More than 420 auto workers in southwestern Ontario have been locked out of their jobs after contract talks with their employer hit an impasse. Electro-Motive kicked off the new year with a work stoppage against CAW members at its London, Ont. plant, the site of a bitter labour dispute over wages and benefits. The move comes about a week after the company presented workers with a final offer that would slice union wages in half, eliminate pensions and nix other benefits.
The company has a history of butting heads with unions, including a highly publicized dust-up with the United Auto Workers in the 1990s.
Speculation about the future of Electro-Motive's London plant intensified in October when Progress Rail opened a plant in Indiana. Questions were raised about whether the company wanted to relocate to avail of "Buy America" legislation across the border.
CAT has not yet issued a response.
Apx Worth (Assets) - 64B
Apx Income (Net) - 2B
420 people laid off making 35$ an hour, more like 45 with benefits. This would be a savings of about 38 million for the year. A 2% net profit. 2%. That is pathetic. That is on top of their multi million dollar tax rebate for employing in Canada. They have basically come out and said we are going to keep the work here if you give up half your wage and benefits sucks to you living within in your means now with 300-400K homes and multiple vehicles and not being able to when we rape your livelihood. If not, we are moving this south of the border to people who will work for less and we can sell our product (thanks buy american).
1.3 Billion was paid out last year to their stock holders, 1.3 billion (646 Million shares @ 2 bucks a share) a 2% decrease from that would be 26.25 million dollars or 4 cents per share. Add on top of that about 5 million dollars in Tax Relief from the government and you have 31Million or so, now your shortfall is only about 7 million. Which is about 20%. Now you go back and ask the employees if they would take a 20% pay cut or going from 45$ to 36$ (including benefits) rather than 45$ to 22.5$ (including benefits.)
What a greedy bunch of @#%^s.