Navistar content to keep its Ontario workers idling

Navistar Inc. plans to keep its heavy truck assembly plant in Chatham idle “for now,” but the company’s top official isn’t giving any sign that it will reopen.

Dan Ustian, the company’s chairman and chief executive, told analysts Tuesday that the company has wrestled with the issue for several months but still has made no final decision on whether to close the plant in southwestern Ontario.

The plant has not produced a vehicle in almost six months after 350 employees were laid off and negotiations with the Canadian Auto Workers for a new contract hit an impasse. The shutdown is also adversely affecting numerous suppliers and their workforces.
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Posted by Ian:
On Sept. 4, 2003 International Truck and Engine Corporation announced it would keep its Chatham, Ontario plant open and maintain a production schedule of heavy trucks, as the result of a long-term investment by the company, Government of Canada and the Province of Ontario. Another promise not worth the paper it was written on. Here is the full transcript of that 2003 company release.

All is quiet on the Navistar front

When and if Navistar’s idled Richmond Street truck plant re-opens remain in serious doubt.

No new talks are scheduled despite a willingness by the Canadian Auto Worker’s union and the company to return to the bargaining table.

The plant’s 350 workers have been idled since the June 30th expiration of a three-year contract.

A brief meeting in Windsor two weeks ago between both sides was just that — brief.

“The company is sticking to its original proposal to greatly downsize the Chatham operation,” said national CAW representative Joe McCabe.

McCabe admitted the lengthy closure of one of Chatham-Kent’s largest manufacturing facilities is creating a huge financial burden for its unemployed workers and the community in general.
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St. Thomas/Elgin needs to go green to jump-start economy, says Jack Layton

From the Times-Journal:
An industrial strategy, taking aim at eco-friendly jobs and technology, is what’s needed to help the flagging economy in Elgin-St. Thomas.
So said federal NDP leader Jack Layton who, Friday, met with a dozen local labour leaders, including representatives from Ford’s St. Thomas Assembly Plant, at the CAW Hall, north of Talbotville.
Irene Mathyssen, NDP MP for London-Fanshawe, attended as well.
“The message is unanimous: Manufacturing is in a crisis here and the federal government just doesn’t understand the magnitude of it,” Layton said. “What we need is an industrial strategy that’s going to put this, (the) best manufacturing work force in the world, back to work.”

London seeking $150 million offered Ford Canada’s St. Thomas Assembly Plant

Posted by Ian: St. Thomas and Elgin county lose the Ford plant and as a result the economic impact will be compounded via support operations like Lear Seating, trucking companies and CN who relied heavily on the St. Thomas Assembly Plant and yet London wants the entire $150 million offered by the province for its own benefit. It’s bad enough we have to deal with the London-centered school board and St. Joseph’s Health Centre for psychiatric services. However, you can ask the question, why didn’t St. Thomas staff and administration beat London to the punch? Or is that because they have no long-term economic plan in place. Where is the Economic Development Corp. and the Chamber of Commerce in this dark chapter? London is taking concrete steps to diversify its economy (read agri-business and digital media), while in St. Thomas we’re still trying to entice an automaker to locate here. Following is the full story from the London Free Press …

The City of London is going after $150 million the Ontario government is believed to have offered to save Ford of Canada’s St. Thomas assembly plant, Mayor Anne Marie DeCicco-Best said.

The city and region could use the cash to fund a host of ambitious economic development schemes, she said.

“We continue to be impacted in a severe way. If there is money for the plant, then surely there must be money to invest in initiatives we are looking at.”

Ford Motor Co. will close the St. Thomas plant in September 2011, cutting 1,600 jobs when it ends production of the Lincoln Town Car, Mercury Grand Marquis and Crown Victoria.
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A future without Ford – the new reality

By Kyle Rea
St. Thomas Times-Journal
As fallout continues from the news that Ford’s St. Thomas Assembly Plant will shut its doors in fall 2011, three of the biggest casualties locally — Southwold township, the Lear Seating plant and the Elgin-St. Thomas United Way — are taking a look at a future without the plant.
Last Friday, leaders of the Canadian Auto Workers union confirmed what has long been suspected, that the St. Thomas Ford facility will shut its doors in September, 2011, as the company looks to phase out production of the large cars manufactured there — the Crown Victoria, Lincoln Town Car and Grand Marquis. When that happens, 1,400 people will lose their jobs.

Ford turns up nose at unprecedented offer to save St. Thomas Assembly Plant

In a last-ditch effort to save the St. Thomas assembly plant, the province and Canadian Auto Workers made offers of cash and unprecedented concessions — but Ford Motor Co. said no.

The province offered as much as $150 million and the union told the company to cherry-pick details of any collective agreement and put it on the table, CAW national president Ken Lewenza said yesterday.

“(Ford of Canada vice-president) Joe Hendricks told me directly he could not get a better deal from any government than the one the Ontario government was prepared to put in front of Ford Motor Co. He was clear about that,” Lewenza said. “They were prepared to do more than any jurisdiction in the world. The Ontario government was prepared to be a major player.”

Instead, Ford will close the St. Thomas assembly plant in September 2011, cutting 1,600 jobs.

