Saturday, March 22, 2008

Kitchener Frame to lay off 147 as toll from U.S. strike mounts


Kitchener Frame Ltd. will lay off 147 workers tomorrow, making them the latest victims of a labour dispute in the United States that has idled General Motors plants and their suppliers.
Mike Devine, president of the Canadian Auto Workers Local 1451, said there are no further layoffs planned at the Kitchener frame manufacturer.
"That's it for now," he said yesterday. "We really don't know what the impact will be."
American Axle & Manufacturing Inc. workers walked off the job on Feb. 26, stalling production at six General Motors plants, including its Oshawa truck assembly plant and a plant Moraine, Ohio.
Kitchener Frame makes frames for sport utility vehicles assembled in the Moraine plant.
American Axle, which employs 3,650 workers in Detroit and upper New York state, makes axles for GM trucks and sport utility vehicles. The company is demanding a 50-per-cent pay cut from its workers, according to the United Auto Workers union.
Talks are slated to resume today, which could offer a glimmer of hope for hundreds of laid-off auto parts workers in Waterloo Region.
Besides Kitchener Frame, three other local GM suppliers have laid off workers since the American Axle strike began last week.
Tenneco Inc. has laid off 200 workers at its Cambridge plant while Lear Corp. has laid off 65 workers at its Kitchener plant.
Tenneco has also laid off hundreds of workers at other facilities in Ontario, including 430 workers at its plant in Owen Sound.
AGS Automotive Systems issued 60 layoff notices to its Cambridge workforce. The company has also laid off 170 workers at its Oshawa and Scarborough facilities.
GM said it will slow its production levels at plants in Toledo, Ohio, and Janesville, Wisc., due to the strike.
mhammond@therecord.com

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