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Canadian, Italian Unions Want Answers to Dow Chemical’s Closures

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4 September, 2006

The Communications, Energy, Paperworkers (CEP) of Canada, an ICEM affiliate, is seeking immediate intervention from both the province of Ontario and the federal government to protect the jobs of Dow Chemical workers in Sarnia, Ontario. US-based Dow announced last week that it would close factories in Canada and Italy by 2008, eliminating 750 jobs.

The CEP is asking Ontario’s premier to attend a meeting with workers and municipal leaders of Sarnia to explore all options to keep the plant open. The jobs of 340 workers are at stake. Dow has complained that high energy costs have affected earnings.

On the national level, CEP President Brian Payne called for federal level intervention. “Dow Chemical’s announcement is a clear indication of what we have told the government – Canada’s petrochemical industry is suffering because of our mad rush to export raw product from Alberta’s oil patch, thus cutting off needed natural gas and other feed stock to the domestic market,” said Payne.

“This has to stop and we intend to do our utmost to protect our domestic industry and our jobs,” continued Payne. “We need to step back, slow the tar sands development down and create a national strategy which would see value added production and jobs created in Alberta and across Canada.”

In Italy, Dow workers, members of ICEM affiliate FILCEM-CGIL, staged a 24-hour strike on 22 August at Porto Marghere near Venice, as it became apparent that Dow would violate a signed agreement and not re-start the plant after a maintenance shutdown.

The Dow operation in Porto Marghere produces toluene diisocyanate (TDI), a product for making polyurethanes. Closure of the plant could have a ripple effect, possibly leading to the loss of up to 5,000 petrochemical jobs. Managers at other chemical plants in Italy, dependent on TDI from Dow, have expressed their concerns over the immediate Porto Marghere closure.

FILCEM-CGIL has distributed handbills to workers of other petrochemical companies. The union also organised a mass meeting of all workers to tell of Dow’s unwillingness to engage with workers’ representatives. “They know the effects of a definitive closure of the Marghera plant for the Italian chemical industry,” said FILCEM-CGIL’s Franco Baldan.

At Sarnia in Canada, Dow will shut four chemical processing plants. The company’s announcement said production of low-density polystyrene plastic will cease in the coming weeks, while a full shutdown of all polystyrene plastic will occur by the end of this year. Production of latex and derivatives of propylene oxide will cease during 2008. Dow’s announcement also said the company will close two of seven plants in the Canadian city of Fort Saskatchewan, province of Alberta, which manufacture chlorine, caustic soda, and ethylene dichloride.