The announcement that General Motors will be, but shutting down a major Windsor transmission plant, eliminating 1,400 jobs, came as a shock to union leadership in the middle of contract negotiations.

However, GM's previous announcement to invest up to $440 million locally on a six-speed transmission appears to be on track, at least for now.

GM of Canada spokesperson Stew Low said the company is still working on the business case for the transmission project, which was announced one year ago. Though he had no updates, he said the company is still in discussions with the governments to try to secure partnerships.

St. Catharines MPP Jim Bradley said he remains "cautiously optimistic" the six-speed transmission project, which is considered a next-generation product, will proceed.

"I know that the provincial government has been at the table and has been indicating that it will be a partner as it has in the past for projects of this kind," he said.

Responding to criticism that the much-heralded $500-million automotive investment fund has not prevented the bleeding of jobs, Bradley said that in the projects the money has been invested in, including a GM project in Oshawa and a new Toyota plant in Woodstock, it has resulted in new or retained jobs.

"All signs point to it being productive," he said.

The Canadian Auto Workers are currently in the middle of negotiating a new contract with GM. In the days leading up to the negotiation, CAW president Buzz Hargrove said commitments for investment would be mandatory to avoid a strike. In a release following Monday's announcement by GM that 1,400 jobs would be eliminated by 2010, a move that removes the company's presence in the community for the first time in decades, Hargrove continued to insist any settlement will still be dependent on new investment, though he added severance packages for Windsor workers would also be a factor.

Locally, Wayne Gates, president of CAW Local 199 said he couldn't comment on the prospects for GM plants in St. Catharines, explaining they are part of the ongoing negotiations.

However, he said the news from Windsor, which follows last week's announcement of the loss of a second shift in Oshawa, is largely the result of Canada being in unfair trade agreements. He laid the blame at the feet of the federal government.

"The issue that has to be corrected in this country is trade agreements that are unfair to our workers, families and communities," he said. "When are politicians going to stand up for Canadian jobs, Canadian families, Canadian communities, which pays our taxes, support our hospitals, our schools, our roads and our recreation facilities?"