Community reaction to Caterpillar's London plant shutdown

Electro-Motive employees were locked out on New Year's Day, and have since been permanently laid off. (David Chidley/Canadian Press)

Hundreds of Canadians lost their jobs on Friday, as Caterpillar announced the closure of its Electro-Motive Diesel locomotive plant in London, Ont.

Despite the layoffs, picketing has continued into the weekend as the now former employees call for a closure agreement from the company. The head of the Canadian Auto Workers is also calling for a public inquiry.

The collective agreement between EMD - which is owned by Caterpillar through its Progress Rail subsidiary - and the Canadian Auto Workers Local 27 ran out at the end of 2011. Over 450 workers were forced off the job at the beginning of the year after they refused a 50 per cent pay cut.

The company's position is that labour costs were too high, an explanation that is not sitting well with critics.

Among other things, they point to the record profit the company made last year, the long list of jobs it has to complete, and Caterpillar's reputation for being tough on unions.

The closure has generated strong reaction from CBC community members. Today we bring you excerpts from three personal stories that were sent to us by those affected by the closure. 

David Ivanski

"As the New Year began, I was sure this contract was going to be a struggle. Caterpillar has a long history of labour strife, but I believed that the company and the union could come to some sort of agreement. Guess I was wrong. [... ]

To claim the cost structure is to blame for the closing of this factory is a bald-faced lie. The unionized workers in this factory have not had a raise in pay other than cost of living since 2004.

We lost some minor benefits and agreed to a no-wage-increase contract in 2005, and then in 2008 with the new owners, Greenbriar Equity, we took many concessions on our contract. An 18-month freeze to COLA [Cost of Living Adjustment], a loss of one week's vacation, loss of our annual Christmas bonus, increased co-pay on prescriptions and a few other things I'm sure I've forgotten. No one was happy with this 2008 contract, but we rationalized how we still had it better than so many others. [... ]

I don't expect or even want sympathy. What I would like is for the general public to wake up and understand that as these good paying jobs disappear so to do our tax dollars. I paid close to $25,000 in income tax alone in 2011. At $18 an hour I wouldn't pay even close to that. As a country we have the lowest corporate tax rate of all the G7 countries.

As jobs like mine disappear where do the federal tax dollars come from to sustain our fantastic country? As I sit hear writing this after my first (but probably not last) night of no sleep, I honestly believe I will get through this somehow some way. But it is my children and everyone else's children I fear for. This is slowly becoming a country of haves and have-nots."

Lynda Brand

"This is only my side as a spouse of a 23-year devoted employee who I am very proud of and very worried about. I am only speaking from my side. I cannot speak for Paul.

What this has done to us:

1. House is for sale.
2. Not house hunting. Looking for an apartment or mobile home, if we can even afford that. When you have nothing, where do you live?
3. Cutting out all spending except for immediate needs.
4. Appointment with bank to seek advice if we cannot sell house and run out of money.
5. Thoughts of perhaps bankruptcy.
6. Stress on relationship.
7. Health problems cropping up.
8. Inability to sleep properly.
9. Irritability.
10. Confusion.
11. Loss of faith in the future.
12. Loss of any plans for retirement.
13. Loss of faith in our government for what they allowed to happen in Canada and London, Ont.
14. Feeling of worthlessness because of inability to pay bills.
15. Constant worry, worry, worry.
16. We have discussed the food bank.
17. Worry that Paul will not be able to find another job that will pay our bills
18. Now the worry that we will have no health coverage.
19. The worry that we will have no future.

I'm sorry. I can't go on anymore with this. My head hurts and it is difficult to see right now. I'm going to try to lie down and sleep for a little while if I can.

Tammy

"With the closure of EMD, my family has once again been put on the unemployment line. My husband has worked for EMD for seven years and has actually enjoyed his job. This lockout came as no shock, as I'm sure they all knew that it would come to that in the end. I do believe that this was the plan right from the minute the plant was bought.

The last five weeks have been extremely stressful for our family. We are a family of five and adjusting to $200 a week is not easy. That won't even pay our rent for one month. Luckily we have been able to put a few bills on hold for a month and try to pay what we can on the remainder. We started avoiding the everyday phone calls from bill collectors, by just not answering the phone.

We are trying to fight with London Hydro so we don't lose our hydro in the next week. Our vehicle will more than likely be taken away in the weeks to come as well. How do you explain to your six-year-old that he can't have a cookie as there are only a few left and we need to save them for school lunches? [...]

Of the 108 jobs that my husband has applied to, he has not heard back from any of them. [...]

My heart goes out to all the families that will lose their jobs with the closure of EMD. It is sad to see a company that has been in Canada for 63 years go down, because the government would not step in and say enough is enough."

Are you a former EMD worker who has been affected by the shut down? Send your story to yournews@cbc.ca with the subject line "Electro-Motive Diesel closure."


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