Auto parts manufacturers in Canada may have to idle production: Flavio Volpe
The head of the Automotive Parts Manufacturers Association says Canada’s auto industry will likely still face disruptions from a strike by U.S. workers, even as a similar labour action was avoided domestically.
“We've averted, I think, a real big problem in Canada. We are potentially looking at a real big one in the U.S.,” Flavio Volpe told BNN Bloomberg in a Wednesday interview. “The industry is so integrated that we're going to have trouble either way.”
Unifor, the union representing Canadian autoworkers, reached a tentative deal with Ford Tuesday night, after extending a Monday strike deadline.
Meanwhile, around 13,000 workers at the Big Three U.S. automakers have been on strike since last week, with their union threatening to expand the action if progress is not made in labour talks with the companies by Friday.
Volpe said the strike in the U.S. will still be disruptive even after Canadian workers reached a deal.
If the U.S. strike continues into next week, production schedules in Canada will likely have to be altered, he added.
“There's a there's a Jeep plant in Toledo that's one of the ones that's been idle. There's also a Ford Bronco plant in Michigan. A lot of those parts – seats, wheels, consoles, infotainment – come from Canada,” Volpe explained.
Even if production schedules have to be changed due to the U.S. strike, Volpe said layoffs in Canada would be unlikely, but temporary work stoppages are a real possibility.