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 He said that 465 workers and another 1,700 workers employed in spin-off jobs are now the casualties of an outdated and dysfunctional Investment Canada Act, that attaches no commitment to Canadian jobs to corporate take-overs.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.
16 Comments
Jimmy2trees
Another company flying back to USA to cheap wages, no benefits and no care for the working man. But CEOs are making millions on bonuses. Maybe it’s time for a change in the way things work in business. 400 men out of work, one CEO big bonus, all for greed. I’m sry for the true workers of this plant who will suffer, it’s sad that others will blame unions and such, but the truth lays with greed, the all mighty dollar. So sad for these people and there families, my heart goes out to you all.
Thaw_Howard
This is exactly what is due this union!!! These unions and there management team do not understand the reality of the real world around. So they got what was due!!! But the truth lays with greed on the part of the Union,. So sad for these people and there families, my heart goes out to you all. But maybe these unions will learn a lesson.
RealityCheck101
Perhaps it is the unions that are causing the employment crisis! Businesses can only tolerate so much before they close their doors! Thats a fact! The unions in this case and in most other cases drive for inflated wages and salaries that the marketplace can not bear. It has nothing to do with government. Small, medium and large businesses are what drive the economy and NOT government. The Canadian Auto Workers, United Steelworkers, and the countless other unions that “Represent” the working man and woman were a great thing in the 1940’2, 50’s and perhaps even the 60’s…. before there was the appropriate legislation to protect the employee. Unions now… protect the weak willed, useless employees that can’t represent themselves or are too lazy to do their jobs on a daily basis. EMC with its 40.00 and 50.00 per hour employees were not able to compete in a marketplace where cost is the motivator for major purchases. Now… nobody is employed! Well Done Canadian Auto Workers and Ken Lewenza. The best part … non of the Union folks will ever take ownership for the problem and would rather deflect blame to everyonce else like the company and government. Shame on the them. I feel badly for the employees and those that have lost their jobs. It is really unfortnate that it had to get to that point!
Mohammad Ali
stephen harper is the best PM Canada had EVER please respect our government.thank you for info.
3051001
Unions and Union reps – thugs and bullies and 100% bullshitters. Many – perhaps most people including people who are members in the unions do not know that during strikes the union reps and bosses and negotiators get full salaries, bonuses and special strike pay incentives.
How is that fair and honest? It is not – so easy to work people up and tell them to reject an offer – the company will never close the doors or relocate – all the company can do is pay you what you demand – even if the demands are unfair, unrealistic at the given time, stupid or ridiculous
I have been in a union before – was threatened for working too hard, producing too many pieces, had my percentage of tolerances too high – man I was making the rest of the guys look bad. What? And when I said I would continue at the pace I was at because we made bonuses on piece work within tolerances (quality control) guess what? Just like in the movies.
It was implied if I continued I would get too tired by the end of the shift and have an accident on the way home.
Unions had their day – now they are nothing more that big business – yes they are. They are exactly what they tell members they are against – corporate greed. You bet – the Directors, management, etc get heavy bonuses, very large salaries, incentives, 1st class travel (of course they are on Union business) and when the members go on strike – they still get their mortgage payments made, etc.
So wise-up people. If you choose to contribute to a union and continue to demand, demand, demand and don’t look at what the truth is – on both sides of the coin – union side and corporate side – then you get what you deserve
I am sad for the families whose members are members of the unions and didn’t use their brains but followed like sheep to slaughter
But as for the members – you got what you deserved – stupid – absolutely stupid and senseless and as Canadians you should know better – like this hasn’t happened beofre.
Look at you current salaries and benefit packages and place yourself with the rest of North America and where would you be – near the top – now where are you? Doesn’t look good – you have nobody to blame but the Union and yourselves.
What is the Union going to do for you now? Pay your mortgages, put your kids in college, buy you beer on weekends – ha – they are covering their own backsides and lining their own pockets – you?
