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Old 12-19-2012, 04:39 PM   #63
Drives: 2005 C6 Corvette
Join Date: Mar 2009
Location: Des Moines, IA
Posts: 22
To those of us in the industry, this and more moves like it will likely be the norm amongst the big three.

No offense meant towards the fine workers at Oshawa and the high-quality products they produce - they are victims of the economic situation there.

However, the recent CAW contract did nothing to address and indeed actually worsened the disparity of labor costs between Canada and the U.S..

To be specific, Canada is now the highest priced country to produce autos in. Given the CAW's inability to grasp this, (coupled with Ford's quick capitulation to the CAW's demands) the result produced a contract with the big three that did nothing to alleviate this.

To see the exodus start from Canada to the U.S. as well as other, lower cost areas is only natural and expected. A company can't absorb noncompetitive labor costs out of a goodwill intent - you have to go where the costs are more reasonable.

The companies that are involved would certainly not admit this, but the CAW have only theirself to blame for forcing such an unrealistic contract on the big three.
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