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Caterpillar shutting locked-out Electro-Motive plant
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John Size, CTVNews.ca
Date: Fri. Feb. 3 2012 9:59 PM ET
American heavy-equipment giant Caterpillar Inc. is closing its London, Ont. locomotive plant where 450 workers have been locked out since January.
Workers at the Electro-Motive plant were locked out Jan. 1 after refusing to take a 50 per cent pay cut to keep the facility open. Employees are represented by the Canadian Auto Workers' union.
Progress Rail Services, a subsidiary of Caterpillar, said the plant's operating costs were "unsustainable" without the concessions.
Ontario's Economic Development Minister Brad Duguid said his thoughts were with the workers when he heard the news Friday morning, but he didn't have details on the plant's closure.
CAW president Ken Lewenza called the closure callous and said the company had no intention of keeping it open.
The decision comes days after Ontario Premier Dalton McGuinty criticized the company for not living up to the expectations of Ontarians.
"It's not working because the balanced, made-in-Ontario approach requires that unions and management sit down and talk to try to work out their differences, and so far the owners of Electro-Motive have failed," he said.
Speaking to the London Chamber of Commerce Tuesday, McGuinty said both sides should show some "flexibility" to reach an agreement.
Caterpillar posted a 58 per cent increase in its quarterly earnings last week, with a record profit of nearly $5 billion last year. Its CEO, Doug Oberhelman, received a $10.5-million annual paycheque.
The CAW has criticized the company for being greedy and immoral in its approach to negotiations, with some fearing the company intended to relocate the plant to the United States all along.
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