You are nothing but a CHUMP – make sure you thank them before the door hits you in the arse on the way out
Now there are Americans who are celebrating because of new jobs coming to the good ‘olde USofA and they will be lining up with resumes in hand
3051001
Jimmy2trees – what kinda tree you live in? You must be a union rep – read your words again and do a simple little switch – switch the Union bosses for the CEO and you now have the truth – the Union CEO’s and yes there are Union CEO’s are the ones getting the big bucks and allow the 400 men to bite the bullet
Give your head a shake Buddy – it is confusion like yours that stops people from seeing the truth
Unions are big business and part of Corporate America where the few at the top suck blood long and hard from the many at the bottom
3051001
CAW’s President Ken Lewenza – I challenge you to put on-line – front page of the papers how much you give towards Union fees and what your salaries, benefits, perks (including all flights, limos, hotels, restaurants etc) are especially when a membership is on strike. Oh ya – and the type of neighborhood you live in, the size and value of your house, your vacation cottage at the lake, the chalet at the ski resort, the yacht you have, where you vacation, where your family shops, the type of single malt scotch you drink, the Cubans you smoke, and the size and value of your Union retirement package. Oh ya please don’t forget bonuses, incentives, kickbacks and anything else In may have forgotten the union members PAY FOR
I bet you will refuse based on this not being relevant, on privacy issues, yada, yada, yada – bottom line is you are a long standing member of Corporate America
yet you have the balls to say 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.”
You are Hypocrite and a coward and no different that what you condemn and I know you will never release the information I asked for above
farigodmuder
CAW once again breaks the camels back. No winner here.
Eco Major
Hey people why don’t you take a 50% cut in pay, then figure out how to pay YOUR mortgage!
How about sell the house, don’t send your kids to school so that they can have a better life, oh ya there are no jobs. Why, because every job has gone to China because they pay there employees there next to nothing, and the corporate commanders are making 300% more than the people on the shop floor. Economically speaking this is no sustainable for North America
Robert
To Peter, your exactly right union Executives such as Ken Lewenza get huge indexed cola pensions, and so do all the other useless union reps., who also get “super” seniority, or in other words they never get laid off. However with the plant closing this will get rid of some of the cancerous union personnel that help to close the factory down
Ghost
UNION Executives swimming in the deep end of the pool with all the sharks, Politicians, CEO’s, and Corporate crooks are all opportunists for self greed. Fact is though Union salary and benifit negotiations help the middle class ants doing the dirty work. Maybe even raise a Family that provides for their kids education and some kind of better life than working in the trenches. Then here we have the anti-union know it alls, that know sh-t. Retards of the way the world should operate like back in the 60’s with every-one in industry’s health damaging ways. Companies make money, union contracts get a boost, pretty simple. Dig deep anti sh-t holes because as the unions go down the tubes so are the working conditions, families, and life styles you were in favor of, watching all the Government/CORPORATE deals go to CHEAPER WAGES. Smart’en up.
Seedsofchangeforlife
I’d like to say I feel sorry for the people who lost their jobs; but I can’t… People sit here and argue about corporate greed; but let me ask you, which of you would start a business with the goal of making your employees rich? NONE OF YOU….The employees were making $40 – $50 an hour and wanted more. Sure blame the union; but he union represented them. If they were not wanting more money (being greedy themselves) the union would not have had cause to go barking up the tree. I am just tired of hearing everyone blame problems on corporate greed. Which part of Capitalism don’t you understand. If you don’t like the way it works, Thank God, that in your Capitalism countries you are free to move anywhere you want. So perhaps you all that blame the world problems on corporate greed should band together and move to a third world country and be merry together and broke!
Dbbutter1
i use to work for a company and we would put together the equipment
i been to the plant some of the workers on the floor is good workers
but the people running the plant and the union thay need to be replaced
we had nuthing but problems and had to call cat in the us to get the parts sent to us
Pkhomkhai
We are living in a world of ever growing global competitiveness.
If companies like Cat want to survive they have to transfer this into their operations.
Unions need to understand that the economic privileges of the first world cannot be maintained.
If Unions want to stick their heads in the sand about this, then the consequence are obvious.
sailormac
What happened at Cat London had nothing to do with profits or Unions. What Cat (American) management is doing is re-patriating jobs, to the part of America most devistated by industrial job lose. Unfortunately, the tools available to unions are for 19th century industrial realities, not 21st century. While the union was blocading the plant, the company cheerfully sent all the data electronically down to the States. They don;t need anything physical from the plant to effectively transfer operations elsewhere
Mrpusspuss
Harper is all about the oilsands and Alberta…Ontario and Electro-Motive not so much.