its large plant in Oshawa, east of Toronto, to step up output of Chevrolet Impala sedans. It also said last month that it would invest $195 million there to produce a new midsize Pontiac. ÿThey have already provided the security that the union is asking for,ÿ Mr. Hill said.þþMr. Green said the main issue for his company was ÿintense competitive pressure,ÿ especially from foreign manufacturers, whose share of the North American market has risen markedly in recent years. He said G.M. would seek to lighten its expenses for retirees' pension and health care costs with ÿcost offsets,ÿ but declined to elaborate.þ
Source: NY Times
