The government of Ontario urged General Motors Co and striking Canadian union workers on Thursday to immediately resolve a month-long strike at GM's plant after the USA automaker threatened to move all production to Mexico.
"The issue is that Mexican autoworkers earn United States $2 per hour and the movement generates good middle-class jobs in Mexico", Dias explained during his recent participation in talks about the North American Free Trade Agreement (NAFTA).
General Motors (NYSE:GM) warns Canada's Unifor labor union that it will cut Chevrolet Equinox production in Ontario unless workers call off their extended strike. However, GM suggests that could change if Unifor doesn't throw in the towel soon.
GM has plants in the United States that are under-utilized, but retooling them to build the Equinox would be expensive.
GM officials told the union that it would ramp up Equinox output at two plants in Mexico if the walkout continued, Unifor President Jerry Dias told Reuters. Dias told the Associated Press that GM has threatened to make more of the Equinoxs in Mexico as the Canadian strike continues.
"The message is very clear", Dias said.
"It's an uncomfortable place to be, obviously, and we'd really like to urge the parties to find a resolution to this as quickly as possible before permanent damage is done".
"This is GM saying to us - and saying to Canada - we're going to ramp up production in Mexico and we're going to flood the North American market from cars built in Mexico".
The union also objected to GM's decision to lay off 600 CAMI workers as it phased out production of the last-generation GMC Terrain SUV, and launched production of new generation Terrain models along with the Equinox in Mexico.
U.S., Canadian and Mexican negotiators began another round of talks this week to modernize the agreement.