January 16, 2012

Ontario Federation of Labour demonstrates at London, Ontario Caterpillar plant

The Ontario Federation of Labour announced two of its executive officers planned Monday to visit the picket line outside a London, Ontario plant owned by heavy equipment manufacturer Caterpillar Inc .

OFL stated its Secretary-Treasurer, Nancy Hutchison, and Executive Vice-President Irwin Nanda were scheduled Jan. 9 to join members of the Canadian Auto Workers demonstrating against employer Electro-Motive Canada, which builds diesel electric locomotives. OFL has asked workers to “mobilize for a massive rally” Jan. 21 in London, where CAW says members of its Local 27 are locked out of the plant on Oxford Street east of Clarke Road.

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Based in LaGrange, Illinois, Electro-Motive Diesel Inc. was founded in 1922 and spun off by General Motors in 2005. In 2010, it was acquired by Progress Rail Services from Berkshire Partners LLP and Greenbriar Equity Group LLC for US$820 million in cash plus a net working capital adjustment.

Progress Rail Services is a subsidiary of Peoria, Illinois-based Caterpillar, whose products include Cat brand trucks, pavers, excavators, loaders, dozers and other heavy equipment. Caterpillar announced in October it had sold US$4.9 million worth of construction equipment during the three months ending September 30.

On Oct. 24, Caterpillar reported profits for the first nine months of 2011 were $3.381 billion on revenues of $42.895 million , up from a profit of $1.732 billion on revenues of $29.781 billion during the same period of 2010. All figures are in US currency.

On its balance sheet Sept. 30, the firm also reported total liabilities of $63.063 billion, including $7.494 billion for post-employment benefits, $8.9 billion in long-term debt due after one year in machinery and power systems, and $17.878 billion in long-term debt due after one year in financial products.

OFL says Electro-Motive is trying to get “dramatic pension and benefit concessions” from the London, Ontario workers.

Last month, CAW leader Ken Lewenza wrote to Prime Minister Stephen Harper demanding that Industry Canada review the acquisition of Electro-Motive.

Progress Rail Services operates more 110 facilities in the United States, 28 in Mexico, four in Canada, and one in South America. Facilities in Canada include weld plants in Surrey, British Columbia and Winnipeg, plus locomotive services in Lachine, Quebec.

DCN DIGITAL MEDIA

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