Motor Coach Industries laying off 1,300 in Winnipeg

Last Updated: Thursday, December 4, 2003 | 1:03 PM ET

CBC News

Bus maker Motor Coach Industries, which got $20 million in a government bailout earlier this year, is laying off about 1,300 workers at its Winnipeg operations.

The International Association of Machinists and Aerospace Workers said the employees will lose their jobs by next January. Layoff notices from the company began arriving in the mail on Wednesday.

In March 2002, the company said it was closing its three plants and laying off 1,300 workers.

But in January of this year, the government of Winnipeg, Manitoba and Canada coughed up $20 million for the company.

The Province of Manitoba loaned the company $9.5 million, while the various governments put up grants of $5 million for employee training, plant expansion and equipment. The federal government also put $5 million into equipment and research and development.

At the time the government money was unveiled, the company said it would invest $40 million to consolidate its Winnipeg coach production and engineering for inter-city models into one large manufacturing facility.

The company is headquartered in Illinois but had been doing business in Winnipeg for over 70 years.