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80% of CAW Local 1520 membership vote in favour of new deal

TORONTO, Nov. 1 /PRNewswire/ – Thousands of CAW members working at Ford facilities in Oakville, Windsor, St. Thomas and Bramalea have voted in favour of a new agreement, ratifying the deal by 83 per cent during a series of meetings held over the past two days. The deal was reached on October 30 between the two sides.

“No one should mistake workers’ approval as satisfaction with the new agreement,” said CAW President Ken Lewenza. “Members had faith in the union to negotiate the best agreement possible and protect their interests over the long term, but the problems faced by industry cannot be resolved at the bargaining table.”

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A done deal – Ford to close St. Thomas plant in 2011, shed 1,400 jobs

MONTREAL — US automaker Ford Motor Co. will shutter one of its manufacturing plants in Canada in 2011, a move that will cut 1,400 jobs, the Canadian Auto Workers said Friday.

As part of a cost-reduction agreement between the company’s US headquarters and the CAW, the plant in St. Thomas will close in the third quarter of 2011, the powerful union said in a statement.

Some 1,400 employees will be dismissed, CAW spokeswoman Shannon Devine told AFP. Canadian media put the number of jobs eliminated at 1,600.

As part of the tentative agreement the union said it obtained a commitment by the US automaker to keep at least 10 percent of its North American production in Canada.
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St. Thomas Assembly Plant … “it is not looking good”

The future of the St. Thomas assembly plant was discussed yesterday and the automaker repeated there is no product for the local plant after 2011, Lewenza said.

The Crown Victoria, Mercury Grand Marquis and Lincoln Town Car are produced at the plant.

“We want St. Thomas to be extended, but that product line is being phased out. They have capacity all over the place. It is not looking good today.”

Ford did emphasize in talks yesterday it has made significant investments in Windsor, reopening an engine plant next year, and has added a fourth vehicle to its Oakville assembly plant.

“They indicated to us . . . Canada has been a key player in Ford’s success, but there is no product to allocate.”

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CAW emphasizes importance of new Ford contract as negotiations resume

The main issue in the ongoing negotiations on this side of the border is the future of an assembly plant in St. Thomas, Ont.

Currently, the 1,600-employee plant builds the Ford Crown Victoria, the Lincoln Town Car and the Mercury Grand Marquis – all full-sized cars, demand for which is limited to niche markets. The Crown Victoria is only included in sales of fleets, such as those run by police departments and taxi companies.

Ford has said repeatedly that it has no plans to manufacture vehicles in St. Thomas beyond 2011. Lewenza has suggested Ford could increase production at its other Canadian plants to offset the closure of St. Thomas, but Ford won’t release any details on its plans.

“We’ve asked them to take a look at where existing work is being sourced and see if there’s a possibility to source more work into our workplaces and those are the options we’re going to have to talk about (this) week, but to be honest we haven’t made much headway,” Lewenza said.

Ford spokeswoman Lauren More said the company doesn’t discuss future production or product plans for competitive reasons.
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Ford commits to new vehicles at U.S. plants, no such progress for St. Thomas Assembly Plant

Ford Motor Co. (F-N7.570.152.02%) has promised the United Auto Workers that its U.S. plants will receive a flurry of new vehicles, transmissions and other work during the next few years, while refusing so far to allocate new products to two Canadian plants.

Three Ford assembly plants – in Chicago, Louisville, Ky., and Wayne, Mich. – will begin building new vehicles in the next two years, and a commercial van called the Transit Connect that is now imported from Europe will be built at a UAW plant if North American assembly becomes necessary, according to investment commitments contained in a new contract between Ford and the union.

“The company reaffirmed its commitment to the UAW and its manufacturing presence in the U.S.,” Joe Hinrichs, Ford’s group vice-president of global manufacturing, said in a letter to UAW officials that is part of the new contract.

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CAW won’t agree to strike ban in new Ford deal

Canadian Auto Workers president Ken Lewenza says Ford Canada shouldn’t expect the same concessions that Ford Motor Co. (NYSE:F) won in recent talks with its union in the United States including a ban on strikes over wages or benefits.

“Obviously we watched the U.S. negotiations closely with the UAW because of the competitive challenges we have from one country to the other,” Lewenza said in an interview Friday.

The CAW says Ford Canada intends to slash its Canadian manufacturing presence from 13 per cent to eight per cent of total North American production. Ford currently has no plans to build vehicles at its St. Thomas, Ont., plant beyond 2011.
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‘No role’ for government in Navistar labour dispute

WINDSOR, Ont. — Despite investing millions in Navistar’s Ontario operations, the provincial government won’t intervene in a labour dispute that has seen Navistar International shift production from Chatham to Mexico, Sandra Pupatello, minister of economic development and trade, said Wednesday.

“The Ontario government has no role to play in the discussions between workers and the employer,” Pupatello said after addressing an automotive outlook conference at Caesars Windsor. “What is important is that we’ve created an opportunity for there to be significant investment in the Chatham area and in the University of Windsor. Our investment is geared toward R&D — that is creating the next generation of products coming out of Navistar and in supporting training costs for employees in Chatham.”

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