O, Canada: the contract negotiations. (Auto by the Numbers).On September 17, 2002 at midnight, all production-related labor contracts between the Canadian Auto Workers The Canadian Auto Workers (CAW; formally the National Automobile, Aerospace, Transportation and General Workers Union of Canada) is one of Canada's largest and highest profile trade unions. (CAW) and General Motors, Ford, and DaimlerChrysler will expire. Given the looming looming: see mirage. labor negotiations between the Big Three and the CAW (and the definite possibility of a strike), it is essential for suppliers to understand the players, timing and possible effects of any labor stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." . Labor contract negotiations are slated to begin in mid-July. These essentially affect over 47,000 CAW members working with Big Three facilities in Canada. Currently these members provide approximately 16% of the Big Three's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. vehicle production output, as well as 15.2% of engine and 8% of transmission assembly output. Additionally, there is selected sourcing of chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. and body components for various offerings. Depending upon when a contract is signed, it may take up to 3-4 days to ratify ratify v. to confirm and adopt the act of another even though it was not approved beforehand. Example: An employee for Holsinger's Hardware orders carpentry equipment from Phillips Screws and Nails although the employee was not authorized to buy anything. the contract, another day to return to work, and up to three days to refill refill noun A second allotment of a prescription agent obtained from a pharmacy, which is allowed by the original prescription verb Pharmacology To obtain more of a particular drug, after the initially prescribed amount of the agent has been used or an engine or transmission supply line. Thus, a significant impact on all vehicle and powertrain production in Canada, and other facilities supported by Canadian-sourced components, is possible given a stoppage. Although Canada continues as an important site for vehicle and powertrain sourcing, the Big Three have taken strategic steps to spread the risk between U.S., Canada and Mexico. Significant exposure still exists, though, as many fa cilities are the sole production source for popular offerings. The three main issues (CAW concerns) to be tabled this year are Big Three facility rationalization rationalization, in psychology: see defense mechanism. , growth of non-CAW/UAW production, and the perennial perennial, any plant that under natural conditions lives for several to many growing seasons, as contrasted to an annual or a biennial. Botanically, the term perennial issues of outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. , wages and benefits. As the Big Three rationalize ra·tion·al·ize v. 1. To make rational. 2. To devise self-satisfying but false or inconsistent reasons for one's behavior, especially as an unconscious defense mechanism through which irrational acts or feelings are made to appear facilities, Canada will lose DCX-Pillette Road, Ford-Ontario Truck, and GM-St. Therese. The CAW feels the reductions are over-reaching and Canada-centric on a broader scope, as Mexico is viewed as an outsourcing threat for vehicle and powertrain assembly. Further erosion in CAW standing comes as non-CAW/UAW vehicle production is projected to grow from 24% (CY2000) to 35% in 2007. A similar scenario exists for powertrain and component production over the time period. In short, the CAW will be looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. replacement investments, workforce and benefits maintenance, and help in organizing non-union suppliers in Canada. By early September, a target OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and will be named. At present General Motors has the highest potential to be chosen because it has both the deepest pockets and the fewest issues with the CAW. In an aim to pattern the agreement for DaimlerChrysler and Ford, GM may relish the opportunity to again be the chosen one. DaimlerChrysler is expected to be second, and Ford is likely last on the list, as it's labor issues are more acute and potentially viewed by the CAW as the most difficult to solve. Work stoppages or "strikes" may be all encompassing as the CAW's leader, Buzz Hargrove Basil Eldon "Buzz" Hargrove (born March 8, 1944, Bath, New Brunswick, Canada) is the current National President of the Canadian Auto Workers trade union. He succeeded Bob White as president of the CAW in 1992. , is noteworthy for achieving precisely orchestrated or·ches·trate tr.v. or·ches·trat·ed, or·ches·trat·ing, or·ches·trates 1. To compose or arrange (music) for performance by an orchestra. 2. work stoppages that affect an entire company. With this in mind, the attached sourcing matrix illustrates CSM CSM - ["CSM - A Distributed Programming Language", S. Zhongxiu et al, IEEE Trans Soft Eng SE-13(4):497-500 (Apr 1987)]. Worldwide's view of the potential effects should the CAW strike a given OEM. Our view is not only that of production in Canada, but also of engine/transmission and component production that emanates from U.S. and Mexican sources which would also likely be affected by a work stoppage in Canada. Suppliers should be ready for any eventuality e·ven·tu·al·i·ty n. pl. e·ven·tu·al·i·ties Something that may occur; a possibility. eventuality Noun pl -ties with respect to the looming talks, as our analysis outlines a 30-50% chance of some type of stoppage. Despite a stronger market, negotiators will need to think longterm, as several issues are pervasive and far-reaching. It should be an interesting fall.
GM, Ford and DCX Powertrain and Vehicle Assembly Operations
Effects of a Potential Work Stoppage in Canada
Estimated Total
Plant Product Daily Build Rates
General Motors
Flint, MI 3.8L Series II V6 1800
Romulus, MI 4.3L GIE V6 850
4.8L, 5.3L, 6.0L GEN III V8 4800
St. Catherine's, Ontario 4.8L, 5.7L GEN III V8 500
Tonawanda, NY 3.1L/3.4L 60-Degree V6 2300
8.1L Mark VIII V8 450
Oshawa #1 Monte Carlo/Impala 1350
Oshawa #2 Century, Regal 1050
Oshawa Truck Silverado, Sierra 1350
Windsor, Ontario 4T40E/4T45E Transmission 3458
Other GMT800 Stampings -
Ford
Essex, Ontario 3.8L/4.2L V6 2200
Romeo, MI 4.6L SOHC V8 3100
4.6L DOHC V8 200
Windsor, Ontario #2 5.4L SOHC V8 2000
Oakville Windstar 1040
Ontario Truck F-Series 420
St. Thomas Crown Vic, Grd. Marquis 960
Windsor, Ontario #2 4.6L Head Assembly 100
Other Engine Castings (Aluminum) -
DCX
Kenosha, WI 2.7L DOHC V6 1300
Mack Avenue 3.7L V6/4.7L V8 Modular 2500
Toluca, Mexico 5.9L V8 OHV 600
Trenton, MI 3.9L V6 / 5.2 V8 OHV 500
Saltillo, Mexico 5.7L V8 Hemi 250
Brampton 300M, Concorde, Intrepid 970
Pillette Road Ram Van 210
Windsor Town & Country, Caravan 1325
Estimated Daily
Volume Loss Due
to a Canadian
Plant Work Stoppage
General Motors
Flint, MI 650
Romulus, MI 55
835
St. Catherine's, Ontario 500
Tonawanda, NY 1100
70
Oshawa #1 1350
Oshawa #2 1050
Oshawa Truck 1350
Windsor, Ontario 3458
Other -
Ford
Essex, Ontario 1008
Romeo, MI 1007
24
Windsor, Ontario #2 100
Oakville 1040
Ontario Truck 420
St. Thomas 960
Windsor, Ontario #2 100
Other -
DCX
Kenosha, WI 500
Mack Avenue 61
Toluca, Mexico 62
Trenton, MI 135
Saltillo, Mexico 50
Brampton 970
Pillette Road 210
Windsor 1325
Source: CSM Worldwide
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