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CAW: GM Plant Closure A 'Betrayl'

Canadian Auto Workers president upset over decision to close truck plant in Oshawa, Ontario, saying GM violated the labor agreement they reached two weeks ago.

TORONTO (AP) -- Canadian Auto Workers President Buzz Hargrove said Tuesday General Motor's decision to close its truck plant in Oshawa, Ontario, is a ''betrayal'' of the labor agreement they reached two weeks ago.

Hargrove said GM violated the deal and they will consider all options, including a strike.

GM committed to keep the plant of 2,600 people open throughout the three-year agreement and to start production of new models, Hargrove said.

''This is a complete betrayal,'' Hargrove said.

Troy Clarke, GM's North America Group Vice President, said the agreement takes into account market demand.

Hargrove acknowledged production allocation and investment is based on market demand but said there is no way things can change so dramatically in two weeks.

''No intelligent human being would ever agree that there's been such a change in two weeks that General Motors would have to back away from a commitment,'' Hargrove said.

GM Canada President Arturo Elias said there has been a rapid decline in interest in pickups and SUVS because of high oil prices and the housing and the credit markets.

''This shift in the truck market has become evident over the last several weeks in dramatic proportions,'' Clarke said.

The plant is scheduled to close in 2009.

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