TORONTO – The Canadian Auto Workers union is lashing out at U.S. heavy equipment maker Caterpillar over its decision to close the Electro-Motive plant in London, Ontario.
CAW president Ken Lewenza calls the closure callous, but says it didn’t come as a total surprise.
He says Caterpillar had no intention of keeping the plant open and was trying to provoke a crisis “from day one” by forcing deep cuts that were not possible.
The closure came just days after Premier Dalton McGuinty criticized the company during a speech in London, and after the province’s Ministry of Labour tried to get the employer back to the bargaining table.
The company had asked employees to take a 50 per cent pay cut to help keep Electro-Motive going, but locked them out January 1st when the CAW members rejected the proposal.
Caterpillar subsidiary Progress Rail Services says the cost structure at the plant was unsustainable.