Cost structure cited as reason for move from Ontario
Progress Rail, the parent of Electro-Motive Canada (EMC) in London, Ont. announced on Feb. 3 that it is closing the plant.
According to Progress, “The cost structure of the operation was not sustainable and efforts to negotiate a new, competitive collective agreement were not successful.”
The roughly 450 unionized employees of EMC were locked out on Jan. 1. They are represented by Local 27 of the Canadian Auto Workers (CAW).
CAW president Ken Lewenza responded that the action "doesn't come as a total surprise."
"Caterpillar had no intention of keeping this plant open. From day one, we believed that Caterpillar was trying to provoke a crisis, by forcing deep cuts that were not possible."
