Caterpillar shuts locked out Electro-Motive plant in Canada

American-based heavy equipment maker Caterpillar (NYSE:CAT) through its subsidiary Electro-Motive Canada (EMC), said today that it is closing EMC’s locomotive production operations at its London, Ontario plant. The company made the decision after several months of unsuccessful contract negotiations with the Canadian Auto Workers union (CAW), which ended up with over 400 workers locked out on January 2.

CAW’s President Ken Lewenza said he was “angry” and “frustrated” at what is he calling a “callous move” by Caterpillar. In a statement released shortly after Caterpillar’s announcement, Canada’s largest private sector union’s leader said that the closure doesn’t come as a total surprise to the union.

“Caterpillar had no intention of keeping this plant open,” said Lewenza.  “From day one, we believed that Caterpillar was trying to provoke a crisis, by forcing deep cuts that were not possible,” said Lewenza. “Our members would have happily continued working under the previous conditions, but that wasn’t enough for this incredibly profitable company.”

Lewenza also pointed the finger at government inaction in allowing the closure. He said that 465 workers and another 1,700 workers employed in spin-off jobs are now the casualties of an outdated and dysfunctional Investment Canada Act, that attaches no commitment to Canadian jobs to corporate take-overs.

“The Stephen Harper government is entirely in the pocket of the corporate elite and has shown absolute disregard for Canadian workers and their families,” said Lewenza. “I am disgusted at this government and its indifference towards the suffering of workers and the unemployed. The Harper government was elected by Canadians, but only seems able to represent multi-national corporations.”

Caterpillar said that it has started notifying the affected employees this morning.

 

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