Updated: Sat Jun. 21 2008 10:11:18 PM

ctvtoronto.ca

The Canadian Auto Workers union says General Motors has reversed its decision not to build any hybrid pickups in Oshawa, Ont., and will start assembling a hybrid truck this fall.

But the decision was not greeted with much celebration, because the number of hybrids being made will only a fraction of full production.

"It's a bit of a moral victory for our union," CAW president Buzz Hargrove said.

He said it's not known how many hybrid trucks will be built in Oshawa, but it won't be enough to save the plant.

"The market analysts are saying they're going to sell probably 3,000 to 5,000 next year," Hargrove told CTV Toronto on Saturday. "That plant built 315,000 vehicles last year."

The company made the decision despite plans to close the truck plant there next year, CAW local 222 president Chris Buckley told CTV Newsnet on Saturday.

"It's a small win," Buckley said. "We need to take some larger steps to secure the jobs of our 2,600 members that will be affected (by the closure)."

"We need a miracle - we've had nothing but bad news in the city of Oshawa, nothing but bad news in the auto industry."

The decision came out of a meeting between CAW officials and GM management on Friday, but the company has not commented on the reversal and the reasons for it.

Buckley said adding the hybrid at the truck plant shows "a glimmer of hope" that the plant can remain open, especially if hybrid truck sales take off.

Still, Oshawa Mayor John Gray said he will remain optimistic.

"We've been in need of some good news," Gray said. "We've got to be optimistic. I think we have faith in the company and certainly the employees of General Motors."

Worker Mary Sue Hill said GM is trying to appease employees who are facing layoffs.

"It's kind of them throwing us a bone," she said.

Earlier this month, GM announced it was closing the Oshawa truck plant because of slumping demand for large vehicles. The plant employs 2,600 workers.

The decision was announced just two weeks after GM reached a tentative agreement with the union, promising to continue production at the plant through 2011.

The CAW is considering taking its dispute with GM to the Ontario Labour Relations Board.

Angry GM workers have demonstrated against the closure since it was announced. Earlier this week, an injunction forced them to end a 12-day blockade at GM's head office in Oshawa.

Buckley said union officials will be meeting with GM officials next week to look at what new product can be brought to Oshawa.

"We're going to continue to press General Motors to keep the best truck plant in the industry open and we're going to continue our fight," he said.

With a report from CTV's Roger Smith and CTV Toronto's John Musselman