CAW president pans Harper's C$1 bln aid package

TORONTO (Reuters) - The head of the Canadian Auto Workers union said on Thursday that Ottawa's planned C$1 billion ($990 million) fund to aid industry sectors hurt by global economic turmoil falls far short of what is needed to help the ailing Canadian auto industry.

CAW President Buzz Hargrove made the comments after attending a meeting with Ontario Premier Dalton McGuinty and the heads of most of the major automakers.

Prime Minister Stephen Harper announced the aid plan one day before he holds a scheduled meeting in Ottawa with provincial and territorial premiers.

Hargrove said Ontario's share of the fund, which is dependent on the minority Conservative government's next budget being passed by Parliament, will amount to C$350 million.

"Well, to get a new product in the (Ford Motor Co of Canada (F.N: Quote)) Oakville assembly plant, it costs C$1.4 billion, so C$350 million for the entire province, including forestry and all of the other industries that need support, means a very small amount of money for the auto industry," he said.

In 2006, the auto sector had C$70 billion in exports, making it the largest export industry in Canada. Ontario has 150,000 jobs tied directly or indirectly to the industry, with another 350,000 auto-related jobs in the rest of Canada.

Hargrove said McGuinty will be taking the issues facing the auto industry to the Ottawa meeting with Harper.

"He made it clear he understood that these are extraordinary times for our industry that require extraordinary responses," said Hargrove.

Some recent setbacks in the sector in Ontario include the loss of 1,100 jobs at Chrysler Canada's Brampton and Windsor assembly plants, announced in November, and the loss of 1,100 jobs at General Motors of Canada's (GM.N: Quote) Oshawa truck plant in August.