GM trying to scare workers with job cut threat at Oshawa, union says

General Motors of Canada is threatening job cuts at its Oshawa complex again to soften up workers for more concessions in bargaining next year, their union charges.

The Canadian Auto Workers alleged Thursday that GM deliberately used an announcement about production of a new-generation Chevrolet Impala mid-size sedan in the U.S. this week to create a climate of job insecurity in Oshawa, where the company has assembled the model since 1999.

The union reaction followed a GM internal management memo that asked whether it would need to build any Impalas in Oshawa, given its plan to start assembling the model at its Detroit-Hamtramck plant late next year or early 2013.

CAW Local 222 distributed a stinging leaflet to thousands of workers at the Oshawa plant that criticizes GM for trying to boost its position in contract bargaining next year when the fate of the next Impala and one of two production lines will likely be a hot issue.

“The ‘internal’ memo was nothing more than corporate propaganda to boost their pre-contract agenda of concessions, concessions and more concessions,” said the leaflet, signed by the local’s top leaders.

“Sisters and brothers, realize these fear tactics are designed to cause stress and panic as we head toward 2012 (bargaining).”

GM spokesman Tony LaRocca would not comment on the union leaflet but has said it is too early to speculate on job losses.

GM disclosed earlier it plans to phase out the Impala and one of two production lines in Oshawa at the end of 2012.

The company added it would move some new Impala output to a nearby flexible manufacturing line if there is enough demand.

CAW officials have pressed GM to keep the consolidated line open but the announcement to move Impala output to the U.S. strongly suggests the company is proceeding with the closure. The line also assembles the hot-selling Chevrolet Equinox crossover vehicle. However, it is unclear how long that will continue.

The line’s eventual closing would eliminate 2,500 jobs with the possibility of only several hundred moving to the flex line when more models are assigned to it. That line currently employs 1,700 workers on two shifts who assemble the Buick Regal and Chevrolet Camaro. GM plans to start building a Cadillac model on the line late this year and would have room for a fifth vehicle.

In bargaining next year, CAW insiders believe GM will present proposals that any Impala production in Oshawa or extra life for the older consolidated line will hinge on significant concessions for existing employees and much lower wages for new workers.

The unionized Detroit-Hamtramck plant already has a two-tier wage system whereby new workers earn about half of what senior employees are paid.

GM of Canada president Kevin Williams said recently the company needs more cost cuts to remain competitive here because the rising dollar makes exports pricier.

In its memo, GM noted the company and union have not yet agreed on a health care trust for retirees as part of the company’s restructuring in 2009. The mention of the trust, which provides funding for retiree benefits, prompted a sharp rebuke from the union. It stressed the issue has no connection to the future of the Impala or other models.