Home » Behavioural Investing » Auto Workers in Canada Roll the Dice $GM, $F #autos

Auto Workers in Canada Roll the Dice $GM, $F #autos

Canadian Auto Workers (CAW) a spin-off of UAW may be helping US-based auto workers. After the 2008 meltdown the CAW is left as a shadow of itself much like its former parent UAW. They are merging with Communications, Energy and Paperworkers to form a new union called Unifor.

The new head is expected to be a social activist long serving member of CAW Jerry Dias aged 54. the two unions are merging to bulk up, hoping the heft gives them negotiating power. The problem with Canadian Autoworkers is a persistently high Canadian dollar which has eroded many former cost advantages.

If they start to exert what they  think is muscle watch for work to be transferred to US plants. Obama is backed by US not Canadian Unions. US car companies are beholden to Washington and not Ottawa. Many foreign plants are under construction. It’s only too easy to transfer work to US plants and throw a bone to politicians and appease the American unions.

George Gutowski writes from a caveat emptor perspective. Follow him on Twitter @financialskepti