Ont. should compel companies to pay severance: CAW
Last Updated: Thursday, November 26, 2009 | 8:53 AM ET
CBC News
Union representatives from Windsor are travelling to Toronto Thursday to press provincial labour officials to draft legislation that would require companies to pay workers severance when a factory closes.
Gerry Farnham, president of CAW Local 195, is leading the delegation. He represents 80 former employees who worked at the Aradco and Aramco plants before they were closed and say they are owed $2.4 million in severance, termination and vacation pay.
"The government needs to recognize the fact that this problem exists for unionized and non-unionized workers," Farnham said Thursday.
Farnham said the CAW and U.S.-based Catalina Precision Products, which owns the two shuttered facilities, are still trying to work out a compensation deal.
"Our attorney is talking to their attorney," Farnham said.
Catalina recently offered to pay an additional $60,000 in severance on top of the $400,000 the former employees already received.
Farnham called the offer “insulting” and said the company needed to offer workers a better deal.
The former workers at Aramco and Aradco are monitoring the closed plants to make sure equipment isn’t removed and auctioned off to pay creditors.
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