Local leaders question future of Navistar plant after more layoffs

CHATHAM, Ont. — When Sterling announced it would shut its St. Thomas, Ont. truck plant in March 2009, its rival Navistar International insisted that its nearby Chatham heavy-duty truck facility would not suffer the same fate.

Now, in light of more announced layoffs taking effect March 2, the union representing the truckmaker’s Chatham workers and local mayors aren’t so sure.

According to a report in the Chatham Daily News, the CAW, along with Chatham-Kent Mayor Randy Hope and Chatham-Kent Essex MP Dave Van Kesteren, want the Chicago-based company to give a cleaner picture of its intentions are with its only Canadian manufacturing plant.

"I understand market conditions and other factors but I’m growing more and more concerned over the situation," Hope told the paper.

Navistar announced yesterday it would layoff another 200 workers on top of the nearly 600 employees it gave pink slips to between September and December this past year (most of those layoffs take effect Feb. 1). After that, only about 200 assembly workers and 60 office staff will remain operating the plant.

Last October, when Daimler Trucks announced it decided to eliminate the Sterling Truck brand and close its Canadian plant, Navistar spokesman Roy Wiley told media that his company was in much better shape than its competitor; and while there would be some layoffs in the wake of a major U.S. downturn, the plant was safe.

Wiley says the company intends to meet its contractual obligations at the Chatham facility, but for now "the order board is pretty bare."