Caterpillar Inc., union reach tentative closure settlement

Workers will vote Feb. 23 whether to accept terms of agreement
||Last Updated: 02/23/2012

The union representing employees at the recently closed Electro-Motive plant in London, Ont. have reached a tentative closure agreement with the plant’s parent company, Caterpillar Inc.

UPDATE: Union ratifies severance agreement with Electro-Motive

About 465 Canadian Auto Workers (CAW) Local 27 members are covered by the settlement and will vote whether to accept it on Feb. 23.

Details of the agreement will not be released until the settlement is ratified. Neither party will comment on the settlement until after the vote.

Workers at the plant had been locked out for over one month before the company decided to permanently shut down the plant on Feb. 3.

The two parties had been disputing the terms of a new collective agreement, with the company wanting to make pay cuts across the board — with some wages being reduced as much as 50 per cent.

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