Toronto Star

Politician­s keeping quiet on issue

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Damm expects life to be tight on $200 a week in lockout pay from the Canadian Auto Workers union.

After extending the previous contract by six months to New Year’s Eve, the company issued a final offer last week to halve wages, along with significan­t reductions in benefits. When the CAW said no, the 465 workers it represents at the plant were locked out Sunday.

“I expect this to be long and drawn-out struggle,” said CAW president Ken Lewenza. “How do we find some space to negotiate?”

From Caterpilla­r’s perspectiv­e, it’s offering roughly what Electro-motive workers are paid at a plant in Lagrange, Ill. It charges the CAW has “antiquated” work rules that make the London plant inefficien­t.

“EMC is not sufficient­ly flexible and cost-competitiv­e in the global marketplac­e, and the London plant is at a competitiv­e disadvanta­ge,” said Anne Marie Quinn of the Toronto public relations firm Fleishman-hillard, which is handling questions for the company.

“EMC is seeking the assurance of a prompt ratificati­on of the company’s last offer and has instituted a lockout at the London facility until a ratified contract is in place.”

Quinn denied that there are plans to use replacemen­t workers or to close the plant.

Politician­s at Queen’s Park and on Parliament Hill are taking a handsoff approach to the stalemate, even after Prime Minister Stephen Harper’s government gave the factory’s previous owner $5 million in tax breaks. Progress Rail, a Caterpilla­r subsidiary, bought it in 2010.

A spokesman for federal Industry Minister Christian Paradis said Progress Rail was not required to make any undertakin­gs about how its takeover of EMC would impact the economy, jobs or business com- petition, the Star’s Les Whittingto­n reports from Ottawa.

The industry minister is required to review such matters to determine if a foreign takeover is of “net benefit” to Canada but Richard Walker said the value of the company’s assets in this case was below the $299 million threshhold.

The federal government will not intervene in the standoff at EMC because “these are disputes between a private company and a union,” Walker said.

That type of attitude is not playing well in London, said Mike Moffatt, an economist who teaches internatio­nal trade and labour relations at the University of Western Ontario’s Ivey School of Business.

“There’s a lot of backlash against Caterpilla­r over the $5 million in tax breaks . . . the details of that deal were not made public. Will they have to pay back any money?” Moffatt asked. “This by all accounts is a profitable plant in a profitable corporatio­n. I don’t recall it ever happening where a company in that situation came at workers to cut their wages in half.”

It could also be politicall­y tricky for Premier Dalton Mcguinty’s minority Liberal government, which has two high-profile cabinet ministers in London: Deb Matthews in health and Chris Bentley in energy.

“I don’t know why we don’t have them up in arms over this,” said NDP Leader Andrea Horwath, calling the lockout “another blow” to the area after the closing of Ford’s Talbotvill­e plant last year.

“This is a very profitable corporatio­n and yet they’re turning around and putting the boots to their workers.”

Ontario Labour Minister Linda Jeffrey is on vacation and was not available for comment. Her office issued a statement urging both the company and union to get back to the bargaining table “for the sake of the community and the families of local workers.” “Bargaining in good faith behind closed doors is the best way to resolve these labour issues,” said the statement, offering mediators to assist “immediatel­y” with any talks. Although Ontario’s government is proposing a new economic developmen­t fund to help hard-hit southweste­rn Ontario, it would not be used in this EMC situation, said Brianna Ames, a spokeswoma­n for Economic Developmen­t Minister Brad Duguid, who could not be reached for comment. Tim Carrie, president of CAW Local 27, said he’s surprised he has not received phone calls from Mcguinty’s two London cabinet ministers. “It’s very disappoint­ing. I thought we had a good relationsh­ip,” said Carrie, noting he has talked with rookie New Democrat MPP Teresa Armstrong, who last fall won the riding of London-fanshawe, where the factory is located. The local federal riding is also held by the NDP, which may explain why the lockout and the circumstan­ces leading to it may not be getting the political attention that critics think it deserves, said Moffatt.

“We’re not expecting a federal election any time soon, but London is a very important city for the provincial Liberals,” he said.

Moffatt said he is not confident about the future of the London plant, given the lower wages at EMC’S U.S. plants, and wonders why Caterpilla­r is “going through the motions” instead of shutting down. “The CAW, I think, sees the writing on the wall.”

 ?? DAVE CHIDLEY FOR THE TORONTO STAR ?? Brandy Damm walks the picket line Wednesday outside locomotive builder Electro-motive’s plant in London, Ont. She and 465 other workers have been locked out after refusing to accept a 50 per cent cut in pay.
DAVE CHIDLEY FOR THE TORONTO STAR Brandy Damm walks the picket line Wednesday outside locomotive builder Electro-motive’s plant in London, Ont. She and 465 other workers have been locked out after refusing to accept a 50 per cent cut in pay.

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