Contract negotiations between the Canadian Auto Workers and General Motors, Chrysler and Ford will begin on Tuesday. Part of the negotiations for a new contract for the 20,600 workers will center around costs, as the Canadian dollar rises in value relative to the American dollar. The auto companies have been reducing their presence in Canada since 1999, and that trend seems likely to continue, though they are continuing to expand in the United States. The companies are not threatening to leave Canada entirely, but have made it clear that they want to reduce labor costs, which are $15 an hour higher than in the U.S. The workers say that higher labor costs are just an excuse for trying to get more from workers. The contracts expire on September 17.
See "Canadian Dollar's Strength a Factor in Autoworkers' Talks", Ian Austen, The New York Times, August 13, 2012