CBJ - February 6 - About 450 union workers at a London, Ont. manufacturing plant are now unemployed following the union’s rejection of a salary reduction for most of its staff.

Electro-Motive Diesel Inc., a wholly owned subsidiary of Progressive Rail Services Corp. and Caterpillar Inc., was forced to slash employee wages in order to reverse its fortunes at the southwestern Ontario facility. According to reports, Electro-Motive Diesel stated that its London plant was losing money, despite reports of parent company Caterpillar’s financial successes.

Electro-Motive’s offer would have seen some staff fall from an hourly rate of $35 to $16.50 per hour. The workers’ union rejected the offer, illustrated by its very public protests through the city.

With the passing of right-to-work legislation in the state of Indiana, upon closing its London plant, Electro-Motive shipped the jobs to a new plant in Munice, Ind., where workers will earn $12 hourly.

Bob Scott, Chairman of CAW Local 27, told the media, “I don't think this company ever had the intention of negotiating a collective agreement. What we did was right. It took us forever to get these wages. I will not look back at what we did. We held out.”

Chris Bentley, London West MPP and Provincial Energy Minister, added, “I am deeply concerned about the workers and their families. For decades the workers at this plant have produced high quality locomotives and sold them around the world. Caterpillar comes in, takes over, effectively takes the expertise and closes the plant, leaving hundreds of workers out of work.”

Electro-Motive called the closure regrettable yet necessary due to the plant’s growing operating costs.

“The cost structure of the operation was not sustainable, and efforts to negotiate a new competitive collective agreement were not successful. Progress Rail’s global manufacturing network assures its customers that delivery schedules will not be impacted by this decision.”