Canadian Navistar truck plant closed indefinitely

CHATHAM, Ont. — Navistar International’s sole Canadian truck plant in Chatham, Ont. is shut down indefinitely as the company and the CAW failed to make a deal two days after the current contract expired.

Talks broke off yesterday after the CAW rejected the company’s latest offer and are said to be on hold for the next few weeks. Navistar, therefore, will be laying off the remaining 370 workers at the plant for a scheduled summer shutdown.

Whether they are called back remains in doubt.

About 800 other plant workers have been off the job for about a year. At its production height a few years ago, the Chatham plant — which received $63 million in government aid to keep the plan open in 2003 — had about 2,000 workers.

The union alleges that the company has refused to extend the collective agreement and will not agree to bringing in a mediator.

The company is adamant that the Chatham operation needs to be downscaled. Its plans are to move some heavy-duty production to its Escobedo, Mexico facility and other southern U.S. plants. 

Not surprisingly, this is the biggest obstacle between the truckmaker and the union, although the CAW reportedly won’t budge on other demands such as reducing benefits, reducing new hire compensation; and eliminating cost of living adjustments.

"We cannot expect our members to accept a contract that will eliminate their jobs and devastate their already hard hit community," said CAW president Ken Lewenza, who reiterated past statements that the company should not be allowed to sell trucks in Canada if it mothballs the plant permanently.