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The Brampton Guardian
Judge denies GM injunction to end union blockade of local auto parts plant
The Brampton Guardian
Monday January 12 2009
Peter Criscione
 
BRAMPTON - An Ontario Superior Court judge has again denied General Motors an injunction that would allow it to remove equipment from struggling auto parts maker SKD Automotive in Brampton.
Financial difficulties at SKD prompted GM to scrap its contracts with the firm in late December.

GM then sent trucks to Brampton to remove equipment that makes parts for vehicles produced south of the boarder.

But when GM attempted to remove the tooling equipment, Canadian Auto Workers union (CAW) members set up a blockade of the plant on Holtby Avenue, near McLaughlin Road.
Leon Rideout, presidents of CAW Local 1285, said an Ontario Superior Court judge denied GM’s third attempt at an injunction on Friday.

“The judge really got pissed off at GM saying ‘hey hang on, the union is offering an olive branch here,’” Rideout explained. “We said to GM ‘you own 10 per cent of the work in there and with the company possibly going into bankruptcy, we want 10 per cent of severance cost for workers from you, which works out to about $160,000’. But GM wouldn’t even offer us a nickel. The judge said ‘hey they’re trying to settle this here and you guys are not, so he pushed (the injunction) off.” 

The parts company produces stamped metal components like floor pans, speaker brackets and control arms.

In addition to GM, SKD’s 140 employees manufacture parts for Ford, Honda and Chrysler.
Union officials said SKD has reached a deal with its other customers (Ford, Chrysler and Honda) that will give it time to find new financing.

As part of this accommodation agreement, workers could go back to work by Jan. 19— the date the Chrysler plant in Brampton is scheduled to start up after a month-long stoppage.
“We got to supply them (Chrysler) with parts. If not, they got to shut the plant down,” Rideout continued. “We got an accommodation agreement with Ford, Chrysler and Honda but GM is not playing ball.” Rideout said SKD could go into bankruptcy protection by the end of the week.

That means the company will go into restructuring.

The government will secure the firm’s loans and gives them money to come up with another plan, Rideout said.  
In the meantime, workers will hold up their blockade of the local plant.

Employees of SKD, some of whom with three decades of seniority, fear they will be left with no financial compensation if the company is suddenly forced to close shop.  

“GM is being the bad guy here,” Rideout said. “At least Ford, Chrysler and Honda are willing to work with them. But you got big, bad GM that thinks they are too big for everybody. We offered a compromise.” Lawyers were slated to appear before a judge on the matter on Tuesday.