Canada auto-parts strike disrupts GM production

By Susan Taylor

TORONTO (Reuters) - Production at General Motors Co's (GM.N: Quote) Oshawa, Ontario, plant slowed to a crawl on Monday as a strike at Lear Corp (LEA.N: Quote) cut off supplies of car seats used in vehicles assembled there, the Canadian Auto Workers (CAW) union said.

Talks between Lear and the union were set to continue Monday afternoon, though the CAW said the two sides remained far apart and that the Oshawa plant may grind to a halt on Tuesday without an agreement.

"I can't see them running tomorrow. They would not have the seats to do that," said Chris Buckley, president of CAW Local 222 at Oshawa.

About 400 workers at Lear's plant in Whitby, Ontario, went on strike on Sunday after talks broke down over company requests for contract concessions, the CAW said. The union represents workers at both GM and Lear.

GM said it expects production at Oshawa "will be affected early this week" and that it is working to limit the impact.

"GM Canada is hopeful that Lear will reach a resolution with the CAW," said GM spokeswoman Adria MacKenzie, without giving details of GM's plans to deal with any disruptions.

A spokesman for Lear was not immediately available for comment.

The union said it cut all-in labor costs, including taxes, vacation, by C$14 an hour in its last contract with Lear three years ago, when the global financial crisis endangered the auto sector's future. It declined to say where total labor costs currently stand.