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Monday, May 30, 2011

CAW 'NERVOUS' OVER GM'S IMPALA PRODUCTION PLANS

By Grace Macaluso, The Windsor Star - The CAW will press General Motors for assurances that production of the Chevy Impala will continue in Oshawa following plans by the automaker to assemble the next generation of the full-sized sedan at its plant in Hamtramck, Michigan.

"It's never good that they're building one product at two plants," CAW president Ken Lewenza said Wednesday. "Are we nervous? Yes."

GM said it will add two shifts at Detroit-Hamtramck for the Impala and the previously announced plan to build the Chevy Malibu. The tooling and equipment for the Impala will require another $69 million in investments. In April 2010, GM said it would invest $121 million in the plant to support Malibu production.

Mike Albano, GM spokesman, said the current Impala will continue to be produced in Oshawa, however, "as far as the next generation, we can't say at this time."

Lewenza said he wasn't sure whether the "market can sustain two plants manufacturing the same vehicle."

"It's hard to determine what it really means to us because we're going to have multiple vehicles being manufactured, including the Impala," he said.

"All we can hope for is General Motors making a wise decision based on their expected sales of the combined volumes in both Hamtramck and Oshawa, and they're making investment decisions on similar vehicles because they believe the market can sustain new production opportunities."

The Oshawa plant runs on two shifts and employs 4,500 workers, including 300 salaried employees.

It produces 825 Imapalas a day, according to Jason Easton, GM Canada spokesman. As well as the Impala, the Oshawa plant assembles the Buick Regal, Chevy Camaro sports car and about 10 per cent of production of the Chevy Equinox, said Lewenza.

The Impala will be undergoing a full redesign for the 2014 model year.

The Detroit-Hamtramck factory also makes the Chevrolet Volt.

GM said last week that it plans to ramp up Volt production to 60,000 next year, from an earlier plan to produce 45,000.

Earlier this month, GM announced plans to invest $2 billion in 17 plants in eight states. Among the plants getting additional investment: Bowling Green, Kentucky, home of the Chevrolet Corvette; and powertrain plants in Toledo, Ohio, as well as Flint and Bay City, Michigan. About 4,000 jobs are being created or retained at those plants, GM said.

WAGE AGENDA

Southfield, Michigan United Auto Workers vice president Joe Ashton, who negotiates with General Motors, said Wednesday he wants to raise the $14-an-hour entry-level wage for union members at assembly plants in talks this year.

The pay for new employees, about half of what senior workers get, is "not a middle-class wage," Ashton said after GM announced it will invest $69 million and add 2,500 jobs to start making two new models at the Detroit plant that builds the Chevrolet Volt plug-in hybrid.

The UAS would seek to partially pull back on a concession made four years ago before the automakers have had a chance to hire many workers under the lower wage. The union is not seeking to eliminate the entrylevel wage, which is paid to three per cent of its members at the three largest U.S. car companies, Ashton said.

"We're not looking to make these plants uncompetitive. It's no good making $28 or $38 an hour if you don't have a job."

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