What Will Motor Coach Do Now?

Despite repeated threats by Motor Coach Industries (MCI) management to close its Pembina, North Dakota plant and relocate it to the southern U.S. unless the workers in Pembina accepted massive concessions, the workers rejected the company's offer by a 91 percent vote. Ninety-four percent of the plant's 396 unionized members participated in the vote.

Last month, MCI management used similar threats, as well as the assistance of Manitoba Premier Gary Doer, to coerce its Winnipeg workers into accepting concessions after twice rejecting the company's final offer. The union leadership in both Winnipeg and Pembina were convinced that the company's negotiating tactics were a bluff and that it would be prohibitively expense for MCI to open a new plant and train new workers at a time when the bus manufacturing industry is experiencing unprecedented competition for market share.

However, the company is now in somewhat of a bind. If it was merely bluffing and now fails to carry through on its threats to close the Pembina plant, it will have lost most of the leverage it has used to extort handouts from all three levels of government in Manitoba. On the other hand, if it closes the Pembina plant it will generate a lot of ill will amongst its workers and their communities. The company has so far refused to comment on the Pembina vote, other than to state that the existing collective agreement will remain in effect until September 30, 2003.