6 February, 2012Caterpillar disclosed its plans to stop its train locomotive plant in London, Ontario. The shutdown comes five weeks after Caterpillar's locked out 465 CAW members at the Canadian train locomotive plant Electro-Motive Diesel (EMD) in London, Ontario.
CANADA: On February 3, five weeks after Caterpillar's Progress Rail Services locked out 465 CAW members trying to slice their pay to C$16.50-per-hour from C$34 and to eliminate a defined benefit plan and reduce overtime pay and holiday time in collective bargaining, Caterpillar announced closure of its Canadian train locomotive plant Electro-Motive Diesel (EMD) in London, Ontario.
The announcement comes only 18 months after Caterpillar bought the plant and was awarded C$5 million in tax breaks from the Canadian government to promote industrial development.
"Caterpillar had no intention of keeping this plant open," said CAW President Ken Lewenza. "From day one, we believed that Caterpillar was trying to provoke a crisis, by forcing deep cuts that were not possible."
This sting to Canada's industrial base comes seven days after Caterpillar reported record annual profits of US$4.9 billion in 2011, an 83 per cent jump over 2010 earnings of US$2.7 billion. The closure announcement also came a day before Progress Rail Services was to hold a jobs fair in Muncie, Indiana, where the company opened a similar diesel locomotive plant in October 2011 and is now one-third toward a staffing level of 650. Average salaries in the start-up Muncie plant range from US$12-16-per-hour.
Caterpillar lobbied the Indiana state legislature ardently for passage and in full likelihood will zealously resist unionisation of the Muncie facility, a former ABB manufacturing site. This comes amidst Caterpillar CEO Doug Oberhelman enjoying 2011 salary and perks of US$10 million, while his company was out to gouge C$30 million from the 465 CAW members in London.
CAW's President Lewenza pointed at government inaction and stated these job losses are casualties of an outdated and dysfunctional Investment Canada Act that attaches no commitment between Canadian jobs and corporate takeovers.
"We will not leave this community, we will take over this plant, we will take over the equipment, we will take over the facility, until our members get justice here", added Lewenza commenting on the decision to cease operation in Ontario.
For more details visit ICEM website at http://www.icem.org/en/78-ICEM-InBrief/4876-Raging-Insult-to-Final-Injury:-Caterpillar-to-Close-Canadian-Train-Locomotive-Plant.