London train maker ships out jobs
Fri, June 29, 2007
By NORMAN DE BONO, SUN MEDIA
Electro-Motive Diesel is shipping work and jobs out of its London plant, raising fears the industrial giant may be for sale.
The manufacturer of train locomotives has two years of orders on the books and increased sales, but is still outsourcing more than 100 jobs, said Keith Berry, chairperson of Canadian Auto Workers Local 27 representing Electro-Motive workers.
"Things are very tense here right now. Everyone on the shop floor is wondering what is going on," he said.
"A lot of us here think they are just trying to make us more attractive to a buyer."
Bruno Couteille, director of human resources at Electro-Motive Diesel, declined comment on the cuts and the sale rumours.
Greenbriar Equity Group bought the plant on Oxford Street East two years ago.
At the time, the American investment firm told the union it is not a long-term owner and the plant could be sold when sales rise and its value grows -- and that time may be near, Berry said.
Electro-Motive Diesel's machine shop, sub assemblies, electrical harness area, pipe shop and fabrication departments are facing the axe, he said.
Two London plants, London Precision Machinery and AMTI, may get some of the machine shop work.
An internal memo from John Hamilton, Electro-Motive Diesel chief executive, stated sales have "grown and continues to grow dramatically. Sales for (2008) . . . will be up over 35 per cent from the prior year with strong demand across all of our core markets," it read.
About 900 CAW workers and 75 salaried staff work at the plant, meaning the cuts would total more than 10 per cent of the workforce.
In addition, rumours are rampant the plant may also cut from 10 to 22 salaried jobs, said one senior manager who declined to be identified.
"We will be easier to sell without the extra cost of machinery, there are a lot of rumours about a sale right now," he said.
Electro-Motive also recently cut its accounts payable department, transferring that function to Illinois, cutting about eight jobs.
Tony Hatch, analyst with ABH Consulting in New York, said there is no discussion in the rail sector that Electro-Motive Diesel is on the block.
Greenbriar has done "a good job" of building the business while cutting costs and may simply be looking at continuing that trend, he said.
"I know they are happy with EMD and I have not heard anything in the marketplace" about a possible sale, said Hatch.
One week ago, Berry, CAW national president Buzz Hargrove and Greenbriar executives met in Toronto where the CAW pledged to fight the outsourcing. The two sides have agreed to meet again on the issue.
The company has told the union it may return other work to the plant that was outsourced earlier to compensate for the job cuts, Berry said.
Electro-Motive Diesel has also opened a plant in Mexico and workers fear production being shipped there.
Fri, June 29, 2007
By NORMAN DE BONO, SUN MEDIA
Electro-Motive Diesel is shipping work and jobs out of its London plant, raising fears the industrial giant may be for sale.
The manufacturer of train locomotives has two years of orders on the books and increased sales, but is still outsourcing more than 100 jobs, said Keith Berry, chairperson of Canadian Auto Workers Local 27 representing Electro-Motive workers.
"Things are very tense here right now. Everyone on the shop floor is wondering what is going on," he said.
"A lot of us here think they are just trying to make us more attractive to a buyer."
Bruno Couteille, director of human resources at Electro-Motive Diesel, declined comment on the cuts and the sale rumours.
Greenbriar Equity Group bought the plant on Oxford Street East two years ago.
At the time, the American investment firm told the union it is not a long-term owner and the plant could be sold when sales rise and its value grows -- and that time may be near, Berry said.
Electro-Motive Diesel's machine shop, sub assemblies, electrical harness area, pipe shop and fabrication departments are facing the axe, he said.
Two London plants, London Precision Machinery and AMTI, may get some of the machine shop work.
An internal memo from John Hamilton, Electro-Motive Diesel chief executive, stated sales have "grown and continues to grow dramatically. Sales for (2008) . . . will be up over 35 per cent from the prior year with strong demand across all of our core markets," it read.
About 900 CAW workers and 75 salaried staff work at the plant, meaning the cuts would total more than 10 per cent of the workforce.
In addition, rumours are rampant the plant may also cut from 10 to 22 salaried jobs, said one senior manager who declined to be identified.
"We will be easier to sell without the extra cost of machinery, there are a lot of rumours about a sale right now," he said.
Electro-Motive also recently cut its accounts payable department, transferring that function to Illinois, cutting about eight jobs.
Tony Hatch, analyst with ABH Consulting in New York, said there is no discussion in the rail sector that Electro-Motive Diesel is on the block.
Greenbriar has done "a good job" of building the business while cutting costs and may simply be looking at continuing that trend, he said.
"I know they are happy with EMD and I have not heard anything in the marketplace" about a possible sale, said Hatch.
One week ago, Berry, CAW national president Buzz Hargrove and Greenbriar executives met in Toronto where the CAW pledged to fight the outsourcing. The two sides have agreed to meet again on the issue.
The company has told the union it may return other work to the plant that was outsourced earlier to compensate for the job cuts, Berry said.
Electro-Motive Diesel has also opened a plant in Mexico and workers fear production being shipped there.
