Electro-Motive celebrates
It's been one year since the Oxford Street plant changed owners from GM to Greenbriar.
By NORMAN DE BONO, FREE PRESS BUSINESS REPORTER
One year and a new owner has made all the difference at London's Electro-Motive Diesel plant.
The Oxford Street industrial plant, which suffered years of volatile swings in production and number of employees, appears to have found stability and growth with Greenbriar Equity Group.
It was one year ago this month the $500-million US deal closed that saw the manufacturer sold by GM to Greenbriar and in that time the plant has hired 300 more hourly workers, cut its white-collar workforce by about 10 per cent and filled the order board with demand for about 400 locomotives, said Keith Berry, chairperson of Local 27, representing locomotive workers.
"It has been a very busy year and we have seen a lot of investment in the plant," said Berry. "We are now at 900 workers. That is the most we have had here in years."
But the good news for hourly employees has been balanced by cuts in its salaried totals. About 25 positions have been eliminated, added Berry.
"There is definitely a difference in how Greenbriar does business. Greenbriar is lean and mean and GM was very heavy in salaried staff."
A celebration will be held at the plant today, and officials from Greenbriar will be on site for the festivities. Electro-Motive officials yesterday declined comment on the anniversary.
"It is excellent here now," said Berry. "With GM, there were always ups and downs. The difference now is if you do not produce they will cut you."
David Johnson, an analyst with Sanford Bernstein in New York, said it is simply a matter of a smaller firm focusing on the business, while GM was more concerned with its automotive operations.
"GM was in need of capital to put into its core automotive business and capital was not made available to (Electro-Motive)," he said.
Johnson was not surprised by the cut in the white-collar workforce saying "slow- moving bureaucracy" has been cited as an ongoing problem at GM. "Small divisions generally outperform the corporate parent. They have more focus and have shorter, faster decision-making cycles."
Berry agreed, adding it is a difference one can see on the shop floor.
"They are very aggressive in how they pursue sales and market themselves," Berry said.
"We are chasing leads where GM took a less active role. They have a different philosophy. When they tell you to do it right the first time, they mean it. They are trying hard to cut out rework which cuts into profit margins."
It's been one year since the Oxford Street plant changed owners from GM to Greenbriar.
By NORMAN DE BONO, FREE PRESS BUSINESS REPORTER
One year and a new owner has made all the difference at London's Electro-Motive Diesel plant.
The Oxford Street industrial plant, which suffered years of volatile swings in production and number of employees, appears to have found stability and growth with Greenbriar Equity Group.
It was one year ago this month the $500-million US deal closed that saw the manufacturer sold by GM to Greenbriar and in that time the plant has hired 300 more hourly workers, cut its white-collar workforce by about 10 per cent and filled the order board with demand for about 400 locomotives, said Keith Berry, chairperson of Local 27, representing locomotive workers.
"It has been a very busy year and we have seen a lot of investment in the plant," said Berry. "We are now at 900 workers. That is the most we have had here in years."
But the good news for hourly employees has been balanced by cuts in its salaried totals. About 25 positions have been eliminated, added Berry.
"There is definitely a difference in how Greenbriar does business. Greenbriar is lean and mean and GM was very heavy in salaried staff."
A celebration will be held at the plant today, and officials from Greenbriar will be on site for the festivities. Electro-Motive officials yesterday declined comment on the anniversary.
"It is excellent here now," said Berry. "With GM, there were always ups and downs. The difference now is if you do not produce they will cut you."
David Johnson, an analyst with Sanford Bernstein in New York, said it is simply a matter of a smaller firm focusing on the business, while GM was more concerned with its automotive operations.
"GM was in need of capital to put into its core automotive business and capital was not made available to (Electro-Motive)," he said.
Johnson was not surprised by the cut in the white-collar workforce saying "slow- moving bureaucracy" has been cited as an ongoing problem at GM. "Small divisions generally outperform the corporate parent. They have more focus and have shorter, faster decision-making cycles."
Berry agreed, adding it is a difference one can see on the shop floor.
"They are very aggressive in how they pursue sales and market themselves," Berry said.
"We are chasing leads where GM took a less active role. They have a different philosophy. When they tell you to do it right the first time, they mean it. They are trying hard to cut out rework which cuts into profit margins."
